H329919

H329919 May 13, 2025 OT:RR:CTF:EMAIN H329919 JRG/SKK CATEGORY: Classification TARIFF NO.: 8528.52.00; 8528.59.33 Center Director Electronics Center of Excellence and Expertise U.S. Customs and Border Protection 301 E. Ocean Blvd., Suite 1400 Long Beach, CA 90802 ATTN: Scott Titus, Import Specialist; Joseph Harris, Supervisory Import Specialist RE: Application for Further Review of Protest No. 3901-22-127609; Tariff Classification of LED Panels and LED Display Units Dear Center Director: This is our decision regarding an Application for Further Review (AFR) of Protest No. 3901-22-127609, filed by counsel on behalf of ANC Sports Enterprises, LLC (Protestant). The Protest and AFR concern the classification under the Harmonized Tariff Schedule of the United States (HTSUS) of LED panels and LED display units. The AFR was forwarded to this office for consideration. On June 10, 2024, a meeting was held with Protestant via Microsoft Teams. On October 21, 2024, Protestant filed a supplemental submission to address issues raised in the meeting. The supplemental submission’s arguments and attachments are considered below. FACTS: The subject merchandise was imported in 47 different entries, each containing a different configuration of LED panels, controller/processors, receiver cards, convertor cards, conversion cards, cables, and associated installation components. When fully assembled, the subject articles create a large LED display unit, comprised of multiple LED panels, used as signage lighting in public venues, such as sports arenas, transit hubs, entertainment venues, and retail destinations. The LED display unit does not contain any television tuners or TV reception capabilities. The individual LED panels are equipped with Ethernet inputs that connect to controller/processors using CAT5 cables. The display unit’s controllers and processors are combined into one component, the MCTRL660, which both converts signals received from a source, such as an ADP, into digital signals that are transmitted to the LED panels and controls various functions of the video displayed on the panels. In Protestant’s supplemental filing, it notes the LED panels are capable of running programs and displaying data/images via the Ethernet connection, however, additional programming or software from the MCTRL660 assists with the display of data/images. Within each MCTRL660, the controller component manages the LED Display Unit’s display settings. Specifically, it controls the general appearance and image uniformity, switches between different sources, adjusts the aspect ratio of the content, configures the layout, and adds overlays to the content displayed. The MCTRL660’s processor component processes video signals and then distributes those signals to multiple displays to create a large, seamless image. The processor also fits to the configuration of the LED Display Unit and accounts for the resolution, aspect ratio, and orientation of each display, adjusting the content accordingly. Each MCTRL660 has four outputs, each capable of supporting 650,000 pixels, which allows it to run over 1,000 panels, depending on each panel’s pixel count. The subject merchandise was entered between June 8, 2021, and February 15, 2022, heading 8525, specifically subheading 8525.52.00, HTSUS (2021 and 2022), which provides for, in pertinent part, “[O]ther monitors: Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471.” The subject merchandise was then liquidated on June 3, 2022, under subheading 8525.59.33, HTSUS, which provides for, in pertinent part, “[O]ther monitors: Other.” As products of China, the subject merchandise was subject to additional ad valorem duties at a rate of 7.5% pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, and subheading 9903.88.15, HTSUS. On October 20, 2022, Protestant filed the instant Protest and AFR. Protestant argues the subject merchandise is properly classified under subheading 8525.52, HTSUS. ISSUE: Whether the subject LED panels and LED display units are properly classified under subheading 8528.52, HTSUS, as “[O]ther monitors: capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471” or under subheading 8528.59, HTSUS, as “[O]ther monitors: Other.” LAW AND ANALYSIS: A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on October 20, 2022, within 180 days of liquidation, pursuant to 19 U.S.C. §1514(c)(3). Protestant seeks further review of the subject Protest pursuant to § 174.24(a) of Title 19 of the Code of Federal Regulations (19 C.F.R. §174.24(a)-(b)), alleging that the decisions against which the Protest is filed are inconsistent with U.S. Customs and Border Protection (CBP) rulings on substantially similar merchandise. Specifically, Protestant cites to New York Ruling Letter (NY) N238570, dated March 4, 2013, where CBP classified a large format flat panel display monitor which 2 consisted of “LED panels, screen interface processor(s), and various cables and connectors used in assembling the display” as a functional unit, pursuant to Note 4 to Section XVI, HTSUS, under subheading 8528.59.31, HTSUS (2013), which provided for, “[f]lat panel display devices designed for use with an automatic 1 data processing machine, as defined in additional U.S. note 13 to chapter 85.” Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Under GRI 6, the classification of goods in the subheadings of a heading is determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5. The 2021 and 2022 HTSUS provisions at issue follow: 8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus: * * * Other monitors: 8528.52 Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471…. * * * 8528.59 Other… Legal Note 4 to Section XVI (Chapters 84 - 85) provides: 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 Harmonized Commodity Description and Coding System Explanatory Notes (ENs) constitute the official interpretation of the Harmonized System at the international level. While neither legally binding nor dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of the headings. It is CBP’s practice to follow, whenever possible, the terms 1 U.S. Note 13 to Chapter 85, HTSUS (2013), provided: For the purposes of subheadings 8528.59.21 and 8528.59.31, the term "flat panel display devices designed for use with an automatic data processing machine" refers to monitors that have as a purpose operation with an automatic data processing (ADP) machine of heading 8471, such monitors being able to display signals or data from an ADP machine in a form that meets the requirements of the user. Such monitors need not be shown to be solely or principally for use with an

A decision on classification and the rate and amount of duties chargeable is a protestable matter under 19 U.S.C. §1514(a)(2). The subject Protest was timely filed on October 20, 2022, within 180 days of liquidation, pursuant to 19 U.S.C. §1514(c)(3). Protestant seeks further review of the subject Protest pursuant to § 174.24(a) of Title 19 of the Code of Federal Regulations (19 C.F.R. §174.24(a)-(b)), alleging that the decisions against which the Protest is filed are inconsistent with U.S. Customs and Border Protection (CBP) rulings on substantially similar merchandise. Specifically, Protestant cites to New York Ruling Letter (NY) N238570, dated March 4, 2013, where CBP classified a large format flat panel display monitor which 2 

consisted of “LED panels, screen interface processor(s), and various cables and connectors used in assembling the display” as a functional unit, pursuant to Note 4 to Section XVI, HTSUS, under subheading 8528.59.31, HTSUS (2013), which provided for, “[f]lat panel display devices designed for use with an automatic 1 data processing machine, as defined in additional U.S. note 13 to chapter 85.” Classification of goods under the HTSUS is governed by the General Rules of Interpretation (GRI). GRI 1 provides that classification is determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. If the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. Under GRI 6, the classification of goods in the subheadings of a heading is determined according to the terms of those subheadings and any related subheading notes and, mutatis mutandis, to GRIs 1 through 5. The 2021 and 2022 HTSUS provisions at issue follow: 8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast r