In ruling NY N319384 (June 4, 2021), Customs and Border Protection (CBP) discussed the classification of a point-of-sale (POS) self-service checkout (SCO) machine from China. The machine contained an embedded computer, touchscreen monitor, metal and plastic cabinetry, trim, and molding. The machine allows customers to complete purchase transactions by either scanning the item barcodes or selecting the item from the touchscreen display. Customers may pay via a credit or bank card or with an attendant once all the items have been entered.

CBP determined that the applicable subheading for the self-service checkout machine is 8470.50.0020, Harmonized Tariff Schedule of the United States (HTSUS), which provides for “Calculating machines…ticket-issuing machines and similar machines…cash registers:  Cash registers: Point-of-sale terminals.” The rate of duty for such items is free. Additionally, CBP also determined that pursuant to U.S. Note 20 to Subchapter III, Chapter 99, HTSUS, Chinese products under subheading 8470.50.0020, HTSUS, unless excluded, are subject to an additional 7.5% ad valorem rate of duty. As such, at the time of the product’s importation, the chapter subheading 9903.88.15 must be reported in addition to subheading 8470.50.0020, HTSUS.

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Photo of Frances P. Hadfield Frances P. Hadfield

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving…

Frances P. Hadfield is a counsel in Crowell & Moring’s International Trade Group in the firm’s New York office. Her practice focuses on forced labor and withhold release orders (WRO), import regulatory compliance, and customs litigation. She regularly advises corporations on matters involving customs compliance, audits, customs enforcement, as well as import penalties.

Frances represents clients before the U.S. Court of International Trade and the U.S. Court of Appeals for the Federal Circuit, as well as in proceedings at the administrative level. She advises corporations on both substantive federal and state regulatory issues that involve U.S. Customs and Border Protection, the Federal Trade Commission, Food and Drug Administration, and U.S. Fish & Wildlife in matters pertaining to product admissibility, audits, classification, import restrictions, investigations, marking, licenses, origin, penalties, and tariff preference programs.

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Photo of Martín Yerovi Martín Yerovi

Martín Yerovi is an international trade analyst in Crowell & Moring’s Washington, D.C. office. He provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative (USTR) and U.S. Customs and Border Protection…

Martín Yerovi is an international trade analyst in Crowell & Moring’s Washington, D.C. office. He provides practice support to the International Trade Group on import regulatory matters pending before the Office of the U.S. Trade Representative (USTR) and U.S. Customs and Border Protection (CBP). He works closely with attorneys developing courses of action for clients impacted by investigations under Section 301 of the Trade Act of 1974 and Section 232 of the Trade Expansion Act of 1962. He also supports unfair trade investigations, including antidumping (AD) and countervailing duty (CVD) investigations, sunset reviews, and changed circumstance reviews before the Department of Commerce and the International Trade Commission (ITC).

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