CLA-2-90:S:N:N3:114 898735

TARIFF NOS.: 9010.20.6080, 8524.90.4080

Mr. Terry Wadowski
Lumoc Corporation
2380 Mississauga Road
Mississauga, Ontario
L5H 2L1 Canada

RE: The tariff classification of the Photocard Kiosk and Software from Canada

Dear Mr. Wadowski:

In your letter dated June 2, 1994, you requested a tariff classification ruling. The Photocard Kiosk is a self-serve machine that allows a customer to design a photographic business card. To produce a business card, the customer chooses a background picture for the card by picking an image from a library of digital images or by scanning in their own picture. A photograph can be added to the business card by scanning a photograph, cropping it and positioning the photograph on the business card. Next, a logo can be added by choosing one from a library of logos or by scanning in the customer's own logo. Text can be added by using the built-in word processor. The design is saved on a disk until it is transferred to a negative for printing.

The output of the Photocard Kiosk is a roll of exposed 35 mm film which is processed using separate photoprocessing equipment available in the photographic laboratory. Negatives are produced which are printed onto photographic paper. The Photocard Kiosk does not contain any film processing or printing equipment. According to the information that you provided, the Photocard Kiosk will be used in photographic laboratories which are also referred to as one-hour photo stores.

The Photocard Kiosk contains a film recorder consisting of the Ricoh KR-10M SLR camera, the Ricoh 35-70 mm lens and a high resolution computer monitor; a UMAX flat bed scanner; a 486 computer (CPU) with monitor and mini keyboard; computer speakers, a touch screen, and a video splitter/multiplier; and a UMAX flat bed scanner. The software is permanently installed on the hard drive of the computer and incorporates stereo sound, recorded voice, photographic images and interactive touch screen to lead the customer through the design process.

The applicable subheading for the Photocard Kiosk will be 9010.20.6080, Harmonized Tariff Schedule of the United States (HTS), which provides for other apparatus and equipment for photographic (including cinematographic) laboratories, other, other. The rate of duty will be 3.7 percent ad valorem.

The applicable subheading for the software will be 8524.90.4080, Harmonized Tariff Schedule of the United States (HTS), which provides for records, tapes and other recorded media for sound or other similarly recorded phenomena, other, other. The rate of duty will be 9.7 cents per square meter of recording surface.

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 douments 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.

We are unable to issue a ruling on NAFTA preference for the Photocard Kiosk and software. In order to issue a ruling we require additional information regarding the non-originating materials incorporated in the Photocard Kiosk. Is the software originating material? Is the software developed and produced in Canada, or is it imported and then installed in the Photokiosk in Canada? Please furnish this information to this office if you require a ruling on NAFTA preference.

Sincerely,

Jean F. Maguire
Area Director
New York Seaport