Session XI: Classification of articles in the HIGH-TECH area · Session XI: Classification of...

2018 WCO Knowledge Academy

for Customs and Trade

Session XI:

Classification of articles in the HIGH-TECH area

WCO Headquarters, Brussels, Belgium 4 July 2018

Sujin YUK

Technical Officer [email protected]

WCO Tariff and Trade Affairs Directorate

mailto:[email protected]

WCO Headquarters, Brussels, Belgium, 4 July 2018

Copyright © 2018 World Customs Organization. All rights reserved. Requests and inquiries concerning translation, reproduction and adaptation rights should be addressed to [email protected].

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- Virtual Reality Headsets

- 3D Printers

- Unmanned Aircraft

- Hoverboards

- Flat Panel Display Module

Contents



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Virtual Reality Headsets



5



VR Headsets

# 1 # 2

Virtual reality headset (VR headset) designed to be connected to and used with a specific type of mobile phone.

Virtual reality set for a video game console



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VR Headset - # 1

Virtual reality set for a video game console



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VR Headset - # 1



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VR Headset - # 1



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VR Headset - # 1

Potential headings at issue?

85.28 85.43 90.04 95.04



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VR Headset - # 1


85.28 Monitors and projectors, not incorporating television reception apparatus…

95.04 Video game consoles and machines…



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VR Headset - # 1

Virtual reality set for a video game console, presented in a box for retail sale, consisting of a head-mount display (virtual reality headset), a processing unit, a stereo headphone with earpieces, connecting cables (HDMI, USB and virtual headset), an AC adaptor and a power cord. The virtual reality headset, which resembles goggles, incorporates sensors, video display module (it can display two side-by-side images) and two magnifying lenses allowing the user to see a stereoscopic view of the screen of the video display module. The processor unit is designed to synchronise the virtual reality headset and the video game console (it delivers the video signal from the console to the headset and the detected signal from the headset to the console).

HSC’s Decision Heading GIR



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VR Headset - # 1

Virtual reality set for a video game console, presented in a box for retail sale, consisting of a head-mount display (virtual reality headset), a processing unit, a stereo headphone with earpieces, connecting cables (HDMI, USB and virtual headset), an AC adaptor and a power cord. The virtual reality headset, which resembles goggles, incorporates sensors, video display module (it can display two side-by-side images) and two magnifying lenses allowing the user to see a stereoscopic view of the screen of the video display module. The processor unit is designed to synchronise the virtual reality headset and the video game console (it delivers the video signal from the console to the headset and the detected signal from the headset to the console).

HSC’s Decision Heading GIR

Note 3 to Chapter 95. “Subject to Note 1 above, parts and accessories which are suitable for use solely or principally with articles of this Chapter are to be classified with those articles.”

Heading 95.04

GIRs 1 (Note 3 to Chapter 95), 3 (b) and 6.



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VR Headset - # 2

VR headset designed to be connected to and used with a specific type of mobile phone.



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VR Headset - # 2



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VR Headset - # 2


85.28 85.43 90.04 95.04



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VR Headset - # 2


85.43 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter.

90.04 Spectacles, goggles and the like, corrective, protective or other.

90.13 Liquid crystal devices… other optical appliances and instruments, not specified or included elsewhere in this Chapter.



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VR Headset - # 2

Virtual reality headset (VR headset) designed to be connected to and used with a specific type of mobile phone. In the common housing resembling goggles, the product incorporates the following main components : - an internal Central Processing Unit (CPU); - a pair of convex lenses to magnify the image of mobile phone’s screen; - a focus wheel to adjust the position of magnifying lenses; - a key to control the volume of a mobile phone; - two micro-USB connectors to connect external power source and the mobile phone; - an accelerometer sensor and a gyro sensor for tracking the movement of user’s head; - a proximity sensor to switch on/off mobile phone’s screen; - a touch pad to control a mobile phone. The product is equipped with a flap holder for placing the mobile phone and holding it by its screen directly in front of the user’s eyes. When a specific application is installed on the mobile phone and the mobile phone is connected to the headset, the built-in magnifying lenses allow the user to see a stereoscopic view of the mobile phone screen, which displays two, almost the same, side-by-side images. In addition, it also allows to control running of the application on the mobile phone by detecting the movements of the user’s head (tilting and turning) in real time and transmitting the information, over the CPU of the headset, to the main board of the mobile phone. The touch pad and control keys of the headset can also be used to control the use of certain other functions (such as volume, etc.) of the mobile phone.

