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HQ 956091




December 13, 1994

CLA-2 CO:R:C:M 956091 LTO

CATEGORY: CLASSIFICATION

TARIFF NO.: 8531.20.00

District Protest Review Officer
U.S. Customs Service
111 W. Huron Street
Room 603
Buffalo, New York 14202-2378

RE: Protest 0901-93-100846; Electronic Currency Rate Board; HQs 083609, 086032, 088225, 950407, 955448; NYs 848860, 856403; section XVI, note 4; subheading 8543.80.90

Dear District Protest Review Officer:

The following is our decision regarding Protest 0901-93- 100846, which concerns the classification of electronic currency rate boards under the Harmonized Tariff Schedule of the United States (HTSUS). The subject merchandise was entered on August 18, 1992, and the entry was liquidated on January 22, 1993. The protest was timely filed on April 22, 1993.

FACTS:

The articles in question are electronic currency rate boards. The boards use light emitting diode (LED) displays to indicate foreign currency exchange rates to customers in banks, hotels, airports, money exchange release stores, etc. The boards come in several models which function in the same manner, although they may have different dimensions, numbers of rows and/or numbers of columns. For example, the RATEX 1826 has two columns ("WE BUY AT," "WE SELL AT") and 18 rows (listing the names of the relevant countries), while the RATEX 1836 has three columns ("NOTES WE BUY AT," "T CHEQUES WE BUY AT," "WE SELL AT") and 18 rows. The boards are imported with infrared remote control keyboards which are used to change the boards' rates.

The boards (with remote control keyboards) were entered under subheading 8531.20.00, HTSUS, which provides for indicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's). They were classified upon liquidation under subheading 8543.80.90 (now, 8543.80.75), HTSUS, which - 2 -
provides for other electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter.

The subheadings at issue are as follows:

8531 Electric sound or visual signaling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530; parts thereof:
8531.20.00 Indicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's)
(2.7% ad valorem)

8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:
Other machines and apparatus:
Other:
8543.80.90 Other (3.9% ad valorem)

ISSUE:

Whether the electronic currency rate boards are classifiable as indicator panels incorporating liquid crystal devices (LCD's) or light emitting diodes (LED's) under subheading 8531.20.00, 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 that "for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes . . . ."

The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the Customs Co-operation Council's official interpretation of the Harmonized System. While not legally binding, the ENs provide a commentary on the scope of each heading of the Harmonized System, and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

EN 85.31, pg. 1381, states that heading 8531, HTSUS, "covers all electrical apparatus used for signalling purposes, whether - 3 -
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)." The heading covers 'signaling' indicator panels which "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:"

(2) Number indicators. The signals appear as illuminated figures on the face of a small box . . . .
(6) Station indicating panels for showing the times and platforms of trains.
(7) Indicators for race courses, football stadiums, bowling alleys, etc.

EN 85.31, pg. 1381-2 [emphasis in original].

In HQ 086032, dated January 17, 1990, we considered the classification of message display centers, which were used to advertise merchandise, state greetings, and to generally attract a person's attention to a particular store or service, or to the message display itself. The displays included a computer program which allowed the user to create full color animation, graphics and text. In finding that the displays were not covered by heading 8531, HTSUS, we stated as follows:

[T]he 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 a person's 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 [underlining in original].

We then held that the displays were classifiable under subheading 8543.80.90, HTSUS. See also HQ 955448, dated February 23, 1994; NY 848860, dated February 2, 1990.

The electronic currency rate boards are not "moving" message displays, nor do they display full color animation or graphics. While they arguably convey a substantive "message," it is the type of "message" contemplated by heading 8531, HTSUS.

In HQ 088225, dated January 31, 1991, we considered the - 4 -
classification of Electronic Shelf Tags, which acted as illuminated numerical displays for grocery store products' price information. The Shelf Tags visually signaled certain data in numerical form to customers. We held that, according to EN 85.31, number indicators, such as the Shelf Tags, were classifiable as visual signaling apparatus under subheading 8531.20.00, HTSUS.

The electronic currency rate boards use LED displays to indicate foreign currency exchange rates to customers in banks, hotels, airports, money exchange release stores, etc. The limited information supplied by the electronic currency rate boards is similar to that supplied by the Electronic Shelf Tags of HQ 088225, and similar to that supplied by indicating panels of EN 85.31 for showing the times and platforms of trains.

Moreover, the method used by the electronic currency rate boards to supply information is similar to that used by stadium scoreboards. Recently, in HQ 955448, dated February 23, 1994, we stated that the indicators for football stadiums covered by heading 8531, HTSUS, are devices "which show numbers in correspondence with such limited language as 'time outs remaining,' 'quarter,' 'home' and 'visitor,' and 'time remaining.'" The electronic currency rate boards are signs which show numbers in correspondence with such limited language as "WE BUY AT" and "WE SELL AT," along with rows listing the names of the relevant countries. Accordingly, the electronic currency rate boards are classifiable under heading 8531, HTSUS.

With regard to the infrared remote control keyboards that are imported with the boards, note 4 to section XVI, HTSUS, provides as follows:

Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in chapter 84 or chapter 85, then the whole falls to be classified in the heading appropriate to that function.

The electronic currency rate boards and infrared remote control keyboards, which are used to change the boards' rates, contribute together to a clearly defined function described by heading 8531, HTSUS. Thus, they are a "functional unit," and the boards and keyboards are classifiable together under subheading 8531.20.00, HTSUS. See HQ 950407, dated November 15, 1991; HQ 083609, dated June 6, 1989. As the boards (and keyboards) are described in heading 8531, HTSUS, they cannot be classified under heading 8543, HTSUS. - 5 -

NY 856403, dated October 9, 1990, wherein the model Ratex- 1826 electronic currency exchange rate board was held to be classifiable under subheading 8543.80.90 (now, 8543.80.75), HTSUS, has been revoked. See Customs Bulletin, Volume 28, Number 49 (December 7, 1994).

HOLDING:

The electronic currency rate boards (and remote control keyboards) are classifiable under subheading 8531.20.00, HTSUS.

The protest should be GRANTED. In accordance with section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision, together with the Customs Form 19, should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to the mailing of the decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director

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