HQ 954638

December 2, 1993

CLA-2 CO:R:C:M 954638 MBR

CATEGORY: Classification

TARIFF NO.: 8531.20.00

District Director

U.S. Customs Service

555 Battery Street

San Francisco, CA 94111

RE: Protest No. 2809-93-100926; LCD Systems Corporation; Liquid

Crystal Display; LCD; Signaling; 8531; 9013; HQ 951609; HQ

951288; HQ 952360; HQ 086929; HQ 952973; E.M. Chemicals v.

United States

Dear District Director:

This is our response to Protest Number 2809-93-100926,

regarding the classification of Liquid Crystal Displays (LCDs),

under the Harmonized Tariff Schedule of the United States (HTSUS).

The subject merchandise was entered on August 21, 1992, and the

entry was liquidated on April 23, 1993. The protest was timely

filed on May 11, 1993.

FACTS:

LCD Systems Corporation imports liquid crystal displays

(\"LCDs\"), complete with row and column drivers and electrical

connections, which are custom designed and dedicated to specific

instrumentation signaling functions. The LCDs are utilized in

functions such as electronic price tags, medical instrumentation,

diving equipment, camera controls and industrial controls. The

LCDs consist of alphanumeric indication, iconographic indication

and limited character display.

ISSUE:

Are the instant liquid crystal displays classifiable under the

provision for electric sound or visual signaling apparatus, or

under the provision for liquid crystal devices?

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LAW AND ANALYSIS:

The General Rules of Interpretation (GRI\'s) to the HTSUS

govern the classification of goods in the tariff schedule. GRI 1

states, in pertinent part:

\...classification shall be determined according to the terms

of the headings and any relative section or chapter notes\...

The instant LCDs are prima facie classifiable under the

following subheadings:

8531 Electric sound or visual signaling apparatus (for example,

bells, sirens, indicator panels\...

8531.20.00 Indicator panels incorporating liquid crystal

devices (LCD\'s) or light emitting diodes (LED\'s)

\* \* \* \* \* \* \* \* \* \* \* \* \* \*

9013 Liquid crystal devices not constituting articles provided for

more specifically in other headings

9013.80.60 Other devices, appliances and instruments: Other

\* \* \* \* \* \* \* \* \* \* \* \* \* \*

Heading 8531, HTSUS, provides for electric sound or visual

signaling apparatus. Therefore, to be classifiable in this

heading, the apparatus must be designed for \"signaling,\" as that

term is defined for tariff purposes.

The Harmonized Commodity Description and Coding System

Explanatory Notes (ENs) to heading 8531, HTSUS, page 1381, are

fairly descriptive and restrictive as to the types of \"signaling\"

indicator panels and the like must perform in order to be

classifiable in that provision. It states: \"\[t\]hese 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.

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\(3\) 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. etc.

Therefore, only those LCDs which are limited by design and

function to that of \"signaling,\" are classifiable in heading 8531,

HTSUS. In HQ 952246, dated November 10, 1992 (citing HQ 951288,

dated July 7, 1992), we held that the Epson EA-D16125AR-S (2 lines

of 16 characters) is restricted by its limited operational

capabilities to that of signaling functions, and is classifiable

under subheading 8531.20.00, HTSUS.

E.M. Chemicals v. United States, Appeal No. 90-1141, Cust.

Bul. Vol. 24, No. 51, (1990), 13 CIT 849, 728 F. Supp. 723 (1989),

held that under the Tariff Schedules of the United States (\"TSUS\"),

the actual liquid crystals themselves were classifiable under item

685.70 (the predecessor provision to heading 8531, HTSUS).

However, there has been a significant change in the relevant tariff

provisions under the HTSUS. In fact, heading 9013, HTSUS, which

provides for LCDs specifically, is a new provision under the HTSUS.

Furthermore, LCDs have been technologically developed for a myriad

of uses, many of which cannot be said to be for \"signaling.\"

In HQ 952246 we held that due to the expansive character

capabilities of the EG-2401S-ER-1 (1 line with 64 characters) and

EG-7500B-NS-1 (1 line with 200 characters) a principal use of

signaling cannot be supported. However, due to the submission of

supplemental information in HQ 952973, dated August 5, 1993,

regarding the principal use of LCDs, we are of the opinion 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).

As noted, the instant LCDs are also prima facie classifiable

in heading 9013, HTSUS, which provides for: \"\[l\]iquid crystal

devices not constituting articles provided for more specifically

in other headings.\" Because the instant LCDs are provided for more

specifically in another heading (heading 8531, HTSUS), they are not

classifiable in heading 9013, HTSUS.

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Thus, the general rule is that unless a principal use for

\"signaling\" (heading 8531, HTSUS) or for ADP display (heading 8471,

HTSUS) can be established satisfactorily either by design

limitation or other reliable means, LCD displays are classifiable

in subheading 9013.80.60, HTSUS, which provides for: \"\[l\]iquid

crystal devices not constituting articles provided for more

specifically in other headings: \[o\]ther devices, appliances and

instruments: \[o\]ther.\" However, if the LCD contains 80 or less

characters it is restricted to signaling functions by virtue of its

operational limitations.

HOLDING:

The LCD Systems Corporation liquid crystal displays are

dedicated by their use and their limited operational capabilities

to that of signaling functions. Therefore, they are classifiable

in subheading 8531.20.00, HTSUS, which provides for: \"\[e\]lectric

sound or visual signaling apparatus (for example, bells, sirens,

indicator panels\...: \[i\]ndicator panels incorporating liquid

crystal devices (LCD\'s) or light emitting diodes (LED\'s).\"

For the reasons stated above, this protest should be allowed

in full. 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 this decision must be accomplished prior to the

mailing of this decision. Sixty days from the date of this

decision the Office of Regulations and Rulings will take steps to

make this decision available to Customs personnel via the Customs

Rulings Module in ACS and the public via the Diskette Subscription

Service, Lexis, Freedom of Information Act and other public access

channels.

Sincerely,

John Durant, Director