WEBVTT

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>> CHRISSI GUTH: Good afternoon. I am
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Chrissi Guth with CBP. This webinar is
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part of the 2023 webinar series.
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Please be mindful that you will be on
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mute during the presentation, therefore
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we ask that you please submit any
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questions that you have in the chat
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feature.
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If you plan to request the optional
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CCS or CES credits through the
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educational institute, please check the
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chat box for the completion code. It
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will be provided several times
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throughout the webinar.
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Now I would like to pass it over to
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national import specialist, Arthur
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Purcell.
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>> ARTHUR PURCELL: Well thank you,
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Chrissi. And good day to everyone.
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My name is Arthur Purcell and I'm
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national import specialist 104. I will
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be presenting today on the
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classification of automatic goods
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vending machines of heading 8476.
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This presentation should run about 50
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minutes or so, and I'll try to leave
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some time for questions at the end. But
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if you do have questions, please enter
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them in the chat box and I'll try to get
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to those either during, but really more
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likely at the end of the presentation
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because I have a fair amount of material
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to cover.
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First, some preliminary items. Here is
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CBP's mission statement which concerns
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safeguarding our borders and enhancing
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our country's economy.It's
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the role of Office of Trade of which we
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are a part to enforce laws, especially
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those that include moving products
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across our borders.
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This slide sets forth a disclaimer.
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This seminar is intended to be
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informational only and providing useful
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guidance to the trade rather than
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concrete statements as to particular
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factual situations.
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The tariff law is governing imported
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items frequently changed by legislative
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or administrative action.
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Additionally, courts issue various
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interpretations of law, particularly the
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court of international trade, and those
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interpretations can change over time.
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Most of you are aware that CBP has a
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robust program, and that's the avenue
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that members of the trade should be
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pursuing to receive a determination on
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your particular facts.
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Whether or not you seek a binding
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ruling, importers of the trade must
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exercise reasonable care which includes
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consulting with experts such as
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attorneys, customs brokers or trade
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professionals. And finally, by tuning in
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to NCSD's webinars, you should be aware
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that more is usually needed to fulfill
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your reasonable care obligations.
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One final disclaimer, I promise. The
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images contained in the presentation are
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used for educational purposes only. We
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don't endorse or approve of any of the
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products that you may see on the images.
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These images are in the public domain
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and we've made strong efforts to provide
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attribution to the sources, which I have
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at the end of the presentation.
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And you should be aware that a further
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copy organize distribution of
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copyrighted material contained in this
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or any other NCSD's webinar may require
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permission from the original creator. I
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know I saw a commercial saying that, but
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we are required to cover this.
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Okay. So this slide contains a web
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link to a site describing the binding
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rulings could prom.
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-- program. If you need to see the link
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again, perhaps we can post it in the
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chat box.
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Here's my contact information. I'm
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based at the World Trade Center in New
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York.
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Really the quickest and best way to reach
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me is email. I definitely will respond
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to your email as timely as I can.
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All right, so let's get started. Why
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would anyone want to hear a webinar
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about a run of the mill candy machine or
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vending machine? It sounds somewhat
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dull, doesn't it?
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But as I will explain, heading 8476
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discover a range of interesting vending
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machines, and that will be on a typical
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coke machine or candy machine, but more
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importantly, heading 8476 presents
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interesting challenges for tariff
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classification. Particularly the
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commercial meaning in dealing with a
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changing economy.
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First I'll go some history of vending
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machines just to give you context for
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our discussion.
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Next, I'll discuss what it means to
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vend something and what purchasing a
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product means versus purchasing a
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service. And what does a product mean?
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And how about machines that provide only
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information or machines that provide
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amusement or entertainment, are these
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really vending machines?
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And what if the machine provides a
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product I will borrow or use only on a
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short-term basis rather than on it?
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Keeping these questions in mind, let's
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get started.
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Just a little background here to give
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you an idea of the type of goods I
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handle in NIS 104.
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These headings include a range including
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textile machinery 8444 to 8466. Power
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tools for working in the hand, 8467.
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Mineral processing, vending machines, and of course
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the catch joul residual provision which
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keeps me most busy.
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And of course I handle vending
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machines of 8476. Here's the current
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version of heading 8476. The language
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for this heading has remained unchanged
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since it came into being. It addresses 2
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types of broad vending machines. The
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first type is automatic beverage
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machines, 8476.21 and 29, depending
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whether they have heat organize
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refrigeration devices. These are your
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soda and coffee machines.
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The other groups, 8476.89 include those
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with heating and those without. Most of
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the things I'll be discussing fall into
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8476.89. So it covers money machines,
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which are freestanding machines
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including coin deposit and they allow
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you to change coins for bank notes,
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change bank notes to coins, large
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denominations into smaller ones and so
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on.
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I won't really be addressing these
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today as they're not truly automatic
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goods vending machines. The heading
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itself, as you can see, provide only a
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few examples of automatic good vending
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machines. However, the expire Tori notes
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cover more that I'll get into later. We
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have 8476.90 at the bottom here and at
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the end I'll address vending machine
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parts.
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One excellent sources of information
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for vending machines with 8476 can be
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found in CBP's informed compliance
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publication entitled vending machines
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and their parts under the HTSUS.
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Keep in mind that this guidance was
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published in 2004 and revised in 2009,
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so it may not capture certain new
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machines and mechanisms or addressee
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involving notions of what constitutes
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vending and products for that matter.
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Also useful is the website of the
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national automatic merchandising
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association or NAMA. Their website is
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NAMA now.org. This has about a thousand
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member companies and represents the U.S.
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convenience services industry. Lots of
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good information in there as well.
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All right. So vending machines, as you
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can see from the slide, have been around
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a very, very long time. They've had a
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long and interesting history. Here's
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some important milestones.
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As you can see, the use of a device or
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a machine to automatically provide or
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dispense a product dates back to really
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ancient times. But the first modern day
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vending machine was invented in 1867 in
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England.This
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was a machine for customers to purchase
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postcards from the machine by inserting
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coins and the machine actually dispensed
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the postcards.
