NY 859016
Jan 7 1991

CLA-2-84:S:N:N1:110 859016

Mr. Alex Romano
National Business Systems Inc.
5640 Pare Street
Montreal, Quebec H4P 2M1

RE: The tariff classification of Transaction Terminals, Pinpads, and a Softerm Terminal from Canada.

Dear Mr. Romano:

In your letter dated November 28, 1990, you requested a tariff classification ruling. The merchandise under consideration involves Transaction Terminal models 727, 737, 747, 757, Softerm Terminal, and Pinpads that are used with these terminals. These terminals incorporate a numeric keyboard with programmable functions keys, a magnetic stripe card reader, and a built-in modem. They are used by businesses to record sales transactions as they occur. The sales data is entered manually through a keyboard or automatically by using an incorporated card reader. Once the sales information is entered, the transaction terminals are able to record inventory information, the amounts of each sale, and the total of all sales.

Model 727 consists of a 24-key keyboard, 1 x 16 character display, modem, printer port, 8 Bit CMOS microprocessor, 32K EPROM, and either an 8K or 32K RAM memory.

Model 737 consists of a 12-key numeric pad and 15 programmable function keys, 300 baud modem, 16 character display, telephone handset, magnetic stripe reader, and either 8K or 32K RAM memory.

Model 747 consists of a 16 character vacuum fluorescent alphanumeric display, 24-key keyboard, modem, telephone handset, magnetic stripe reader, and a NICAD battery protected CMOS memory.

Model 757 consists of a 27-key keyboard, 1 x 20 character display, modem, built-in printer, pinpad port, 96K static RAM memory, magnetic stripe card reader, and 32K EPROM memory.

The Softerm Transaction Terminal consists of a 32-character programmable keyboard with a 2 x 40 LCD dot matrix display, and a magnetic stripe reader. Bar code scanners, pinpads, printers, and other peripherals can be added as needed, and are normally imported as a system (keyboard, printer, and Pinpad).

All of these Transaction Terminals are used primarily for charge accounts, and can perform calculating functions. Since all of these models are used to provide a record of a transaction as they occur, and input data either manually or automatically, they meet the definition of a cash register (point-of sale terminal) as outlined in the language of Explanatory Note 84.70 (C), HCDCS.

The Pinpad is a device that is used for entering the Personal Identification Number associated with the individuals debit (ATM) card. It operates only with such point-of-sale terminals as the 727 or 757, and is normally imported and sold with such terminals. The Pinpad consists of a 2 x 16 character display, 16 key keyboard, microprocessor, and EPROM and static RAM memory. This unit changes, debits and withdraws a customers ATM account to the stores account where the sales transaction has been made. When imported with the transaction terminals, we would consider Legal Note 4 to Section 16 of HTS to be applicable, and thus treated as a functional unit.

The applicable subheading for the Transaction Terminals model 727, 737, 747, 757, and Softerm Terminal will be 8470.50.0020, Harmonized Tariff Schedule of the United States (HTS), which provides for cash registers (point-of-sale terminals). The rate of duty will be free

The applicable subheading for the Pinpad when separately imported, will be 8473.29.0000, HTS, which provides for parts and accessories of the machines of heading 8470. The rate of duty will be 3.9 percent ad valorem.

Goods classifiable under subheading 8473.29.0000, HTS, which have originated in the territory of Canada, will be entitled to a free rate of duty under the United States-Canada Free Trade Agreement (FTA) upon compliance with all applicable regulations.

This ruling is being issued under the provisions of Section 177 of the Customs Regulations (19 C.F.R. 177).

A copy of this ruling letter should be attached to the entry documents filed at the time this merchandise is imported. If the documents have been filed without a copy, this ruling should be brought to the attention of the Customs officer handling the transaction.

Sincerely,

Jean F. Maguire
Area Director
New York Seaport