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HQ 955447


February 9, 1994

CLA-2 CO:R:C:M 955447 MBR

CATEGORY: CLASSIFICATION

TARIFF NO.: 8531.20.00; 9013.80.60

Ms. Jacqueline Paez
Sonnenberg, Anderson & Rodriguez
200 South Wacker Drive, 33rd Floor
Chicago, Illinois 60606

RE: Hosiden America Corporation; Mobile Telephone Liquid Crystal Display Indicator Panel Modules; LCD; Glass Sandwich; HQs 952973, 954788, 954638, 951069, 951868, 086929, 087362

Dear Ms. Paez:

This is in response to your letter of November 9, 1993, on behalf of the Hosiden America Corporation, requesting the classification of Liquid Crystal Display Indicator Panel Modules and glass sandwiches for mobile telephones, under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise consists of Liquid Crystal Display Indicator Panel Modules ("LCDIPMs") with row and column drivers, and glass sandwiches for LCDs, which are designed for and dedicated to mobile telephones. These LCDs are designed and manufactured to have character graphics. However, different color filters, backlighting, or artwork fonts may be used depending on the customer's needs. These LCDs display either one or two rows containing seven or ten segment characters to display telephone numbers, and symbol or letter characters to indicate other information (i.e., "Pwr", "InUse", "NoSvc", and "Roam"). Some models may include a series of bars to indicate volume, power availability, and signal strength.

ISSUE:

Are LCDIPMs and glass sandwiches for LCDIPMs classified under heading 8531, HTSUS, which provides for electric sound or visual signaling apparatus, or under heading 9013, HTSUS, which provides for liquid crystal devices n.s.p.f., under the HTSUS?

LAW AND ANALYSIS:

The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part:

...classification shall be determined according to the terms of the headings and any relative section or chapter notes...

The instant LCDIPMs and glass sandwiches are prima facie classifiable under the following subheadings:

8531 Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels...

8531.20.00 Indicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's).

8531.90.80 Parts: Other

9013 Liquid crystal devices not constituting articles provided for more specifically in other headings.

9013.80.60 Other devices, appliances and instruments: Other.

Heading 8531, HTSUS, provides for electric sound or visual signaling apparatus. Therefore, to be classifiable in this heading, the apparatus must be designed for "signaling."

The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) to heading 8531, HTSUS, page 1381, are fairly descriptive and restrictive as to the types of "signalling" indicator panels and the like must perform in order to be classifiable there. It states: "[t]hese are used (e.g., in offices, hotels and factories) for calling personnel, indicating where a certain person or service is required, indicating whether a room is free or not. They include:

(1) Room indicators. These are large panels with numbers corresponding to a number of rooms...

(2) Number indicators. The signals appear as illuminated figures on the face of a small box; in some apparatus of this kind the calling mechanism is operated by the dial of a telephone. Also clock type indicators in which the numbers are indicated by a hand moving round a dial.

(3) Office indicators, for example, those used to indicate whether the occupant of a particular office is free or not...

(4) Lift indicators. These indicate, on an illuminated board, where the lift is and whether it is going up or down.

Therefore, only those LCDs which are limited by design and function to that of "signaling," are classifiable in heading 8531, HTSUS. Customs concurs that the instant Hosiden LCDIPMs and glass sandwiches are designed for and dedicated to signaling. The complete LCDIPMs impart the essential character of the mobile telephone indicator panels. See HQ 952973, dated August 5, 1993, in which LCD with row and column drivers was found classifiable as an unfinished ADP display.

Heading 9013, HTSUS, provides for: "[l]iquid crystal devices not constituting articles provided for more specifically in other headings." The ENs to heading 9013, HTSUS, page 1478, further state:

(1) Liquid crystal devices consisting of a liquid crystal layer sandwiched between two sheets or plates of glass or plastics, whether or not fitted with electrical connections, presented in the piece or cut to special shapes and not constituting articles described more specifically in other headings of the Nomenclature.

However, the LCDIPMs are more specifically described in subheading 8531.20.00, HTSUS, which provides for: "[e]lectric sound or visual signalling apparatus...: [i]ndicator panels incorporating liquid crystal devices (LCD's)...." Customs has consistently held that subheading 8531.20.00, HTSUS, is more specific than subheading 9013.80.60, HTSUS. See HQ 952973, dated August 5, 1993, HQ 954788, dated December 1, 1993, and HQ 954638, dated December 2, 1993. Therefore, these LCDIPMs are classifiable in subheading 8531.20.00, HTSUS.

However, the glass sandwiches themselves do not impart the essential character of finished "Indicator panels incorporating liquid crystal devices ...." See HQ 951868, dated October 31, 1992, and HQ 951069, dated October 20, 1992, which held that glass sandwiches for LCDs did not impart the essential character of ADP displays. See also HQ 086929, dated January 31, 1991, which held that a cathode ray tube for an ADP output unit was not classifiable as an unfinished ADP output device, and was instead classifiable in subheading 8540.30.00, HTSUS, which provides for other cathode- ray tubes.

Thus, the glass sandwiches remain prima facie classifiable in subheading 8531.90.80, HTSUS, (which provides for parts of electric sound or visual signalling apparatus), and subheading 9013.80.60, HTSUS, (which provides for LCDs not provided for more specifically in other headings). However, it is Customs position that subheading 8531.90.80, HTSUS, a provision for parts, is not more specific than subheading 9013.80.60, HTSUS, which provides for LCDs. See the Additional U.S. Rules of Interpretation which state:

1. In the absence of special language or context which otherwise requires--

(c) a provision for parts of an article covers products solely or principally used as a part of such articles but a provision for "parts" or "parts and accessories" shall not prevail over a specific provision for such part or accessory"

Therefore, the glass sandwiches are classifiable in subheading 9013.80.90, HTSUS.

An issue has been raised regarding HQ 087362, dated February 19, 1991, in which keyboards for mobile telephones were found to be classifiable in heading 8529, HTSUS, which provides for parts of mobile telephones, instead of heading 8537, HTSUS, which would appear to be a more specific provision. However, as HQ 087362 clearly stated on page 2 of the ruling: "This type of device is not described by the terms of heading 8537, and thus is not classifiable therein." (Emphasis added).

Similarly, both headings 8531, HTSUS, and 9013, HTSUS, are more specific than heading 8529, HTSUS, which provides for parts of mobile telephones.

HOLDING:

The Hosiden Liquid Crystal Display Indicator Panel Module is classifiable in subheading 8531.20.00, HTSUS, which provides for: "[e]lectric sound or visual signaling apparatus (for example, bells, sirens, indicator panels...: [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.

The Hosiden glass sandwich, designed for mobil telephone indicator panels, is classifiable in subheading 9013.80.60, HTSUS, which provides for: "[l]iquid crystal devices not constituting
articles provided for more specifically in other headings: [o]ther devices, appliances and instruments: [o]ther." The rate of duty is 9 percent ad valorem.

Sincerely,


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