HSC’s Decision Heading 90.04 GIRs 1 and 6.



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VR Headset - # 3



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VR Headset - # 3



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VR Headset - # 3


85.43 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter.


95.04 Video game consoles and machines…

84.71 ADP Machines (computer) and units thereof

84.73 Parts and accessories of ADP Machines



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VR Headset - # 3


8528.52 -- Capable of directly connecting to and designed for use with an automatic data processing machine of heading 84.71

by application of GIRs 1, 3 (b) and 6.

The HS Explanatory Note to heading 85.28 (page XVI-8528-1)

“monitors, projectors and television sets utilize different technologies, such as CRT (cathode-ray tube), LCD (liquid crystal display), DMD (digital micromirror device), OLED (organic light-emitting diodes) and plasma, to display images. Monitors and projectors may be capable of receiving a variety of signals from different sources. ”



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VR Headsets

Summary

VR Headset with built-in display,

• designed to use exclusively with a video

game console

• designed to use with an ADP machines

VR Headset without built-in display,

• designed to mount a smartphone

-> 95.04

-> 85.28

-> 90.04



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VR Headsets

Questions?



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3D Printers



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3D Printers

Vat photopolymerization. Material Jetting

Binder Jetting



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3D Printers

Material Extrusion

Powder bed fusion

Directed energy deposition

Sheet lamination



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? = 84.43

84.43 Printing machinery used for printing by means of plates, cylinders and other printing components of heading 84.42; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof.

3D Printers



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3D Printers

3D

Printers

84.19

84.24

84.43

84.56

84.62

84.63

84.74

84.75

84.77

84.79

by a process involving change of temperature

projecting liquids or powders

printing

for working metal by changing the shape

for working any material by removal

for working metal or cermets, without removing material

for treatment of solid mineral substances

for assembling e-lamps or working glass

for working rubber or plastics

having individual functions, not specified elsewhere



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3D Printing pen



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3D Printing pen


84.67 Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric motor

84.77 Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this Chapter.

85.16 Other Electro-thermic appliances of a kind used for domestic purposes

HSC’s Decision



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3D Printing pen


84.67 Tools for working in the hand, pneumatic, hydraulic or with self-contained electric or non-electric motor


85.16 Other Electro-thermic appliances of a kind used for domestic purposes

HSC’s Decision


Re-examination at HSC/62 (Sep. 2018)



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3D Printers

HS 2017

84.19

84.24

84.43

84.56

84.62

84.63

84.74

84.75

84.77

84.79

HS

2022

84.85



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3D Printers

HS 2022

• Possible New Heading 84.85

“84.85 Machines for additive manufacturing

8485.10 - By metal deposit 8485.20 - By plastics or rubber deposit 8485.30 - By plaster, cement, ceramics or glass deposit 8485.80 - Other 8485.90 – Parts”

• Possible New Chapter Note “For the purpose of heading 84.85, additive manufacturing (also referred to as 3D printing) involves ...”



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3D Printers

Questions?



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Unmanned Aircraft (Drones)



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# 1 # 2

UAs



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UA - # 1

Remote-controlled four-rotor helicopter, also called “quadcopter”, with an integrated digital camera, 5.8 GHz remote controller, 2.4 GHz Wi-Fi range extender and “smartphone” mount. The helicopter is controlled via levers on the supplied remote control. The remote control comes equipped with a mount for a “smartphone” so the operator can use the phone screen to view “streaming” video images via Wi-Fi signal. The operator can take both videos (1080p HD) and still images (14 MP). The operator uses a separate program (“app”) from the manufacturer to control the camera via the smartphone. The range of the supplied Wi-Fi range extender is approximately 300 meters and flying time is approximately 25 minutes before the battery must be recharged.



