CLA-2-85:OT:RR:NC:N2:212
Cindi Kavanaugh
MGTA
4455 Genesee Street
Cheektowaga, NY 14225
RE: The tariff classification of an interface display module from China
Dear Ms. Kavanaugh:
In your letter, which was received by this office on October 29, 2019, you requested a tariff classification ruling on behalf of your client, Altronic, LLC.
The merchandise under consideration is identified as the DE-4000 Display Monitor and described as an interface device that allows users to view data and edit application parameters related to the DE-4000 Controller Module. The display incorporates an 8-inch LCD capacitive touchscreen, LED backlight, 5-key membrane keypad, and multiple connection ports including Ethernet, USB, and CAN. The monitor runs on a Linux-based operating system and features a Google Chrome browser.
In use, the display monitor is connected within the DE-4000 control system that is specifically designed to protect, monitor, and control critical machinery, such as engines, compressors, pumps, and generators. The display monitor acts as a user interface that enables the end user to configure the control system as well as view the status of the machinery being controlled. Additionally, it allows the user to view previous equipment failures registered by the control system. The 5-key membrane keypad allows for often used keys (i.e. stop, start, reset) to be accessible whether or not the screen is viewable. You state that no programming or configuration data is stored on the display, but is retained within the control module of the system. We note that the control system is not at issue with this request.
In your request, you suggest that the DE-4000 Display Monitor is correctly classified under subheading 8531.20.0020, Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
Heading 8531, HTSUS, covers only those displays that are limited by design and/or principal use to “signaling.” Further, CBP has consistently ruled that goods including TFT-LCD panels/modules do not belong to a class or kind of merchandise that is used or restricted in use to that of signaling. In addition, this device has functionality beyond that of simply providing a signal as it functions as a user interface powered by a Linux operating system and incorporates a web browser. As such, classification within heading 8531, HTSUS, would not be appropriate.
The applicable subheading for the DE-4000 Display Module will be 8543.70.9960, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and apparatus: Other: Other: Other: Other.” The general rate of duty will be 2.6% ad valorem.
Pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, products of China classified under subheading 8543.70.9960, HTSUS, unless specifically excluded, are subject to an additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8543.70.9960, HTSUS, listed above.
The HTSUS is subject to periodic amendment so you should exercise reasonable care in monitoring the status of goods covered by the Note cited above and the applicable Chapter 99 subheading. For background information regarding the Section 301 trade remedy, you may refer to the relevant parts of the USTR and CBP websites, which are available at:
https://ustr.gov/issue-areas/enforcement/section-301-investigations/tariff-actions https://www.cbp.gov/trade/remedies/301-certain-products-china
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 Luke LePage at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division