CLA–2 OT:RR:CTF:TCM H237734 AMM
Ms. Leslie Vaughn
Technical Consumer Products, Inc.
325 Campus Drive
Aurora, OH 44202-6662
RE: Revocation of New York Ruling Letter N233864; Tariff Classification of a Light Emitting Diode Light Bulbs; Revocation of NY N231480, NY N221295, NY N210776, NY N163395, NY N162407, NY N144675, and NY N119322
Dear Ms. Vaughn,
This is in reference to New York Ruling Letter (NY) N233864, dated October 18, 2012, regarding the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of five light-emitting diode (LED) light bulbs. In that ruling, Customs and Border Protection (CBP) classified the LED light bulbs under heading 9405, HTSUS, which provides in pertinent part for “Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; …”. We have reviewed NY N233864 and found it to be incorrect. For the reasons set forth below, we are revoking that ruling.
Furthermore, for the reasons set forth below, we are also revoking the following rulings which classify substantially similar products under heading 9405, HTSUS: NY N231480, dated September 14, 2012; NY N221295, dated June 27, 2012; NY N210776, dated April 3, 2012; NY N163395, dated May 12, 2011; NY N162407, dated May 6, 2011; and NY N144675, dated February 11, 2011. Additionally, for the reasons set forth below, we are modifying the following ruling which classifies substantially similar products under heading 9405, HTSUS: NY N119322, dated August 30, 2010 (specifically, the “LED A Lamp”, “LED MR16 Lamp”, “LED Par30 Lamp”, and “LED T8 Lamp”.)
Pursuant to section 625(c), Tariff Act of 1930, (19 U.S.C. §1625(c)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act, Pub. L. 103-182, 107 Stat. 2057, 2186 (1993), notice of the proposed revocation of the NY N233864 and revocation of treatment relating to the tariff classification of the instant LED Light Bulbs was published on July 2, 2014, in the Customs Bulletin, Volume 48, Number 26. In that notice, CBP proposed that the instant products were classified in heading 8543, HTSUS. One comment was received in support of this proposal. During the comment period, CBP identified seven (7) additional rulings which classified substantially similar merchandise in heading 9405, HTSUS.
FACTS:
In NY N233864, CBP described the merchandise as follows:
Item number LED11E26BR4041K features a dimmable flood light and it is rated at 11 Watts at 120 Volts. The bulb is designed as a replacement for traditional commercial and residential fluorescent, incandescent, or halogen lamps. It is suitable for BR40, BR30 and R20 flood and spot light applications such as, recessed downlights, track light fixtures, and display fixtures. The bulb has an E26 base for standard Edison-style base socket. The LEDs and the driver are contained in a cast aluminum housing with a polycarbonate lens that performs as a diffuser.
Item number LED17E26P3830KFLA features a dimmable flood light and it is rated 17 Watts at 120 Volts. The bulb is designed as a replacement lamp for traditional commercial and residential fluorescent, incandescent, or halogen lamps. It has an E26 base for standard Edison-style base sockets. The LEDs and driver are housed in a white enamel cast aluminum heatsink housing with a clear prismatic polycarbonate plastic lens that performs as a light diffuser.
Item number LED8E26A21950K is a dimmable LED A-lamp (bulb). It is comparable to a 60 Watt incandescent lamp and it is recommended for general lighting, table lamps, chandeliers, ceiling fans and wall sconces. The light bulb has a standard Edison-style base socket and it is available in 8 or 12 Watts and 120 Volts. The LEDs and the driver are contained in a white enamel cast aluminum heatsink housing with either a clear prismatic polycarbonate plastic lens or glass lens that performs as light diffuser. The bulb is designed as a replacement lamp for traditional commercial and residential fluorescent, incandescent, or halogen lamps.
Item number LED7GU10MR1630KNFL is a narrow spot flood LED light bulb. The bulb is designed as a replacement lamp for traditional commercial and residential fluorescent, incandescent, or halogen lamps. It is recommended for track lighting, recessed downlights, and display lights. The bulb has a GU base for a single plug-in socket. The LEDs and the driver are contained in an aluminum housing with a polycarbonate or glass diffusing lens. It is available in 7 Watts and 120 Volts.
Item number LDT3WH30K represents the dimmable decorative LED light bulb series that are available in torpedo, flame tip and globe styling diffusers. It is a 3 Watt light bulb that has an E12 or E26 base for standard Edison-style sockets. The bulb is a replacement lamp for traditional commercial and residential incandescent, halogen or fluorescent lamps. It is typically used for chandeliers, ceiling fans and decorative indoor and outdoor fixtures. The LEDs and the driver are contained in an aluminum base polycarbonate housing/globe.
