December 10, 2009 CBP Bulletin Notice on Classification of Certain LED Modules
In the December 10, 2009 issue of the U.S. Customs and Border Protection Bulletin (Vol. 43, No. 50), CBP published a notice proposing to revoke two rulings, modify one ruling, and revoke a treatment as follows:
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Proposed revocation and modification of rulings; proposed revocation of treatment. CBP is proposing to revoke two rulings on the classification of certain LED modules. Additionally, CBP proposes that this notice covers any rulings on this merchandise that may exist but have not been specifically identified. CBP is also proposing to revoke any treatment it has previously accorded to substantially identical transactions.
CBP states that any party who has received an interpretive ruling or decision on the merchandise that is subject to the proposed modification and revocations, or any party involved with a substantially identical transaction, should advise CBP by January 11, 2010, the date that written comments on the proposed ruling are due. Furthermore, CBP states that an importer's failure to advise CBP of such rulings, decisions, or substantially identical transactions may raise issues of reasonable care on the part of the importer or its agent for importations subsequent to the effective date of the final decision in this notice.
Light Emitting Diode (LED) modules. The merchandise at issue in NY H87026 is described as Light Emitting Diode (LED) Modules. The LED systems include the LED modules, plus power supplies and connectors. In NY 816502, the item is described as a module consisting of two light-emitting diodes connected by coated wires to a module assembly power source with a switch, which is placed in merchandise as a component part to add a lighted feature to various holiday display ornaments. In NY 817979, the items are described as a printed circuit boards with sets of electrical leads affixed to the board and each set connected to an LED. The item "Light Circuit Module" additionally features a pin clasp, and the item "Point of Purchase Light Harness" features a switch, a battery holder and harness. These are used for making flashing lights on a lapel pin and a display sign.
CBP is proposing to issue HQ H024874, HQ H024878 and HQ H024876 in order to revoke NY H87026 and NY 816502, and to modify NY 817979, respectively, and reclassify the LED modules under HTS 9405 as "Lamps not elsewhere specified or included," rather than under HTS 8541, as "light-emitting diodes."
CBP proposes this change as a correction based on the Explanatory Notes (ENs) and prior rulings.
The term "light-emitting diode" is not defined in the tariff. When a tariff term is not defined by the HTS or its legislative history, "the term's correct meaning is its common meaning." The Oxford English Dictionary defines the term "light-emitting diode" as "a semiconductor diode that emits light when a voltage is suitably applied." CBP also refers to several other sources for additional definitions, see bulletin for details.
In keeping with the common meaning of the term and the ENs, CBP has previously determined that the provision for LEDs in heading 8541 covers individual LEDs (i.e., the semiconductor diodes without other components.) In prior rulings (see bulletin for ruling numbers) CBP has stated: "EN 85.41 only refers to a "Light-emitting diode or electroluminescent diode" alone or by itself. There is no mention of the diode with any other components or within any housing or any device."
Heading 9405 provides in relevant part for "Lamps and light fittings not elsewhere specified or included." Relying on the common meaning of the term, CBP has previously determined that lamps are devices that provide an isolated source of heat or light. The LED module, the Light Circuit Module and Point of Purchase Light Harness satisfy the above definition of a lamp in that, as imported, they are stand-alone illumination devices.
Pursuant to GRI 2(a), heading 9405 includes incomplete lamps provided that, as entered, they possess the essential character of a complete lamp. As entered, the subject LED systems described in NY H87026 include modules, power supplies and connectors. These LED modules comprise the light source of complete lamps. When installed into housings adequate for their intended purpose, and connected to a power source by a power supply unit, they emit light. As such, CBP concludes that the modules in NY H87026 possess the essential character of complete lamps and should be classified under heading 9405 based on GRI 2(a). The items in NY 816502 and NY 817979 are proposed to fit under heading 9405 based on GRI 1.
CBP now proposes that by application of GRI 1 and GRI 2(a) the subject LED modules are classified in subheading 9405.40.80, which provides in relevant part for "Lamps not elsewhere specified or included: Other electric lamps and light fittings: Other."
Proposed: 9405.40.80, 3.9%; Current: 8541.40.2000, duty-free
December 10, 2009 CBP Bulletin (Vol. 43, No. 50) available athttp://www.cbp.gov/xp/cgov/trade/legal/bulletins_decisions/bulletins_2009/