CLA-2 OT:RR:CTF:TCM H290372 DSR
TARIFF NO: 8528.52.00
RE: Tariff classification of the home theater displays; Revocation of NY N273137, NY N273139, and NY N273880 by operation of law
Mr. Lars-Erik A. Hjelm
Akin Gump Strauss Hauer & Feld LLP
1333 New Hampshire Ave, NW
Washington, DC 20036-1564
Dear Mr. Hjelm,
This is in response to your request on behalf of Vizio, Inc. (“Vizio”), dated August 16, 2017, for a binding ruling on the tariff classification under the Harmonized Tariff Schedule of the United States (HTSUS) of three types of home theater displays. The request references three binding rulings issued by U.S. Customs and Border Protection (CBP) in 2016 to VIZIO concerning the same devices. Vizio has requested that CBP issue a new ruling covering the subject devices because of changes that were made to heading 8528, HTSUS, in 2017.
FACTS:
The three rulings at issue are New York Ruling Letter (“NY”) N273137 (March 9, 2016), NY N273139 (March 14, 2016), and NY N273880 (March 30, 2016). In NY 273137, the devices under consideration are the Vizio P Series Home Theater Display monitors with diagonal screen sizes between 50 inches and 70 inches, model numbers P50-C1, P55-C1, P65-C1, P75-C1. These LED-backlit color LCD monitors include the following connections: HDMI inputs, component video input, Ethernet input, USB, analog audio out, and digital audio out. Additionally, these P Series monitors can reproduce video through a USB memory device. Moreover, these monitors, which are imported without television tuners or channel selectors, are designed to be used with an automatic data processing machine of heading 8471, and as imported can display, process and transmit a clear image from an ADP machine as well as video images from set top boxes, cameras, DVD players, Blu-ray players, et cetera. The subject monitors are not capable of receiving a television signal. The subject monitors will be retail packed, at the time of importation, with their accessories, including a tablet remote control, a remote control charger, a display stand, cables and a Quick Start Guide.
In NY N273139, the devices under consideration are the Vizio E Series Home Theater Display monitors with diagonal screen sizes between 43 inches and 70 inches, model numbers E43u-D2, E48u-D0, E50u-D2, E55u-D0, E60u-D3, E65u-D3, and E70u-D3. These LED-backlit color LCD monitors include the following connections: HDMI inputs, component video input, Ethernet input, USB, analog audio out, and digital audio out. Additionally, these E Series monitors can reproduce video through a USB memory device. Moreover, these monitors, which are imported without television tuners or channel selectors, are designed to be used with an automatic data processing machine of heading 8471, and as imported can display, process and transmit a clear image from an ADP machine as well as video images from set top boxes, cameras, DVD players, Blu-ray players, et cetera. The subject monitors are not capable of receiving a television signal. The subject monitors will be retail packed, at the time of importation, with their accessories, including a tablet remote control, a remote control charger, a display stand, cables and a Quick Start Guide.
In N273880, the devices under consideration are the Vizio M Series Home Theater Display monitors with diagonal screen sizes between 50 inches and 80 inches, model numbers M50-D1, M55-D0, M60-D1, M65-D0, M70-D3, and M80-D3. These LED-backlit color LCD monitors include the following connections: HDMI inputs, component video input, Ethernet input, USB, analog audio out, and digital audio out. Additionally, these M Series monitors can reproduce video through a USB memory device. Moreover, these monitors, which are imported without television tuners or channel selectors, are designed to be used with an automatic data processing machine of heading 8471, and as imported can display, process and transmit a clear image from an ADP machine as well as video images from set top boxes, cameras, DVD players, Blu-ray players, et cetera. The subject monitors are not capable of receiving a television signal. The subject monitors will be retail packed, at the time of importation, with their accessories, including a tablet remote control, a remote control charger, a display stand, cables and a Quick Start Guide.
The subject devices were classified in subheading 8528.59.21, HTSUS (2016), which provided for “Monitors and projectors, not incorporating television reception apparatus;…: Other monitors: Other: Color: With a flat panel screen: Incorporating video recording or reproducing apparatus: Other: Flat panel display devices designed for use with an automatic data processing machine, as defined in additional U.S. note 13 to chapter 85.”
ISSUE:
Whether the subject devices are classified in the 2018 HTSUS under subheading 8528.52.00 as “Monitors and projectors, not incorporating television reception apparatus; …: Other monitors: Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471,” or subheading 8528.59 as “Monitors and projectors, not incorporating television reception apparatus; …: Other monitors: Other.”
LAW AND ANALYSIS:
Classification under the Harmonized Tariff Schedule of the United States (HTSUS) is determined in accordance with the General Rules of Interpretation (GRI). 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 may then be applied.
Further, 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 Harmonized System and are generally indicative of the proper interpretation of the heading. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). The HTSUS provisions under consideration in this case are as follows:
8528 Monitors and projectors, not incorporating television reception apparatus;
reception apparatus for television, whether or not incorporating radio-
broadcast receivers or sound or video recording or reproducing apparatus:
Other monitors:
8528.52.00 Capable of directly connecting to and designed for use with an
automatic data processing machine of heading 8471
* * *
8528.59 Other:
* * * *
Each cited ruling classified the subject devices in subheading 8528.59.21, HTSUS (2016) with respect to the subject merchandise. On January 1, 2017, subheading 8528.52.00 was added to the tariff, and subheading 8528.59.21 was deleted. Those changes resulted in a clear delineation, at the six-digit HTSUS level, between non-cathode-ray tube monitors “capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471” (new subheading 8528.52.00) and all other non-cathode-ray tube monitors that are not capable of such (amended subheading 8528.59). In other words, if a monitor is not a cathode ray-tube monitor, and is capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471,” that monitor is now clearly classified under subheading 8528.52.00, HTSUS.
The result is that subheading 8528.52.00, HTSUS, has effectively subsumed subheading 8528.59.21 (2016) with respect to the subject merchandise. For that reason, we find that NY N273137 (March 9, 2016), NY N273139 (March 14, 2016), and NY N273880 (March 30, 2016) are revoked by operation of law.
HOLDING:
By application of GRIs 1 and 6, the subject home theater displays are classified under subheading 8528.52.00, HTSUS, as “Monitors and projectors, not incorporating television reception apparatus; …: Other monitors: Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471,” and free of duty. Duty rates are provided for your convenience and subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided at www.usitc.gov.
EFFECT ON OTHER RULINGS:
NY N273137 (March 9, 2016), NY N273139 (March 14, 2016), and NY N273880 (March 30, 2016) are revoked by operation of law.
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division