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.