HQ 958836: Protest 2809-95-101360; Liquid Crystal Display (LCD) Panel for Keyboards and Server Machine; Signaling Apparatus; Headings 8471, 8473, 8531, and 9013; Legal Note 1(m) to section XVI; EN 85.31; HQs 958953, 957435, 956696, 954638, 952973, 952722, 951868, 951609, 952360, 954788, 953115, 952502, and 951288

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

HQ 958836

May 3, 1996

CLA-2 RR:TC:MM 958836 RFA

CATEGORY: Classification

TARIFF NO.: 8531.20.00, 9013.80.60

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

RE: Protest 2809-95-101360; Liquid Crystal Display (LCD) Panel
for Keyboards and Server Machine; Signaling Apparatus;
Headings 8471, 8473, 8531, and 9013; Legal Note 1(m) to
section XVI; EN 85.31; HQs 958953, 957435, 956696, 954638,
952973, 952722, 951868, 951609, 952360, 954788, 953115,
952502, and 951288

Dear Port Director:

The following is our decision regarding Protest 2809-95-101360, which concerns the classification of two LCD panels under
the Harmonized Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise consists of two passive matrix
liquid crystal display (LCD) panels, model DMC 40401N and DMC
20481U-SLY-6. Both have a printed circuit board (PCB), row and
column driver integrated circuits (ICs), controller ICs, ROM and
RAM chips, and mounting bezel. The DMC 40401N also contains
backlighting.

Model DMC 40401N is designed for use in an automatic data
processing (ADP) keyboard. The keyboard functions as an early-generation, limited feature word processor which is designed to
permit entry of alphanumeric text independent of a central
processing unit (CPU). After the text is entered into onboard
RAM in the keyboard, the keyboard uploads the data into a file on
the CPU. The LCD displays the text being entered into the
keyboard RAM. According to the specification sheet, it has a
display format of 40 characters by 4 lines. The LCD module's
dimensions are 190mm x 54mm x 11mm.

Model DMC 20481U-SLY-6 is designed for use in an ADP server
machine. This LCD module will indicate data such as error
messages, user identification information, data readouts, and
volume of usage. According to the specification sheet, it has a
display format of 20 characters by 4 lines. The LCD module's
dimensions are 98.5mm x 61mm x 16.5mm.

The merchandise was entered under subheading 8471.92.30,
HTSUS, as an ADP non-CRT display panel, with a diagonal not
exceeding 30.5 cm. The entry was liquidated on June 30, 1995,
under subheading 9013.80.60, HTSUS, as LCDs. The protest was
timely filed on September 27, 1995.

The subheadings under consideration are as follows:

8471: Automatic data processing machines and units
thereof; magnetic or optical readers, machines for
transcribing data onto data media in coded form
and machines for processing such data, not
elsewhere specified or included:

8471.92.30: Input or output units, whether or not entered
with the rest of a system and whether or not
containing storage units in the same housing:
[o]ther: [d]isplay units: [w]ithout
cathode-ray tube (CRT), having a visual
display diagonal not exceeding 30.5 cm. . . .

Goods classifiable under this provision have a general,
column one rate of duty of free.

8471.99.60: Other: [o]ther: [o]ther: [u]nits suitable for
physical incorporation into automatic data
processing machines or units thereof. . . .

Goods classifiable under this provision have a general,
column one rate of duty of free.

8473.30.45 Parts and accessories (other than covers,
carrying cases and the like) suitable for use
solely or principally with machines of
headings 8469 to 8472: [p]arts and
accessories of the machines of heading 8471:
[n]ot incorporating a cathode ray tube:
[o]ther: [p]arts of power supplies for
automatic data processing machines: [o]ther.
. . .

Goods classifiable under this provision have a general,
column one rate of duty of free.

8531.20.00 Electric sound or visual signaling apparatus
(for example, bells, sirens, indicator
panels, burglar or fire alarms), other than
those of heading 8512 or 8530. . . :
[i]ndicator 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 2.4 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.

ISSUE:

Whether the LCD panel is classifiable as parts of
typewriters, or as a visual signaling indicator panel, 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 consistently stated general rule is that unless a
principal use for signaling (heading 8531, HTSUS) or as an
automatic data processing output unit (heading 8471, HTSUS) can
be established satisfactorily either by design limitation or
other reliable means, liquid crystal displays are classifiable
under heading 9013, HTSUS, as other liquid crystal devices not
constituting articles provided for more specifically in other
headings. See HQ 951288 (July 7, 1992); HQ 952246 (November 10,
1992), modified in HQ 952973 (August 5, 1993); HQ 952502 (March
18, 1993); and HQ 954638 (December 2, 1993).

