H303739

U.S. Customs and Border Protection HQ H303739 December 2, 2020 CLA-2 OT:RR:CTF:TCM H303739 EKR CATEGORY: Classification TARIFF NO.: 8528.52.00 Center Director, Electronics Center of Excellence and Expertise U.S. Customs and Border Protection Los Angeles Service Port 301 E. Ocean Blvd. Long Beach, CA 90802 ATTN: Merari Ortiz, Senior Import Specialist RE: Application for Further Review of Protest No. 2720-19-100330; Classification of Displays to be installed into Automatic Data Processing Machines Dear Center Director: This is in response to the Application for Further Review (“AFR”) of Protest 2720-19-100330, dated January 17, 2019, filed on behalf of QCH, Inc. (“QCH”), in response to your classification of three models of displays featuring thin-film-transistor (“TFT”) liquid-crystal display (“LCD”) technology (“the displays”) under the Harmonized Tariff Schedule of the United States (“HTSUS”). The articles were entered between October 2, 2017 and July 26, 2018, and liquidated between October 12, 2018 and January 11, 2019. In reaching the determination below, we have considered information presented in QCH’s January 17, 2019 protest filing, as well as additional information provided by counsel on August 17, 2020. FACTS: According to the request, the displays are color active-matrix liquid-crystal displays with white light-emitting diode (“LED”) backlight systems. They are imported without a backlight driver. There are three display models at issue. The first model has a 27-inch active display area with a 5120 horizontal by 2880 vertical pixel array resolution, with a display pitch of 0.11625mm by 0.11625mm. The second model has a 21.5 inch active display area with a 1920 horizontal pixel by 1080 vertical pixel array, and a display pitch of 0.2475mm by 0.2475mm. The third model also has a 21.5 inch active display area with a 4096 horizontal pixel by 2304 vertical pixel array, and a display pitch of 0.11595mm by 0.11595mm. All three displays are designed to apply the 10-bit 8Lane display port interface, intended for applications requiring high brightness, wide viewing angle, high color saturation, and high color. All three display models are designed with glare-free surfaces and flicker-free displays. Each display is designed to connect to an all-in-one automatic data processing (“ADP”) machine, in which the ADP machine and the display form a single unit. The instant displays are designed to be connected to an ADP machine via a 60 pin embedded DisplayPort (“eDP”) connector, which accepts the signal from the main logic board of the ADP machine to the timing controller integrated circuit (“TCON”) of the display, which in turn converts the signal into graphic images on the display. Because the displays are destined for an all-in-one ADP machine, they are imported without an external housing or a power cord. The displays do not contain a channel selector or video tuner, and cannot be operated by remote control. ISSUE: Whether the displays in question are classified under heading 8528, HTSUS, as “Monitors… not incorporating television reception apparatus…” or under heading 9013, HTSUS, as “Liquid crystal devices not constituting articles provided for more specifically in other headings…” LAW AND ANALYSIS: Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a)(2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)). Further Review of Protest No. 2720-19-100330 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(b) because the decision against which the protest was filed is alleged to involve questions of law or fact, which have not been ruled upon by the Commissioner of Customs or his designee, or by the courts. Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that 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. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989). The 2017 HTSUS provisions under consideration are as follows: 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: 8528.52.00 Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471. * * * * * 9013 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: 9013.80 Other devices, appliances, and instruments: 9013.80.90 Other. Note 1(m) to Section XVI, HTSUS, provides, in pertinent part, that “[t]his section does not cover… [a]rticles of chapter 90.” Note 2 to chapter 90, HTSUS, provides, in pertinent part, as follows: Subject to note 1 [to chapter 90], parts and accessories for machines, apparatus, instruments or articles of this chapter are to be classified according to the following rules: (a) Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85 or 91 (other than heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings…. EN 85.28 describes the scope of heading 8528, HTSUS, and includes the following description of monitors classified in heading 8528, HTSUS: (A) MONITORS CAPABLE OF DIRECTLY CONNECTING TO AND DESIGNED FOR USE WITH AN AUTOMATIC DATA PROCESSING MACHINE OF HEADING 84.71 This group includes monitors which are capable of accepting a signal from the central processing unit of an automatic data processing machine and provide a graphical presentation of the data processed. These monitors are distinguishable from other types of monitors (see (B) below) and from television receivers. The monitors of this group may be characterized by the following features: (i) They usually display signals of graphics adaptors (monochrome or colour) which are integrated in the central processing unit of the automatic data processing machine; (ii) They do not incorporate a channel selector or video tuner; (iii) They are fitted with connectors characteristic of data processing systems (e.g., RS-232C interface, DIN, D-SUB, VGA, DVI, HDMI or DP (display port) connectors); (iv) The viewable image size of these monitors does not generally exceed 76 cm (30 inches); (v) They have a display pitch size (usually smaller than 0.3 mm) suitable for close proximity viewing; (vi) They may have an audio circuit and built-in speakers (generally, 2 watts or less in total); (vii) They usually have control buttons situated in the front panel; (viii) They usually cannot be operated by a remote control; (ix) They may incorporate tilt, swivel and height adjusting mechanisms, glare-free surfaces, flicker-free display, and other ergonomic design characteristics to facilitate prolonged periods of viewing at close proximity to the monitor; (x) They may utilize wireless communication protocol to display data from an automatic data processing machine of heading 84.7

Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a)(2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)). Further Review of Protest No. 2720-19-100330 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(b) because the decision against which the protest was filed is alleged to involve questions of law or fact, which have not been ruled upon by the Commissioner of Customs or his designee, or by the courts.Classification under the HTSUS is determined in accordance with the General Rules of Interpretation (“GRIs”). GRI 1 provides that the classification of goods shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that 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. In addition, in interpreting the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are generally indicative of the proper interpretation of the HTSUS. See T.D. 89 80, 54 Fed. Reg. 35127 (August 23, 1989). The 2017 HTSUS provisions under consideration are as follows: 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: 8528.52.00 Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471. * * * * *9013 Liquid crystal devices