CLA-2-85:OT:RR:NC:N2:220
Thilo Suelberg
Suelware Inc.
7301 N FM 620 STE 155-260
Austin, TX 78726
RE: The tariff classification of the SuelVend VMDEX from China
Dear Mr. Suelberg:
In your letter dated September 21, 2018 you requested a tariff classification.
The merchandise under consideration is identified as the SuelVend VMDEX which is described as a printed circuit board assembly (PCBA) that stores vending machine sales activity, inventory data, and provides for the data transfer to machine operators of usage and inventory information. Once imported, the SuelVend VMDEX PCBA is installed into a plastic enclosure and the device firmware is programmed prior to being sold to vending operators.
In use, the SuelVend VMDEX PCBA is installed into a vending machine and interfaces with the vending machine controller to collect data from the machine. The vending machine operator would then wirelessly connect to the SuelVend VMDEX PCBA and collect the vending data, such as pricing and inventory levels. However, we would note that the host vending machine is not dependent in any way on the SuelVend VMDEX PCBA.
You state that the SuelVend VMDEX PCBA has a processor, memory and flash storage, input/output functionality, and provides communication with the operator’s handheld computing device and therefore is properly classified as parts and accessories of an automatic data processing (ADP) machine in subheading 8473.30.1180 Harmonized Tariff Schedule of the United States (HTSUS). We disagree.
The SuelVend VMDEX PCBA has the specific and identifiable function of storing and processing vending transactions. Furthermore, once assembled in the United States into the final product, this function is not altered in such a way which would satisfy the requisite conditions of Note 5(A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS) which governs the classification of ADP machines. As such, heading 8473 is not appropriate.
The applicable subheading for the SuelVend VMDEX PCBA will be 8543.70.9960, HTSUS, which provides for “Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this chapter; Other machines and apparatus; …Other”. The rate of duty will be 2.6 percent ad valorem.
Effective July 6, 2018, the Office of the United States Trade Representative (USTR) imposed an additional tariff on certain products of China classified in the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(b), HTSUS. The USTR imposed additional tariffs, effective August 23, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(d), HTSUS. Subsequently, the USTR imposed further tariffs, effective September 24, 2018, on products classified under the subheadings enumerated in Section XXII, Chapter 99, Subchapter III U.S. Note 20(f) and U.S. Note 20(g), HTSUS. For additional information, please see the relevant Federal Register notices dated June 20, 2018 (83 F.R. 28710), August 16, 2018 (83 F.R. 40823), and September 21, 2018 (83 F.R. 47974). Products of China that are provided for in subheading 9903.88.01, 9903.88.02, 9903.88.03, or 9903.88.04 and classified in one of the subheadings enumerated in U.S. Note 20(b), U.S. Note 20(d), U.S. Note 20(f) or U.S. Note 20(g) to subchapter III shall continue to be subject to antidumping, countervailing, or other duties, fees and charges that apply to such products, as well as to those imposed by the aforementioned Chapter 99 subheadings.
Products of China classified under subheading 8543.70.9960, HTSUS, unless specifically excluded, are subject to the additional 25 percent ad valorem rate of duty. At the time of importation, you must report the Chapter 99 subheading, i.e., 9903.88.02, in addition to subheading 8543.70.9960, HTSUS, listed above.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at https://hts.usitc.gov/current.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Karl Moosbrugger at [email protected].
Sincerely,
Steven A. Mack
Director
National Commodity Specialist Division