HQ 964506

January 8, 2002

**CLA-2 RR:CR:GC** 964506 BJB

**CATEGORY:** Classification

**TARIFF NO.:** 8528.21.65

Port Director of Customs

U.S. Customs Service

555 Battery Street

San Francisco, CA 94126

**RE:** Protest 2809-00-100559; In-vehicle video monitor

Dear Port Director:

The following is our decision regarding Protest 2809-00-100559, filed by
Sharp Electronics Corporation ("protestant"), concerning the
classification, under the Harmonized Tariff Schedule of the United
States ("HTSUS"), of a liquid crystal display ("LCD") module described
as an "LCD color video monitor."

In preparing this decision, consideration was given to supplemental
submissions of August 31, 2000, November 7, and December 13, 2001,
submitted by protestant's counsel. A sample of the LCD display panel was
also provided.

**FACTS:**

The subject merchandise is a thin film transistor ("TFT") active matrix
liquid crystal display panel ("LCD") module, model LQ064A5CG01, with a
display diagonal of 6.4 inches. This constitutes a diagonal measurement
that does not exceed 34.29 centimeters. The display panel screen has a
480 x 234 pixel matrix, which produces a full color, high resolution,
image in red, green and blue ("RGB") stripe configuration. Attached to
the LCD panel is a printed circuit board with driver integrated
circuits, a plastic diffuser panel, and a backlight, all of which are
encased in a metal housing ("bezel").

Protestant states that the module is to be used as a color video monitor
for an "in-vehicle video-cassette player." The module contains a
built-in video interface circuit at the time of importation and can only
receive video signals conforming to the composite NTSC system format.
The driver

electronics are also specifically designed to generate points of light
synchronously with the source signal on the LCD display screen. The
module does not incorporate a television type radio frequency ("RF")
tuner. It is not capable of receiving television broadcast signals or
radio signals as imported.

Counsel for the protestant states that the module is not exclusively
designed for use in one specific "in-vehicle" video monitor player
system, and that it may be adapted to other systems using a video
monitor. Sharp designs this LCD module pursuant to specific customer
needs.

LCD modules are dedicated to their respective functions by their design,
as dictated by: pixel size and configuration, voltage requirements,
resolution, backlighting applications, National Television Systems
Committee ("NTSC") signal receiver and/or radio frequency antenna
capability. The present module has a 10-pin electrical connection
configuration. This configuration does not include a pin for an RF
antenna connection. However, the module does include a pin connection
that is composite NTSC video signal compatible and enables it to
demodulate video signals. The NTSC standard provides for a broadcast
bandwidth of approximately 4-6 megahertz. A module that is composite
NTSC standard compatible alone, would not be capable of demodulating GPS
signals that are limited to transmission on two substantially higher
L-band frequencies (1575 MHz, and 1227 MHz). The present module, as
entered, is not capable of demodulating signals transmitted at GPS
frequencies.

When the module is plugged-in at its 10-pin electrical connector, and
video signals are supplied from a video-cassette player/recorder, video
camera, or DVD player equipment, video images will appear on the
module's LCD display panel.

The merchandise was entered on September 26, and 29, 1999, under
subheading 8528.21.65, as "video monitors with an LCD panel." These
entries were liquidated on August 11, and 17, 2000, under subheading
9013.80.90, HTSUS, as "liquid crystal displays not elsewhere specified."
The protest was timely filed on August 25, 2000.

**ISSUE:**

Whether the subject LCD module is classifiable in heading 8528, HTSUS,
which provides for "video monitors," or in heading 8531, HTSUS, which
provides for "visual signaling apparatus;" or in heading 9013, HTSUS,
which provides for "liquid crystal devices not constituting articles
provided for more specifically in other headings"?

**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 ("GRIs"). 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 GRIs may then be applied.

In understanding the language of the HTSUS, the Harmonized Commodity
Description and Coding System Explanatory Notes may be utilized. The
Explanatory Notes (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 these headings.
Customs believes the ENs should always be consulted. *See* T.D. 98-80,
54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

The HTSUS provisions under consideration are as follows:

8528 Reception apparatus for television, whether or not incorporating
radiobroadcast receivers or sound or video recording or reproducing
apparatus; video monitors and video projectors:

Video monitors:

8528.21 Color:

With a flat panel screen:

Other:

65. With a video display diagonal not exceeding 34.29 cm

```{=html}
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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:

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

```{=html}
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```
9013. 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; parts and accessories thereof:

      80. Other devices, appliances and instruments:

          90. Other

Protestant claims that the principal use of this model LCD module is as
a "video monitor," provided for in heading 8528, HTSUS. As noted above,
protestant submitted a sample, sales information, and specifications,
all in support of its claim that the module is for use as a video
monitor with an "in-vehicle" videotape cassette player/entertainment
center. However, principal use as a "video monitor" is not required for
classification in heading 8528, HTSUS. See HQ 961466, dated April 6,
1999. Rather, classification of the instant monitor in heading 8528
depends on its technical capabilities.

