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HQ 964331





February 8, 2001

CLA-2 RR:CR:GC 964331 GOB

CATEGORY: CLASSIFICATION

TARIFF NO.: 8543.89.96; 8543.90.68; 8543.90.88

Port Director
U.S. Customs Service
P.O. Box 370920
Milwaukee, WI 53237-0920

RE: Electronic message displays

Dear Sir:

This is our decision regarding Protest 3701-00-100014, filed on behalf of Adaptive Micros Systems Inc. (“protestant”) concerning the classification, under the Harmonized Tariff Schedule of the United States (“HTSUS”), of certain electronic message displays.

FACTS:

The file reflects the following. Nineteen entries were filed between April 5, 1999 and March 17, 2000. The entries were liquidated between March 10, 2000 and April 7, 2000. The protest was filed on April 24, 2000.

The merchandise at issue was entered under subheading 8531.20.00, HTSUS, as: “Electric sound or visual signalling apparatus ... : ... Indicator panels incorporating liquid crystal devices (LCD’s) or light emitting diodes (LED’s)” and under subheading 8531.90.10, HTSUS, as parts thereof. The entries were liquidated under subheading 8543.89.96, HTSUS, as: “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: ... Other machines and apparatus: ... Other: ... Other: ... Other: ... Other” and under subheadings 8543.90.68 and 8543.90.88, HTSUS, as parts of goods of heading 8543, HTSUS.

The goods are described as Beta Brite® electronic message displays that employ light emitting diode technology. The specifications include a display array of 80 columns by seven rows and a display memory of 30,000 characters. Sixty-five different messages can be stored and displayed. The displays are used for advertising, the announcement of events, employee recognition, welcoming of customers and guests, etc.

ISSUE:

What is the tariff classification of the subject goods?

LAW AND ANALYSIS:

We note initially that the protest was timely filed under the statutory and regulatory provisions for protests, 19 U.S.C. 1514(c)(3)(A) and 19 CFR 174.12(e)(1).

Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI’s”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative Section or Chapter Notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRI’s may then be applied.

The Harmonized Commodity Description and Coding System Explanatory Notes (“EN’s”) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the EN’s 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.

The HTSUS provisions under consideration are as follows:

8531 Electric sound or visual signalling 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).

8531.90 Parts:

Printed circuit assemblies:

8531.90.10 Of the panels of heading 8531.20 ...

8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof:

Other machines and apparatus:

8543.89 Other:

Other:

Other:

8543.89.96 Other.

8543.90 Parts:

Other:

Printed circuit assemblies:

8543.90.68 Other.

Other:

8543.90.88 Other.

EN 85.31 provides in pertinent part as follows:

With the exception of signalling apparatus used on cycles or motor vehicles (heading 85.12) and that for traffic control on roads, railways, etc. (heading 85.30), this heading covers all electrical apparatus used for signalling purposes, whether using sound for the transmission of the signal (bells, buzzers, hooters, etc.) or using visual indication (lamps, flats, illuminated numbers, etc.), and whether operated by hand (e.g., door bells) or automatically (e.g., burglar alarms) ... The heading includes, inter alia : (A) Electric bells, buzzers, door chimes, etc... (B) Electric sound signalling apparatus, horns, sirens, etc... (C) Other electrical signalling apparatus ... for aircraft, ships, trains or other vehicles ... (D) Indicator panels and the like [including] (1) Room indicators ... (2) Number indicators ... (3) Office indicators ... (4) Lift indicators ... (5) Engine room telegraph apparatus for ships ... (6) Station indicating panels for showing the times and platforms of trains ... (7) Indicators for race courses, football stadiums, bowling alleys, etc. ... (E) Burglar alarms ... (F) Fire alarms ... (G) Electric vapour or gas alarms ... (H) Flame alarms ... [All emphasis in original.]

In HQ 086032 dated January 17, 1990, where we held certain message 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”) to be classified in subheading 8543.80.90, HTSUS, we stated:

... the 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 signalling equipment which is designed to provide a signal to a viewer who normally will instantaneously understand the meaning of the signal.

We believe the electronic message displays at issue here are similar to the message centers of HQ 086032.

In HQ 955448 dated February 23, 1994, where we held an outdoor display system to be classified in subheading 8543.80.95, HTSUS, and not in subheading 8531.20.00, HTSUS, we stated:

It is our position that the Mark III is not classifiable as an indicator panel under heading 8531, HTSUS. The primary purpose of the Mark III is to show such phenomena as live action or video images to an audience. This purpose goes far beyond mere signalling, in that the Mark III, in conveying a substantive message, entertains an audience rather than alerting it to a signal which the audience will immediately understand.

The electronic message displays at issue here convey a substantive message.

In HQ 952973 dated August 5, 1993, we held that “[d]ue to the expansive character capabilities of the [LCD module] EG-7500B-NS-1 (1 line with 200 characters), a principal use of signaling [subheading 8531.20.00, HTSUS] is not found.” The electronic message displays at issue here have expansive character capabilities.

We are not persuaded by the protestant’s assertion that classification under subheading 8531.20.00, HTSUS, is supported by HQ 959229 dated February 22, 1999 and HQ 959647 dated February 22, 1999. In HQ 959229, the goods at issue were for assembly “into the Meridian M3000 Touchphone so that it can visually present limited information regarding the operational status of the touchphone.” In HQ 959647, the goods were for assembly “into the Superset 430 Digital Business Telephone. The LCD will display the following: six rectangles which correspond by position to six buttons on the telephone situated below the display known as “softkeys” which will activate system features; data about the current call(s) such as the name and extension of the other party on the line and the status of the call.” We believe that the electronic message displays at issue here are substantially different from the goods in HQ 959229 and 959647 in that the electronic message displays convey much more information. They convey substantive messages rather than mere signals.

We find that the function of the electronic message displays at issue in this protest go well beyond signalling. Accordingly, we find that the electronic message displays are not described in heading 8531.

Because the electronic message displays are not described elsewhere in the HTSUS, we find that they are provided for in heading 8543, HTSUS, and are classified in subheading 8543.89.96, HTSUS. We find that parts of the electronic message displays are classified as liquidated, i.e., in either subheading 8543.90.68, HTSUS, or in subheading 8543.90.88, HTSUS.

HOLDING:

As detailed above, the electronic message displays are classified in subheading 8543.89.96, HTSUS, as: “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; parts thereof: ... Other machines and apparatus: ... Other: ... Other: ... Other: ... Other.” Parts of the electronic message displays are classified in subheading 8543.90.68 or 8543.90.88, HTSUS, as parts of goods of heading 8543, HTSUS.

You are instructed to DENY the protest.

In accordance with Section 3A(11)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, you are to mail this decision, together with the Customs Form 19, 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 make the decision available to Customs personnel, and to the public on the Customs Home Page on the World Wide Web at www.customs.treas.gov, by means of the Freedom of Information Act, and other methods of public distribution.

Sincerely,

John Durant, Director
Commercial Rulings Division

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