CLA-2-90:OT:RR:NC:4:405
Ms. Tara Newman
MEI Incorporated
3222 Phoenixville Pike
Malvern, PA 19355
RE: The tariff classification of coin recognition devices from Mexico
Dear Mr. Newman:
In your letters dated November 16, 2012 and February 22, 2013, you requested a tariff classification ruling. No samples were provided.
Its basic operation is that, as coins inserted by the user roll by, it takes account of the disturbances of its magnetic field which result in changed electrical values. As stated in your earlier letter, “Based on reference information, this data allows the device to determine the value of coins and also whether they are valid.”
We understand the “reference information” to be the electro-magnetic signature of valid U.S. coins. Coins are, one by one, compared to those stored signatures. Those that do not match sufficiently are determined to not meet the correct standard and are rejected for return to the user.
You propose classification in subheading 9027.80.8060, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Other, non-electrical, physical analysis instruments and apparatus. However, your apparatus is “electrical” as defined in Chapter 90, HTSUS, Additional U.S. Note 2, and is not designed to ascertain and report physical properties of each coin. It only determines whether or not any should be rejected as not meeting the correct standard.
Your item is similar in function to the MEI banknote validators, classified in heading 9031, HTSUS, and not heading 9027, per New York Ruling Letter N009267 – 114, dated April 10, 2007. They likewise rejected invalid currency (and gave credit for the appropriate amount, a much easier task.)
These coin validation devices are not “optical” appliances or instruments per Chapter 90, HTSUS, Additional U.S. Note 3.
The applicable subheading for these coin validation devices will be 9031.80.8085, HTSUS, which provides for "other" Measuring or checking instruments, appliances and machines, not specified or included elsewhere in HTSUS Chapter 90. The rate of duty will be 1.7 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 J. Sheridan at (646) 733-3012.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division