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U.S. cigarette machines appeared in
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1905 and 1906, respectively. And then
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there was the auto mat which came at the
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use of the 21st Century. Perhaps you've
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seen them in movies or heard an older
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relative talk about them. They were sort
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of cabinet-like machines, you could find
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them in cafeterias or restaurants, and
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they provided customers with a sandwich
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or other food item. You dropped a coin
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in the machine, lifted the small glass
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window, and then removed the food item.
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And so by 1930, there are
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technological innovations including slug
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rejectors, and these really kind of
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helped thieves from grabbing a free
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lunch, if you will.
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And today many vending machines have
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bill validators to prevent the use of
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counterfeit bills.
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And finishing up this line of thought
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here, the '70s to the '90s, you see
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advanced payment systems develop to
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allow customers to pay with contract and
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their debit cards. Software allowed
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vendors to electronically track
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inventory and automatically reorder
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product for restocking machines.
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And you could see at the bottom half
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of this slide, this gives you a flavor
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of some of the newer machines that are
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often referred to as vending machines
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but aren't really necessarily vending
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machines.
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One is NFT or non-Fungible token vending
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machines, it was dispense cryptographic
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assets based on Blockchain technology.
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Digital collectibles and the like. And
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there are these car vending machines
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which you probably have seen advertised,
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eBike, these eScooter kiosks that you'll
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see around the city, we'll get into
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those a bit, and library book vending
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machine.
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These aren't necessarily vending
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machines, but these things are called
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that at times and we'll get into that.
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Okay. So now let's get some
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definitions out of the way.
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First, the tariff terms vend, vending
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machine, are not defined in the tariff.
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And as most of you know, when they're
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not defined, tariffs terms are not
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defined, we apply the common or
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commercial meaning of the term which are
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really presumed to be the same. They're
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not always, but we presume them to be
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the same as a starting point.
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The common and commercial meanings may
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be obtained from ordinary dictionaries,
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encyclopedias and industry maybe
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consulted. To vend means to sell goods.
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In other words, a sale is required.
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A vending machine is defined as a coin
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or payment operating machine that
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dispenses merchandise. Some dictionary
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definitions state that vending machine
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can provide either a product or a
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service, however, as I'll explain over
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and over again here, machines that
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provide services are clearly not covered
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by 8476.
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The vending machine trade association
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NAMA defines vend more broadly as any
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state that vending involves the
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provision of a service and authenticity
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unintended point of sale.
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The ENs provide other examples of
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vending machines.
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These are railway ticket machines,
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machines that sell toilet products,
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newspaper vending machines. They seek to
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explain the meaning of the term
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vending.
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But the ENs are really --
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they're not binding. They're intended to
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provide guidance to the trade and
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customs to classify merchandise. The
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courts are often guided by them as well,
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and CBP will always consult the EN as
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these constitute the official
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interpretation of the tariff at the
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six-digit level.
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Vending refers to a monetary exchange
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between the purchaser and the machine in
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order to acquire a product. Keep that
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definition in mind.
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The ENs also state that 8476 does not
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cover machines that provide services
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such as shoe shining machines or coin
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laundry. So the key takeaway from these
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definitions is that there must be a
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monetary exchange involving a product or
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merchandise. In other words, a sale is
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required.
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And there must be a device or
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mechanism to accept payment. If there's
00:13:36.111 --> 00:13:38.387
no payment, there's no vending.
00:13:38.387 --> 00:13:40.390
Finally, the purchase of a product
00:13:40.390 --> 00:13:42.287
must be at the point of sale. What do I
00:13:42.287 --> 00:13:44.110
mean by this, point of sale?
00:13:44.110 --> 00:13:46.362
This means a monetary transaction that
00:13:46.362 --> 00:13:48.549
be occurs at the machine itself. That is
00:13:48.549 --> 00:13:50.489
when you put money into the machine, not
00:13:50.489 --> 00:13:53.320
before you engage the machine or
00:13:53.320 --> 00:13:57.100
sometime after you engage the machine.
00:13:57.100 --> 00:13:59.552
Okay. So even if a machine is well
00:13:59.552 --> 00:14:01.357
known and understood in the industry as
00:14:01.357 --> 00:14:04.227
being a vending machine, and meets some
00:14:04.227 --> 00:14:07.017
of or all of the physical and functional
00:14:07.017 --> 00:14:08.357
criteria for vending machine, it may not
00:14:08.357 --> 00:14:13.412
fall in heading 8476 on account of
00:14:13.412 --> 00:14:15.764
section note exclusions or EN
00:14:15.764 --> 00:14:15.765
exclusions.
00:14:15.765 --> 00:14:18.894
Here you can see the ENs provide
00:14:18.894 --> 00:14:22.014
example of machines an apparatus that
00:14:22.014 --> 00:14:24.011
dispense or provide something and might
00:14:24.011 --> 00:14:25.546
resemble and behave like vending
00:14:25.546 --> 00:14:30.020
machines, but they're either excluded by
00:14:30.020 --> 00:14:32.506
the Section notes or classified in other
00:14:32.506 --> 00:14:32.825
headings.
00:14:32.825 --> 00:14:35.527
For example, a coin operated
00:14:35.527 --> 00:14:38.163
observation telescopes that you see at
00:14:38.163 --> 00:14:41.823
the roadside stops or on the top of tall
00:14:41.823 --> 00:14:43.045
builds are Chapter 90.
00:14:43.045 --> 00:14:44.943
Another example is coin operated lock
00:14:44.943 --> 00:14:48.293
for lockers that you might see in an
00:14:48.293 --> 00:14:50.571
airport. Or public pay toilets.
00:14:50.571 --> 00:14:52.664
Telephone apparatus that accept
00:14:52.664 --> 00:14:57.889
payment are generally covered by 8517,
00:14:57.889 --> 00:15:00.852
but this exclusion does not include
00:15:00.852 --> 00:15:03.489
phone card calling machines. They're
00:15:03.489 --> 00:15:04.980
you're getting a product, you're getting
00:15:04.980 --> 00:15:08.760
a phone card in exchange for payment.
