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HQ 952159


October 8, 1992

CLA-2 CO:R:C:M 952159 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8531.20.00; 8531.80.00

Mr. Ed Baker
A.N. Deringer, Inc.
30 West Service Road
Champlain, New York 12919-9703

RE: EMK Mimic Display Boards; Electric Sound or Visual Signalling Apparatus; Indicator Panels; LEDs

Dear Mr. Baker:

Your letter of June 15, 1992, has been forwarded to our office for a reply. You have requested classification of the EMK Mimic Display Board, under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The EMK Mimic Display Boards are installed in control rooms to signal the status of industrial process control systems, monitor the traffic of train or subway systems, or to monitor a power plant's distribution.

ISSUE:

Whether the EMK Mimic Display Boards are classified in heading 8531, HTSUS, which provides for "Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms)...," or in heading 8543, HTSUS, which provides for "Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter"?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the General Rules of Interpretation (GRI's). GRI 1, HTSUS, states in part that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes..."

Heading 8531, HTSUS, provides for: "[e]lectric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530."

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to heading 8531, HTSUS, state:

With the exception of signalling apparatus used on cycles or motor vehicles (heading 85.12) and that for traffic control on roads, railways, etc. (heading 85.30), this heading covers all electrical apparatus used for signalling purposes, whether using sound for the transmission of the signal (bells, buzzers, hooters, etc.) or using visual indication (lamps, flaps, illuminated numbers, etc.), and whether operated by hand (e.g., door bells) or automatically (e.g., burglar alarms).

Regarding the ENs, the court in Rico Import Co. v. United States, Slip Op. 92-146 (1992), cited "The Joint Committee on the Omnibus Trade and Competitiveness Act" which recognized the CCC's Explanatory Notes to the Harmonized System as the CCC's official interpretation of the Harmonized System. See 23 Cust. Bull. 379, 380-81, T.D. 89-80 (1989). The Joint Committee stated that the Explanatory Notes, while drafted subsequent to the Harmonized System and not considered binding on the contracting parties, are nevertheless "useful in ascertaining the classification of merchandise under the system." Id. at 381.

In HQ 086032, dated January 17, 1990, we held that a message display center which operated on a computer program to generate full color animation, graphics, and text, designed to convey substantive messages, was properly classifiable under subheading 8543.80.90, HTSUS, which provides for electrical apparatus having an individual function, not provided for elsewhere. In that decision, we stated that:

Nevertheless, the message display centers perform a function which is different than that of signalling equipment. Although the instant merchandise can flash graphics or animation to call attention to the display, its primary purpose is to convey a substantive message; this function is more than that of signalling equipment which is designed to provide a signal to a viewer who normally will instantaneously understand the meaning of the signal.

The instant EMK Mimic Display Boards are not principally used to convey substantive messages through text. They are signalling equipment which is designed to provide a signal to a viewer who normally will instantaneously understand the meaning of the signal. Therefore, it is Customs position that the EMK Mimic Display Board is properly classifiable under heading 8531, HTSUS, which provides for "electrical sound or visual signalling apparatus."

HOLDING:

The EMK Mimic Display Boards utilizing LED indicators are properly classifiable under subheading 8531.20.00, HTSUS, which provides for: "[e]lectric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530: [i]ndicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's)." The rate of duty is 2.7 percent ad valorem. However, if the provisions of the United States - Canada Free Trade Agreement are met, the rate of duty is Free.

The EMK Mimic Display Boards utilizing incandescent indicators are properly classifiable in subheading 8531.80.00, HTSUS, which provides for: "[e]lectric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530: [o]ther apparatus." The rate of duty is 2.7 percent, ad valorem. However, if the provisions of the United States - Canada Free Trade Agreement are, the rate of duty is .5 percent, ad valorem.

Sincerely,


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