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UA - # 1


85.25 … television cameras, digital cameras and video camera recorders.

88.02 Other aircraft (for example, helicopters, aeroplanes); …

95.03 … other toys; reduced-size (“scale”) models and similar recreational models, working or not …



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UA - # 1

in heading 85.25 in heading 88.02

- Because of its technical characteristics, it was not a toy (95.03) nor an aircraft (88.02)

- Essential character of the product was given by the camera

- Even though it may be amusing, it has a utilitarian function and therefore could not be considered a toy

- It is a flying device that cannot be classified in Section XVI (see Note 1 (l) to Section XVI)

Views on the classification :



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UA - # 1

HSC’s Decision

Digital camera (14 MP) integrated on to a remote-controlled four-rotor helicopter, also called “drone” or “quadcopter”, (dimensions : 29 cm long x 29 cm wide x 18 cm high; weight : 1,160 g) presented as a set for retail sale in a single cardboard box along with a radio remote controller, Wi-Fi range extender and a mobile telephone mount. The range of the supplied Wi Fi range extender is approximately 300 metres and flying time is approximately 25 minutes before the battery must be recharged. The operator may use a separate program (“app”) from the manufacturer to control the camera via a mobile telephone.

8525.80

GIRs 1, 3 (b) and 6



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UA - # 2

Remote-controlled four-rotor helicopter, with an integrated digital camera (20 MP), presented as a set for retail sale in a single box along with a remote controller with a built-in monitor (5.5”), a battery and a battery charger, cables and other accessories. It is mainly used for aerial photography.

• Weight (Battery & Propellers included): 1388 g; • Max flight time: Approx. 30 minutes; • Improved camera: sensor size (1-inch CMOS),

resolution (20 MP); • Optimized 4K shooting (at 60 frames per second)

and video processing system; • Remote control with advanced HD video

broadcasting system and a bright 5.5” monitor; • Intelligent flight modes;



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UA - # 1


85.25 … television cameras, digital cameras and video camera recorders.

88.02 Other aircraft (for example, helicopters, aeroplanes); …

HSC’s Decision 8802.11

GIRs 1, 3(b) and 6

Re-examination at HSC/62 (Sep. 2018)



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UAs

HS 2022

• Possible New Heading 88.06

“88.06 UNMANNED AIRCRAFT AND PARTS THEREOF - Subheadings by autonomy or weight

• Possible New Chapter Note “For the purposes of this Chapter, “unmanned aircraft ”are defined as ...”

Kiev June 2018 Copyright© 2018 World Customs Organization. All rights reserved. Requests and inquiries concerning

translation, reproduction and adaptation rights should be addressed to [email protected]. 44

Possible new heading 88.06

Scope of the new heading

Legal definition of products covered by the new heading

Dividing line between headings 88.06 and 95.03



UAs

For HS 2022



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UAs

Questions?



46



“Hoverboards”



47



“Hoverboards”



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“Hoverboards”

Self-balancing, electrically-powered, two-wheeled transportation device (commercially known as the “hoverboard”, “smart scooter” or “drift vehicle”), designed for carrying a single person, for use within low speed areas such as pavements (sidewalks), paths, and bicycle lanes. The maximal speed of the device is 10 km/h and maximum distance per charge is 15-20 km. Through the built-in gyroscope and acceleration sensors, the device uses the dynamic balance principle to control moving forward, backward, turning and stopping. It relies on the changes of the centre of the body gravity to measure the changes of the vehicle body posture, and uses the servo control system to drive the motor precisely to do the corresponding adjustment. When the human body stands on the device and bends forward, the system can sense it automatically and drive wheels to move forward to keep balance. When the gravity centre bends backward, the wheels will move backward, and in case of turning, it can slow down and control left, right foot to bend to front or back to make the gravity centre deflect to left for turning left, and to right for turning right, according to the self-turning requirements.