00:15:08.760 --> 00:15:11.015
Game machines of skill or chance are
00:15:11.015 --> 00:15:13.165
covered by Chapter 95. Such machines are
00:15:13.165 --> 00:15:14.926
sometimes confused with vending
00:15:14.926 --> 00:15:16.914
machines, especially where physical
00:15:16.914 --> 00:15:18.393
prizes are involved and dispensed.
00:15:18.393 --> 00:15:24.043
In a few moments I'll spend some time
00:15:24.043 --> 00:15:25.082
discussing the differences.
00:15:25.082 --> 00:15:27.891
Let's look at Section XVI exclusions
00:15:27.891 --> 00:15:30.600
that impact vending machine
00:15:30.600 --> 00:15:30.601
classification.
00:15:30.601 --> 00:15:33.226
So as I said, Section XVI contains a
00:15:33.226 --> 00:15:36.208
number of exclusions that impact
00:15:36.208 --> 00:15:40.079
classification for 8476. One example is
00:15:40.079 --> 00:15:45.516
Section XVI know the 1-L and this
00:15:45.516 --> 00:15:51.141
includes section 17 including aircraft,
00:15:51.141 --> 00:15:52.390
vessels or transport equipment.
00:15:52.390 --> 00:15:55.731
So you're thinking what could section 17
00:15:55.731 --> 00:15:58.350
have to do with vending machine
00:15:58.350 --> 00:15:58.351
classification?
00:15:58.351 --> 00:16:03.927
The New York ruling H 67575 customs
00:16:03.927 --> 00:16:05.403
considered the so-called mobile bank,
00:16:05.403 --> 00:16:07.407
which is basically a vehicle outfitted
00:16:07.407 --> 00:16:09.366
as a mobile banking facility, and that
00:16:09.366 --> 00:16:12.063
included an ATM machine and a portable
00:16:12.063 --> 00:16:14.005
computer. These drove around and stopped
00:16:14.005 --> 00:16:16.860
and served the public with customer
00:16:16.860 --> 00:16:18.380
deposits, check cashing, utility
00:16:18.380 --> 00:16:20.865
payments, payroll, money orders, and the
00:16:20.865 --> 00:16:20.866
like.
00:16:20.866 --> 00:16:23.057
And the user could which exchange
00:16:23.057 --> 00:16:24.220
money with the machine.But
00:16:24.220 --> 00:16:30.907
here we have no product being dispensed
00:16:30.907 --> 00:16:31.557
to the user.
00:16:31.557 --> 00:16:35.622
This was classified in 8705.90 as a
00:16:35.622 --> 00:16:38.382
special purpose motor vehicle, not a
00:16:38.382 --> 00:16:41.622
vending machine of 8476. ATM machines
00:16:41.622 --> 00:16:45.281
are classified in heading 8472.90.
00:16:45.281 --> 00:16:48.221
Additionally ATM machines provide a
00:16:48.221 --> 00:16:49.905
service and they don't involve the sale
00:16:49.905 --> 00:16:52.935
of a product.
00:16:52.935 --> 00:16:56.124
So here we have your typical photo
00:16:56.124 --> 00:16:58.409
booth. All of you have seen its
00:16:58.409 --> 00:17:04.345
machines, I'm sure in arcades, shopping
00:17:04.345 --> 00:17:06.273
malls, various events. Let's look at some
00:17:06.273 --> 00:17:07.691
of the features of the photo booth.
00:17:07.691 --> 00:17:09.653
This is a machine that automatically
00:17:09.653 --> 00:17:11.930
takes and provides you with a photo. So
00:17:11.930 --> 00:17:14.157
far so good, right? There's a payment
00:17:14.157 --> 00:17:14.158
mechanism.
00:17:14.158 --> 00:17:17.882
This is a substantial machine. It has
00:17:17.882 --> 00:17:19.752
-- it provide you, as I said, with a
00:17:19.752 --> 00:17:21.997
product and it provides it at the point
00:17:21.997 --> 00:17:23.836
of sale. You put the money in and you
00:17:23.836 --> 00:17:26.001
get your photo handed to you. And
00:17:26.001 --> 00:17:27.962
they're typically located in busy,
00:17:27.962 --> 00:17:28.369
high-traffic areas.
00:17:28.369 --> 00:17:32.149
So what do you think? Is this a
00:17:32.149 --> 00:17:33.372
vending machine? You can enter an answer
00:17:33.372 --> 00:17:49.910
in the chat box if you want here.
00:17:49.910 --> 00:17:51.688
I'm seeing some yeses. That seems to
00:17:51.688 --> 00:17:53.463
be what most people are saying. Let's go
00:17:53.463 --> 00:17:54.966
to the next slide and find out.
00:17:54.966 --> 00:17:56.754
So the answer is it is a vending
00:17:56.754 --> 00:18:01.186
machine, but the real question is whether
00:18:01.186 --> 00:18:02.032
it's an 8476 vending machine. As with
00:18:02.032 --> 00:18:04.339
many things in the tariff, the answer
00:18:04.339 --> 00:18:05.664
is, it depends, right?
00:18:05.664 --> 00:18:10.379
Let's take a look at Section XVI note
00:18:10.379 --> 00:18:15.743
1-M. At 1-M excludes articles of Chapter
00:18:15.743 --> 00:18:19.190
90 covering optical Fogt graphics,
00:18:19.190 --> 00:18:21.750
cinema graphic apparatus. And customs
00:18:21.750 --> 00:18:23.408
reviewed the classification of a photo
00:18:23.408 --> 00:18:26.265
booth way fixed focus camera. These are
00:18:26.265 --> 00:18:28.581
the type that you can't adjust the
00:18:28.581 --> 00:18:28.582
focus.
00:18:28.582 --> 00:18:30.304
And headquarters, that ruling
00:18:30.304 --> 00:18:32.420
determined that the photo booth met the
00:18:32.420 --> 00:18:34.541
requirements for a vending machine, but
00:18:34.541 --> 00:18:42.321
it was precluded from 8476 by Section
00:18:42.321 --> 00:18:45.573
note 1-M, instead of falling into 9006,
00:18:45.573 --> 00:18:46.987
that covers fixed cameras specifically.
