Protest No. 3501-8-000017, cash register, point-of-sale terminal, automatic data processing machine

HQ 082420 May 21, 1990 CLA-2 CO:R:C:G 082420 JMH CATEGORY: Classification TARIFF NO.: 676.15 Area Director U.S. Customs Service Room 137 110 S. Fourth St. Minneapolis, MN 55401 RE: Protest No. 3501-8-000017, cash register, point-of-sale terminal, automatic data processing machine Dear Sir: The following is our decision regarding the Protest for Further Review No. 3501-8-000017, dated May 25, 1988. At issue is the classification under the Tariff Schedules of the United States (TSUS) of Entry No. 791-0873793-7. The entry which consists of certain office machines imported by Sumitomo Corporation. FACTS: The articles in question are the ESPER 9700 and ESPER 9710 food service systems. The ESPER 9700 and the ESPER 9710 are designed for use in fast food and family style restaurants. Both models incorporate a flexible keyboard, alpha-numeric front and rear displays, cash drawer, and a free-standing dot-matrix printer. The dot-matrix printer issues legible receipts or requisitions. The units are designed to be converted from a stand-alone unit, into a network of communicating terminals with up to 256 Kilobytes of programmable terminal memory. In their condition as imported, the units' functions include cash register functions, price look-ups, and various management reports such as inventory analysis, server reports and financial reports. Optional devices such as remote kitchen printers and inter-register communications devices can convert these stand alone units into a network of communicating terminals. The importer believes that these units are classified under item 676.22, TSUS, as cash registers. The models were classified upon entry under item 676.15, TSUS, as point-of-sale terminals. -2- ISSUE: Whether the ESPER 9700 and the ESPER 9710 are classified as cash registers under item 676.22, TSUS or as point-of-sale terminals under item 676.15, TSUS. LAW AND ANALYSIS: Point-of-sale terminals are machines which perform more functions than those performed by electronic cash registers. Being more than a cash register precludes classification within the TSUS provision for cash registers. See Headquarters Ruling Letter 070653, dated December 9, 1983. The articles in question are designated as "food service systems." A "system" denotes usage of a magnitude far greater than a mere cash register. Although the term "cash register" may be broadly construed, the abilities of the ESPER 9700 and the ESPER 9710 exceed the automatic input of recurrent or pre-set data. The models in question have the ability to process data beyond the final sale of goods and services. These units are able to contribute to most aspects of managing a restaurant. The ESPER 9700 and the ESPER 9710 are more than a cash register. They are properly classified under item 676.15, TSUS, as accounting, computing and other data processing machines. HOLDING: The ESPER 9700 and the ESPER 9710 are more than a cash register. They are properly classified under item 676.15, TSUS, as accounting, computing and other data processing machines. The protest should be denied in full. A copy of this decision should be attached to the Form 19 Notice of action for the protest. Sincerely, John Durant, Director Commercial Rulings Division