The tariff classification of the Parking Revenue Management Systems ID-Park from Belgium

NY H87976 February 19, 2002 CLA-2-84:RR:NC:1:110 H87976 CATEGORY: Classification TARIFF NO.: 8470.50.0020; 8608.00.0000 Mr. Gary Klebanoff Corbett International Inc. Cargo Service Building 80 JFK International Airport Jamaica, NY 11430 RE: The tariff classification of the Parking Revenue Management Systems ID-Park from Belgium Dear Mr. Klebanoff: In your letter dated January 29, 2002 you requested a tariff classification ruling on behalf of Automatic Control Systems, Port Washington, New York. They will be importing the Parking Revenue Management Systems ID-Park. This system consists of the following components: Automatic Pay Station, Fee Computer Validator5, Fee Computer, Rising Barrier BL2, Entry Terminal, and Exit Terminal. The Automatic Pay Station, Fee Computer Validator, and Fee Computer are terminal equipment used in the payment of parking fees. The Entry Terminal dispensed parking tickets and the Exit Terminal accepts parking tickets. The Rising Barrier BL2 is an electromechanical automatic rising barrier designed for controlling access to and from parking facilities. It has an aluminum arm, which is raised or lowered to permit or restrict the movement of automobiles. The Parking Revenue Management Systems ID-Park is similar to the Advanced Parking Control System which was the subject of NY C89003 and which was classified as a functional unit in subheading 8470.50.0020, Harmonized Tariff Schedule of the United States (HTS). Except for the Rising Barrier, this system would also meet Section XVI, Note 4, with regard to functional units. 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 Rising Barrier, which does not directly contribute to the function of collecting parking fees, is excluded from the functional unit. 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 Rising Barrier 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 Automatic Pay Station, Fee Computer Validators, Fee Computer, Entry Terminal, and Exit Terminal when imported together as a system 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 Rising Barrier BL2 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. 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, National Commodity Specialist Division