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In NY N233864, CBP classified these five products under heading 9405, HTSUS, which provides in pertinent part for “Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; …”.
In your submission dated January 14, 2013, you note that Item No. LED8E26A21950K is an invalid number, and the correct Item No. is LED8E26A1950K.
The instant products are pictured below:
Item No. LED11E26BR4041K
Item No. LED17E26P3830KFLA
Item No. LED8E26A1950K
Item No. LED7GU10MR1630KNFL
Item No. LDT3WH30K
ISSUE:
What is the correct classification under the HTSUS of the LED Light Bulbs identified by Item Nos. LED11E26BR4041K, LED17E26P3830KFLA, LED8E26A1950K, LED7GU10MR1630KNFL, and LDT3WH30K?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRIs). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The 2014 HTSUS provisions under consideration are as follows:
8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:
8543.70 Other machines and apparatus:
8543.70.70 Electric luminescent lamps
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9405 Lamps and lighting fittings including searchlights and spotlights and parts thereof, not elsewhere specified or included; illuminated signs, illuminated nameplates and the like, having a permanently fixed light source, and parts thereof not elsewhere specified or included:
Other electric lamps and lighting fittings:
Of base metal:
9405.40.60 Other
Note 1 to Chapter 94, HTSUS, states, in part: “This chapter does not cover: … (f) Lamps or lighting fittings of chapter 85 …”.
The Harmonized Commodity Description and Coding System Explanatory Notes (ENs), constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to consult, whenever possible, the terms of the ENs when interpreting the HTSUS. See T.D. 89–80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
EN 84.79 states, in pertinent part:
For this purpose the following are to be regarded as having “individual functions”:
(B) Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function:
(i) is distinct from that which is performed by the machine or appliance whereon they are to be mounted, or by the entity wherein they are to be incorporated, and
(ii) does not play an integral and inseparable part in the operation of such machine, appliance or entity.
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EN 85.43 states, in pertinent part:
This heading covers all electrical appliances and apparatus, not falling in any other heading of this Chapter, nor covered more specifically by a heading of any other Chapter of the Nomenclature, nor excluded by the operation of a Legal Note to Section XVI or to this Chapter.
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The electrical appliances and apparatus of this heading must have individual functions. The introductory provisions of Explanatory Note to heading 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of this heading.
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The heading includes, inter alia:
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(16) Electro-luminescent devices, generally in strips, plates or panels, and based on electro-luminescent substances (e.g., zinc sulphide) placed between two layers of conductive material.
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The General ENs to Chapter 94, state, in pertinent part:
This Chapter covers, subject to the exclusions listed in the Explanatory Notes to this Chapter:
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(3) Lamps and lighting fittings and parts thereof, not elsewhere specified or included, of any material (excluding those of materials described in Note 1 to Chapter 71)
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CBP has previously determined that a “lamp” is a device which provides an isolated source of heat or light. See HQ H024878, dated March 31, 2010 (LED module for ornaments); HQ H024876, dated March 31, 2010 (LED modules for promotional buttons and displays); HQ H095035, dated March 31, 2010 (LED light set for bike handlebars); HQ H024874, dated March 31, 2010 (various LED modules); HQ H042586, dated January 29, 2009 (fiber optic lamp); and HQ 966952, dated August 18, 2004 (litecube). See also The Random House College Dictionary (1973) at 752; Webster’s New Collegiate Dictionary (1979) at 639). As entered, the subject LR6C LED Lamp comprises the light source of a lighting fixture. The LR6C LED Lamp is designed with an Edison type screw in base to replace a standard R40 size light bulb. When installed into a lighting fixture, and connected to a power source, it emits light. As such, we conclude that the LR6C LED Lamp meets the definition of “lamp” as enunciated in earlier CBP Rulings, in that it is a device which provides an isolated source of light.
If the instant light bulbs are lamps or lighting fittings of Chapter 85, then they are excluded from heading 9405, HTSUS by Note 1 to Chapter 94, HTSUS. Therefore, our analysis begins with heading 8543, HTSUS.
