H318180

 HQ H318180 January 13, 2023 OT:RR:CTF:CPMMA H318180 AJK CATEGORY: Classification TARIFF NO: 9031.49.9000 Mr. Thomas J. O’Donnell Rodriguez O’Donnell Ross - Fuerst Gonzalez & Williams, P.C. 20 North Wacker Drive - Suite 1416 Chicago IL 60606 RE: Revocation of NY I86148; Classification of Universal Bill Stacker Sub-Assembly Dear Mr. O’Donnell: This letter is in reference to New York Ruling Letter (NY) I86148, dated September 26, 2002, concerning the tariff classification of a universal bill stacker sub-assembly. In NY I86148, U.S. Customs and Border Protection (CBP) classified the merchandise in heading 9504, Harmonized Tariff Schedule of the United States (HTSUS), as a part of casino gaming machines. We have reviewed NY I86148 and have determined that the classification of the merchandise in heading 9504, HTSUS, was incorrect. Pursuant to section 625(c)(1), Tariff Act of 1930 (19 U.S.C. § 1625(c)(1)), as amended by section 623 of Title VI (Customs Modernization) of the North American Free Trade Agreement Implementation Act (Pub. L. 103-182, 107 Stat. 2057), a notice of the proposed action was published in the Customs Bulletin, Volume 56, No. 34, on August 31, 2022. No comment was received in response to this notice. FACTS: The subject merchandise was described in NY I86148 as follows: The merchandise, also referred to as a cash box, is designed to receive and store paper currency in casino gaming machines. A separate validator unit mounted to the universal stacker accepts a paper bill into the stacker machine. You relate that “[a]s the bill enters the machine, the validator sensor reads the denomination to determine the value of the bill. The casino gaming machine then converts the cash into game credits.…the validator then pushes the bill into the cash box where the money stays until the cash box is removed from the gaming machine.” …. You state that the universal stacker sub-assembly subject of this inquiry, although capable of use in vending machines, is used primarily as a storage mechanism in casino gaming machines such as slot machines and video poker. You assert that the substantial construction of the stacker cash box housing and the fact that all units to be imported by your client will be equipped with locks or will be designed to accommodate locks is indicative of the primary or most common end use of this type of stacker in gaming machines. ISSUE: Whether the universal bill stacker sub-assembly is classified in heading 9031, HTSUS, as a banknote measuring machine, or heading 9504, HTSUS, as a part of a gaming machine operated by banknotes. LAW AND ANALYSIS: Classification of goods under HTSUS is governed by the General Rules of Interpretation (GRI), and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (ARI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The ARI 1(a), which applies to principal use provisions, provides as follows: In the absence of special language or context which otherwise requires-- a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use …. * * * * * * The HTSUS provisions at issue are as follows: 9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other optical instruments and appliances: 9031.49 Other: 9031.49.90 Other 9504 Video game consoles and machines, table or parlor games, including pinball machines, billiards, special tables for casino games and automatic bowling equipment, amusement machines operated by coins, banknotes, bank cards, tokens or by any other means of payment: 9504.30.00 Other games, operated by coins, banknotes, bank cards, tokens or by any other means of payment, other than automatic bowling alley equipment; parts and accessories thereof Other: 9504.30.0060 Parts and accessories * * * * * * Note 1 to chapter 90, HTSUS, provides, in pertinent part: This chapter does not cover: … (k) Articles of chapter 95 .... Note 3 to chapter 95, HTSUS, provides, as follows: Subject to note 1 above, parts and accessories which are suitable for use solely or principally with articles of this chapter are to be classified with those articles. Subheading note to chapter 95, HTSUS, provides, in pertinent part: [Subheading 9504.50] does not cover video game consoles or machines operated by coins, banknotes, bank cards, tokens or by any other means of payment (subheading 9504.30). * * * * * * The Harmonized Commodity Description and Coding System (HS) Explanatory Notes (ENs) constitute the official interpretation of the HS. While not legally binding or dispositive, the ENs provide a commentary on the scope of each heading