CLA-2-84:OT:RR:NC:1:104

Ms. Cortney O’Toole Morgan
Barnes, Richardson & Colburn
11 Dupont Circle, NW
Suite 500
Washington, DC 20036

RE: The tariff classification of the Smart Rx Counter from Japan

Dear Ms. Morgan:

In your letter dated January 19, 2012 on behalf of Mitsui & Co. (U.S.A.), Inc., you requested a tariff classification ruling.

The Yuyama Smart Rx Counter is a tabletop machine that scans, counts and dispenses pharmaceutical products. It identifies and verifies the pharmaceutical products by comparing the physical product with the descriptions shown (1) on the National Drug Code contained on the pharmaceutical vial and stock bottle and (2) on the prescription. The Yuyama Smart Rx Counter will be used by pharmacists and technicians. The machine contains components such as optical count sensors, algorithm detection systems, a touch screen, a tray camera, a side camera, a dispense chutes and a barcode scanner.

To fill the prescription, the user scans the prescription/leaflet and stock bottle, manually pours pills into the tray and scans the vial barcode. The Yuyama Smart Rx Counter takes an image of the pills. Provided the pills match the corresponding prescription and National Drug Code, the Yuyama Smart Rx Counter counts and dispenses pills into the dispense chute. The user then manually collects the dispensed pills. The Yuyama Smart Rx Counter can also be used for inventory purposes.

The Yuyama Smart Rx Counter does not incorporate any internal packaging apparatus. The unit dispenses the pills down a dispense chute but the user has to manually place a vial/bottle under the chute in order to fill the vial/ bottle.  When the vial/bottle is pressed in against a switch located on the front of the unit, the unit counts and dispenses pills. Pills being used to fill the prescription are dispensed from the left chute while excess pills are dispensed from the right chute.

You propose classification under subheading 9029.10, HTSUS, as Revolution counters, production counters, taximeters, mileometers, pedometers and the like.  However, unlike the examples in the heading and in the Harmonized System Explanatory Notes, your item does not simply click off a count of one item or revolution at a time and has functions far beyond counting, e.g., comparing each pill to an image of what it should look like (to confirm it is the correct item) and physically dispensing the pills into a container.   9029.10 does not apply.

You include a copy of a Binding Tariff Information (“BTI”) decision as part of your submission.  This BTI from the Irish Office of the Revenue Commissioners classifies a tablet counter for pharmaceutical prescription dispensing in subheading 9029.10.0090.  This office notes that HQ 965325 dated January 16, 2002 contains the following: “As stated in T.D. 89-80, published in the Federal Register on August 23, 1989 (54 FR 35127), classification rulings from other Customs administrations on like merchandise are instructive only and are not binding on the United States.” 

The applicable subheading for the Yuyama Smart Rx Counter will be 8479.89.9899, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter, parts thereof: Other machines and mechanical appliances: Other: Other: Other”. The rate of duty will be 2.5 percent ad valorem.

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 http://www.usitc.gov/tata/hts/.

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 Patricia O’Donnell at (646) 733-3011.

Sincerely,

Thomas J. Russo
Director
National Commodity Specialist Division