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HQ 961727




May 22, 1998

CLA-2 RR:CR:GC 961727 DWS

CATEGORY: CLASSIFICATION

TARIFF NO.: 8537.10.90

Mr. Robert Swierupski, Director
National Commodity Specialist Division
U.S. Customs Service
6 World Trade Center, Room 423
New York, NY 10048

RE: Touch Screen Graphic LCD Module; Photocopy Machine; Kores Manufacturing Inc. v. U.S.; Chapter 90, Note 2; HQs 958711, 958709, 083674, and 960873;
Explanatory Note 85.37; Principal Use; Additional U.S. Rule of Interpretation 1(a); U.S. v. The Carborundum Company; 8531.20.00; 9009.90.10

Dear Mr. Swierupski:

This is in response to your office's memorandum (CLA-2-84:RR:NC:1-110) dated April 21, 1998, concerning the classification of the Touch Screen graphic liquid crystal display (LCD) module under the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The merchandise consists of the Touch Screen graphic LCD module (Model 123K3714) (Touch Screen), which is comprised of a printed wiring board (PWB) with LCD row and column drivers, LCD display, voltage generators, temperature compensation circuitry, discrete touch switches, and fluorescent lamp back light. The Touch Screen functions as a resistive touch display panel for a Xerox photocopy machine (Model 5334).

In the literature provided, it states that "[t]his is the first Touch Screen in convenience copying. Simply touch what you want the 5334 to do. Your choices are presented automatically and in sequence, without any effort on your part. On basic jobs, the Touch Screen provides status messages and other helpful information. Also, you can press the "I" button to access an information center that explains each button on the Control Panel, each of the 5334's features and each type of copy job that can be done." Therefore, based upon the information provided, by utilizing the Touch Screen, a user can control the operation of the photocopy machine. On the photocopy machine itself, the Touch Screen is referred to as the "Touch Control Screen."

ISSUE:

Whether the Touch Screen is classifiable under subheading 8531.20.00, as an indicator panel incorporating an LCD, under subheading 8537.10.90, HTSUS, as an other panel for electric control or the distribution of electricity, or under subheading 9009.90.10, HTSUS, as a part of photocopying apparatus of subheading 9009.12, HTSUS, other than photoreceptors or assemblies containing photoreceptors.

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 is determined according to the terms of the headings and any relative section or chapter notes.

The HTSUS provisions 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; parts thereof:

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

8537 Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517:

8537.10 For a voltage not exceeding 1,000 V:

8537.10.90 Other.

9009 Photocopying apparatus incorporating an optical system or of the contact type and thermocopying apparatus; parts and accessories thereof:

Electrostatic photocopying apparatus:

9009.12.00 Operating by reproducing the original image via an intermediate onto the copy (indirect process).

9009.90 Parts and accessories thereof:

Parts of photocopying apparatus of subheading 9009.12 specified in additional U.S. note 5 to this chapter:

9009.90.10 Parts other than photoreceptors or assemblies containing photoreceptors.

Whether an article is a part of another article depends on the nature of the so-called "part" and its usefulness, function and purpose in relation to the article in which it is designed to serve. Kores Manufacturing Inc. v. U.S., 3 CIT 178, 179 (1982), aff'd appeal No. 82-83 (C.A.F.C. 1983). As the Touch Screen is integral to the operation of the photocopy machine, it is our position that the module is a part of that photocopy machine, which itself is a good of heading 9009, HTSUS.

Because the Touch Screen is a part of a good of chapter 90, HTSUS, chapter 90, note 2, HTSUS, is applicable. It states that:

[s]ubject to note 1 above, parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules:

(a) Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8485, 8548 or 9033) are in all cases to be classified in their respective headings;

(b) Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind;

(c) All other parts and accessories are to be classified in heading 9033.

It as been suggested that, because the module acts as the control panel for a photocopy machine, it is a good of heading 8537, HTSUS, specifically described under subheading 8537.10.90, HTSUS. Three rulings, each of which classified merchandise in heading 8537, HTSUS, are cited as precedent. In HQ 958711, dated February 6, 1996, we held an elastomer (a molded silicone rubber pad with collapsible protrusions functioning as individual switches), which was part of a telephone set of heading 8517, HTSUS, to be classifiable under subheading 8537.10.90, HTSUS. In HQ 958709, dated February 6, 1996, we held a keyboard/panel switch for cellular telephones, comprised of switches, connectors, and contacts, to be classifiable under subheading 8537.10.90, HTSUS. In HQ 083674, dated June 22, 1989 (holding affirmed in HQ 088238, dated April 23, 1991), we held a microwave control panel, incorporating a clock and metal chassis, to be classifiable under subheading 8537.10.90, HTSUS.

