The tariff classification of a Datacard MJ7500 Card Personalization System

N071937 September 9, 2009 CLA-2-84:OT:RR:NC:N1:120 CATEGORY: Classification TARIFF NO.: 8471.80.9000 Ms. Judy Joy Datacard Corporation 11111 Bren Road West Minnetonka, Minnesota 55343 RE: The tariff classification of a Datacard MJ7500 Card Personalization System Dear Ms. Joy: In your letter dated July 31, 2009, you requested a tariff classification ruling. The merchandise under consideration is the Datacard MJ7500 Card Personalization System. It is a modular system that encodes the magnetic stripes or barcodes of plastic cards with personalized information, such as customer name, account numbers, expiration dates, and security codes, to create ready-to-use financial cards. The MJ7500 system consists of various modules that are connected to one another by cable and bolts and dowel pins for securing the module frames together. The system attaches to an Automatic Data Processing (ADP) machine by means of an RS-232 connection to retrieve information from the specific Smart Card Issuance and Development Software installed, and produces a card based on the retrieved data file. As imported, the MJ7500 system consists of an Infeed Module that provides controls and product/data management to drive the system and meet production requirements as well as a Bridge Mount Magnetic Stripe Encoder Module used to encode and read magnetic stripes at speeds up to 30,000 cards per hour. The system also includes a UV Cured DOD Inkjet Printer and Drier Module, Turnover Module, Bar Code Verification System, Label Applicator, Batch Label Printer, Camera Verification System, Foil Stamp Module, Inline Affixing Module, Divert Module, and Delivery Module, which are all subsidiary to the Encoding Module. When shipped and imported together the MJ7500 modular system is a functional unit with the clearly defined function of encoding the magnetic stripes or barcodes of plastic cards with personalized information. It meets the requirements of Note 5(C) of Chapter 84, Harmonized Tariff Schedule of the United States (HTSUS) as a unit of an ADP system. It is solely or principally used in an ADP system, it is connectable to a central processing unit (CPU), and is able to accept or deliver data in a form (codes or signals) which can be used by an ADP system. The applicable subheading for the Datacard MJ7500 Card Personalization System will be 8471.80.9000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Automatic data processing machines and units thereof…Other units of automatic data processing machines: Other: Other.” The rate of duty will be Free. 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. Sincerely, Robert B. Swierupski Director National Commodity Specialist Division