To be classified as an LCD display under heading 8471,
Customs has consistently held that an LCD must meet the following
criteria: pixel configuration (640 x 480), dot pitch (.27 mm to
.30 mm), thin profile, light weight, liquid crystal material mix
(150 to 200 milliseconds response time signal to signal), and low
power consumption (5V). See HQ 956696 (May 12, 1995); HQ 951609
(October 20, 1992); HQ 951868 (October 31, 1992); HQ 952246
(modified in HQ 952973); and HQ 952502. The subject LCD panels
do not meet this criteria due to their small size and limited
number of lines and characters. Therefore, we find that they are
not classifiable under heading 8471, HTSUS.

Subheading 8531.20.00, HTSUS, provides for "[e]lectric sound
or visual signaling apparatus...[i]ndicator panels incorporating
liquid crystal devices (LCD's)...." Therefore, to be classified
in this subheading, the LCDs must be designed for "signaling."

In understanding the language of the HTSUS, the Harmonized
Commodity Description and Coding System (HCDCS) Explanatory Notes
(ENs) may be consulted. The ENs, although not dispositive,
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 F R 35127, 35128 (August 23, 1989).
EN 85.31, page 1381, is fairly descriptive and restrictive as to
the types of "signaling"/indicating 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. In HQ 958953, dated April 25, 1996, and in HQ 957435,
dated August 8, 1995, Customs determined that certain LCDs which
were designed and used for electric typewriter displays, were not
principally used or designed as signaling indicator panels. The
LCDs classifiable under subheading 8531.20.00, HTSUS, display
limited indication information to a user, i.e., measurement,
coordinates, flow rate, etc. The basis for these decisions was
that the LCDs for electric typewriters displayed more information
than typical signaling panels.

We find that Model DMC 40401N, which is used to display text
from a keyboard, is similar to the LCD displays for electric
typewriters in HQ 958953 and HQ 957435. Based upon HQ 958953 and
HQ 957435, the Model DMC 40401N does not meet the terms of
signaling apparatus of heading 8531, HTSUS. Because this LCD
displays more information than typical signaling panels, we find
that the Model DMC 40401N is classifiable under heading 9013,
HTSUS, as LCDs not constituting articles provided for more
specifically in another heading.

However, the Model DMC 20481U-SLY-6 indicates limited
information such as error messages, user identification
information, data readouts, and volume of usage. According to
the specification sheet, the DMC 20481U-SLY-6 has a display
format of 20 characters by 4 lines. In HQ 954638, dated December
2, 1993, Customs stated that: "LCDs having 80 or less characters
are restricted to signaling functions by virtue of their
operational limitations. Clearly, the instant LCDs contain less
than 80 characters, but even more importantly, the principal use
of all of the instant LCDs is that of signaling in such apparatus
as cameras, industrial controls, medical instrumentation, diving
equipment and electronic price tags. Furthermore, we have
previously held that LCD electronic price tags are classifiable
as signaling apparatus (see HQ 088225, dated January 31, 1991)."
See also HQ 952973 (August 5, 1993).
Based upon HQ 954638, we find that the Model DMC 20481U-SLY-6 is
classifiable under heading 8531, HTSUS, as signaling apparatus
because it contains 80 characters and displays limited
information.

The protestant contends that the LCDs are classifiable as
parts of ADP units under heading 8473, HTSUS. However, 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. It is Customs position that heading 8473, 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 8473, HTSUS, which falls in section XVI, HTSUS. See HQ
958953; HQ 957435; HQ 952973; HQ 951609; HQ 952360; and HQ
951868. As to the claim of applying GRI 3(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:

LCD Model DMC 20481U-SLY-6 is classifiable under subheading
8531.20.00, HTSUS, which provides for: "[e]lectric sound or
visual signaling apparatus (for example, bells, sirens, indicator
panels, burglar or fire alarms), other than those of heading 8512
or 8530. . . : [i]ndicator panels incorporating liquid crystal
devices (LCD's) or light emitting diodes (LED's). . . ."

LCD Model DMC 40401N 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. . . ."

The protest should be DENIED, except to the extent that
reclassification of the LCD Model DMC 20481U-SLY-6 as indicated
above results in a partial allowance. 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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