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