00:18:46.987 --> 00:18:49.952
So there we have an exclusion. We have
00:18:49.952 --> 00:18:52.135
something that's a vending machine, but
00:18:52.135 --> 00:18:53.988
doesn't go in 8476.
00:18:53.988 --> 00:18:56.766
And what about photo booths using
00:18:56.766 --> 00:19:00.384
digital cameras? In this case note 1-M
00:19:00.384 --> 00:19:01.482
the Chapter 90 exclusion doesn't apply.
00:19:01.482 --> 00:19:04.013
Those digital cameras and CCD color
00:19:04.013 --> 00:19:05.960
video cameras that produce photographs
00:19:05.960 --> 00:19:09.772
are provided for in 8525, and therefore,
00:19:09.772 --> 00:19:12.271
they're not covered by this exclusion.
00:19:12.271 --> 00:19:16.075
Another example of the note 1-M
00:19:16.075 --> 00:19:22.491
exclusion would be bill accepters that
00:19:22.491 --> 00:19:24.704
are done separately. They check the
00:19:24.704 --> 00:19:26.512
bills for counterfeits. Those are
00:19:26.512 --> 00:19:29.146
heading 90 also.
00:19:29.146 --> 00:19:31.207
Here's another Section XVI note
00:19:31.207 --> 00:19:35.552
exclusion 1-N. This excludes articles of
00:19:35.552 --> 00:19:38.201
Chapter 91 including clocks and watches
00:19:38.201 --> 00:19:42.237
and time of day apparatus for measuring
00:19:42.237 --> 00:19:46.261
intervals of time or a watch motors with
00:19:46.261 --> 00:19:46.262
synchronous motor.
00:19:46.262 --> 00:19:47.992
Parking meters that accept coins or
00:19:47.992 --> 00:19:53.705
other payment are classified in Chapter
00:19:53.705 --> 00:19:54.549
91, specifically 9106. I have a ruling
00:19:54.549 --> 00:19:56.676
here that addresses that parking meter,
00:19:56.676 --> 00:20:00.211
New York 806722.
00:20:00.211 --> 00:20:04.273
But what if exclusion 1-N did not
00:20:04.273 --> 00:20:06.487
exist at all? Would parking meters fall
00:20:06.487 --> 00:20:14.175
into 8476? What do you think?
00:20:14.175 --> 00:20:18.797
Seeing in nos. And in fact, the answer
00:20:18.797 --> 00:20:21.330
is no. Because we don't have a sale of a
00:20:21.330 --> 00:20:23.738
product here, there's no product being
00:20:23.738 --> 00:20:25.828
dispensed. You're paying to occupy a
00:20:25.828 --> 00:20:30.327
parking space for a limited amount of
00:20:30.327 --> 00:20:30.328
time.
00:20:30.328 --> 00:20:35.641
So we come to Section XVI note 1-P,
00:20:35.641 --> 00:20:37.429
which excludes amusement articles of
00:20:37.429 --> 00:20:39.448
Chapter 95. These are the machines found
00:20:39.448 --> 00:20:44.917
in arcades, amusement parks, games of
00:20:44.917 --> 00:20:47.703
skill or chance, shooting galleries,
00:20:47.703 --> 00:20:49.734
merry go rounds and the like. We need to
00:20:49.734 --> 00:20:52.585
be careful here. There are similarities
00:20:52.585 --> 00:20:55.429
between certain vending machines and
00:20:55.429 --> 00:20:55.610
amusement machines.
00:20:55.610 --> 00:20:58.574
EN 9504 states that the heading covers
00:20:58.574 --> 00:21:01.524
machines operated by coins, bank notes,
00:21:01.524 --> 00:21:03.836
bank cards, tokens, other means of
00:21:03.836 --> 00:21:07.328
payment of the kind used in amusement
00:21:07.328 --> 00:21:09.272
arcades, fun fairs, et cetera, for games
00:21:09.272 --> 00:21:09.860
of skill or chance.
00:21:09.860 --> 00:21:13.112
So with that in mind, let's look at
00:21:13.112 --> 00:21:16.921
the so-called coin pusher machine
00:21:16.921 --> 00:21:20.451
addressed in New York A86779. This is
00:21:20.451 --> 00:21:21.670
the Rubble Bubble machine. Many of you
00:21:21.670 --> 00:21:24.331
have seen these machines before. They
00:21:24.331 --> 00:21:30.187
involve the user inserting a coin in the
00:21:30.187 --> 00:21:31.993
machine while aiming the shaft to a
00:21:31.993 --> 00:21:32.985
particular location on the machine and
00:21:32.985 --> 00:21:35.575
the coin will drop down on to one of
00:21:35.575 --> 00:21:38.300
several tiered platforms that move. And
00:21:38.300 --> 00:21:40.815
the moving platform pushes the coins
00:21:40.815 --> 00:21:42.472
forward and, you know, push them into
00:21:42.472 --> 00:21:43.935
each other and sometimes over the edge
00:21:43.935 --> 00:21:46.008
of the platform.
00:21:46.008 --> 00:21:47.724
And if the coin goes over the edge of
00:21:47.724 --> 00:21:49.727
the platform, it will go into a shoot
00:21:49.727 --> 00:21:52.602
and, you know, into the player, the
00:21:52.602 --> 00:21:54.573
player will be able to retrieve the
00:21:54.573 --> 00:21:56.814
quarters that drop or whatever
00:21:56.814 --> 00:21:59.370
denomination is used. Or perhaps it will
00:21:59.370 --> 00:22:01.221
register an amount and produce a ticket
00:22:01.221 --> 00:22:02.592
and you can cash that in.
00:22:02.592 --> 00:22:04.878
These are not vending machines, these
00:22:04.878 --> 00:22:08.940
are amusement machines of Chapter 95. As
00:22:08.940 --> 00:22:13.727
these don't -- these don't involve the
00:22:13.727 --> 00:22:15.713
dispensation applied to the primary
00:22:15.713 --> 00:22:17.159
function. And again, the primary function
00:22:17.159 --> 00:22:20.093
of amusement machines of 95 is to amuse
00:22:20.093 --> 00:22:24.184
the player rather than provide a
00:22:24.184 --> 00:22:24.185
product.
