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HQ 958209





November 8, 1995

CLA-2 R:C:M 958209 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 9013.80.60

Port Director of Customs
P.O. Box 17423
Washington, DC 20041

RE: Internal Advice 32/95; Liquid Crystal Display (LCDs) Panels; Glass Sandwiches; Signaling Apparatus; Parts of Signaling Apparatus; Parts of Clocks; Additional U.S. Rule of Interpretation 1(c); Legal Note 1(g) to Chapter 91; Headings 8531, 9013, 9114; ENs 85.31 and 90.13; HQs 955447, 954788, 953115, 952502, 951868, 952360, 951288, 951069, and 086929

Dear Port Director:

The following is in response to your memorandum, dated June 28, 1995 (CLA-1: ADD:CO ML), forwarding a request for internal advice submitted by Wall Shipping Company, Inc., on behalf of VDO-Yazaki Corporation, concerning the classification of liquid crystal display (LCD) panels under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise is a liquid crystal display (LCD) panel, part number 3-162-001-276-LCD, consisting of glass sandwiches, measuring approximately 1.75 inches by 1 inch. The LCD panels do not contain any integrated circuits (IC), clock or watch movements. After importation, driving electronic circuits and driver chips will be added to the LCD panels. The LCD panels will then be used in the instrument panel or dashboard of motor vehicles. According to technical drawings, the LCD panels will be capable of displaying four numbers in the format of a two digit number, a colon, and another two digit number (e.g., 10:20). Statements were also submitted, claiming that the LCD panel can be used for odometer displays and other indicator panel uses.

ISSUE:

Whether the LCD panel is classifiable as a visual signaling indicator panel, or as parts of clocks, or as LCDs not constituting articles provided for more specifically in other headings, under the HTSUS?

LAW AND ANALYSIS:

Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes.

The subheadings under consideration 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. . . :

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

Goods classifiable under this provision have a general, column one rate of duty of 2.7 percent ad valorem.

8531.90.80: Parts: [o]ther. . . .

Goods classifiable under this provision have a general, column one rate of duty of 2.4 percent ad valorem.

9013.80.60: Liquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this chapter . . . : [o]ther devices, appliances and instruments: [o]ther. . . .

Goods classifiable under this provision have a general, column one rate of duty of 8.1 percent ad valorem.

9114.90.50: Other clock or watch parts: [o]ther: [o]ther: [o]ther. . . .

Goods classifiable under this provision have a general, column one rate of duty of 6 percent ad valorem.

Legal Note 1(g) to chapter 91, HTSUS, states that: "This chapter does not cover: [a]rticles of chapter 85, not yet assembled together or with other components into watch or clock movements or into articles suitable for use solely or principally as parts of such movements (chapter 85)." This legal note requires that if a component of a watch, clock, or timer is classifiable under a heading in chapter 85, HTSUS, that classification will take precedence over a parts provision in chapter 91, HTSUS.

Based upon Legal Note 1(g) to chapter 91, HTSUS, the internal advice (I/A) applicant claims that the LCD panels are properly classifiable under heading 8531, HTSUS, which provides for electric visual signaling apparatus. Therefore, to be classified in this provision, the LCDs must be designed for "signaling." In understand-ing the language of the HTSUS, the Harmonized Commodity Description and Coding System (HCDCS) Explanatory Notes (ENs) may be consulted. The ENs, although not dispositive, or legally binding, provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the HTSUS. See, T.D. 89-80, 54 FR 35127, 35128 (August 23, 1989). EN 85.31, page 1381, is fairly descriptive and restrictive as to the types of "signaling" indicator panels and the function they must perform in order to be classifiable in heading 8531, HTSUS. EN 85.31 states indicator panels and the like: "[a]re 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. There are large panels with numbers corresponding to a number of rooms. When a button is pressed in the room concerned the corresponding number is either lit up or exposed by the falling away of a shutter or flap.

(2) Number indicators. The signals appear to 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. Some types are merely a simple "come in" or "engaged" sign illuminated at will by the occupant of the office.

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

(5) Engine room telegraph apparatus for ships.

(6) Station indicating panels for showing the times and platforms of trains.

(7) Indicators for race course, football stadiums, bowling alleys, etc.

Certain of these indicator panels, etc., also incorporate bells or other sound signaling devices (emphasis in original).

Therefore, only those LCD's which are principally used and/or limited by design to "signaling" are classifiable under subheading 8531.20.00, HTSUS. See HQ 954788, dated December 1, 1993; HQ 953115, dated May 10, 1993; HQ 952502; HQ 951868, dated October 31, 1992; HQ 952360, dated October 15, 1992; and HQ 951288, dated July 7, 1992. According to the information provided, the subject LCDs are missing driving electronic circuits and driver chips at the time of importation. Therefore, the subject merchandise are not indicator panels incorporating LCDs, but are merely glass sandwiches for LCDs.

Heading 9013, HTSUS, provides for LCDs not constituting articles provided for more specifically in other headings. EN 90.13, page 1478, states that: "This heading includes: (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."

In HQ 955447, dated February 9, 1994, Customs stated that glass sandwiches imported by 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 subject LCD panels, which are merely glass sandwiches, remain prima facie classifiable in subheading 8531.90.80, HTSUS, (which provides for parts of electric sound or visual signaling apparatus), subheading 9013.80.60, HTSUS, (which provides for LCDs not provided for more specifically in other headings), and subheading 9114.90.50, HTSUS (which provides for other clock or watch parts). Additional U.S. Rule of Interpretation 1(c) states that:

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

Based upon Additional U.S. Rule of Interpretation 1(c), it is Customs position that subheadings 8531.90.80 and 9114.90.50, HTSUS, provisions for parts, are not more specific than subheading 9013.80.60, HTSUS, which provides for LCDs. Therefore, we find that the subject LCD panels are classifiable in subheading 9013.80.90, HTSUS.

HOLDING:

For the foregoing reasons, the LCD panel, part number 3-162-001-276-LCD, is classifiable under subheading 9013.80.60, HTSUS, which provides for: "[l]iquid crystal devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this chapter . . . : [o]ther devices, appliances and instruments: [o]ther. . . ." Goods classifiable under this provision have a general, column one rate of duty of 8.1 percent ad valorem.

Please advise the internal advice applicant of this 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
Tariff Classification Appeals Division

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