2004 (10) TMI 110 - AAR - Customs

Whether Bloomberg 17-inch Flat Panel as described in the application and its annexures is a Monitor (an output unit) of automatic data processing machine and would therefore, be classifiable under Tariff Item 8471 60 30 of the Schedule (2004-2005)?

Issues Involved:
Classification of Bloomberg 17-inch Flat Panel under the Customs Tariff Act, 1975.

Issue-wise Detailed Analysis:

1. Classification of the Bloomberg 17-inch Flat Panel:

The applicant, engaged in providing online financial information, sought an advance ruling on the classification of a 17-inch Flat Panel used for personal computers under the Customs Tariff Act, 1975. They contended that the product is a flat monitor intended solely for use as an output unit of a computer and does not have the capability to reproduce a color image from a composite video signal conforming to broadcast standards such as NTSC, SECAM, PAL, D-MAC, etc. The applicant argued that the product should be classified under Chapter heading 8471.60, specifically sub-heading 8471 60 30, which covers "Monitors" as input or output units of automatic data processing machines.

2. Technical Specifications and Supportive Evidence:

The applicant provided technical details and certifications, including a letter from Bloomberg LP, confirming that the Bloomberg 17-inch Flat Panel Model No. FP 1500-17 is intended for use as a PC display monitor and does not accept composite video inputs. They also referred to the HSN Explanatory Note, which distinguishes between display units of automatic data processing machines and video monitors or television receivers under heading 85.28.

3. Departmental Representative's View:

The Departmental Representative agreed with the applicant, stating that the product is designed as an output unit for a computer, operating in VGA, SVGA, XGA, and SXGA display modes at 60 Hz, and connects to the PC video card via a 15-pin VGA connector. The product lacks connectors for video cables, supporting its classification under heading 8471.60 as an output unit of an automatic data processing machine, specifically under sub-sub-heading 8471 60 30 as a "Monitor."

4. Analysis of Competing Tariff Headings:

The judgment analyzed the potential competing tariff heading 8528, which covers "Reception apparatus for television, video monitors, and video projectors." The key question was whether the product falls under heading 8471 60 30 or 8528. The HSN Explanatory Notes under Section XVI, heading 84.71, were examined, highlighting differences between display units of automatic data processing machines and video monitors or TV receivers of heading 85.28.

5. Technical Literature and Definitions:

The judgment referred to technical literature, noting that the Bloomberg 17-inch Flat Panel operates in various display modes and connects directly to a Bloomberg-ready PC. The product uses "a-Si TFT active matrix" technology, which does not permit it to receive composite video signals or convert VGA input into video monitor input. The communication from Bloomberg LP confirmed this.

6. Resolution and Connector Details:

The judgment explained that the product's resolution and use of a 15-pin VGA connector, which separates RGB color signals and synchronizing signals, distinguish it from a video monitor. Computer monitors have higher resolution requirements than video monitors like TVs, and the product meets these criteria.

7. Conclusion on Classification:

Based on the technical information and parameters provided, the judgment concluded that the Bloomberg 17-inch Flat Panel is a display unit of an automatic data processing machine and cannot be used as a video monitor or television receiver under heading 8528. The HSN Explanatory Note under heading 85.28 excludes display units of automatic data processing machines from this heading. Therefore, the product is classifiable under heading 84.71, specifically under Tariff Item 8471 60 30 as a "Monitor."

Final Ruling:

The product, Bloomberg 17-inch Flat Panel, is classified as a Monitor (an output unit) of an automatic data processing machine under Tariff Item 8471 60 30 of the Schedule (2004-2005).

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