CLA-2-84:OT:RR:NC:1:120
Ms. Diane Miller
Fauna and Flora Customhouse Brokerage Company, Incorporated
152-31 135th Avenue
Jamaica, NY 11434
RE: The tariff classification of a magnetic card reader from China
Dear Ms. Miller:
In your letter dated June 27, 2012, you requested a tariff classification ruling on behalf of your client App Card, Incorporated.
The merchandise under consideration is a magnetic card reader that is referred to as model NEW7110. The device incorporates a magnetic card reader, which reads a magnetic stripe on a memory card that is swiped through its track and bi-directional swipe device. It has 128 MB Flash memory, 32 MB SDRAM, a 32-bit CPU, a Linux Operating System and an internal modem. The device measures 229mm in length x 98mm in width x 70mm in height. It incorporates a 24 key numeric keypad, a 28 x 64 pixel LCD limited display, and a high speed thermal printer with a paper roller.
At the time of importation, the NEW7110 terminal is used to read the magnetic stripe of a merchant card, which contains an identity number, an encoded number, and a bar code. Merchants issue membership cards to its members in order to enable members to earn points for each purchase made. The cards only identify whether a purchase was made by an identity number assigned to each card and does not identify the customer’s personal information, amount paid, cost of items purchased, quantity purchased or the sku number of the item purchased. The NEW7110 terminal only reads the identity number on the card and transmits it to an in-store server for tracking loyalty customers in order to issue points every time a purchase is made with that card. Additionally, the device’s keypad is used for entering data such as an identity number, and a display to verify the number. The printer may be used to print instructions or coupons.
Based on additional information provided by the importer via a conference call, the embedded version of the Linux Operating System has fixed programs and it is not freely programmable by the end user, thus it does not meet Note 5(A) to Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS). It does not record sales and services rendered; and it is not capable of receiving or processing payments. It is not capable of reading any barcodes itself. Its principal function is that of a magnetic card reader.
The applicable subheading for the magnetic card reader will be 8471.90.0000, HTSUS, which provides for “Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included: Input or output units, whether or not containing storage units in the same housing: Other: Other: Other: Other: Other: Other.” The rate of duty will be Free.
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 Denise Faingar at (646) 733-3010.
Sincerely,
Thomas J. Russo
Director
National Commodity Specialist Division