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NY H88649




March 8, 2002

CLA-2-84:RR:NC:1:110 H88649

CATEGORY: CLASSIFICATION

TARIFF NO.: 8470.50.0020; 8471.90.0000; 8524.39.4000; 8608.00.0000

Mr. Tim Michaely
ICS Customs Service Inc.
812 Thorndale Ave.
Bensenville, IL 60106

RE: The tariff classification of PES Parking System (Flexipark System) from England.

Dear Mr. Michaely:

In your letter, dated February 14, 2002, you requested a tariff classification ruling on behalf of Parking Equipment and Service (PES Inc.).

As per your letter, they will be importing the PES Parking System (Flexipark System) as a complete parking system and as individual components. The systems are configured for specific customers and may include: entry machines, exit machines, cashier stations, pay on foot automated paying machines, barrier gates, and Flexipark Central Management System (FCMS) software on CD. Descriptive literature was submitted.

The entry machine issues magnetically encoded tickets or accept passcards and, if needed, interface with the barrier gate. It contains a floating read/write head and writes, reads, and verifies tickets. It does not incorporate a calculating device.

The exit machine accepts the magnetically coded tickets or passcards and, if needed, interfaces with the barrier gate. It features central-strip 4-way ticket reading and contains a floating read/write head. It can automatically read/write and verify passcards or season tickets upon exit.

The cashier station is a EPOS-style unit which features a powerful microprocessor, hard disk, RAM, a 9” tiltable monochrome monitor, LCD customer display, 136 key programmable keyboard, ticket/passcard validator with 4-way or ISO encoding, integrated swipe reader for credit cards, cash drawer, and a fast thermal receipt/journal printer. It is designed as a manual pay station for the collection of parking fees. Payment is accepted in cash or by credit card. It automatically computes fees from magnetic-strip tickets. The cashier station is networked with the Flexipark 2000 system.

The pay on foot automated paying machine accepts tickets, calculates the charges, displays the fee due and accepts payment by cash, credit card, passcard, etc. It features an advanced fascia panel with a built-in back-lit color LCD screen and illuminated prompts which guide customers through each transaction. There are a number of special ticket options, including plastic passcards, season tickets, stored-value cards, and event/conference tickets. After the fee is paid, the ticket is re-coded for exit within a pre-determined grace period and returned to the motorist, together with any change due. Passcards/season tickets are processed through the same slot and if valid are revalidated for an exit and subsequent re-entry. It is networked with other Flexipark 2000 components.

The barrier gate is an electromechanical automatic rising barrier designed for controlling access to and from the parking facilities. It has an arm that is raised or lowered to permit or restrict the movement of automobiles.

The Flexipark Central Management System (FCMS) consists of Windows NT based software programs for the parking system. They will be imported on CD. There are two independent packages: The Parking Facility Server Software and the Client Software. The software acts as an interface between a client and the parking facility equipment. The software provides for audit, security and communications functions.

The PES Parking System (Flexipark System) is similar to the Advanced Parking Control System, which was the subject of NY C89003, and the Parking Revenue Management Systems ID-Park, which was the subject of NY H87976. Both of these systems were classified as functional units in subheading 8470.50.0020, Harmonized Tariff Schedule of the United States (HTS). Except for the barrier gate and the software on CD, this system would also meet Section XVI, Note 4, with regard to functional units when imported with either the cashier station or the pay on foot automatic paying machine. It consists of a combination of machines, (whether separate or interconnected by electric cable or other devices), which contribute together to the clearly defined function of collecting parking fees.

However, the Explanatory Note for Section XVI, General (VII) Functional Units says that this Note only covers “machines and combination of machines essential to the performance of the function specific to the functional unit as a whole, and thus excludes machines or appliances fulfilling auxiliary functions and which do not contribute to the function of the whole.” Therefore, the barrier gate, which does not directly contribute to the function of collecting parking fees, is excluded from the functional unit. The Explanatory Note says that the term functional unit covers machines and combination of machines, thus the CD software is likewise excluded. As noted in HQ 963029, “[a] finding that an entire importation fails the functional unit test does not negate the possibility that two or more components within the importation might constitute a functional unit, if the requirements of Section XVI, Note 4, HTSUS, are met.” The barrier gate is similar to the Barrier Arm that was the subject of HQ 954911 and which was classified in subheading 8608.00.00, HTS.

The applicable subheading for the PES Parking System (Flexipark System) when imported as a system with either the cashier station or the pay on foot automatic paying machine will be 8470.50.0020, Harmonized Tariff Schedule of the United States (HTS), which provides for “Cash registers: Point-of-sale terminals.” The rate of duty will be free.

The applicable subheading for the cashier station when imported separately will be 8470.50.0020, Harmonized Tariff Schedule of the United States (HTS), which provides for “Cash registers: Point-of-sale terminals.” The rate of duty will be free.

The applicable subheading for the pay on foot automated paying machines will be 8470.50.0020, Harmonized Tariff Schedule of the United States (HTS), which provides for “Cash registers: Point-of-sale terminals.” The rate of duty will be free.

The applicable subheading for the barrier gate, imported separately or with the system, will be 8608.00.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for “traffic control equipment for parking facilities.” The rate of duty will be 3.8 percent ad valorem.

The applicable subheading for the CD software, imported separately or with the system, will be 8524.39.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for “Records, tapes and other recorded mediaDiscs for laser reading systems: Other: For reproducing representations of instructions, data, sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine; proprietary format recorded discs.” The rate of duty will be free.

The applicable subheading for the entry machine when imported separately will be 8471.90.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for “magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or includedOther.” The rate of duty will be free.

The applicable subheading for the exit machine when imported separately will be 8471.90.0000, Harmonized Tariff Schedule of the United States (HTS), which provides for “magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or includedOther.” 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 Eileen S. Kaplan at 646-733-3016.

Sincerely,

Robert B. Swierupski
Director,

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