CLA-2-85:RR:NC:N1:112

Doug Chertok, CEO
Modstream, Inc.
331 West 57th Street
New York, NY 10019

RE: The tariff classification of a liquid crystal display unit (part # 5.0.0) from China

Dear Mr. Chertok:

In your letter dated July 26, 2007, you requested a tariff classification ruling.

The item concerned is a 40 character alphanumeric liquid crystal display (LCD) panel, mounted on a printed circuit board assembly (part # 5.0.0). The printed circuit board assembly incorporates a radio frequency (RF) receiver. This LCD unit will be fastened to shopping cart handles using a plastic housing/frame. The plastic housing/frame will be imported separately. This device, in its entirety, (LCD unit and plastic housing/frame) is referred to as the “Modstream handle”.

In operation, “Modstream’s system” uses wireless transmissions to place messages (eg. promotions, offers, daily specials, etc.) on shopping cart handles in retail stores. The entire Modstream system consists of four parts, the LCD with RF receiver (Modstream handle), an internet website where the retailers and advertisers can enter messages to be displayed on the Modstream handles, a controller placed in the retail stores that periodically dials out via a fax line to an internet server to download the messages from the website, and a radio transmitter which is also placed in the retail store that transmits the various messages from the controller to the Modstream handles.

The applicable subheading for Modstream’s liquid crystal display unit (part # 5.0.0.) will be 8531.20.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Electric sound or visual signaling apparatus…: Indicator panels incorporating liquid crystal devices…: Incorporating LCD’S”. The rate of duty will be Free.

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 World Wide Web at http://www.usitc.gov/tata/hts/.

This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).

A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Steve Pollichino at 646-733-3008.

Sincerely,

Robert B. Swierupski
Director,
National Commodity
Specialist Division