Heading 8543, HTSUS, provides in relevant part for: “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter.” The instant product is an “electrical apparatus.” See Whirlpool Corp. v. United States, 505 F. Supp. 2d 1358, 1362 (Ct. Int’l. Trade 2007) (defining the term “apparatus” as “a group of devices, or a collection or set of materials, instruments or appliances to be used for a particular purpose or a given end.”). The definition of “individual functions” is contained in the EN to Heading 84.79. See EN 85.43. EN(B) to heading 84.79 provides that “Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function: (i) is distinct from that which is performed by the machine or appliance whereon they are to be mounted, or by the entity wherein they are to be incorporated, and (ii) does not play an integral and inseparable part in the operation of such machine, appliance or entity.” Four of the instant LED light bulbs are designed to fit into any lighting fixture which uses an Edison type screw base, while the fifth is is designed to fit into any lighting fixture which accepts a standard GU10 two pin connector. These light bulbs cannot perform their function of light generation unless they are connected to a power source. A lighting fixture supplies power to the instant products. As such, the instant light bulbs must be mounted on another machine or appliance, or incorporated into a more complex entity. The function of a lighting fixture is to hold the instant light bulbs, supply power to them, and to direct their light. These functions are separate from the function of the light bulb, whose function is to generate light. Because the lighting fixture performs these functions whether or not a light bulb has been inserted, the bulb itself does not play an integral and inseparable part of the operation of the lighting fixture. Therefore, the instant light bulbs have an “individual function” as defined in EN(B) to 84.79 and within the meaning of heading 8543, HTSUS.
Heading 8543, HTSUS, covers “[e]lectro-luminescent devices, generally in strips, plates or panels, and based on electro-luminescent substances (e.g., zinc sulphide) placed between two layers of conductive material.” See EN(16) to Heading 85.43. “Luminescence” is defined as:
Light emission that cannot be attributed merely to the temperature of the emitting body. Various types of luminescence are often distinguished according to the source of the energy which excites the emission.
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There are also types of luminescence that are initiated by the flow of some form of energy into the body from the outside. According to the source of the exciting energy, the luminescences are designated as … electroluminescence if the energy comes from the application of an electric field.
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See McGraw Hill Concise Encyclopedia of Science and Technology, 6th Edition (2009) at 1361.
CBP also notes that an LED is considered an electroluminescent substance. See Van Nostrand's Encyclopedia of Chemistry, 5th Edition (2005) at 947, which defines the operation of LEDs:
Recombination or injection electroluminescence was first observed in 1923 by Lossew, who found that when point electrodes were placed on certain silicon carbide crystals and current passed through them, light was often emitted. Explanation of this emission has been possible only with the development of semiconductor theory. If minority charge carriers are injected into a semiconductor, i.e., electrons are injected into p- type material or "positive holes" into n-type material, they recombine spontaneously with the majority carriers existing in the material. If some of these recombinations result in the emission of radiation, electroluminescence results.
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The subject light bulbs are “electroluminescent devices” as described above because passing electric current through it will generate light that cannot be attributed merely to its temperature. Furthermore, they are based on an “electroluminescent substance,” namely their internal light-emitting diodes. Accordingly, the instant light bulbs are properly classified under heading 8543, HTSUS. They are therefore, pursuant to Note 1(f) to Chapter 94, HTSUS, excluded from classification in heading 9405, HTSUS. With regard to classification at the subheading level, the instant products are properly classified under subheading 8543.70.70, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Electric luminescent lamps”.
In accordance with the above analysis, CBP is also revoking NY N231480, NY N221295, NY N210776, NY N163395, NY N162407, and NY N144675, which classified substantially similar merchandise under heading 9405, HTSUS. In addition, CBP is modifying NY N119322, which classified the “LED A Lamp”, “LED MR16 Lamp”, “LED Par30 Lamp”, and “LED T8 Lamp” under heading 9405, HTSUS.
One commenter submitted a comment in support of CBP’s classification of this merchandise in heading 8543, HTSUS, but asked that, for completeness sake, we consider whether heading 8541, HTSUS, would be appropriate. The issue of whether LED light bulbs are classifiable under heading 8541, HTSUS, was recently addressed in HQ H024869, dated February 12, 2014.
HOLDING:
By application of GRIs 1 and 6, the LED Light Bulbs identified by Item Nos. LED11E26BR4041K, LED17E26P3830KFLA, LED8E26A1950K, LED7GU10MR1630KNFL, and LDT3WH30K are classified under heading 8543, HTSUS, specifically in subheading 8543.70.70, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Electric luminescent lamps”. The column one, general rate of duty is 2% ad valorem.
Duty rates are provided for convenience only and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on the World Wide Web at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N233864, dated October 18, 2012, NY N231480, dated September 14, 2012, NY N221295, dated June 27, 2012, NY N210776, dated April 3, 2012, NY N163395, dated May 12, 2011, NY N162407, dated May 6, 2011, and NY N144675, dated February 11, 2011, are hereby REVOKED. NY N119322, dated August 30, 2010, is hereby MODIFIED. In accordance with 19 U.S.C. §1625(c), this ruling will become effective 60 days after its publication in the Customs Bulletin.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division