of the HS at the international level and are generally indicative of the proper interpretation of these headings. See T.D. 89-80, 54 Fed. Reg. 35127 (Aug. 23, 1989). The General EN to chapter 95, HTSUS, provides, in pertinent part: Each of the headings of this Chapter also covers identifiable parts and accessories of articles of this Chapter which are suitable for use solely or principally therewith, and provided they are not articles excluded by Note 1 to this Chapter. EN 90.31, HTSUS, provides, in pertinent part: [T]his heading covers measuring or checking instruments, appliances and machines, whether or not optical. The Subheading EN for subheading 9031.49, HTSUS, provides as follows: This subheading covers not only instruments and appliances which provide a direct aid or enhancement to human vision, but also other instruments and apparatus which function through the use of optical elements or processes. EN 95.04, HTSUS, provides, in pertinent part: This heading includes: … (6) Machines, operated by coins, banknotes, bank cards, tokens or by other means of payment, of the kind used in amusement arcades, cafés, funfairs, etc., for games of skill or chance (e.g., machines for revolver practice, pintables of various types).… The Subheading EN for subheading 9504.50, HTSUS, provides as follows: This subheading does not cover video game consoles or machines operated by coins, banknotes, bank cards, tokens or by any other means of payment; these are to be classified in subheading 9504.30. * * * * * * The legal note 3 to chapter 95 provides that “parts and accessories which are suitable for use solely or principally with articles of [chapter 95] are to be classified with those articles.” The EN to subheading 9504.50 provides that “video game consoles or machines operated by … banknotes” are classified in subheading 9504.30. See also Subheading Note to Chapter 95. Accordingly, subheading 9504.30.00, HTSUS, which provides for parts of video game machines operated by banknotes, is a principal use provision subject to ARI 1(a). To classify an article under a principal use provision, ARI 1(a) requires that the classification is controlled by the principal use of “goods of that class or kind to which the imported goods belong”. In United States v. Carborundum Co., the U.S. Court of Customs and Patent Appeals held that to determine whether an article is included in a particular class or kind of merchandise, the court must consider a variety of factors, including: (1) the general physical characteristics of the merchandise; (2) the channels, class or kind of trade in which the merchandise moves (i.e., where the merchandise is sold); (3) the expectation of the ultimate purcha

Classification of goods under HTSUS is governed by the General Rules of Interpretation (GRI), and, in the absence of special language or context which otherwise requires, by the Additional U.S. Rules of Interpretation (ARI). GRI 1 provides that classification shall be determined according to the terms of the headings of the tariff schedule and any relative section or chapter notes. In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, the remaining GRIs 2 through 6 may then be applied in order. The ARI 1(a), which applies to principal use provisions, provides as follows:In the absence of special language or context which otherwise requires--a tariff classification controlled by use (other than actual use) is to be determined in accordance with the use in the United States at, or immediately prior to, the date of importation, of goods of that class or kind to which the imported goods belong, and the controlling use is the principal use ….* * * * * *The HTSUS provisions at issue are as follows:9031 Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors; parts and accessories thereof: Other optical instruments and appliances:9031.49 Other:9031.49.90 Other9504 Video game consoles and machines, table or parlor games, including pinball machines, billiards, special tables for casino games and automatic bowling equipment, amusement machines operated by coins, banknotes, bank cards, tokens or by any other means of payment: 9504.30.00 Other games, operated by coins, banknotes, bank cards, tokens or by any other means of payment, other than automatic bowling alley equipment; parts and accessories thereof Other:9504.30.0060 Parts and accessories* * * * * *Note 1 to chapter 90, HTSUS, provides, in pertinent part: This chapter does not cover: … (k) Articles of chapter 95 .... Note 3 to chapter 95, HTSUS, provides, as f