In understanding the language of the HTSUS, the Harmonized Commodity Description and Coding System Explanatory Notes may be utilized. The Explanatory Notes, 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 these headings. See T.D. 89-80, 54 Fed. Reg. 35127, 35128 (August 23, 1989). In part, Explanatory Note 85.37 (p. 1506) states that:

[t]hese consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams.

The goods of this heading vary from small switchboards with only a few switches, fuses, etc. (e.g., for lighting installations) to complex control panels for machine-tools, rolling mills, power stations, radio stations, etc., including assemblies of several of the articles cited in the text of this heading.

Based upon the description of the merchandise in the provided literature, it is our position that the Touch Screen is a good of heading 8537, HTSUS. It meets the terms of the heading in that it is for the control of electricity and contains multiple touch switches of heading 8536, HTSUS, and incorporates voltage regulators (as referred to in Explanatory Note 85.37).

It is claimed that the presence of the LCD and temperature compensation circuitry places the Touch Screen beyond the scope of heading 8537, HTSUS, and into heading 9009, HTSUS, as a part of a photocopying machine. We disagree. The LCD is an article of chapter 90, HTSUS (9013, HTSUS), and the terms of heading 8537, HTSUS, allow for goods classifiable therein to incorporate articles of chapter 90, HTSUS. Also, the LCD is integral to the use of the Touch Screen's control features. To commence the variety of operations offered on the Touch Screen, a user must touch the LCD. Based upon the provided literature, the temperature compensation circuitry compensates for any changes in temperature, which could otherwise affect the contrast and brightness of the LCD. The purpose of such circuitry is merely to enhance the effective operation of the Touch Screen.

HQ 960873, dated November 12, 1997, is cited as precedent for the proposition that the Touch Screen is beyond the scope of heading 8537, HTSUS, and is classifiable as a part in heading 9009, HTSUS. In that ruling, we held an LCD indicator module for a cellular telephone to be classifiable as a part in heading 8529, HTSUS. However, in that ruling, the LCD portion of the module was merely used for display purposes. All of the control features in the module were centered in the attached printed circuit board (PCB). With regard to the Touch Screen, the LCD is integral to the operation of the Touch Screen's control features covered by heading 8537, HTSUS. Therefore, for classification purposes, it is our position that the merchandise in HQ 960873 is distinguishable from the Touch Screen.

Heading 8537, HTSUS, is a principal use provision. Additional U.S. rule of interpretation 1(a), HTSUS, states that:

[i]n the absence of special language or context which otherwise requires--

(a) a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use.

Factors pertinent in determining whether merchandise falls within a particular class or kind include general physical characteristics, the expectation of the ultimate purchaser, channels of trade, environment of sale (accompanying accessories, manner of advertisement and display), use in the same manner as merchandise which defines the class, economic practicality of so using the import, recognition in the trade of this use. Susceptibility, capability, adequacy, or adaptability of the import to the common use of the class is not controlling. U.S. v. The Carborundum Company, 63 CCPA 98, C.A.D. 1172, 536 F.2d 373 (1976).

Although it is our understanding that the Touch Screen is capable of displaying status messages and other helpful information unrelated to its control features, it is our position that the Touch Screen is principally used for the control of electricity, and is a good included in the class or kind of merchandise described in heading 8537, HTSUS. The Touch Screen is marketed for the convenience of its screen control features; if a buyer of such machines does not want such features, then a photocopying machine with a simple LCD for the display of status messages could be purchased. Based upon the provided literature, the Touch Screen is one of the major benefits in purchasing the Model 5334 photocopy machine.

In accordance with chapter 90, note 2(a), HTSUS, because the Touch Screen is a good of heading 8537, HTSUS, it is precluded from classification as a part in heading 9009, HTSUS. Consequently, the Touch Screen is classifiable under subheading 8537.10.90, HTSUS.

Classification of the merchandise in heading 8531, HTSUS, was considered. However, the control features of the Touch Screen place it beyond the scope of a mere signaling device classifiable under subheading 8531.20.00, HTSUS.

HOLDING:

The Touch Screen graphic LCD module is classifiable under subheading 8537.10.90, HTSUS, as an other panel for electric control or the distribution of electricity.

Sincerely,

John Durant, Director
Commercial Rulings Division

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