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“Hoverboards”


87.11 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars

95.03 Tricycles, scooters, pedal cars and similar wheeled toys; dolls' carriages; dolls; other toys; reduced-size ("scale") models and similar recreational models, working or not; puzzles of all kinds



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“Hoverboards”

HSC’s Decision Heading 87.11 (Subheading 8711.60)

GIRs 1 and 6.

Two-wheeled, self-balancing, electrically-powered transportation device, designed for carrying a single person, for use within low speed areas such as pavements (sidewalks), paths, and bicycle lanes. The maximum speed of the device is 10 km/h and the maximum distance per charge is 15-20 km. Through the built-in gyroscope and acceleration sensors, the device uses the dynamic balance principle to control moving forward, backward, turning and stopping. It is controlled by the changes of the operator’s body posture.



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“Hoverboards”

HS 2012

“This heading also covers two-wheeled, electrically-powered transportation devices, designed for carrying a single person, for use within low speed areas such as pavements (sidewalks), paths, and bicycle lanes. Their technology allows the rider to stand upright while a system composed of gyroscope sensors and multiple onboard microprocessors maintains both the device's and rider's balance on two independent, non-tandem wheels. “

The EN to heading 87.11 (HSC/39, 2017)



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“Hoverboards”

HS 2017

New subheading 8711.60.

Insert the following new subheading :

“8711.60 - With electric motor for

propulsion”.



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“Hoverboards”

Questions?



54



Flat panel display modules Possible amendments for HS 2022

85.17

84.73

85.29

85.29

85.31



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Flat panel display modules

• LCD cell : assembly of TFT substrate, liquid crystal, color filter substrate and Polarizer

• OLED cell : assembly of TFT substrate, OLED and Polarizer

Decoder IC (for TV) Scaler IC (for monitor) Application Processor (for mobile phone)

Components to convert video signals

Flat-panel display products

FPD modules

+

Other components (power supply, speaker, etc)

=> New heading 85.24



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For HS 2022 – Possible new heading 85.24

Option 1 - [Without drivers or control circuits]

or [Cells] : 8524.11 - - Of liquid crystals 8524.12 - - Of organic [light-emitting

diodes][electro-luminescense] 8524.19 - - Other - Other : 8524.21 -- Of liquid crystals 8524.22 -- Of organic [light-emitting

diodes][electro-luminescense] [8524.23 -- Of light-emitting diodes] 8524.29 -- Other

85.24 Flat panel display modules, whether or not incorporating touch-sensitive screens

Option 2 - Of liquid crystals : 8524.11 - - Cells 8524.19 - - Other - Of organic light-emitting diodes : 8524.21 -- Cells 8524.22 -- Other 8524.30 - Of light-emitting diodes 8524.40 - Other



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Option 1 - [Without drivers or control circuits]




Option 2 - Of liquid crystals : 8524.11 - - Cells 8524.19 - - Other - Of organic light-emitting diodes : 8524.21 -- Cells 8524.22 -- Other 8524.30 - Of light-emitting diodes 8524.40 - Other

Scope of the new heading


Other headings involved – transfer of products to the new heading


http://www.google.be/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0ahUKEwislqX5z53NAhXMLsAKHfDxDHgQjRwIBw&url=http://virtual-lab.sk/projekty/MEDCHAM/document/document.php@docView%3Dimage%26file%3D/images/otaznik.jpg%26cwd%3D/images.html&psig=AFQjCNF1dfRTyYwm7chKlvY6u-knsxvFLQ&ust=1465653629330283



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# 1 # 2

# 3



59




# 1

# 2

# 3

Consist of :

■ a LCD panel;

[■ a touch-sensitive panel] (only #1);

■ a LED backlight unit;

■ a flexible PCB :

interface between the principal

apparatus and the display module;

convert voltage to a level useable by the

module;

control the function of the display panel

[and touch-sensitive panel].



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# 1

# 2

# 3

Various portable apparatus, such as personal digital assistants (PDAs), mobile phones, global positioning system (GPS) receivers, etc.

