CLA-2-85:OT:RR:NC:N2:209
Amy J. Johannesen
Johannesen Associates, PC
Attorneys at Law
69 Charlton Street
New York, NY 10014
RE: The tariff classification of LCD panels and modules from China or Japan
Dear Ms. Johannesen:
In your letter dated May 14, 2019, you requested a tariff classification ruling on behalf of your client, Tianma America, Inc.
The items concerned include a customized monochrome passive LCD panel (part # TJM5323) and a customized monochrome passive LCD display module (part # TM104112AGFWGWA). Both items are specially designed, adapted and configured for use within a blood glucose meter.
Part # TJM5323 is a specially shaped and structured passive LCD display panel, measuring 33.5 mm by 48.0 mm with a 55.3 mm diagonal. This LCD panel consists of a bottom polarizer, which filters out non-vertically oriented light waves, and a bottom and top glass substrate used to sandwich the liquid crystal between polarizing filters at a 90 degree angle to each other.
Part # TM104112AGFWGWA is a complete passive LCD display module measuring 42.2 mm by 33.3 mm, with a 38.2 mm diagonal. This LCD module consists of a bottom polarizer, which filters out non-vertically oriented light waves; a bottom and top glass substrate, which is used to sandwich the liquid crystal between polarizing filters at a 90 degree angle to each other; a light-emitting diode (LED) backlight panel, which creates the light needed for the display to function; a top and bottom chassis, which protects the LCD display components and acts as a foundation that houses the components; a PCBA, which incorporates driver/control electronics; and a connector, which is of the type and size required for the particular blood glucose meter.
The applicable subheading for the customized monochrome passive LCD panel (part # TJM5323) will be 9013.80.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Liquid crystal devices…: Other devices, appliances and instruments: Other.” The general rate of duty will be 4.5%.
The applicable subheading for the monochrome passive LCD display module (part # TM104112AGFWGWA) will be 8531.20.0020, HTSUS, which provides for “Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms)…: Indicator panels incorporating liquid crystal devices (LCD’S) or light emitting diodes (LED): Incorporating LCD’s. The rate of duty will be Free.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). See also “Notice of Action and Request for Public Comment Concerning Proposed Determination of Action Pursuant to Section 301: China’s Acts, Policies, and Practices Related to Technology Transfer, Intellectual Property, and Innovation” (June 20, 2018, 83 F.R. 28710). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8531.20.00, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.03, in addition to subheading 8531.20.0020, HTSUS, listed above.
The tariff is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the notice cited above and the applicable Chapter 99 subheading.
In your submission you request consideration for a secondary classification of 9817.00.96, HTSUS, which covers articles specially designed or adapted for the use or benefit of the physically or mentally handicapped, along with parts and accessories thereof. Chapter 98, Subchapter XVII, U.S. Notes 4(a) defines the term “blind or other physically or mentally handicapped persons” as including any person suffering from a permanent or chronic physical or mental impairment which substantially limits one or more major life activities, such as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking breathing, learning, or working.
You contend that CBP confirmed, in ruling HQ 561020 (October 14, 1998), that persons with diabetes are properly considered physically handicapped persons under U.S. Note 4(a) to Chapter 98 because they are limited in their ability to perform a broad range of jobs because they must be able to monitor their blood sugar, inject insulin if prescribed, and have work restrictions due to excessive urination, possible nausea, dizziness and fainting. Therefore, persons with diabetes suffer from a permanent or chronic physical impairment, which substantially limits a major life activity and are physically handicapped persons.
In ruling NY H86837, CBP confirmed that blood glucose meters are eligible for classification within subheading 9817.00.96, HTSUS, as they are specially designed for the use of people handicapped by diabetes. CBP held that all of the components of a glucose monitoring (meter) kit, consisting of an integrated blood glucose meter and insulin doser and test strips, were properly considered specially designed or adapted for the use or benefit of physically handicapped persons under subheading 9817.00.96, HTSUS.
Based on the information supplied, we agree that a secondary classification will apply for these items in 9817.00.96, HTSUS, as parts and accessories specially designed or adapted for the use or benefit of the permanently or chronically physically or mentally handicapped free of duty and user fees (if any).
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 World Wide Web at https://hts.usitc.gov/current.
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 Steven Pollichino at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division