Classification of optical sheets as parts: multilayer sheets supplied ready for fitment are classifiable as parts for LED televisions.

Classification of the subject optical sheets turned on composite-goods principles: the component imparting essential character governs classification, and articles falling within Chapter 90 are excluded from parts classification rules. The multilayer construction (DBEF, prism layers, quantum dot layer) does not render the sheets mounted or unmounted optical elements; accordingly they do not fall under headings for mounted optical elements or unmounted optical elements. Applying the parts-for-machine principle, the sheets are supplied ready for fitment and designed solely or principally for LED televisions, so they are classifiable as parts suitable for use solely or principally with those televisions under the parts rule.

---

---

Issues: (i) Whether the products Optical Sheet-Complex (BN61-20395A) and Optical Sheet-High Color (BN61-20400A) are classifiable under CTH 9002 9000 as mounted optical elements; (ii) Whether the said products are alternately classifiable under CTH 9001 as unmounted optical elements; (iii) Whether the said products are alternately classifiable under CTH 8529 as parts suitable for use solely or principally with LED televisions.

Issue (i): Whether the subject goods are classifiable under CTH 9002 9000 as mounted optical elements.

Analysis: Classification principles under the General Rules for Interpretation and the Chapter/Section notes were applied, including the treatment of composite goods by reference to the component imparting the essential character. The construction and functional attributes of the layers (DBEF, prism layers, quantum dot layer) were examined with reference to HSN explanatory notes on optical elements and on articles in permanent mounting.

Conclusion: No. The products are not classifiable under CTH 9002 9000.

Issue (ii): Whether the subject goods are alternately classifiable under CTH 9001 as unmounted optical elements.

Analysis: The characteristics of the constituent layers were evaluated against the scope of CTH 9001 for unmounted optical elements and polarising sheets, including the effect of permanent combination of layers and the exclusion of items that are permanently mounted or supplied ready for fitment.

Conclusion: No. The products are not classifiable under CTH 9001.

Issue (iii): Whether the subject goods are alternately classifiable under CTH 8529 as parts suitable for use solely or principally with LED televisions.

Analysis: The exclusion of Chapter 90 articles from Section XVI and the sequential application of the notes on classification of parts were considered. Evidence that the sheets are supplied ready for fitment and are designed solely or principally for use in LED televisions was taken into account together with relevant Note 2 to Section XVI principles on parts suitable for use solely or principally with particular machines.

Conclusion: Yes. The products are classifiable under CTH 8529 as parts suitable for use solely or principally with LED televisions.

Final Conclusion: The binding classification outcome is that both Optical Sheet-Complex (BN61-20395A) and Optical Sheet-High Color (BN61-20400A) fall under heading 8529 as parts suitable for use solely or principally with LED televisions, and not under headings 9002 or 9001.

Ratio Decidendi: Composite goods are to be classified by the component imparting their essential character and, where articles fall within Chapter 90 they are excluded from Section XVI; parts suitable solely or principally for a particular machine are to be classified with that machine under Note 2 to Section XVI where applicable.

---