HQ 952722: Liquid Crystal Display Modules; LCDs; 9013.80.60; Additional U.S. Note 1(a); principal use; signaling apparatus; EN 85.31; EN 90.13; HRLs 955062, 954788, 953115, 952502, 951868, 952360, 951288, 955294, 952973

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                            HQ 952722

                        September 27, 1994

CLA-2 CO:R:C:M 952722 KCC

CATEGORY:  Classification

TARIFF NO.:  8531.20.00

Donald Alfred Weadon, Jr., Esq.
Reinhart, Boerner, Van Deuren, Norris & Rieselbach, P.C.
601 Pennsylvania Avenue, N.W.
Washington, D.C. 20004-2602

RE:  Liquid Crystal Display Modules; LCDs; 9013.80.60; Additional
     U.S. Note 1(a); principal use; signaling apparatus; EN
     85.31; EN 90.13; HRLs 955062, 954788, 953115, 952502,
     951868, 952360, 951288, 955294, 952973

Dear Mr. Weadon:

     This is in response to your letter dated September 30, 1992,
on behalf of Toshiba America Electronic Components, Inc.,
concerning the tariff classification of liquid crystal display
modules under the Harmonized Tariff Schedule of the United States
(HTSUS).  Additional submissions dated April 7, 13, July 15,
September 14, October 15, and December 29, 1993, and information
presented at meetings on February 10, and October 1, 1993, were
considered in rendering this decision.

FACTS:

     The liquid crystal display modules (LCDs) at issue are
imported assembled with the necessary operational electronics,
such as a printed circuit board with row and column driver
integrated circuits, controller chips, Read Only Memory, Random
Access Memory, a mounting bezel, and, in some case, backlighting. 
They incorporate either twisted nematic or super twisted nematic
liquid crystal material.  The LCDs are ready to be
installed/"plug in" condition.  The LCDs at issue are as follows: 

    Model Number           Application #1          Application #2

TLX-1391
Compressor Controls
None


TLX-1391-EO
IV Fluid Pump Unit
               64%
Cable TV Test
Equipment       29%
Unknown          7%


TLX-711A-30
Industrial/Medical
Control Devices 99%
Portable Label
Maker            1%


TLX-711A-EO
Portable Label
Maker           51%
Cellular Phone Test
Equipment       33%
Other           16%


TLX-711A
Telecom Console 67%
Stenography WP  30%
Unknown          3%


TLX-1301V-30
Laser Printers  90%
Medical Scanner 10%


TLX-1151- 50BN
Electric Typewriter
None


TLC-591-30N
Taxi Point-of-Sale
Terminals
None


TLX-1781-C3B
Chromatog Machine
None


TLX-1013-EO
Global Positioning  
                81%
Fish Finder     
                19%


TLX-1741-C3B
Instrumentation  
                50%
Industrial Control
Test Device     50%


TLX-1021
Micrometer/
Measuring       84%
Unknown
                16%


TLX-1241-30
Medical Bedside
Monitor
None


TLX-1461
Global Positioning
None


TLC-671
Laser Printer
None


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 terms of the headings and any
relative section or chapter notes...."  The subheadings at issue
are as follows:


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.

     You contend that the LCDs 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)...."  Heading 8531, HTSUS, has been held to be a
use provision.  See, Headquarters Ruling Letter (HRL) 951288
dated July 7, 1992.  Additional U.S. Note 1(a), HTSUS, states
that:

     [A] tariff classification controlled by use (other than
     actual use) is to be determined in accordance with the use
     in the United States at, or immediately prior to, the date
     of importation, of goods of that class or kind to which the
     imported goods belong, and the controlling use is the
     principal use.  

Therefore, to be classified in this heading, the apparatus must
be principally used 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. 89-90, 54 Fed. Reg. 35127, 35128 (August 23,
1989).  

     EN 85.31 (pg. 1381) is fairly descriptive and restrictive as
to the types of "signaling" indicator 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 signalling 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, HRL 954788 dated December 1,
1993, HRL 953115 dated May 10, 1993, HRL 952502 dated March 18,
1993, HRL 951868 dated October 31, 1992, HRL 952360 dated October
15, 1992, and HRL 951288.  The LCD applications enumerated above
present limited indication information to a user, i.e.,
measurement, coordinates, flow rate, etc., and as such, they
provide similar indication information as those types of limited
indication functions enumerated in EN 85.31.  Therefore, Customs
concurs that the instant LCDs are principally used for visual
signaling.  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
(electronic price tags, medical instrumentation, diving
equipment, camera controls, and industrial controls) and HRL
953115 (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.  

     LCDs are also classifiable under heading 9013, HTSUS, which
provides for "[l]iquid crystal devices not constituting articles
provided for more specifically in other headings...."  EN 90.13
(pg. 1478) 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).

However, the subject LCDs are more specifically described in
subheading 8531.20.00, HTSUS, as "[e]lectric sound or visual
signaling apparatus...[i]ndicator panels incorporating liquid
crystal devices (LCD's)...."  Customs has consistently held that
subheading 8531.20.00, HTSUS is more specific than subheading
9013.80.60, HTSUS.  See, HRL 955294 dated March 18, 1994, HRL
954788, HRL 954638, and HRL 952973 dated August 5, 1993. 
Therefore, the LCDs at issue are classified under subheading
8531.20.00, HTSUS.

HOLDING:

     The Toshiba LCDs, model numbers TLX-1391, TLX-1391-EO, TLX-711A-30, TLX-711A-EO, TLX-711A, TLX-1301V-30, TLX-1151- 50BN,
TLC-591-30N, TLX-1781-C3B, TLX-1013-EO, TLX-1741-C3B, TLX-1021,
TLX-1241-30, TLX-1461, and TLC-671, 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 2.7 percent ad valorem.



                              Sincerely,



                              John Durant, Director
                              Commercial Rulings Division