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NY M84377

July 11, 2006

CLA-2-84:RR:NC:1:120 M84377


TARIFF NO.: 8471.60.9090, 8544.51.9000

Mr. David Gacs
ViVOtech, Incorporated
451 El Camino Real
Santa Clara, CA 95050

RE: The tariff classification of “ViVOPAY” smart card reader and cable from China

Dear Mr. Gacs:

In your letter dated June 20, 2006 you requested a tariff classification ruling.

The merchandise under consideration is a contactless reader designed to implement contactless payment systems using ISO 14443-compliant radio frequency contactless smart card technology, RFID Token-Based technology and Near Field Communications. It accepts contactless credit, debit and pre-paid card information and transmits it to any installed point of sale terminal. The readers have firmware that enables the reader to read the credit cards.

The VIVOpay 4000 model is 5” x 4.2” x .7” for integration with point of sale and electronic cash register systems or window mounting. The other models: VIVOpay 3000RF countertop, 5000 EMV contactless and DT Drive-Thru basically operate in the same manner and vary by size. The 5000 EMV measures 5” x 4” x 1.4” and has an LCD display that measures ½” x 1”. The 3000RF measures 4.5” x 5” x 4”. Based on customer orders, the models may be imported with an insulated proprietary 300volt cable with connectors attached to the reader or the cable may be imported separately.

In your letter you suggest classification under subheading 8473.29.0000, Harmonized Tariff Schedule of the United States (HTSUS), as other parts of machines of heading 8470. The General Rules of Interpretation (GRI's) to the HTSUS govern the classification of goods in the tariff schedule. GRI 1 states, in pertinent part: “...classification shall be determined according to the terms of the headings and any relative section or chapter notes.” As imported, the smart card reader is a complete, self contained, freestanding unit that is connectable to other systems by a cable. Therefore, the card reader is classified as a separated unit that uses contactless technology provided for under heading 8471, HTSUS.

The applicable subheading for the smart card reader will be 8471.60.9090, HTSUS, which provides for magnetic or optical readers: 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.

When imported separately, the applicable subheading for the insulated 300volt cable will be 8544.51.9000, which provides for Other electric conductors, for a voltage exceeding 80 V but not exceeding 1,000 V: Fitted with connectors: Other: Other. The rate of duty will be 2.6 percent.

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.


Robert B. Swierupski

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