CLA-2 RR:CR:GC 959647 RFA
Port Director
U.S. Customs Service
6 World Trade Center, Room 423
New York, NY 10048
RE: Protest 1001-96-104976; Liquid Crystal Displays (LCDs); Flat Panel Displays; Signaling Apparatus; Principal Use; Headings 8531 and 9013; Sharp Microelectronics Technology, Inc. v. United States; HQs 952722 and 959175
Dear Port Director:
The following is our decision regarding Protest 1001-96-104976, which concerns the classification of a Sanyo Semiconductor Corporation liquid crystal display module for the Superset 430 Digital Business Telephone under the Harmonized Tariff Schedule of the United States (HTSUS).
FACTS:
The merchandise consists of a liquid crystal display (LCD) module, model DG057Z-5G, with a display of 64 x 240 pixels. Attached to the LCD is a printed circuit board (PCB) with integrated circuits. After importation, the subject merchandise will be assembled into the Superset 430 Digital Business Telephone. The LCD will display the following: six rectangles which correspond by position to six buttons on the telephone situated below the display known as “softkeys” which wil activate system features; data about the current call(s) such as the name and extension of the other party on the line and the status of the call.
The LCD module was entered on November 16 and 20, and December 12 and 14, 1995, under subheading 8531.20.00, HTSUS, as signaling apparatus. The entries were liquidated on March 22 and 29, and April 5, 1996, under subheading 9013.80.60, HTSUS, as liquid crystal devices not specified or included elsewhere. The protest was timely filed on June 20, 1996.
The subheadings under consideration are as follows:
8531.20.00: Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530. . . : [i]ndicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's).....
Goods classifiable under this provision have a general, column one rate of duty of 2.4 percent ad valorem.
9013.80.60 Liquid crystal devices not constituting articles provided for more specifically in other headings. . . : [o]ther devices, appliances and instruments: [o]ther. . . .
Goods classifiable under this provision have a general, column one rate of duty of 8.1 percent ad valorem.
ISSUE:
Are the subject LCDs classifiable as signaling apparatus, or as liquid crystal devices not constituting articles provided for elsewhere under the HTSUS?
LAW AND ANALYSIS:
Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.
LCDs are prima facie classifiable in the following HTSUS headings: 8471, which provides for ADP machines and units thereof; 8531, which provides for electric sound or visual signaling apparatus; and, 9013, which provides for liquid crystal devices not constituting articles provided for in other headings. Legal Note 1(m) to Section XVI, HTSUS (which includes chapter 84), states that: “[t]his section does not cover: [a]rticles of chapter 90.” Because of the wording of heading 9013, if the subject merchandise is provided for more specifically in another heading, it would not be classifiable in heading 9013. See Sharp Microelectronics Technology, Inc. v. United States, 932 F.Supp. 1499 (CIT 1996), aff’d., 122 F.3d 1446 (CAFC 1997). See also HQ 959175, dated November 25, 1996. Therefore, if an LCD does not meet the terms of either headings 8471 or 8531, then it is classifiable under heading 9013.
According to the information provided, LCD module, model DG057Z-5G, is a customized graphic LCD which will visually present limited information regarding the operational status of the Superset 430 Digital Business Telephone. In HQ 952722, dated September 27, 1994, Customs determined that an LCD module used for a telecom console was principally used and/or limited by design to “signaling” because it provided limited indication information to a user. Based upon the rationale in HQ 952722, we find that the subject LCD, model DG057Z-5G, which is used as a telephone console display is classifiable under heading 8531.20.00, HTSUS, as signaling apparatus.
HOLDING:
The LCD module, model DG057Z-5G, is classifiable under subheading 8531.20.00, which provides for: “[e]lectric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530. . . : [i]ndicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's).....” Goods classifiable under this provision have a general, column one rate of duty of 2.4 percent ad valorem.
The protest should be GRANTED. In accordance with Section 3A(11)(b) of Customs Directive 099 3550 065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry or entries in accordance with the decision must be accomplished prior to mailing the decision. Sixty days from the date of the decision, the Office of Regulations and Rulings will make the decision available to Customs personnel, and to the public on the Customs Home Page on
the World Wide Web at www.customs.ustreas.gov, by means of the Freedom of Information Act, and other methods of public distribution.
Sincerely,
John Durant, Director
Commercial Rulings Division