United States International Trade Commision Rulings And Harmonized Tariff Schedule
faqs.org  Rulings By Number  Rulings By Category  Tariff Numbers
faqs.org > Rulings and Tariffs Home > Rulings By Number > 1994 HQ Rulings > HQ 0955821 - HQ 0955916 > HQ 0955868

Previous Ruling Next Ruling

HQ 955868

May 20, 1994

CLA-2 CO:R:C:M 955868 MBR


TARIFF NO.: 8470.50.00; 8504.40.80

Mr. Rudy A. Pina
R.A. Pina & Associates, Inc.
P.O. Box 2496
Nogales, Arizona 85628

RE: CR5 Point of Sale System Power Supply; Static Converter; HQ 087975; HQ 086121

Dear Mr. Pina:

This is in reply to your letter of January 31, 1994, on behalf of Delta Products Company, requesting the classification of the "CR5 Point of Sale System" power supply, under the Harmonized Tariff Schedule of the United States (HTSUS).


The CR5 Point of Sale System ("POS") combines a CompuAdd 486 Personal Computer ("PC") with POS I Controller card, printer, 101- key keyboard, cash drawer, magnetic stripe reader and MVGA monochrome monitor. The cash drawer, stripe reader, and Central Processing Unit ("CPU") are built into the custom designed enclosure, with a built-in printer rack and monitor stand. The Epson printer prints 211 characters per second and handles a journal roll, receipt roll and slip paper.

The power supply, which is the subject of this ruling, is manufactured in Mexico and imported into the U.S. for incorporation into the CR5 POS.


Are the CR5 POS power supplies classifiable in subheading 8471.99.32, HTSUS, which provides for automatic data processing machine power supplies suitable for physical incorporation, or in subheading 8504.40.80, HTSUS, which provides for other static converters?"


Classification of merchandise under the HTSUS is in accordance with the General Rules of Interpretation (GRI's). GRI 1 provides that classification is determined according to the terms of the headings and any relative section or chapter notes.

In order to determine the classification of the power supply, it is necessary first to establish the appropriate classification of the CR5 POS. The CR5 POS is prima facie classifiable under the following headings:

8470 Calculating machines; accounting machines, postage- franking machines, ticket-issuing machines and similar machines, incorporating a calculating device; Cash registers

8471 Automatic data processing machines and units thereof

You argue that the CR5 POS is classifiable in heading 8471, HTSUS, because the CPU "has the specifications of an automatic data processing machine," and because the system "supports the following operating systems: DOS, UNIX, OS/2, Xenix, Windows NT as well as Novell and other network systems."

We agree that the CR5 POS is based upon a programmable 486 personal computer CPU. However, as stated in the literature you submitted, the CR5 POS is one single integrated unit. The Harmonized Commodity Description and Coding System Explanatory Notes (ENs) regarding heading 8471, HTSUS, state in pertinent part, page 1297, as follows:

However, the heading excludes machines, instruments or apparatus incorporating or working in conjunction with an automatic data processing machine and performing a specific function. Such machines, instruments or apparatus are classified in the headings appropriate to their respective functions or, failing that, in residual headings (See Part (E) of the General Explanatory Note to this Chapter).

Therefore, because the ADP machine is incorporated into the CR5 point of sale terminal, the whole CR5 POS is classifiable pursuant to its function as a point of sale terminal. The EN regarding "Cash Registers," provided for in subheading 8470.50.00, HTSUS, page 1295, states in pertinent part:

These machines are used in shops, offices, etc., to provide a record of all transactions (sales, services rendered, etc.) as they occur, of the amounts involved, the total of the amounts recorded and, in some cases, the code number of the article sold, quantity sold, time of transaction, etc...

This heading also covers cash registers working in conjunction, on-line or off-line, with an automatic data processing machine and cash registers which use, for example, the memory and microprocessor of another cash register (to which they are linked by cable) to perform the same functions.

The Harmonized Commodity Description and Coding System Explanatory Notes (EN), although not dispositive, should be looked to for the proper interpretation of the HTSUS. See T.D. 89-80, 54 Fed. Reg. 35128 (August 23, 1989).

Therefore, heading 8470, HTSUS, which provides for cash registers, includes cash registers working in conjunction with an ADP machine, such as the instant merchandise. Thus, the power supplies in question are, in fact, classifiable as power supplies for cash registers.

The ENs regarding electrical static converters (power supplies), pages 1338, and 1339, state, in pertinent part, as follows:

The apparatus of this group are used to convert electrical energy in order to adapt it for further use. They incorporate converting elements (e.g., valves) of different types. They may also incorporate various auxiliary devices (e.g., transformers, induction coils, resistors, command regulators, etc.). Their operation is based upon the principle that the converting elements act alternately as conductors and non-conductors.

The instant power supplies meet this description, but are also prima facie classifiable under subheading 8473.29.00, HTSUS, which provides for other parts and accessories of the machines of heading 8470, HTSUS. However, Section XVI, Legal Note 2, provides direction regarding the classification of parts. It states, in pertinent part:

(a) Parts which are goods included in any of the headings of chapters 84 and 85 (other than headings 8485 and 8548) are in all cases to be classified in their respective headings;

Consequently, the power supplies are properly classifiable in heading 8504, HTSUS, rather than under a parts provision.


The instant power supplies, imported from Mexico, for incorporation into the CR5 Point of Sale Terminal, are classifiable in subheading 8504.40.80, HTSUS, which provides for: "[e]lectrical transformers, static converters (for example, rectifiers) and inductors: [s]atic converters: [o]ther." The rate of duty is 3% ad valorem.

However, if the provisions of the North American Free Trade Agreement are met, as set out in General Note 12 of the HTSUS, the rate of duty is Free.


John Durant, Director

Previous Ruling Next Ruling

See also: