OT:RR:CTF:EMAIN H335208 TPB
Center Director
Customs and Border Protection
Electronics Center of Excellence and Expertise
301 E. Ocean Blvd.
Long Beach, CA 90802
Attn: Joseph Harris, SIS; Scott Titus, IS
Re: Protest and Application for Further Review No: 4110-23-100871; Classification of
certain LED display panels; NEOTI, LLC.
Dear Center Director:
The following is our decision as to Protest and Application for Further Review No.
4110-23-100871, which was filed by counsel on behalf of its client, NEOTI, LLC
(“NEOTI” / “Protestant”). The protest pertains to the classification of certain light
emitting diode (“LED”) display panels under the Harmonized Tariff Schedule of the
United States (HTSUS). This decision follows our meeting, requested by Protestant
and held on April 29, 2025.
Protestant considered that due to their design, use and capabilities, the LED
displays in question were classified under heading 8528, subheading 8528.52, which
provides for “[m]onitors and projectors, not incorporating television reception
apparatus… Other monitors: Capable of directly connecting to and designed for use
with an [ADP] machine of heading 8471”.
Subsequently, CBP provided a Notice of Action that the entries were re-classified
under subheading 8528.59, which covers “[m]onitors 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: Other”.
FACTS:
The protest covers the NEOTI COB series LED displays and the UHD video
walls LED displays series. Both LED display series in question are ultra-high-definition
LED displays used in large LED display systems. Neither of the subject LED displays
contain a tuner or channel selector to receive television broadcast signals.
A diagram included with the submission (i.e., “Exhibit B”) shows that the display
connects to a display controller box via a CAT5e cable. The controller box itself
connects to an automatic data processing (ADP) machine (labeled “COMPUTER” on
the exhibit). Based on the provided invoices, the only items in question are the LED
displays. As there is no indication of a display controller on the provided invoice, the
focus of this ruling will be the classification of the displays.
ISSUE:
Whether the subject LED displays are classified under subheading 8528.52,
HTSUS, as monitors capable of directly connecting to and designed for use with an
automatic data processing machine of heading 8471, or subheading 8528.59, HTSUS,
as other monitors and projectors.
LAW AND ANALYSIS:
Initially, we note that the matters presently before us may be protested under 19
C.F.R. § 174.11(b)(2) (CBP administrative decisions that are “subject to protest” include
“[t]he classification and rate and amount of duties chargeable”). Consolidation of
multiple entries into this Protest is proper because the entries involve the same
protesting party and same category of merchandise, and the issue of proper tariff
classification of the LED panels is common to all entries. See id. § 174.13(b). This
Protest is timely, as it is being submitted within 180 days of liquidation of all entries
pursuant to § 174.12(e)(1).
Further, Protestant claims that this Protest also satisfies the eligibility criteria for
further review because CBP’s decision to liquidate the subject merchandise under
HTSUS subheading 8528.59.33 is inconsistent with previous rulings by CBP. See id. §
174.24(a), including CBP’s decision in NY N328363 (Oct. 17, 2022), which classified
merchandise alleged to be nearly identical under subheading 8528.52, HTSUS.
Merchandise imported into the United States is classified under the HTSUS.
Tariff classification is governed by the principles set forth in the General Rules of
Interpretation (“GRIs”) and, in the absence of special language or context which
requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the
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Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered
statutory provisions of law for all purposes.
GRI 1 requires that classification be determined first 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 heading and
legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be
applied in order.
GRI 6 provides:
For legal purposes, the classification of goods in the subheadings of a
heading shall be determined according to the terms of those subheadings
and any related subheading notes and, mutatis mutandis, to the above
rules, on the understanding that only subheadings at the same level are
comparable. For the purposes of this rule, the relative section, chapter and
subchapter notes also apply, unless the context otherwise requires.
Protestant does not question the classification of the goods under heading 85.28,
HTS, as they meet the terms of the heading. The remaining question is which is the
correct subheading for the subject merchandise. The heading and subheadings under
consideration 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 Capable of directly connecting to and designed for use
with an automatic data processing machine of heading
8471
8528.59 Other
Protestant argues that subheading 8528.52, HTSUS, is the proper classification
of the subject displays because they are monitors that do not incorporate television
reception apparatus, and they claim that the subject displays meet the distinctive
conditions of this subheading, namely, they are 1) capable of directly connecting to, and
2) designed for use with an automatic data processing (“ADP”) machine of heading
84.71. In this case, Protestant argues that the panels connect directly to the ADP
machine as shown in the exhibits provided (ex., Exhibits B, C and D).