00:22:24.185 --> 00:22:27.317
Another example of the Chapter 95
00:22:27.317 --> 00:22:32.658
exclusion is the tractor simulator in
00:22:32.658 --> 00:22:35.907
New York R02266. This allows you to
00:22:35.907 --> 00:22:38.839
operate a minute any excavator with a
00:22:38.839 --> 00:22:40.468
hydraulic bucket. You can simulate
00:22:40.468 --> 00:22:42.470
digging into the ground at a fair, state
00:22:42.470 --> 00:22:44.067
fair or something like that. You'd put
00:22:44.067 --> 00:22:45.725
coins in it and use the machine for a
00:22:45.725 --> 00:22:47.010
particular amount of time.
00:22:47.010 --> 00:22:49.221
And but like the Rubble Bubble
00:22:49.221 --> 00:22:51.976
machine, the coin pusher machine, the
00:22:51.976 --> 00:22:54.248
tractor simulator had elements of a
00:22:54.248 --> 00:22:56.750
machine, but didn't provide you with a
00:22:56.750 --> 00:22:58.590
product and the its main function was
00:22:58.590 --> 00:22:59.503
amusement, not vending.
00:22:59.503 --> 00:23:03.402
Other examples are pin ball machines,
00:23:03.402 --> 00:23:08.572
9504, and kiddy rides of 9508.
00:23:08.572 --> 00:23:10.033
So now we know what a vending machine
00:23:10.033 --> 00:23:14.564
isn't. So what exactly is an automatic
00:23:14.564 --> 00:23:15.082
vending machine?Here
00:23:15.082 --> 00:23:16.828
are what I identified the four core
00:23:16.828 --> 00:23:22.067
elements of an 8476 vending machine.
00:23:22.067 --> 00:23:23.496
First, the machine must vend.As
00:23:23.496 --> 00:23:24.883
noted, vend means to sell.
00:23:24.883 --> 00:23:27.563
It's a monetary transaction resulting in
00:23:27.563 --> 00:23:29.595
the purchase or obtaining a good, and
00:23:29.595 --> 00:23:34.628
the sale must be made when the machine
00:23:34.628 --> 00:23:36.846
is engaged, meaning at the point of sale.
00:23:36.846 --> 00:23:36.847

00:23:36.847 --> 00:23:40.536
Second, the machine must automatically
00:23:40.536 --> 00:23:41.410
sell the product.
00:23:41.410 --> 00:23:43.353
They must distribute the product
00:23:43.353 --> 00:23:45.907
automatically or at least
00:23:45.907 --> 00:23:46.661
semiautomatically. Automatically means
00:23:46.661 --> 00:23:47.943
that the machine will dispense the
00:23:47.943 --> 00:23:49.752
product to the consumer without further
00:23:49.752 --> 00:23:52.720
action by that consumer. Think a coffee
00:23:52.720 --> 00:23:54.873
machine, putting your cup in and the
00:23:54.873 --> 00:23:56.996
coffee gets dispensed to you.
00:23:56.996 --> 00:23:59.600
Semiautomatic machines might release a
00:23:59.600 --> 00:24:05.314
lock mechanism on the machine's
00:24:05.314 --> 00:24:09.408
compartment so the purchaser can lift
00:24:09.408 --> 00:24:10.040
the window and there's just one step to
00:24:10.040 --> 00:24:11.652
be take evening by the user.That's
00:24:11.652 --> 00:24:15.591
a semiautomatic machine.
00:24:15.591 --> 00:24:17.281
Third, the machine must provide a
00:24:17.281 --> 00:24:18.622
product and thing and not service.
00:24:18.622 --> 00:24:22.126
And fourth you obtain the product in
00:24:22.126 --> 00:24:23.374
exchange for payment.Payment
00:24:23.374 --> 00:24:25.257
mechanism is a must, as I said earlier,
00:24:25.257 --> 00:24:27.472
and it is okay if the use of the machine
00:24:27.472 --> 00:24:34.946
triggers the issuance of a bill or Ben
00:24:34.946 --> 00:24:38.101
debit's the user's accounts.
00:24:38.101 --> 00:24:39.004
We'll explore those going forward.
00:24:39.004 --> 00:24:40.286
Before going into how elements have
00:24:40.286 --> 00:24:41.871
been applied and rulings, it's helpful
00:24:41.871 --> 00:24:43.601
to understand what types of articles
00:24:43.601 --> 00:24:45.527
generally fit into this particular
00:24:45.527 --> 00:24:48.629
heading. In other words, does my machine
00:24:48.629 --> 00:24:50.103
share the same characteristics of goods
00:24:50.103 --> 00:24:53.189
that fall in 8476? Are we even really in
00:24:53.189 --> 00:24:54.936
the same ballpark?
00:24:54.936 --> 00:24:58.478
So some common features with 8476
00:24:58.478 --> 00:24:59.725
vending machines, again, these are aside
00:24:59.725 --> 00:25:01.972
from the four elements I just mentioned,
00:25:01.972 --> 00:25:05.472
are that they're usually located in
00:25:05.472 --> 00:25:07.125
high-traffic, conspicuous locations.
00:25:07.125 --> 00:25:09.340
They're rarely used in the home or for
00:25:09.340 --> 00:25:10.560
household purposes. They're not
00:25:10.560 --> 00:25:11.347
children's toys.
00:25:11.347 --> 00:25:12.909
These are substantial machines that
00:25:12.909 --> 00:25:15.437
have a strong lock mechanism. There's a
00:25:15.437 --> 00:25:18.160
real payment mechanism also. And they're
00:25:18.160 --> 00:25:23.006
usually not small or countertop-type
00:25:23.006 --> 00:25:23.007
items.
