HQ 957078: Electronic Currency Exchange Rate Board; HQs 083609, 086032, 088225, 950407, 955448; NY 848860; NY 856403 revoked; subheading 8543.80.90; section XVI, note 4

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 957078

                         December 7, 1994
                                                               


CLA-2 CO:R:C:M  957078 LTO

CATEGORY:  Classification

TARIFF NO.:  8531.20.00

Mr. William B. Abott
Abott Associated 
195 Hudson Street
New York, New York 10013

RE:  Electronic Currency Exchange Rate Board; HQs 083609, 086032,
     088225, 950407, 955448; NY 848860; NY 856403 revoked;
     subheading 8543.80.90; section XVI, note 4 

Dear Mr. Abott:

     This is in reference to NY 856403, issued to you on October
9, 1990, which concerned the classification of electronic
currency exchange rate board (model Ratex-1826) under the
Harmonized Tariff Schedule of the United States (HTSUS).  This is
a reconsideration of NY 856403.  Pursuant to section 625(c)(1),
Tariff Act of 1930 (19 U.S.C. 1625(c)(1)), as amended by section
623 of Title VI (Customs Modernization) of the North American
Free Trade Agreement Implementation Act, Pub. L. No. 103-182, 107
Stat. 2057, 2186 (1993), notice of the proposed revocation of NY
856403 was published October 19, 1994, in the Customs Bulletin,
Volume 28, Number 42.

FACTS:

     The articles in question are electronic currency exchange
rate boards.  The boards use light emitting diode (LED) displays
to indicate foreign currency exchange rates to customers in
banks, hotels, airports, money exchange release stores, etc.  The
model in question, the RATEX 1826, has two columns ("WE BUY AT,"
"WE SELL AT") and 18 rows (listing the names of the relevant
countries).  The boards are imported with infrared remote control
keyboards which are used to change the boards' rates.

     In NY 856403, the boards (with remote control keyboards)
were held to be classifiable under subheading 8543.80.90 (now,
8543.80.75), HTSUS, which provides for other electrical machines
and apparatus, having individual functions, not specified or
included elsewhere in this chapter.                              - 2 -

ISSUE:

     Whether the electronic currency exchange rate boards are 
classifiable as indicator panels incorporating liquid crystal
devices (LCD's) or light emitting diodes (LED's) under subheading
8531.20.00, HTSUS.

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 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 as follows:

     8531           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:
     8531.20.00        Indicator panels incorporating
                       liquid crystal devices (LCD's) 
                       or light emitting diodes (LED's)
                       (2.7% ad valorem)

*    *    *    *    *    *    *    *    *    *    *    *    *    

     8543           Electrical machines and apparatus, 
                    having individual functions, not
                    specified or included elsewhere in
                    this chapter; parts thereof:
                       Other machines and apparatus:
                          Other:
     8543.80.90              Other (3.9% ad valorem)

     The Harmonized Commodity Description and Coding System
Explanatory Notes (EN) constitute the Customs Co-operation
Council's official interpretation of the Harmonized System. 
While not legally binding, the ENs provide a commentary on the
scope of each heading of the Harmonized System, and are generally
indicative of the proper interpretation of these headings.  See
T.D. 89-80, 54 Fed. Reg. 35127, 35128 (Aug. 23, 1989).

     EN 85.31, pg. 1381, states that heading 8531, HTSUS, "covers
all electrical apparatus used for signalling purposes, whether
using sound for the transmission of the signal (bells, buzzers,
hooters, etc.) or using visual indication (lamps, flaps,
illuminated numbers, etc.), and whether operated by hand (e.g.,
door bells) or automatically (e.g., burglar alarms)."  The                              - 3 -

heading covers 'signaling' indicator panels which "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)  xxx
     (2)  Number indicators.  The signals appear as 
          illuminated figures on the face of a small 
          box . . . .
     (3)-(5)  xxx
     (6)  Station indicating panels for showing the 
          times and platforms of trains.
     (7)  Indicators for race courses, football
          stadiums, bowling alleys, etc.
 
                                   EN 85.31, pg. 1381-2 [emphasis
                                   in original].

