HQ 960075 - Protest 2809-96-101318; Liquid Crystal Devices (LCDs); LCD Displays; Reception Apparatus for Television; Parts of Television; Legal Note 1(m) to Section XVI; Headings 8528, 8529, and 9013; Sharp Microelectronics Technology, Inc. v. United States, 932 F.Supp. 1499, CIT Slip Op. 96-104 (July 1, 1996) HQ 952360 - United States International Trade Commision Rulings

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HQ 960075

May 13, 1997

CLA-2 RR:TC:MM 960075 RFA

CATEGORY: CLASSIFICATION

TARIFF NO.: 9013.80.60

Port Director
U.S. Customs Service
P.O. Box 2450
San Francisco, CA 94126

RE: Protest 2809-96-101318; Liquid Crystal Devices (LCDs); LCD Displays; Reception Apparatus for Television; Parts of Television; Legal Note 1(m) to Section XVI; Headings 8528, 8529, and 9013; Sharp Microelectronics Technology, Inc. v. United States, 932 F.Supp. 1499, CIT Slip Op. 96-104 (July 1, 1996) HQ 952360

Dear Port Director:

The following is our decision regarding Protest 2809-96-101318, which concerns the classification of liquid crystal devices (LCDs) for televisions under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise is a color TFT active matrix liquid crystal display (LCD), models LQ4NC31 [320 x 117 pixels], LQ6NC01 [480 x 120 pixels], and LQ4RA02 [320 x 117]. In all three models the pixel matrix is arranged in a triangular manner. Attached to the LCD is a printed circuit board with driver integrated circuits and a plastic diffuser panel, all of which are encased in a metal housing (bezel). The driver electronics are specifically designed to process an NTSC compatible video signal and generate points of light, synchronously with the source signal on the LCD screen. The subject merchandise do not incorporate a television type RF tuner and are not capable of receiving television broadcast signals.

The merchandise was entered on December 28, 1995, under subheading 8528.10.67, HTSUS, as an unfinished reception apparatus for television with a flat screen. The entry was liquidated on July 12, 1996, under subheading 9013.80.60, HTSUS, as liquid crystal displays not elsewhere specified. The protest was timely filed on October 1, 1996.

The subheadings under consideration are as follows:

8528.10.67: Television receivers (including video monitors and video projectors), whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: [c]olor: [w]ith a flat panel screen: [o]ther: [w]ith a video display diagonal not exceeding 33.02 cm. . .

Goods classifiable under this provision have a general, column one rate of duty of 4 percent ad valorem.

8529.90.53 Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528: [o]ther: [f]lat panel screen assemblies for the apparatus of subheadings 8528.10.64 and 8528.10.68. . . . .

Goods classifiable under this provision have a general, column one rate of duty of 3.5 percent ad valorem.

9013.80.60 Liquid crystal devices not constituting articles provided for more specifically in other headings. . . : [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.

ISSUE:

Whether the subject LCDs are classifiable as unfinished reception apparatus for televisions with flat panel screens, or as parts of reception apparatus for televisions, or as LCDs not specified or included elsewhere, 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.

Customs has previously determined the classification of similar merchandise in HQ 952360, dated October 15, 1992. In that ruling, a Sharp active matrix LCD screen for portable televisions which did not contain a television tuner and was not capable of receiving a television broadcast signal or reproducing a video image was found to be prima facie classifiable under heading 8529, HTSUS, as parts of television reception apparatus, and under heading 9013, as liquid crystal devices not specified elsewhere.

However, Customs noted that Legal Note 1(m) to section XVI, HTSUS, states that: "[t]his section does not cover: [a]rticles of chapter 90." Heading 9013, HTSUS, provides for: "[l]iquid crystal devices not constituting articles provided for more specifically in other headings." Therefore, if the subject merchandise is provided for more specifically in another heading, it would not be classifiable in heading 9013, HTSUS. See Sharp Microelectronics Technology, Inc. v. United States, 932 F.Supp. 1499, CIT Slip Op. 96-104 (July 1, 1996). See also HQ 959175, dated November 25, 1996. In HQ 952360, we stated that it is Customs position that heading 8529, HTSUS, which provides for "parts", is not a more specific heading than heading 9013, HTSUS, Therefore, because the subject merchandise is classifiable in heading 9013, HTSUS, it is not classifiable in heading 8529, HTSUS, which falls in section XVI, HTSUS. [See Sharp Microelectronics Technology, Inc.; HQ 958953; HQ 957435; HQ 952973; HQ 951609; HQ 952360; and HQ 951868 for similar holdings on a "parts" provision for automatic data processing machines (heading 8473) versus heading 9013.]

Protestant cites the fact that one its protests classifying the subject merchandise under heading 8528, HTSUS, was granted by your port. However, that protest was mistakenly granted in contradiction to HQ 952360. The protestant has not furnished any other new evidence upon which to distinguish the analysis in HQ 952360. Based upon our analysis in that ruling, we find that the subject merchandise which cannot receive a television signal, is classifiable under heading 9013, HTSUS.

The protestant claims that the subject merchandise is an unfinished reception apparatus for televisions under heading 8528, HTSUS in accordance with GRI 2(a). As to the claim of applying GRI 2(a), we note that classification of the above merchandise is resolved through the application of GRI 1, the terms of the headings, and the relevant section and chapter notes. Therefore, there is no need for Customs to apply the other GRI's.

HOLDING:

The Sharp LCD display screens for portable televisions, models LQ4NC31, LQ6NC01, and LQ4RA02, which are not capable of receiving a television signal, are classifiable under subheading 9013.80.60, HTSUS, as liquid crystal devices not specified elsewhere.

The protest should be DENIED. 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 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
Tariff Classification Appeals Division

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