OT:RR:CTF:EMAIN: H298322 PF
Mr. Wesley Demory
Thomsen and Burke LLP
2 Hamill Road, Suite 415
Baltimore, MD 21210
Re: Request for Reconsideration of NY N296492; Classification of LED lamps
Dear Mr. Demory:
This is in response to your letter, dated June 15, 2018, in which you request reconsideration of New York Ruling Letter (“NY”) N296492. NY N296492, issued to you on May 17, 2018 on behalf of Lumileds LLC (“Lumileds”) by U.S. Customs and Border Protection (“CBP”), involves classification of certain light-emitting diodes (“LEDs”) with multiple emitters under the Harmonized Tariff Schedule of the United States (“HTSUS”). In NY N296492, we classified three types of products, identified as Luxeon Altilon (“LAFL”), Luxeon Altilon H1K PnP (“LAPH”), and Luxeon Altilon SMD PnP (“A2SQ”). These are packaged LEDs with multiple emitters for integration into automotive lighting items, such as headlights, daytime running lights, and fog lights. We have determined that NY N296492 is correct, and, for the reasons set forth below, are affirming that ruling. In reaching our decision, we have also considered arguments presented during the October 4, 2018 teleconference and supplemental information submitted on October 11, 2018.
NY N296492 provided the following description of the subject merchandise:
The Luxeon Altilon (LAFL) is a packaged LED for use in automotive applications. The LED contains multiple emitters (2 or 4) in an array and packaged onto a substrate. Depending on a customer’s design requirements, the customer may select an LAFL with a single spade lug connector interface, or the manufacturer may select an LAFL with a solder point connection. The interface is for the customer to attach a separate power converter/driver, which is needed, among other things, to operate the LED. The item size is on the order of tens of millimeters. The LAFL products are shipped in a shipping tube or on reeled pocket tape.
The Luxeon Altilon H1K PnP (LAPH) is a packaged LED for use in automotive applications. The LED contains multiple emitters (4 or 5) packaged onto a PCB with a single connector and passive resistors and capacitors. The connector provides an interface for the customer to attach a separate power converter/driver, which is needed, among other things, to operate the LED. Resistors and capacitors are used to set the proper lumen output and to protect the LED against electrostatic discharge. The item size is on the order of tens of millimeters. The LAPH products are shipped in stackable trays.
The Luxeon Altilon SMD PnP (A2SQ) is a packaged LED for use in automotive applications. The LED contains multiple emitters (up to 5) packaged onto a PCB with passive resistors and capacitors. Some configurations include a single connector, while others have a solder point connection. The connector provides an interface for the customer to attach a separate power converter/driver, which is needed, among other things, to operate the LED. Resistors and capacitors are used to set the proper lumen output and to protect the LED against electrostatic discharge. The item size is on the order of tens of millimeters. The A2SQ products are shipped on reeled pocket tape.
The subject merchandise contains one or more emitters (“LED modules”) that are mounted to a substrate or a printed circuit board (“PCB”). The substrate or PCB acts as a base with a common electrical connection point and internal circuit tracings, which allow for easy connection to a power source. Models LAPH and A2SQ incorporate an LED module, an electrical socket connector, resistors and capacitors all mounted on a common PCB. Model LAFL incorporates an LED module and a two prong connector which are mounted on a substrate. The resistors and capacitors are used to set the proper lumen output and to protect the LED against electrostatic discharge. The connectors provide an interface for the customer to attach a separate power converter/driver to operate the LED. The subject merchandise is coupled with a reflector or lens, heatsink, connectors and wiring (as applicable), and driver to produce light. In its reconsideration request, Lumileds clarifies that only the LAPH and A2SQ products contain capacitors and resistors and alleges that none of the models have all of the control circuitry necessary to protect them from the electrical current.
The HTSUS provisions under consideration in this reconsideration are as follows:
8539 Electrical filament or discharge lamps, including sealed beam lamp units and ultraviolet or infrared lamps; arc lamps; light-emitting diode (LED) lamps; parts thereof
8541 Diodes, transistors and similar semiconductor devices; photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals; parts thereof
The Explanatory Notes (“ENs”) to the Harmonized Commodity Description and Coding System represent the official interpretation of the tariff 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 these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989).
