HQ 960110

November 19, 1997

CLA-2 RR:CR:GC 960110 RFA

CATEGORY: Classification

TARIFF NO.: 8531.20.00

Port Director

U.S. Customs Service

P.O. Box 2450

San Francisco, CA 94126

RE: Protest 2809-96-101627; Liquid Crystal Devices (LCDs); LCD

Displays; Reception Apparatus for Television; Color Video

Monitors; Legal Note 1(m) to Section XVI; Headings 8528 and

9013; Sharp Microelectronics Technology, Inc. v. United

States, 932 F.Supp. 1499 (CIT 1996), aff\'d., 122 F.3d 1446,

CAFC Slip Op. 97-1013 (September 2, 1997); HQ 955062

Dear Port Director:

The following is our decision regarding Protest 2809-96-101627, which
concerns the classification of liquid crystal

devices (LCDs) for color video monitors under the Harmonized

Tariff Schedule of the United States (HTSUS).

FACTS:

The subject merchandise is a color TFT active matrix liquid

crystal display (LCD), model 5L-U4E, with a display diagonal of 5

inches. The LCD display screen consists of a 480 x 234 pixel

matrix, arranged in a triangular manner. Attached to the LCD is

a printed circuit board with driver integrated circuits and a

plastic diffuser panel, all of which are encased in a metal

housing (bezel). It is claimed that the subject merchandise is

to be used as a color video monitor.

The merchandise was entered on May 29, 1996, under

subheading 8528.21.65, HTSUS, as a video monitor with a flat

panel screen. The entry was liquidated on September 13, 1996,

under subheading 9013.80.60, HTSUS, as liquid crystal displays

not elsewhere specified. The protest was timely filed on

December 10, 1996.

The subheadings under consideration are as follows:

8528.21.65: Reception apparatus for television, whether

or not incorporating radiobroadcast receivers

or sound or video recording or reproducing

apparatus; video monitors and video

projectors: \[v\]ideo monitors: \[c\]olor: \[w\]ith

a flat panel screen: \[o\]ther: \[w\]ith a video

display diagonal not exceeding 33.02 cm\....

Goods classifiable under this provision have a general,

column one rate of duty of 3 percent ad valorem.

8531.20.00 Electric sound or visual signaling apparatus

(for example, bells, sirens, indicator

panels, burglar or fire alarms). . . :

\[i\]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 2.1 percent ad valorem.

9013.80.60 Liquid crystal devices not constituting

articles provided for more specifically in

other headings. . . : \[o\]ther devices,

appliances and instruments: \[o\]ther. . . .

Goods classifiable under this provision have a general,

column one rate of duty of 7.2 percent ad valorem.

ISSUE:

Whether the subject LCDs are classifiable as video monitors,

or as signalling apparatus, or as LCDs not specified or included

elsewhere, 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 port classified the subject merchandise under heading

9013, HTSUS. This provision has been 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 Sharp Microelectronics Technology, Inc. v. United

States, 932 F.Supp. 1499 (CIT 1996), aff\'d., 122 F.3d 1446, CAFC

Slip Op. 97-1013 (September 2, 1997). See also HQ 959175, dated

November 25, 1996.

The protestant claims that the subject LCD is classifiable

under heading 8528, as a video monitor. The term \"video monitor\"

is defined in the Harmonized Commodity Description and Coding

System Explanatory Notes (ENs) which constitute the official

interpretation of the HTSUS. While not legally binding, the ENs

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, 54 FR 35127, 35128 (August 23,

1989). EN 85.28, page 1492, states that video monitors are

receivers which are \"connected directly to the video camera or

recorder by means of co-axial cables, so that all of the radio-frequency
circuits are eliminated.\" We find that the subject

merchandise cannot be classified under heading 8528 because the

protestant did not supply any documentation to support this

claim. However, examination of the protestant\'s sales literature

and previous information submitted to Customs indicates that this

display is to be used in automobiles for use with global

positioning systems (GPS).

In HQ 955062, dated March 21, 1994, Customs determined that

LCD modules which have a principal use as global positioning,

lottery system, portable data collector, medical instrument, and

gasoline pump indicator meet the terms of heading 8531, as

signaling apparatus, because they provide certain limited

indication information to the user. Based upon HQ 955062, we

find that the subject LCD which is principally used for

indicating limited location information to the user, is

classifiable under heading 8531, as signaling apparatus.

HOLDING:

The Sharp LCD display screen for portable televisions, model

5L-U4E, are 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) . . . : \[i\]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 2.1 percent ad valorem.

Because reclassification of the merchandise as indicated

above results in a lower rate of duty than claimed, you should

GRANT the protest 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 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

Commercial Rulings Division