HQ 957723

June 2, 1995

CLA-2 R:C:M 957723 KCC

CATEGORY: Classification

TARIFF NO.: 8531.20.00

Area Director

U.S. Customs Service

Building #77, JFK Airport

Room 228

Jamaica, New York 11430

RE: IA 2/95; liquid crystal devices; LCDs; 9013.80.60; liquid crystal
devices not constituting

articles provided for more specifically in other headings; HRLs 955447,
954788, 953115,

952502, 951288, 952360, 954638 and 955062; EN 90.13; signaling
apparatus; EN 85.31

Dear District Director:

This is in regards to Internal Advice 2/95, initiated by counsel for
Sanyo Semiconductor

Corporation, in a letter to your office dated October 20, 1994, which
concerns the tariff

classification of liquid crystal displays under the Harmonized Tariff
Schedule of the United States

(HTSUS). We note that the National Import Specialists knowledgeable
about liquid crystal

displays visited a Sanyo facility to view samples and meet with counsel.

FACTS:

The liquid crystal displays (LCDs) at issue are referred to as fixed
LCDs or icon-type

LCDs, which are represented by model numbers LCD 9108H, LCD 9077JPH, and
LCD

4192RF1. They are low character fixed displays showing limited
information, i.e., numbers or

symbols. These are relatively simple displays using icons, segments, bar
graphs, and fixed text.

The LCDs are fitted with electrical connectors. They do not contain a
printed circuit board or any

integrated circuits, but are inserted as one of many components on a
circuit board inside the

machine into which it is designed to be incorporated. The IA applicant
describes this merchandise

in their sales literature and on their commercial invoices as LCD
panels. However, they state that

there is not an industry-applied term for this particular type of LCD.

ISSUE:

Are the LCDs classified under subheading 8531.20.00, HTSUS, as
\"\[e\]lectric sound or

visual signaling apparatus\...\[i\]ndicator panels incorporating liquid
crystal devices (LCD\'s)\...\", or

under subheading 9013.80.60, HTSUS, as \"\[l\]iquid crystal devices not
constituting articles

provided for more specifically in other headings\...\"?

LAW AND ANALYSIS:

The classification of merchandise under the HTSUS is governed by the
General Rules of

Interpretation (GRI\'s). GRI 1, HTSUS, states, in part, that \"for legal
purposes, classification shall

be determined according to the terms of the headings and any relative
section or chapter notes\....\"

The subheadings at issue are:

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; parts

thereof\...Indicator panels incorporating liquid crystal devices
(LCD\'s) or light

emitting diodes (LED\'s)\....

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; parts
and

accessories thereof\...Other devices, appliances and
instruments\...Other.

There is no dispute that the LCDs are limited by design and function to
that of signaling

and are, therefore, classifiable under heading 8531, HTSUS.
Additionally, you contend that the

LCDs are classifiable under subheading 9013, HTSUS, as liquid crystal
devices not constituting

articles provided for more specifically in other headings. You state
that the industry frequently

refers to the LCDs at issue as glass sandwiches. This classification
opinion is based on

Headquarters Ruling Letters (HRL) 955477 dated February 9, 1994, which
classified glass

sandwiches under subheading 9013.80.60, HTSUS, and Explanatory Note (EN)
90.13 (pg. 1478),

which states:

\(1\) Liquid crystal devices consisting of a liquid crystal layer
sandwiched between

two sheets or plates of glass or plastics, whether or not fitted with
electrical

connections, presented in the piece or cut to special shapes and not
constituting

articles described more specifically in other headings of the
Nomenclature

(emphasis in original).

In understanding the language of the HTSUS, the Harmonized Commodity
Description and

Coding System (HCDCS) 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. 89-90, 54 Fed. Reg. 35127,
35128 (August 23,

1989).

We are of the opinion that the glass sandwiches classified under
subheading 9013.80.90,

HTSUS, in HRL 955477 are not similar to the LCDs at issue. Glass
sandwiches are incomplete

units which generally are not dedicated to a particular function at the
time of importation. In

HRL 955447, as imported, the glass sandwiches required row and column
drivers to be installed

in order for the unit to operate as designed. The LCDs at issue do not
require row and column

drivers because they are not organized to display information in rows or
columns. We note that

the LCDs at issue, appear, by visual inspection, to be glass sandwiches.
However, as imported,

they are workable, complete LCDs without a power source which, by
design, do not require row

and column drivers to function. Moreover, the LCDs do not require
integrated circuits containing

software to define what the displayed graphics or numbers will look like
because all the graphics

and numbers that will be displayed on the LCDs are ingrained into the
LCDs themselves.

Everything that is needed to enable the LCDs to function, other than a
power source, is included

in the LCDs at the time of importation. Therefore, it is our opinion
that the LCDs are not

classifiable as glass sandwiches under subheading 9013.80.90, HTSUS.

We agree with the IA applicant that the LCDs at issue are specifically
described under

subheading 8531.20.00, HTSUS, as \"\[e\]lectric sound or visual
signaling apparatus\...\[i\]ndicator

panels incorporating liquid crystal devices (LCD\'s)\....\" Only those
LCD\'s which are principally

used and/or limited by design to \"signaling\" are classifiable under
subheading 8531.20.00,

HTSUS. See, HRL 954788 dated December 1, 1993, HRL 953115 dated May 10,
1993, HRL

952502 dated March 18, 1993, HRL 952360 dated October 15, 1992, HRL
951868 and HRL

951288\. The articles under consideration are complete, workable LCDs
which present limited

indication information to a user, i.e., a feature is in use, battery
usage, administration of

medication, etc. This type of indication information is similar to the
types of limited indication

functions enumerated in EN 85.31 (1381). Therefore, the LCDs are
principally used for visual

signaling, and are classifiable under subheading 8531.20.00, HTSUS. See
also, HRL 955062

dated March 21, 1994 (global positioning, traffic signal controller,
portable data collector, lottery

system, pipeline monitoring, gasoline pump indicator, and medical,
measurement and industrial

instruments), HRL 954638 dated December 2, 1993 (electronic price tags,
medical

instrumentation, diving equipment, camera controls, and industrial
controls) and HRL 953115

dated May 10, 1993 (avionics LCDs for collision avoidance systems),
which classified LCDs with

limited operational capabilities for signaling functions under
subheading 8531.20.00, HTSUS, as

signaling apparatus.

HOLDING:

The LCDs, represented by model numbers LCD 9108H, LCD 9077JPH, and LCD

4192RF1, are classified under subheading 8531.20.00, HTSUS, as
\"\[e\]lectric sound or visual

signaling apparatus\...\[i\]ndicator panels incorporating liquid crystal
devices (LCD\'s)\....\" The

corresponding duty rate for articles of this subheading is 2.4 percent
ad valorem.

This decision should be mailed by your office to the internal advice
requester no later than

60 days from the date of this letter. On that date 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

Commercial Rulings Division