CLA-2 OT:RR:CTF:EMAIN H315818 NVF
Port Director
U.S. Customs and Border Protection
Port of Chicago
5600 Pearl Street
Rosemont, IL 60018
Attn: Jeffery Kiekenbush, Senior Import Specialist
RE: Request for Internal Advice on Tariff Classification of Electronic Coin Selectors
Dear Port Director:
This is in response to a request for internal advice concerning the proper classification of electronic coin selectors used in commercial washing machines. The request was filed by Barnes, Richardson & Colburn LLP on behalf of Dexter Laundry, Inc. (“Dexter”) on November 16, 2018.
FACTS:
The merchandise subject to the request are two models of electronic coin selectors designed for coin-operated machines. The first model is the W7004 series optical coin acceptors. The W7004 recognizes only a single coin-type. Specifically, the W7004 is specifically made to be used with United States quarters and uses a photo interrupter switch to sense the coins. The W7004 is controlled by a 5V DC power source to run the optical device.
The second model is identified as the EMP 500-04 version 7, which is a more complex version of the W7004. It senses multiple coin-types and features numerous outputs to the Dexter control. These coin acceptors can accept a range of coins since they include a microprocessor, which can be loaded with different versions of software depending on the currency requirements. Single versions of the software can be adjusted through dip switches on the acceptor. The coin selector generation has a combined optical and inductive measuring system. The measuring system consists of various light barriers and coil alignments, which are located directly behind the coin insert in the flap and main body. It ensures a high coin acceptance rate and an optimum rejection of counterfeits. The coin selector is powered by an 18V DC power source.
Dexter asserts that the coin selectors are not designed to function specifically with any one particular machine and that they can be used with washers or dryers. In addition, Dexter states that after installation, the coin selectors can be deactivated such that the washer or dryer can function without the coin selector.
Dexter originally entered the coin selectors under heading 8472 of the Harmonized Tariff Schedule of the United States (“HTSUS”), as other office machines. The Port of Chicago indicated that the coin selectors should have been classified under heading 8450, HTSUS as parts of household or laundry type washing machines. Dexter subsequently filed the instant request for internal advice, arguing that the coin selectors should be classified under heading 9031, HTSUS, as measuring or checking instruments.
ISSUE:
Whether the coin selectors are classified under heading 8450, HTSUS as parts of household or laundry type washing machines, or under heading 9031, HTSUS as measuring or checking instruments.
LAW AND ANALYSIS:
Merchandise imported into the United States is classified under the HTSUS. Tariff classification is governed by the principles set forth in the General Rules of Interpretation (“GRIs”) and, in the absence of special language or context which requires otherwise, by the Additional U.S. Rules of Interpretation. The GRIs and the Additional U.S. Rules of Interpretation are part of the HTSUS and are to be considered statutory provisions of law for all classification purposes.
GRI 1 requires that classification be determined first according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the heading and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order.
The HTSUS headings under consideration are as follows:
8450 Household-or laundry- type washing machines, including machines which both wash and dry; parts thereof.
9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof.
Note 1(m) to Section XVI of the HTSUS states that “This Section does not cover articles of Chapter 90.” Therefore, we must first determine whether the coin selectors are classified under heading 9031, HTSUS.
We have previously classified similar currency measuring machines under heading 9031, HTSUS. In HQ 964467 (Dec. 1, 2000), we classified a bill acceptor with multiple optical and magnetic sensors under heading 9031. In that ruling, we determined that the bill acceptor was a checking instrument for paper currency, utilizing its optical and magnetic sensors to verify the currency. We therefore classified the bill acceptor under heading 9031 under the subheading which provided for optical instruments. Similarly, in NY N238839 (Mar. 20, 2013) a coin selector without optical sensors was also classified under heading 9031, but under a different subheading due to its lack of optical sensors.
In this case, the information provided indicates that the instant coin selectors function similarly to the bill acceptor and coin selector previously classified under heading 9031, HTSUS. Like both instruments, the coin selectors at issue check and measure currency to determine its authenticity and value. The W7004 uses optical sensors to measure authenticity and the EMP 500-04 uses both optical and magnetic sensors to measure authenticity and value. Therefore, they are classified under heading 9031, HTSUS.
We observe that even in the absence of Note 1(m) to Section XVI of the HTSUS and the established practice of classifying currency selectors in heading 9031, the instant coin selectors would not be classified in heading 8450, HTSUS. The coin selectors cannot be classified as a part of a laundry-type washing machine in heading 8450 because they are not an integral component of a washing machine. The record indicates that the washing machines can still function when the instant coin selectors are attached but deactivated. Furthermore, the coin selectors are not dedicated solely for use with a particular article. Therefore, the coin selectors cannot be classified under heading 8450, HTSUS as a part of a laundry-type machine.
In light of the above, the coin selectors are classified in heading 9031, HTSUS as measuring or checking instruments, appliances and machines, not specified or included elsewhere.
HOLDING:
By application of GRIs 1 and 6, the instant coin selectors are classified in heading 9031, specifically subheading 9031.49.90, which provides for, “Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other optical instruments and appliances: Other: Other.” The general column one rate of duty is free.
Sixty days from the date of the decision, the Office of Trade, Regulations and Rulings, will make the decision available to CBP personnel, and to the public on the Customs Rulings Online Search System (“CROSS”) at https://rulings.cbp.gov/, which can be found on the CBP website at http://www.cbp.gov and other methods of public distribution.
Sincerely,
Craig T. Clark, Director
Commercial and Trade Facilitation Division