00:25:23.007 --> 00:25:24.840
And terminology can be really
00:25:24.840 --> 00:25:27.029
confusing when we're talking about
00:25:27.029 --> 00:25:28.914
vending machines, as I think I
00:25:28.914 --> 00:25:30.195
suggested. A machine with the word
00:25:30.195 --> 00:25:33.129
vending in its title is not necessarily
00:25:33.129 --> 00:25:33.371
enough.Consider
00:25:33.371 --> 00:25:36.446
the so-called reverse vending machine.
00:25:36.446 --> 00:25:40.132
So these are machines, you all know what
00:25:40.132 --> 00:25:42.252
these are, they're basically located in
00:25:42.252 --> 00:25:44.224
supermarkets and recycling centers. And
00:25:44.224 --> 00:25:46.316
they allow you to return your used
00:25:46.316 --> 00:25:49.354
bottles and conditions in exchange -- in
00:25:49.354 --> 00:25:51.757
exchange they dispense a ticket to you
00:25:51.757 --> 00:25:52.780
or receipt for payment.
00:25:52.780 --> 00:25:54.028
And these machines calculate the
00:25:54.028 --> 00:25:57.557
number of items deposited and the amount
00:25:57.557 --> 00:26:01.637
owed to the depositor. That's their
00:26:01.637 --> 00:26:04.137
principal function. And this makes them
00:26:04.137 --> 00:26:08.799
classifiable in heading 7480.90 with
00:26:08.799 --> 00:26:10.773
other machines of a ticketing device.
00:26:10.773 --> 00:26:13.402
You should be aware there's a recent
00:26:13.402 --> 00:26:16.204
proposal now with the world customs
00:26:16.204 --> 00:26:18.309
organization had these reverse vending
00:26:18.309 --> 00:26:21.518
machines to 8476. So that's under
00:26:21.518 --> 00:26:24.934
consideration now.
00:26:24.934 --> 00:26:27.332
So one of our core elements is that
00:26:27.332 --> 00:26:30.674
the machine involves products and not
00:26:30.674 --> 00:26:34.712
services. The machines appearing on this
00:26:34.712 --> 00:26:36.957
slide, this is some examples of machines
00:26:36.957 --> 00:26:38.839
that do not sell or provide a product to
00:26:38.839 --> 00:26:41.145
you, but rather dispense or provide
00:26:41.145 --> 00:26:41.146
services.
00:26:41.146 --> 00:26:46.565
For example, Coin-Op washing machines
00:26:46.565 --> 00:26:50.170
or dryers or public toilets serve useful
00:26:50.170 --> 00:26:53.429
functions to be sure but do not provide
00:26:53.429 --> 00:26:53.430
products.
00:26:53.430 --> 00:26:55.294
A dry-cleaning garment retrieval
00:26:55.294 --> 00:27:00.173
system will help you retrieve your
00:27:00.173 --> 00:27:01.363
clothing, but it's not providing a
00:27:01.363 --> 00:27:03.081
purchase product to you. It's holding
00:27:03.081 --> 00:27:04.765
and retrieving your clothes.
00:27:04.765 --> 00:27:10.427
So machines listed here have one of
00:27:10.427 --> 00:27:13.212
the four core elements of vending,
00:27:13.212 --> 00:27:14.926
they're nevertheless providing a service
00:27:14.926 --> 00:27:15.925
rather than a product.
00:27:15.925 --> 00:27:18.902
If we're talking about a machine that
00:27:18.902 --> 00:27:21.707
provide a can of soda or cup of coffee
00:27:21.707 --> 00:27:26.012
or hair comb, maybe you buy it at an
00:27:26.012 --> 00:27:26.429
airport, vending machine, we all know
00:27:26.429 --> 00:27:28.357
we're dealing with some sort of physical
00:27:28.357 --> 00:27:28.673
product.
00:27:28.673 --> 00:27:30.553
But what about a machine that sells
00:27:30.553 --> 00:27:33.402
and copies a computer program on to a
00:27:33.402 --> 00:27:36.518
particular media such as a floppy disk
00:27:36.518 --> 00:27:39.171
or burns a program on a CD or downloads
00:27:39.171 --> 00:27:41.462
a product on to the handheld device? Is
00:27:41.462 --> 00:27:49.489
the product being vended?North
00:27:49.489 --> 00:27:52.772
Carolina 884182 was the Robosoft
00:27:52.772 --> 00:27:55.465
computer program vending machine. In
00:27:55.465 --> 00:27:57.799
this machine they put in their own
00:27:57.799 --> 00:28:01.520
computer diskette, this was about in '93
00:28:01.520 --> 00:28:03.359
when these were popular, and then
00:28:03.359 --> 00:28:05.202
selected the desired program and
00:28:05.202 --> 00:28:07.173
inserted payment and the machine would
00:28:07.173 --> 00:28:09.914
copy or burn entertainment, educational
00:28:09.914 --> 00:28:12.425
programs off the diskette.
00:28:12.425 --> 00:28:13.931
Here, customs determined that the
00:28:13.931 --> 00:28:17.270
purchase of a computer program
00:28:17.270 --> 00:28:20.026
transferred a copy to storage media was
00:28:20.026 --> 00:28:23.869
a sale of a product. So the takeaway
00:28:23.869 --> 00:28:25.672
here is that a product is something that
00:28:25.672 --> 00:28:28.363
you can acquire and use even if it's in
00:28:28.363 --> 00:28:30.652
electronic or data form.
00:28:30.652 --> 00:28:32.548
Another one of our four core elements
00:28:32.548 --> 00:28:34.551
is whether the machine is actually
00:28:34.551 --> 00:28:36.673
vending, meaning, selling your product
00:28:36.673 --> 00:28:39.457
in exchange for payment rather than only
00:28:39.457 --> 00:28:42.109
dispensing a product to you.
00:28:42.109 --> 00:28:43.764
So merely dispensing or providing a
00:28:43.764 --> 00:28:46.486
product to a consumer or customer is not
00:28:46.486 --> 00:28:49.961
sufficient. Let's look at a couple of
00:28:49.961 --> 00:28:49.962
examples.