Regarding whether the displays are directly connectable to an ADP machine, we
will first note that CBP does not consider a display controller an ADP machine of
heading 8471. The display controller, which itself connects to an ADP machine,
receives and converts a variety of signals and sends those signals to the subject
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displays. The display controller serves as an intermediary connection between the
display and the ADP machine. As such, the display is not capable or directly connecting
to an ADP machine nor accepting a signal from the central processing unit of an ADP
machine.
CBP precedent establishes when a monitor itself is not capable of directly
connecting to an ADP machine and is not designed for use with an ADP machine, and
instead, when that monitor directly connects to another device, such as a video
controller, processor, set top box, etc., to be classified under subheading 8528.59,
HTSUS, as other monitors. See, e.g., New York Ruling Letter (NY) N326463
(6/28/2022), NY N310939 (4/17/2020), NY N312883 (7/22/2020), and Headquarters
Ruling Letter H315444 (9/28/2021).
In their protest, NEOTI cites to NY N328363, dated October 17, 2022, where
CBP classified a Sony Display System video wall under heading 8528.52, HTSUS.
Protestant notes that both that NY ruling and the products currently before us utilize a
display controller. However, the complete facts surrounding the displays classified in
NY N328363 and those presently before us are not the same. The merchandise in NY
N328363 were described as: a display controller, multiple display cabinets, cables, and
a set up kit that work together to display images on a large scale. Because the goods in
that ruling were presented together with the display controller and all the components
needed to build the display wall system, a different analysis applied to classify those
particular goods. Namely, the components identified in NY N328363 comprised a
“functional unit” classified pursuant to Note 4 to Section XVI, HTSUS ∗, which was
classified under subheading 8528.52, HTSUS, because in the condition they were
imported under, they contributed together to perform a function covered by that
subheading. Goods imported under similar conditions may cite to NY N328363 when
classifying their goods under subheading 8528.52, HTSUS.
However, as noted, there is no evidence provided that the NEOTI is importing the
display controller along with the displays. As such, for the reasons set forth above, the
displays do not meet the terms of subheading 8528.52, HTSUS, and are therefore
classified under subheading 8528.59, HTSUS.
HOLDING:
By application of GRIs 1 and 6, the subject LED modules are classified in
subheading 8528.59.33, HTSUS, which provides for “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
∗
Note 4 to Section XVI provides as follows:
Where a machine (including a combination of machines) consists of individual
components (whether separate or interconnected by piping, by transmission devices, by
electric cables or by other devices) intended to contribute together to a clearly defined
function covered by one of the headings in chapter 84 or chapter 85, then the whole falls
to be classified in the heading appropriate to that function.
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reproducing apparatus: Other monitors: Other: Color: With a flat panel screen: Other:
Other.” The column one rate of duty is 5% ad valorem.
Pursuant to U.S. note 20 to subchapter III, chapter 99, HTSUS, products of
China classified under subheading 8528.59.33, HTSUS, unless specifically excluded,
were subject to an additional 7.5% ad valorem rate of duty. At the time of importation,
an importer was required to report the chapter 99 subheading, i.e., 9903.88.15, in
addition to subheading 8528.59.33, HTSUS, listed above.
Duty rates are provided for your convenience and are subject to change. The
text of the most recent HTSUS and the accompanying duty rates are provided on the
internet at www.usitc.gov/tata/hts/.
You are instructed to DENY the Protest.
You are further instructed to notify the Protestant of this decision no later than
sixty (60) days from the date of this decision. Any reliquidation of the entry or entries in
accordance with the decision must be accomplished prior to this notification. Sixty days
from the date of the decision, the Office of Trade, Regulations and Rulings will make the
decision available to CBP personnel and the public on the Customs Rulings Online
Search System (CROSS) at https://rulings.cbp.gov/, or other methods of public
distribution.
Sincerely,
for Yulia A. Gulis, Director
Commercial and Trade Facilitation Division
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