Heading 8528, HTSUS, in pertinent part, provides *eo nomine* for "video
monitors." EN 85.28 provides the following:

> "This heading covers television receivers (including video monitors
> and video projectors), whether or not incorporating radio-broadcast
> receivers or sound or video recording or reproducing apparatus.
>
> The heading includes: . . .
>
> \(6\) Video monitors which are receivers connected directly to the
> video camera or recorder by means of co-axial cables, so that all the
> radio-frequency circuits are eliminated. They are used by television
> companies or for closed-circuit television (airports, railway
> stations, steel plants, hospitals, etc.). These apparatus consist
> essentially of devices which can generate a point of light and display
> it on a screen synchronously with the source signals. They incorporate
> one or more video amplifiers with which the intensity of the point can
> be coded in accordance with a particular standard (NTSC, SECAM, PAL,
> D-MAC, etc.). For reception of coded signals, the monitor must be
> equipped with a decoding devices covering (the separation of) the R,
> G, and B signals. The most common means of image reconstitution is the
> cathode-ray tube, for direct vision, or a projector with up to three
> projection cathode-ray tubes: however, other monitors achieve the same
> objective by different means (e.g., liquid crystal screens,
> diffraction of light rays on to a film of oil)."

As noted above, the module is a complete monitor, with a TFT matrix
liquid crystal display, an electrical connector, and built-in video
interface circuit.

It generates a point of light and displays that point on a screen
synchronously with the source signals. The module has a 10-pin
electrical connector for connection to a video-cassette player or
recorder ("VCP" or "VCR") by multiple-pin ribbon. This method of
connection serves to eliminate radio frequency ("RF") circuits as
described in EN 85.28. The built-in video interface circuit enables the
module to receive and display composite NTSC standard video signals on
its display panel. These specifications indicate that the module is a
"video monitor."

However, protestant also advertises LCD module #LQ064A5CG01 on its
Internet website as "ideal for automotive navigation systems and rear
seat entertainment center displays." The specifications for this article
listed there is entitled: "Sharp model LQ064A5CG01," "Color TFT-LCD
Module \[for\] (LCD TV/Car Navigation)."

Use of this module specifically with global positioning systems ("GPS")
is not mentioned in protestant's submitted specifications and sales
information. Counsel's August 31, 2000 letter does, however, state that
the module may be used for other purposes, or in conjunction with other
systems.

Heading 8531, HTSUS, provides in pertinent part for "electric sound or
visual signaling apparatus.\]" EN 85.31 provides that indicator panels,
"are 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. These are large panels with numbers corresponding
    to a number of rooms. . . .

(2) Number indicators. The signals appear as 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 . . .

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

These examples demonstrate that only a small amount of information can
be displayed and remain within the scope of "visual signaling apparatus"
of heading 8531. See HQs 960110 and 959945, dated November 19, 1997;
957723, dated June 2, 1995; 955062, dated March 21, 1994; and 955294,
dated March 18, 1994.

The sales literature shows the module in use as a video monitor. The
module has a high resolution capability, with 480 x 234 pixel density,
and a demonstrated capacity to display video signals in motion. The
module is not limited to visual signaling of a few characters, and is
therefore not classifiable in heading 8531, HTSUS. It is made for
processing video signals, and accomplishes this through the presence of
a built-in video interface circuit. Moreover, it can only receive video
signals conforming to the composite NTSC system format.

Customs classified this merchandise under heading 9013, HTSUS, which
provides for "\[l\]iquid crystal devices not constituting articles
provided for more specifically in other headings\[.\]" In *Sharp
Microelectronics Technology, Inc. v. United States*, 932 F. Supp. 1499
(CT 1996), aff'd., 122 F. 3d 1446 (CAFC 1997), this provision was
interpreted to mean that if the subject merchandise is provided for more
specifically in another heading, it would not be classifiable in heading
9013, HTSUS. See also HQ 960110, dated November 19, 1997, and 959175,
dated November 25, 1996. In this case, the module is more specifically
provided for in heading 8528, at GRI 1, as a "video monitor."

Our determination is supported by New York Ruling ("NY") F80459, dated
December 14, 1999, which classified a TFT active matrix LCD module, with
a display diagonal of 6.4 inches, without television tuner but capable
of receiving NTSC standard video signals, and designed for use with an
"in-vehicle" VCP or VCR, in subheading 8528.21.65, HTSUS.

**HOLDING:**

The Sharp LCD module, Model LQ064A5CG01, for use as a "video monitor"
with an "in-vehicle" video-cassette player, is classifiable in
subheading 8528.21.65, HTSUS, which provides for: "Reception apparatus
for television, whether or not incorporating radio broadcast receivers
or sound or video recording or reproducing apparatus; video monitors and
video projectors: Video monitors: Color: With a flat panel screen:
Other: With a video display diagonal not exceeding 34.29 cm."

The protest should be **[ALLOWED]{.underline}**. 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 or
entries in accordance with the decision must be accomplished prior to
mailing the decision. Sixty (60) 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.gov](http://www.customs.gov/), by means
of the Freedom of Information Act, and other methods of public
distribution.

Sincerely,

John Durant, Director

Commercial Rulings Division