00:28:49.962 --> 00:28:53.814
One is an ice cream dispenser such as
00:28:53.814 --> 00:28:55.670
one you may encounter at a party which
00:28:55.670 --> 00:28:58.264
lacks a payment mechanism and, again,
00:28:58.264 --> 00:29:01.647
dispensing alone is not enough for 8476.
00:29:01.647 --> 00:29:04.987
So if you have an ice cream dispenser
00:29:04.987 --> 00:29:06.798
without a payment mechanism, you don't
00:29:06.798 --> 00:29:09.237
have a vending machine of 8476.
00:29:09.237 --> 00:29:14.338
Another example is the Sure-Med system
00:29:14.338 --> 00:29:25.582
which is used to distribute medications
00:29:25.582 --> 00:29:27.013
to health care facilities. These were
00:29:27.013 --> 00:29:28.777
behind the counter. Customs looked at
00:29:28.777 --> 00:29:30.960
the product literature, which made no
00:29:30.960 --> 00:29:38.424
reference to any sale function
00:29:38.424 --> 00:29:39.389
functionality of this machine and
00:29:39.389 --> 00:29:41.622
they're located in restricted areas
00:29:41.622 --> 00:29:43.682
rather than high-traffic areas like most
00:29:43.682 --> 00:29:45.492
vending machines.
00:29:45.492 --> 00:29:48.174
So the Sure-Med system was not a right
00:29:48.174 --> 00:29:50.523
fit for 8476.
00:29:50.523 --> 00:29:57.494
All right. So let's take a look at
00:29:57.494 --> 00:29:59.120
so-called automated industrial machines.
00:29:59.120 --> 00:30:01.118
These are point of use cabinets that you
00:30:01.118 --> 00:30:04.424
see on a shop floor in a company. You
00:30:04.424 --> 00:30:07.017
know, people are working on things that
00:30:07.017 --> 00:30:09.278
use tools and PPE equipment and
00:30:09.278 --> 00:30:09.279
whatnot.
00:30:09.279 --> 00:30:13.174
These track and manage stock,
00:30:13.174 --> 00:30:14.736
maintenance repair operation and PPE
00:30:14.736 --> 00:30:17.806
equipment and other consumables and
00:30:17.806 --> 00:30:19.961
tools and so on.And
00:30:19.961 --> 00:30:21.524
they dispense the product that's been
00:30:21.524 --> 00:30:26.277
paid for by somebody at some point, but
00:30:26.277 --> 00:30:29.432
do these machines truly vend? Let's look
00:30:29.432 --> 00:30:31.988
at some of the general features of these
00:30:31.988 --> 00:30:31.989
machines.
00:30:31.989 --> 00:30:33.870
Typically a worker would select the
00:30:33.870 --> 00:30:37.018
tool, PPE, or other item they need from a
00:30:37.018 --> 00:30:38.209
touchscreen. They'd show their badge and
00:30:38.209 --> 00:30:39.931
it would get them access to the machine
00:30:39.931 --> 00:30:41.589
and the machine would then dispense the
00:30:41.589 --> 00:30:42.403
product to them.
00:30:42.403 --> 00:30:44.089
And some, but not all of these
00:30:44.089 --> 00:30:46.332
machines actually generate a bill when
00:30:46.332 --> 00:30:48.678
the product is dispensed. And even
00:30:48.678 --> 00:30:50.737
automatically reorder inventory.But
00:30:50.737 --> 00:30:52.891
for machines that do not charge the
00:30:52.891 --> 00:30:58.518
consumer or generator, initiate a bill
00:30:58.518 --> 00:31:00.145
for the sale of the goods, we don't have
00:31:00.145 --> 00:31:02.557
a vending machine.
00:31:02.557 --> 00:31:06.960
For instance, N204484, customs
00:31:06.960 --> 00:31:08.841
classified an industrial vending machine
00:31:08.841 --> 00:31:11.954
known as the Hybrid AccuCab as other
00:31:11.954 --> 00:31:16.028
metal furniture of heading 9403. Why not
00:31:16.028 --> 00:31:17.545
8476 in because the machine did not
00:31:17.545 --> 00:31:19.966
generate a bill and there's no sale. No
00:31:19.966 --> 00:31:22.177
product provided in exchange for payment
00:31:22.177 --> 00:31:24.118
from the person who's actually engaging
00:31:24.118 --> 00:31:26.616
the machine.
00:31:26.616 --> 00:31:29.865
So if there is a payment mechanism on
00:31:29.865 --> 00:31:32.591
the industrial vending machine, the bill
00:31:32.591 --> 00:31:33.989
is automatically transmitted when the
00:31:33.989 --> 00:31:37.899
user engages that machine, we might have
00:31:37.899 --> 00:31:40.767
a vending machine of 8476, as was the
00:31:40.767 --> 00:31:45.617
case in H269223 at the bottom of the
00:31:45.617 --> 00:31:47.305
slide here.
00:31:47.305 --> 00:31:53.182
To meet the core requirement of a
00:31:53.182 --> 00:31:55.934
point of sale transaction, as I
00:31:55.934 --> 00:31:57.862
suggested, it's not required that payment
00:31:57.862 --> 00:32:00.799
be made instantaneously. As I noted,
00:32:00.799 --> 00:32:05.179
customs ruled that it's sufficient that
00:32:05.179 --> 00:32:08.404
when the machine is engaged, it debits
00:32:08.404 --> 00:32:10.390
the user's account or generates a bill
00:32:10.390 --> 00:32:11.686
to the user.
00:32:11.686 --> 00:32:13.524
The second ruling on this slide
00:32:13.524 --> 00:32:15.959
classified an in-room mini bar,
00:32:15.959 --> 00:32:18.247
so-called Smart Tray. This was a tray,
00:32:18.247 --> 00:32:22.430
you've seen them in your hotel rooms
00:32:22.430 --> 00:32:22.868
perhaps or cruise ship state rooms, they
00:32:22.868 --> 00:32:25.272
sit on top of a mini bar which is a
00:32:25.272 --> 00:32:27.769
vending machine, and they sense when a
00:32:27.769 --> 00:32:31.272
snack or beverage is removed from the
00:32:31.272 --> 00:32:32.647
tray and then they charge the guest a
00:32:32.647 --> 00:32:33.610
bill to their room.
