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NY B87260





July 9, 1997

CLA-2-84:RR:NC:1:110 B87260

CATEGORY: CLASSIFICATION

TARIFF NO.: 8471.90.0000

Mr. George R. Tuttle III
Law Office- George R. Tuttle
Three Embarcadero Center, Suite 1160
San Francisco, CA 94111

RE: The tariff classification of a Personal ATM (P-ATM) that will be assembled in either Taiwan or China from components which are sourced in various countries.

Dear Mr. Tuttle:

In your letter dated July 2, 1997, on behalf of VeriFone, Inc., you requested a tariff classification ruling.

The merchandise under consideration involves a personal ATM device, which is basically a hand-held consumer appliance that connects through any phone line- to check on utility use, pay bills or even download cash to a smart card. It is a low-cost limited function terminal which interacts with the remote host Server system to support consumer chip card devices referred to as "smart cards."

The P-ATM is intended as a home consumer device which will enable a consumer to perform activities such as account balance verification, cash loading or reloading, loyalty program inquiries and other chip card related services. The entire system consists of a host server running Verifone's VerySmart software and the consumer access device which is the P-ATM. The host computer, which is not at issue here, normally resides in banks, financial institutions, utilities, or third party processors. The P-ATM device communicates with the host computer through its built-in 1200-2400 bps modem.

The standard features of the P-ATM includes the following: ICC (Integrated Chip Card a.k.a. "Smart card" interface; 16-character 5 x 7 LCD display; 16-key keyboard; 1200-2400 bps modem; and 2 RJ-11 phone connectors. Once connected to the host computer, menu information is transmitted to the user and read by the P-ATM. This data appears as prompts for the user on the LCD so that it may select the desired operation, such as adding value to the smart card by making a transfer from the user's bank account to the institution which supports the use of the smart card. The data associated with the transaction, including the amount to be transferred, is sent from the P-ATM to the host via the modem. When the transfer is complete, an acceptance is sent to the P-ATM and the P-ATM updates the balance on the user's smart card.

This P-ATM device, in our opinion, meets the definition of a composite machine, noting Legal Note 3 to Section 16 of the HTS. It performs functions such as transcribing data onto data media in coded form, input/output functions, and communication functions, covered under such HTS numbers as 8471.90, 8471.60, and 8517. The P-ATM appears to be principally used for reading and writing electronic data onto the IC embedded in the ABS plastic card.

The applicable subheading for the P-ATM device will be 8471.90.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for other machines for transcribing data onto data media in coded form and machines for processing such data. The rate of duty will be free.

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 Art Brodbeck at 212-466-5490.

Sincerely,

Robert B. Swierupski
Chief, Metals & Machinery Branch

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