Portable automatic data processing machine (tablet computer)

Various industrial display applications



61




What kind of signal the modules in questions can receive or accept ? For instance, can they accept a standard signal dealing with digital signals inside digital machines, such as so called “LVDS signals”, or can they accept also any other type of signal?

They are generally designed to reproduce only one or two types of digital signal → they do not operate with different digital signal. #1 : uses the SPI (Serial Peripheral

Interface) Bus; accepts and processes a touch signal

#2 and #3 : accept LVDS signals



62




What is the content of the signal accepted by the modules ? Is it only a video signal or does it have other components?

They usually accept not only the video signals, but also the relevant parameters (e.g., clock, brightness, operating voltage, etc.) via the built-in driver ICs. These parameters may be delivered through a separate path of signals or merged into video signal path. (Those incorporating a touch panel can also accept a touch signal – see #1 above)



63




Which components or functions are missing for the modules not to be considered unfinished monitors of heading 85.28 ?

Components : AD converter; power converter

[other devices representing the characteristics of the final products]

Funtions : can reproduce only signals of their own “native” resolution via pre-determined digital Interface

[not able to receive video signals of various resolution via standardized interface]



64




Are the modules able to display a video signal with the native resolution of the screen ?

If the native resolution of the screen is higher than that of the display module, the original video (input) signal is cut off matching the resolution of the display module. In order to solve this problem, the final apparatus (e.g., monitors) is equipped with components which can resize resolution of the input signal.



65




Aside from their housing, what are the differences between the modules in question and “monitors” or “display screens” that could be found in any laptop computer ?

Every monitor and display screen has a function of adjusting the input signal into its “native” resolution. But the display modules at issue do not have such functions and relevant components as presented.



66




What makes Product #2 specific for a tablet computer in comparison with Products #1 and #3 ?

The tablet computer producer defined the specification of display module #2 (e.g., outer dimensions, clock, brightness, operating voltage, level of durability, standards of interface, etc.) and the manufacturer of the display module designed the operating software and FPCB shape and features.



67




??? HOW TO CLASSIFY ???

UNFINISHED MONITORS

of heading 85.28

# 1 # 2 # 3



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UNFINISHED MONITORS

of heading 85.28

# 1 # 2 # 3

NO



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LIQUID CRYSTAL DEVICES

of heading 90.13

# 1 # 2 # 3



70





LIQUID CRYSTAL DEVICES

of heading 90.13

# 1 # 2 # 3

NO



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PARTS

classified by appropriate provisions of the Nomenclature

# 1 # 2 # 3



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can only be used for a specific type of a tablet computer

# 2

8473.30 GIRs 1 (Note 2 (b) to Section XVI) and 6



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# 1 # 3

Various portable apparatus: personal digital assistants (PDAs), mobile phones, global positioning system (GPS)

receivers, etc.

Various industrial display applications

?? Note 2 to Section XVI or GIR 3 ??

(possible headings: 84.73, 85.17, 85.26, 85.29, 85.48, 90.33, 95.04, etc.)



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# 1 # 3

difficulties in finding accurate information from the manufacturers for these products

drop them from consideration at this time

could be examined at some future session if more information is presented



75




A new heading for those products

could facilitate their classification


# 1 # 2 # 3



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RSC/51 (Dec. 2016) - [Without drivers or control circuits]





RSC/54 (June 2018) - Without drivers or control circuits: 8524.11 - - Of liquid crystals 8524.12 - - Of organic light-emitting diodes

(OLED) 8524.19 - - Other - Other : 8524.91 -- Of liquid crystals 8524.92 -- Of organic light-emitting diodes

(OLED) 8524.99 -- Other



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For HS 2022 – Possible new Note to Chapter 85

“For purposes of heading 85.24, “flat panel display modules” refer to devices or apparatus for the display of information, equipped at a minimum with a display screen, which are designed to be incorporated into articles of other headings prior to use….


Dividing line between FPD modules and unfinished articles

Provisions for Parts of FPD modules



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Questions?



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THANK YOU FOR YOUR ATTENTION

ANY QUESTION ?

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