The General EN to Chapter 85, HTSUS, provides that the chapter covers:
Certain electrical goods not generally used independently, but designed to play a particular role as components, in electrical equipment, e.g., capacitors (heading 85.32), switches, fuses, junction boxes, etc. (heading 85.35 or 85.36), lamps (heading 85.39), thermionic, etc., valves and tubes (heading 85.40), diodes, transistors and similar semiconductor devices (heading 85.41), electrical carbons (heading 85.45).
* * *
The ENs to heading 8539, HTSUS, provide in relevant part:
The heading covers filament lamps, gas or vapour discharge lamps, arc-lamps and light emitting diode (LED) lamps.
* * *
(F) LIGHT-EMITTING DIODE (LED) LAMPS
The light from these lamps is produced by one or more light-emitting diodes (LED). These lamps consist of a glass or plastic envelope, one or more light-emitting diodes (LED), circuitry to rectify AC power and to convert voltage to a level useable by the LEDs, and a base (e.g., screw, bayonet or bi-pin type) for fixing in the lamp-holder. Certain lamps may also contain a heat sink.
These lamps are of various shapes, e.g., spherical (with or without a neck); pear or onion shaped; flame shaped; tubular (straight or curved); special fancy shapes for illuminations, decorations, Christmas trees, etc.
* * *
The heading excludes:
* * *
(e) Light emitting diodes (LED) of heading 85.41.
* * *
The ENs to heading 8541, HTSUS, provide, in part:
(C) LIGHT EMITTING DIODES
Light emitting diodes … are devices which convert electric energy into visible, infra-red or ultra-violet rays. They are used, e.g., for displaying or transmitting data in control systems.
* * *
Heading 8539, HTSUS, provides in pertinent part for “Electrical filament or discharge lamps, including sealed beam lamp units and ultraviolet or infrared lamps; light emitting diode (LED) lamps; parts thereof.” On January 1, 2017, heading 8539, HTSUS, included a new provision for “light-emitting diode (LED) lamps.” Heading 8539, HTSUS, now covers lamps using all types of light sources, including LEDs.
The subject merchandise is designed to be used in automotive lighting applications, contain LED modules, electrical circuit tracings, and connectors that when installed in a housing and connected to a power source, emit light. In essence, the subject merchandise is incorporated into a light fixture that is incorporated into a motor vehicle’s headlight to produce light. As such, each of these subject products is an unfinished LED bulb that has the essential character of the finished product. Therefore, the subject merchandise possesses the essential character of complete lamps and is classified by application of GRI 1 and GRI 2(a) under heading 8539, HTSUS, as lamps.
In NY N114496, dated July 16, 2010, CBP determined that an LED assembly that consisted of multiple integrated circuits (including resistors, capacitors, and fuses) and an 8-pin surface connector possessed the essential character of a complete lamp. CBP reasoned that the function of the assembly was to emit light by using LED technology in place of a traditional lamp or light bulb. When installed into the fixture’s housing and connected to a power source, it emitted light. As a result, CBP determined that the LED assembly was classified in heading 9405, HTSUS, which provides for in relevant part “Lamps and light fittings.” While we note that NY N114496 was decided before the creation of the LED lamp subheading within heading 8539, HTSUS, NY N114496 is directly applicable because it concerns similar merchandise. Moreover, in NY N127207, dated October 26, 2010, CBP determined that LED modules that were designed to be installed inside or onto light fixtures that contained a heat sink, a connection to a power supply, and that would generate light had the essential character of a complete LED lamp. Similar to the products in NY N114496 and NY N12707, the subject merchandise is made up of an assembly of LEDs that comprise the light source of complete lamps and when installed in housings adequate for their intended purpose, and connected to a power source, they emit light.
Lumileds maintains that the subject merchandise is properly classified in heading 8541, HTSUS, because the subject merchandise does not contain the control circuitry necessary to protect them from the electrical current. However, models LAPH and A2SQ contain resistors and capacitors that are used to set the proper lumen output and to protect the LED against electrostatic discharge. Even though the resistors and capacitors are passive electrical components, they still play a role in limiting the flow of electrical current through a circuit. Moreover, while model LAFL does not contain resistors or capacitors, it is manufactured into modules (in addition to models LAPH and A2SQ) which place them outside the scope of heading 8541, HTSUS. Finally, all of the models of the subject merchandise have the ability to illuminate once power is provided via their electrical connectors.
