CLA-2-85:OT:RR:NC:N1:108
Ms. Judy Morrel
CSI Int’l Weiss-Rohlig USA, Inc.
351 W. Touhy Ave.
Suite 100
Des Plaines, IL 60018
RE: The tariff classification of an incomplete television from China
Dear Ms. Morrel:
In your letter dated February 27, 2013, on behalf of Seura, Inc., you requested a tariff classification ruling.
The merchandise subject to this ruling request is an incomplete LCD television that consists of an assembly of parts so advanced that it already has the essential features of a complete television. At the time of importation, the subject merchandise contains a large LCD screen; the main board with all the applicable parts, including a television tuner, enumerated in Additional U.S. Note 9 to Chapter 85, Harmonized Tariff Schedule of the United States (HTSUS); the fan power supply; the main power supply; the LCD backlight inverters; the LCD panel timing controller; and the RS-232 board for serial control. Furthermore, as imported, the incomplete television is designed with the necessary circuitry to be capable of receiving ATSC and NTSC signals via RF; standard definition NTSC, PAL, and SECAM signals via composite video and HDMI; and high-definition signals at 480i/p, 576i/p, 720p, and 1080i/p via HDMI.
However, at the time of importation, the subject merchandise does not contain the internal and external audio, video, power and control cables; the speakers; the IR receiver board and the side button control board; and the ventilation fans. In addition, the device is lacking, for instance, the metal rear housing, the metal front bezel, the metal front glass mounting frame, and the anti-reflective glass. After importation, all these components will be incorporated in the imported device (the incomplete television) for completion in the United States.
General Rule of Interpretation (GRI) 2(a) provides that “[a]ny reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, [it] has the essential character of the complete or finished article.” The term “essential character” under GRI 2(a) applies to articles that are imported substantially complete. CBP has consistently interpreted the term to mean the attribute that serves to distinguish what an article is; that which is indispensable to the structure, core or condition of the good; the aggregate of distinctive component parts that establishes the identity of an article as what it is, its very essence.
In its condition as imported, the instant merchandise contains, the display screen; the main board with all the applicable components, including a TV tuner, enumerated in Additional U.S. Note 9 to Chapter 85, HTSUS; and the main power supply, which are the essential parts of reception apparatus for television. Therefore, based on the above interpretation of the term “essential character” in GRI 2(a), the instant merchandise will be properly classified as reception apparatus for television under heading 8528, HTSUS, since it has the essential character of the complete or finished television
You suggest that this merchandise be classified under subheading 8528.72.0400, Harmonized Tariff Schedule of the United States (HTSUS), which provides, in pertinent part, for reception apparatus for television: other, color: incomplete or unfinished (including assemblies for television receivers consisting of all the parts specified in additional U.S. note 9 to this chapter plus a power supply), presented without a display device: incorporating video recording or reproducing apparatus. However, the subject merchandise is presented with a display device and does not incorporate any video recording or reproducing apparatus; therefore, it is precluded from being classified in this subheading.
The applicable subheading for the incomplete LCD television will be 8528.72.7250, 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 reproducing apparatus: Other, color: With a flat panel screen: Other: Other: LCD-type (direct view). The rate of duty will be 5 percent ad valorem.
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 Lisa Cariello at (646) 733-3014.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division