Liquid Crystal Display Glass Sandwiches; Sharp Micro-electronics Technology, Inc. v. United States, 932 F.Supp. 1499 (CIT 1996), aff'd., 122 F.3d 1446, CAFC Slip Op. 97-1013 (September 2, 1997); NY 841178, superseded in part

HQ 961194 September 29, 1998 CLA-2 RR:CR:GC 961194 RFA CATEGORY: Classification TARIFF NO.: 9013.80.90 Mr. Tim Butler Golden View Display, Ltd. 408 11th Avenue Longmont, CO 80501 RE: Liquid Crystal Display Glass Sandwiches; Sharp Micro-electronics Technology, Inc. v. United States, 932 F.Supp. 1499 (CIT 1996), aff'd., 122 F.3d 1446, CAFC Slip Op. 97-1013 (September 2, 1997); NY 841178, superseded in part Dear Mr. Butler: In a letter dated November 18, 1997, to Customs in New York, you requested the tariff classification of liquid crystal display (LCD) glass sandwiches under the Harmonized Tariff Schedule of the United States (HTSUS). Your letter was referred to this office for a response. We regret the delay FACTS: The subject merchandise consists of liquid crystal display (LCD) "glass sandwiches" for signaling devices. In their condition as imported, the "glass sandwich" consists of liquid crystal filled between two layers of glass with no driver electronics attached. ISSUE: What is the classification of LCD "glass sandwiches" 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 U.S. has consistently held that glass sandwiches are classifiable under heading 9013, which provides for: "[l]iquid crystal devices not constituting articles provided for more specifically in other headings. . ." See HQ 951868 (October 31, 1992); HQ 951609 (October 20, 1992); HQ 952973 (August 5, 1993). This position has been affirmed by the courts in Sharp Micro-electronics Technology, Inc. v. United States, 932 F.Supp. 1499 (CIT 1996), aff'd., 122 F.3d 1446, CAFC Slip Op. 97-1013 (September 2, 1997). The Harmonized Commodity Description and Coding System Explanatory Notes (EN) constitute the official interpretation of the HTSUS. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HTSUS and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 FR 35127, 35128 (August 23, 1989). EN 90.13, states that heading 9013 includes: 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. Based upon HQs 951868, 951609, and 952973, as well as the holdings in Sharp Microelectronics Technology, Inc., and the language of EN 90.13, we find that the subject LCD "glass sandwiches" are classifiable under heading 9013, HTSUS. When the Information Technology Agreement (ITA) went into effect on July 1, 1997 [see 62 FR 35909 (July 2, 1997)], the U.S. created the following two new subheadings within heading 9013: 9013: Liquid crystal devices not constituting articles provided for more specifically in other headings;. . . : 9013.80: Other devices, appliances and instruments: 9013.80.70: Flat panel displays other than for articles of heading 8528. . . . Goods classifiable under this provision have a column one, general rate of duty of 3.2 percent ad valorem. 9013.80.90: Other. . . . Goods classifiable under this provision have a column one, general rate of duty of 5.4 percent ad valorem. Glass sandwiches do not meet the terms of subheading 9013.80.70, because in their condition as imported they are not displays because they do not contain the electronics (row and column drivers) that allow an LCD to display. Therefore, we find that LCD glass sandwiches are classifiable under subheading 9013.80.90, HTSUS. On May 25, 1989, Customs New York issued NY 841178 to you, classifying your LCD "glass sandwiches" under subheading 8531.90.00, HTSUS, as parts of signalling apparatus. In your submission, you asked whether this ruling was still valid in light of the courts decisions in Sharp Microelectronics Technology, Inc. v. United States. Pursuant to section 152.16 of the Customs Regulations [19 CFR  152.16], unless the Commissioner of Customs otherwise directs, the principles of any court decision adverse to a Customs ruling shall supersede that ruling. Therefore, we find that NY 841178 no longer reflects the proper classification of LCD "glass sandwiches". HOLDING: The LCD glass sandwiches are classifiable under subheading 9013.80.90, HTSUS, which provides for: "[l]iquid crystal devices not constituting articles provided for more specifically in other headings;. . . : [o]ther devices, appliances and instruments: [o]ther. . . . ." The general, column one rate of duty is 5.4 percent ad valorem. Sincerely, John Durant, Director Commercial Rulings Division