     In HQ 086032, dated January 17, 1990, we considered the
classification of message display centers, which were used to
advertise merchandise, state greetings, and to generally attract
a person's attention to a particular store or service, or to the
message display itself.  The displays included a computer program
which allowed the user to create full color animation, graphics
and text.  In finding that the displays were not covered by
heading 8531, HTSUS, we stated as follows:

     [T]he message display centers perform a function
     which is different than that of signalling 
     equipment.  Although the instant merchandise can
     flash graphics or animation to call a person's
     attention to the display, its primary purpose is  
     to convey a substantive message; this function is 
     more than that of signalling equipment which is 
     designed to provide a signal to a viewer who
     normally will instantaneously understand the
     meaning of the signal [underlining in original].

We then held that the displays were classifiable under subheading
8543.80.90, HTSUS.  See also HQ 955448, dated February 23, 1994;
NY 848860, dated February 2, 1990. 

     The electronic currency exchange rate boards are not
"moving" message displays, nor do they display full color
animation or graphics.  While they arguably convey a substantive
"message," it is the type of "message" contemplated by heading
8531, HTSUS.

     In HQ 088225, dated January 31, 1991, we considered the
classification of Electronic Shelf Tags, which acted as
illuminated numerical displays for grocery store products' price                               - 4 -

information.  The Shelf Tags visually signaled certain data in
numerical form to customers.  We held that, according to EN
85.31, number indicators, such as the Shelf Tags, were
classifiable as visual signaling apparatus under subheading
8531.20.00, HTSUS.

     The electronic currency exchange rate boards use LED
displays to indicate foreign currency exchange rates to customers
in banks, hotels, airports, money exchange release stores, etc. 
The limited information supplied by the electronic currency rate
exchange boards is similar to that supplied by the Electronic
Shelf Tags of HQ 088225, and similar to that supplied by
indicating panels of EN 85.31 for showing the times and platforms
of trains.

     Moreover, the method used by the electronic currency
exchange rate boards to supply information is similar to that
used by stadium scoreboards.  Recently, in HQ 955448, dated
February 23, 1994, we stated that the indicators for football
stadiums covered by heading 8531, HTSUS, are devices "which show
numbers in correspondence with such limited language as 'time
outs remaining,' 'quarter,' 'home' and 'visitor,' and 'time
remaining.'"  The electronic currency exchange rate boards are
signs which show numbers in correspondence with such limited
language as "WE BUY AT" and "WE SELL AT," along with rows listing
the names of the relevant countries.  Accordingly, the electronic
currency rate boards are classifiable under heading 8531, HTSUS.

     With regard to the infrared remote control keyboards that
are imported with the boards, note 4 to section XVI, HTSUS,
provides as follows:

     Where a machine (including a combination of machines)
     consists of individual components (whether separate or
     interconnected by piping, by transmission devices, by
     electric cables or by other devices) intended to 
     contribute together to a clearly defined function
     covered by one of the headings in chapter 84 or 
     chapter 85, then the whole falls to be classified in 
     the heading appropriate to that function.

     The electronic currency exchange rate boards and infrared
remote control keyboards, which are used to change the boards'
rates, contribute together to a clearly defined function
described by heading 8531, HTSUS.  Thus, they are a "functional
unit," and the boards and keyboards are classifiable together
under subheading 8531.20.00, HTSUS.  See HQ 950407, dated
November 15, 1991; HQ 083609, dated June 6, 1989.
     
     As stated above, the boards and infrared remote control                               - 5 -

keyboards were held to be classifiable under heading 8543, HTSUS,
which provides for electrical machines and apparatus, not
specified or included elsewhere.  As these boards are described
in heading 8531, HTSUS, they cannot be classified under heading
8543, HTSUS.  It is therefore necessary to revoke NY 856403.

HOLDING:

     The electronic currency exchange rate boards (and remote
control keyboards) are classifiable under subheading 8531.20.00,
HTSUS.  The corresponding rate of duty for articles of this
subheading is 2.7% ad valorem.  Accordingly, NY 856403 is
revoked.

     In accordance with section 625, this ruling will become
effective 60 days after publication in the Customs Bulletin. 
Publication of rulings or decisions pursuant to section 625 does
not constitute a change of practice or position in accordance
with section 177.10(c)(1), Customs Regulations (19 CFR
177.10(c)(1)).

                              Sincerely,




                              John Durant, Director
                              Commercial Rulings Division