In NY N114496, discussed supra, CBP rejected the classification of the LED light assembly in heading 8541, HTSUS, because it did not just consist of LEDs, but was an “assembly consisting of LEDs and other active and passive electrical components (e.g., resistors, capacitors, fuses, etc.) assembled together for the single function of emitting light to an open area by utilizing LED technology in place of a traditional lamp or light bulb.” Moreover, in NY N256343, dated September 9, 2014, CBP found that a chip on board (“COB+”), which contained an assembly of LEDs on a ceramic substrate, diodes, rectifiers, resistors, transistors, anode and cathode electrodes on a substrate was beyond the scope of heading 8541, HTSUS. The COB+ was intended to be used in the LED element in a bulb assembly by coupling it with the reflector, heatsink, socket and various parts to form a complete LED bulb. Similar to merchandise in NY N114496, the subject merchandise consists of an LED modules that are assembled together for the function of emitting light. Models LAPH and A2SQ contain resistors and capacitors mounted on a common PCB similar to the merchandise in NY N114496 and NY N256343.
Lumileds also takes issue with CBP’s reliance on HQ H011693, dated December 18, 2007, HQ H010636, dated December 3, 2007 and HQ H003215, dated October 10, 2007 to support the exclusion of its LED products in heading 8541, HTSUS. However, HQ H011693, HQ H010636, and HQ H003215 are applicable because they all stand for the proposition that heading 8541, HTSUS, only covers semiconductor diodes without other components. In HQ H011693 and HQ H010636, the additional components included a lamp housing, which CBP found was beyond the scope of heading 8541, HTSUS. In HQ H003215, the product at issue was a complete lamp, which is also not covered by heading 8541, HTSUS. Similarly in the present case, all of the models of the subject merchandise are comprised of LED modules and models LAPH and A2SQ also contain resistors and capacitors, components that are outside the scope of heading 8541, HTSUS.
Finally, Lumileds contends that the classification of the instant LED products in heading 8541, HTSUS is consistent with Classification Opinion 854140/1 of the Harmonized System Committee (“HSC”) of the World Customs Organization (“WCO”) and rulings from several other countries including the United Kingdom, Germany and the Netherlands. With respect to the decision of the HSC, we have addressed the status of these types of decisions previously and have stated:
In Treasury Decision (“T.D.”) 89-80, decisions in the Compendium of Classification Opinions should be treated in the same manner as the Harmonized Commodity Description and Coding System Explanatory Notes (EN’s), i.e., while neither legally binding nor dispositive, they provide a commentary on the scope of each heading of the HTSUSA, and are generally indicative of the proper interpretation of these headings. T.D. 89-80 further states that EN’s and decisions in the Compendium of Classification Opinions "should receive considerable weight."
See HQ 963181, dated September 20, 2000.
Notwithstanding the fact the decision is not binding, we note that the LED assembly that the HSC classified under heading 8541, HTSUS consisted only of LED packages mounted on a board. It therefore differs from the subject merchandise, which, as mentioned above, features control circuitry and are a direct source of illumination. With respect to the ruling from the United Kingdom, the description of the product (which is described as a “single indicating LED on a custom PCB, with drive and protection components) is not specific enough to analyze whether the merchandise is substantially similar to that subject to the current case. For example, the ruling does not describe the function, interface, or manufacturing process of the product at issue. Moreover, the rulings from Germany and the Netherlands have not been translated, so we are also unable to ascertain the particular products at issue in those cases.
Moreover, in HQ 965325, dated January 16, 2002, we noted that “classification rulings from other Customs administrations on like merchandise are instructive only and are not binding on the United States.” The courts have also been clear on this point and have stated that a “WCO opinion is not binding and is entitled, at most, to ‘respectful consideration.’” Cummins Inc. v. United States, 454 F.3d 1361, 1366 (Fed. Cir. 2006), citing Sanchez-Llamas v. Oregon, 548 U.S. 331 (2006).
For all the aforementioned reasons, we hereby affirm NY N296492. Accordingly, the subject LED products remain classified in heading 8539, HTSUS, specifically in subheading 8539.50.00, HTSUS, as “Electrical filament or discharge lamps, including sealed beam lamp units and ultraviolet or infrared lamps; arc lamps; light-emitting diode (LED) lamps; parts thereof: Light-emitting diode (LED) lamps.”
Sincerely,
Myles B. Harmon, Director
Commercial and Trade Facilitation Division