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