OT:RR:CTF:EMAIN H298399 DSR
Ralph Natale
Executive V.P.
American Shipping Company, Inc.
250 Moonachie Road
Moonachie, NJ 07074
RE: Tariff classification of a monitor from an undisclosed country of origin
Dear Mr. Natale:
This is in reply to your request concerning the classification under the Harmonized Tariff Schedule of the United States (“HTSUS”) of a 70” liquid-crystal display (“LCD”) monitor. Your request was forwarded by the National Commodity Specialist Division (“NCSD”) in New York to this office for a response. No sample was provided.
You have asked that certain information submitted in connection with this request be treated as confidential. Inasmuch as this request conforms to the requirements of 19 C.F.R. § 177.2(b)(7), the request for confidentiality is approved. The specified items will not be released to the public and will be withheld from the published version of this decision.
FACTS
The subject device is an LCD monitor designated as model number BM-B70AU. It has a diagonal screen size of 70”. It has four HDMI input ports and can receive an 8K video signal from 8K output compatible devices such as cameras, computer video cards, etc. It also contains a USB media player and can reproduce video from a USB stick. The device does not contain an integrated tuner or channel selector, but it does come packaged together with a remote control. The monitor can directly connect to a personal computer (“PC”) and can display output from the PC on its screen.
ISSUE:
What is the tariff classification of the subject monitor?
LAW AND ANALYSIS:
Classification under the HTSUS is made in accordance with the General Rules of Interpretation (GRI's). 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 based on GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s 2 through 6 may then be applied in order. GRI 6 requires that the classification of goods in the subheadings of headings shall be determined according to the terms of those subheadings, any related subheading notes and, mutatis mutandis, to GRIs 1 through 5.
The following HTSUS provisions are under consideration:
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
* * *
Reception apparatus for television, whether or not
incorporating radio-broadcast receivers or sound or video
recording or reproducing apparatus:
* * *
8528.72 Other, color:
* * *
With a flat panel screen:
Incorporating video recording or reproducing
apparatus:
* * *
8528.72.64 Other.
* * *
In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35127 (August 23, 1989).
The EN to heading 8528, HTSUS, states, in pertinent part, the following:
(A) MONITORS CAPABLE OF DIRECTLY CONNECTING TO AND DESIGNED FOR USE WITH AN AUTOMATIC DATA PROCESSING MACHINE OF HEADING 84.71
This group includes monitors which are capable of accepting a signal from the central processing unit of an automatic data processing machine and provide a graphical presentation of the data processed. These monitors are distinguishable from other types of monitors (see (B) below) and from television receivers.
The monitors of this group may be characterized by the following features:
They usually display signals of graphics adaptors (monochrome
or color) which are integrated in the central processing unit of the automatic data processing machine;
They do not incorporate a channel selector or video tuner;
They are fitted with connectors characteristic of data processing systems (e.g., RS-232C interface, DIN, D-SUB, VGA, DVI, HDMI or DP (display port) connectors);
The viewable image size of these monitors does not generally
exceed 76 cm (30 inches);
They have a display pitch size (usually smaller than 0.3 mm) suitable for close proximity viewing;
They may have an audio circuit and built-in speakers (generally, 2 watts or less in total);
They usually have control buttons situated in the front panel;
They usually cannot be operated by a remote control;
They may incorporate tilt, swivel and height adjusting mechanisms, glare-free surfaces, flicker-free display, and other ergonomic design characteristics to facilitate prolonged periods of viewing at close proximity to the monitor;
They may utilize wireless communication protocol to display data from an automatic data processing machine of heading 84.71.
* * *
(D) RECEPTION APPARATUS FOR TELEVISION
This group includes apparatus whether or not designed to incorporate a video display or screen, such as :
Receivers of television broadcasts (terrestrial, cable or satellite)
which do not include a display device (CRT, LCD, etc.). These apparatus receive signals and convert them into a signal suitable for display. They may also incorporate a modem for connection to the Internet.
These receivers are intended to be used with video recording or reproducing apparatus, monitors, projectors or televisions. However, devices which simply isolate high-frequency television signals (sometimes called video tuners) are to be classified as parts in heading 85.29.
Television receivers for industrial use (e.g., for reading instruments at a distance, or for observation in dangerous localities). With this apparatus the transmission is often by line.
(3) Television receivers of all kinds (LCD, plasma, CRT, etc.) used in the home (television sets), whether or not incorporating a radio-broadcast receiver, video cassette recorder, DVD player, DVD recorder, satellite receiver, etc.
The term “monitor” of heading 8528, HTSUS, has been defined by the courts as “a machine that receives data from an external source, and then processes and converts that data into physical output commands to display an image.” See Prysm, Inc. v. United States, No. 18-00151 (Ct. of Int’l Trade, December 26, 2019). As the subject monitor can receive data from an external source for display, classification as a “monitor” under heading 8528, HTSUS, is proper. The determinative issue arises at the 6-digit HTSUS level; specifically, whether the subject article is classifiable under subheading 8528.52, HTSUS, which provides for “other monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71,” or under subheading 8528.72, HTSUS, as “reception apparatus for television.”
In classifying the instant monitor at the subheading level, we note that the subject monitor possesses features that render it capable of directly connecting to automatic data processing (“ADP”) machines of heading 8471, HTSUS. The provision “[d]esigned for use with an ADP machine” refers to monitors that can display signals or data directly from an ADP machine. Such monitors need not be shown to be solely or principally for use with an ADP machine; they may be multiuse monitors capable of displaying signals or data from devices other than ADP machines.
The instant monitor can directly connect to a PC and display the PC’s output on its screen. Further, the monitor possesses four HDMI input ports and can receive an 8K video signal from 8K output compatible devices such as cameras, computer video cards, etc. It also contains a USB media player and can reproduce video from a USB stick. Considering these characteristics, we conclude that the subject monitor meets the terms of subheading 8528.52.00, HTSUS.
While the instant monitor does come packaged with a remote control, it does not contain an integrated tuner or channel selector. As a result, we take the view that this monitor is properly classified in subheading 8528.52.00, HTSUS, as an ADP monitor rather than in subheading 8528.72.00, HTSUS, as a television monitor.
HOLDING:
By application of GRIs 1 and 6, the subject monitor is classified under subheading 8528.52.00, HTSUS, which provides for “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.” The 2024 column one, general rate of duty is free.
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 https://hts.usitc.gov.
Please note that 19 C.F.R. § 177.9(b)(1) provides that “[e]ach ruling letter is issued on the assumption that all of the information furnished in connection with the ruling request and incorporated in the ruling letter, either directly, by reference, or by implication, is accurate and complete in every material respect. The application of a ruling letter by a Customs Service field office to the transaction to which it is purported to relate is subject to the verification of the facts incorporated in the ruling letter, a comparison of the transaction described therein to the actual transaction, and the satisfaction of any conditions on which the ruling was based.”
A copy of this ruling letter should be attached to entry documents filed at the time the goods are entered. If the documents have been filed without a copy, this ruling should be brought to the attention of the CBP officer handling the transaction.
Sincerely,
Elizabeth Jenior, Acting Chief
Electronics, Machinery, Automotive, and International Nomenclature Branch