H315458

HQ H315458 December 15, 2021 CLA-2 OT:RR:CTF:EMAIN H315458 PF CATEGORY: Classification TARIFF NO.: 8479.89.94 Port of Seattle U.S. Customs and Border Protection Department of Homeland Security 1000 2nd Avenue, Suite 2100 Seattle, WA 98104 Attn: Japhy O’Doherty, Import Specialist Re: Protest and Application for Further Review No: 1101-19-100212; Classification of the Cleveron Packrobot & Locker Combo Dear Port Director: The following is our decision as to Protest and Application for Further Review No. 1101-19-100212, which was filed on July 29, 2019 on behalf of Bell and Howell, LLC (“protestant”). The protest pertains the classification of the Cleveron Packrobot & Locker Combo (“Packrobot”) under the Harmonized Tariff Schedule of the United States (“HTSUS”). Various entries of the subject items were entered by Protestant and liquidated by U.S. Customs and Border Protection (“CBP”) at the Ports of Philadelphia and Columbus. Protestant asserts that CBP’s classification of the subject items at liquidation is incorrect. In reaching the below decision, we have taken into account the arguments and information included in the protest. FACTS: The subject Packrobot, which consists of the Cleveron Packrobot and Locker Combination (Model 401), dispenses products to customers that have previously placed an order online. The Packrobot allows consumers to order products online and then present proof of the transaction to retrieve the product from the machine at a designated pick-up location. After a customer places an order online, the customer chooses to pick up the item in a nearby Walmart store and is provided with a confirmation bar code or QR code via email and/or text message. The confirmation or QR bar code is the customer’s proof of payment, which entitles the customer to pick up the merchandise at the subject device, which has been stocked by store employees. If the product is available in the identified store, then the customer’s credit card is processed when the customer picks up the product at the Packrobot. If the ordered product is not available in-store and is instead shipped from a Walmart Fulfillment Center to the store for the customer’s subsequent pick-up, the customer’s credit card is processed at the time the online order is shipped for pick-up at the Packrobot. Upon arrival at the store, the customer scans their unique code at the Packrobot to retrieve their purchased merchandise. Once the Packrobot processes the code to confirm the purchase, the machine will dispense the product and the customer receives the purchased item, either directly from the tower or (depending on the package size) from a designated locker that will automatically open. Without a bar code or QR code, the Packrobot will not dispense the purchased product and the customer cannot access the item. The protestant provided a link to its marketing literature for the Packrobot, which describes the product as follows: As technology drives consumer preference, retail customers demand convenience and ease while shopping online. The Cleveron 401 pickup tower, an automated self-service terminal, offers retail customers a streamlined, personalized in-store pickup experience in under 10 seconds. Retailers can consolidate shipping costs to deliver a package to customers efficiently. While average smart lockers have set locker sizes, the Cleveron 401 uses a robotic 3D lifting system to dynamically store packages. Each package is measured to determine its exact dimensions. It then automatically selects the best slot to store each package. The Cleveron 401 pickup tower hosts a smaller footprint than traditional smart locker systems. At 72 square feet, it's perfect for retail where square footage is valuable, while providing three times more capacity than regular smart locker systems. In addition, on its company website, the Packrobot is described as follows: The Cleveron 401 Indoor is a robotic last-mile parcel pickup solution with an adjustable storage system for maximum use of space. The 401, also known as the Pickup Tower, is a robotic tower where you pick up your online-ordered items. This means customers can order online and pick up goods quickly, skipping queues or home delivery that could take a week or longer. According to the protestant, the Packrobot helps facilitate online ordering, solves logistical impediments for delivery, reduces shipping costs, and drives-in store consumer traffic. The Packrobot also prevents package theft issues and provides the consumer with a safe place to retrieve their items. The Packrobot was entered as two separate entries on September 13, 2018 and September 28, 2018. On February 1, 2019, CBP liquidated the entries in heading 8479, and specifically subheading 8479.89.65, which provides for “Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof: Other machines and mechanical appliances: Other: Electromechanical appliances with self-contained electric motor: Other.” Protestant alleges that the subject items are properly classified in heading 8476, HTSUS, specifically subheading 8476.89.00, HTSUS, which provides for “Automatic goods-vending machines (for example, postage stamp, cigarette, food or beverage machines), including money-changing machines; parts thereof: Other machines: Other.” Protestant claims, in the alternative, that the subject merchandise is classified in heading 8428, and specifically subheading 8428.90.02, HTSUS, which provides for “Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics): Other machinery.” In response to a request for additional information, the protestant described the subject merchandise as follows: The PackRobot is used for parcel storage allowing pickup of online paid orders, etc. that the consumer does not wish to have shipped to their home. The PackRobot is a unique parcel terminal model with an automated smart storage system that optimizes the use of available space. Parcels are automatically weighed, measured and photographed. This is performed by a 3D lift that picks and delivers the right parcel to a secure delivery slot. The unit is built for outdoor and indoor use and has internal climate control. Locker Combo is a parcel module system for the PackRobot with larger drawer slots for extra large parcels. The command for opening of Locker Combo door is given by the user through the PackRobot’s UI by entering the correct code. Below is an image of the Packrobot and Locker Combo that are installed side-by-side: 
 ISSUE: Whether the subject Packrobot is properly classified in heading 8428, HTSUS, as other lifting, handling, loading or unloading machinery, in heading 8476, HTSUS, as an automatic goods-vending machine, or in heading 8479, HTSUS, as a machine having an individual function. LAW AND ANALYSIS: Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a) (2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)). Further Review of Protest No. 1101-19-100212 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of CBP or his designee, or with a decision made by CBP with respect to the same or substantially similar merchandise. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods 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 headi

Initially, we note that the matters protested are protestable under 19 U.S.C. §1514(a) (2) as decisions on classification. The protest was timely filed, within 180 days of liquidation of the first entry. (Miscellaneous Trade and Technical Corrections Act of 2004, Pub.L. 108-429, § 2103(2) (B) (ii), (iii) (codified as amended at 19 U.S.C. § 1514(c) (3) (2006)). Further Review of Protest No. 1101-19-100212 is properly accorded to Protestant pursuant to 19 C.F.R. § 174.24(a) because the decision against which the protest was filed is alleged to be inconsistent with a ruling of the Commissioner of CBP or his designee, or with a decision made by CBP with respect to the same or substantially similar merchandise. Classification under the HTSUS is made in accordance with the General Rules of Interpretation (“GRI”). GRI 1 provides that the classification of goods 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 may then be applied.     The 2018 HTSUS provisions under consideration are as follows:8428 Other lifting, handling, loading or unloading machinery (for example, elevators, escalators, conveyors, teleferics):8476 Automatic goods-vending machines (for example, postage stamp, cigarette, food or beverage machines), including money-changing machines; parts thereof:8479 Machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter; parts thereof:In understanding the language of the HTSUS, the Explanatory Notes (ENs) of the Harmonized Commodity Description and Coding System, which constitute the official interpretation of the HTSUS at the international level, may be utilized. The ENs, although not dispositive or legally binding, provide a commentary on the scope of each heading, and are gen