00:32:33.610 --> 00:32:36.049
And so as I said, they're used in
00:32:36.049 --> 00:32:39.373
conjunction with the mini bar and it's
00:32:39.373 --> 00:32:43.300
connected to it. And because this mini
00:32:43.300 --> 00:32:44.368
bar tray was imported separately in this
00:32:44.368 --> 00:32:46.248
case not with the mini bar, it was
00:32:46.248 --> 00:32:52.799
classified as part of a vending machine,
00:32:52.799 --> 00:32:55.872
8476.90. The takeaway here, 8476 vending
00:32:55.872 --> 00:32:57.242
machines need not involve the payment.
00:32:57.242 --> 00:32:58.748
So the generation of a bill that results
00:32:58.748 --> 00:33:00.119
from the engagement with the machine may
00:33:00.119 --> 00:33:02.737
be sufficient.
00:33:02.737 --> 00:33:04.708
All right. Let's stay on the point of
00:33:04.708 --> 00:33:06.934
sale concept for just another minute.
00:33:06.934 --> 00:33:10.465
This slide describes the so-called
00:33:10.465 --> 00:33:16.929
Packrobot machine at issue in H315458.
00:33:16.929 --> 00:33:19.019
So the pack machine -- the Packrobot,
00:33:19.019 --> 00:33:22.727
rather, was situated in a brick and
00:33:22.727 --> 00:33:23.103
mortar store and held and dispensed
00:33:23.103 --> 00:33:25.045
goods to a purchaser who previously
00:33:25.045 --> 00:33:26.265
ordered the article online.
00:33:26.265 --> 00:33:28.537
So here the actual money transaction,
00:33:28.537 --> 00:33:31.100
as I said, occurred online before the
00:33:31.100 --> 00:33:34.352
customer actually engaged the machine.
00:33:34.352 --> 00:33:37.062
At the time of payment or shortly after,
00:33:37.062 --> 00:33:40.284
the purchaser received a barcode or a QR
00:33:40.284 --> 00:33:42.574
Code, and then they bring that code with
00:33:42.574 --> 00:33:46.000
them to the store. And they put it into
00:33:46.000 --> 00:33:48.379
the -- into the Packrobot and that
00:33:48.379 --> 00:33:50.282
allowed them to retrieve the item from
00:33:50.282 --> 00:33:53.065
the Packrobot at the store. This is sort
00:33:53.065 --> 00:33:56.546
of like a lock. This had mechanisms in
00:33:56.546 --> 00:34:01.164
it and your good would come down through
00:34:01.164 --> 00:34:02.819
like an elevator and dispense the
00:34:02.819 --> 00:34:03.720
product to you.
00:34:03.720 --> 00:34:06.156
There's no vending here because the
00:34:06.156 --> 00:34:07.661
monetary transaction did not take place
00:34:07.661 --> 00:34:10.086
at the Packrobot. In short, we don't
00:34:10.086 --> 00:34:12.205
have a point of sale transaction. We
00:34:12.205 --> 00:34:14.086
basically have kind of a sophisticated
00:34:14.086 --> 00:34:26.248
holding cabinet, mechanical function
00:34:26.248 --> 00:34:29.391
capability. And with the mini bar tray
00:34:29.391 --> 00:34:32.021
device with the payment mechanisms,
00:34:32.021 --> 00:34:39.181
these are obviously different.
00:34:39.181 --> 00:34:42.022
What do you think about the car
00:34:42.022 --> 00:34:43.680
vending machine you see and hear
00:34:43.680 --> 00:34:45.152
advertised these days? Is this a vending
00:34:45.152 --> 00:34:46.652
machine? We don't have one of these
00:34:46.652 --> 00:34:48.924
before us and we would need to confirm
00:34:48.924 --> 00:34:51.437
more details about their operation.
00:34:51.437 --> 00:34:53.335
But at least as I understand how they
00:34:53.335 --> 00:34:57.893
typically work, one or more elements of
00:34:57.893 --> 00:34:59.621
an 8476 vending machine may be missing.
00:34:59.621 --> 00:35:01.323
First, it doesn't appear to be point of
00:35:01.323 --> 00:35:03.671
sale transaction. In that there's no
00:35:03.671 --> 00:35:06.564
true payment system at this machine.
00:35:06.564 --> 00:35:10.193
One doesn't insert some sort of
00:35:10.193 --> 00:35:14.666
novelty token, but not money.The
00:35:14.666 --> 00:35:16.413
sale occurs before the customer even
00:35:16.413 --> 00:35:17.015
arrives at the machine.
00:35:17.015 --> 00:35:21.231
And second, arguably, we do have
00:35:21.231 --> 00:35:22.510
automatic dispensation of something, the
00:35:22.510 --> 00:35:25.233
car, but the car is really held for
00:35:25.233 --> 00:35:29.101
pickup in a type of automated parking
00:35:29.101 --> 00:35:30.851
garage. And beside, this machine is not
00:35:30.851 --> 00:35:32.507
located in a high-traffic area that you
00:35:32.507 --> 00:35:34.797
would walk up to and engage.
00:35:34.797 --> 00:35:37.754
So you know, therefore, machine that
00:35:37.754 --> 00:35:39.729
operates as described is really very
00:35:39.729 --> 00:35:41.640
unlikely to qualify as a vending machine
00:35:41.640 --> 00:35:45.478
of 8476.
00:35:45.478 --> 00:35:48.139
So again, without a payment mechanism,
00:35:48.139 --> 00:35:50.926
as I said, you can't have a vending
00:35:50.926 --> 00:35:56.411
machine. So in ruling New York J86442,
00:35:56.411 --> 00:36:01.859
they provide a good example of this core
00:36:01.859 --> 00:36:03.981
requirement. These address various
00:36:03.981 --> 00:36:07.413
Enoline dispensing machines, some of
00:36:07.413 --> 00:36:09.550
which are refrigerated, some are not.
00:36:09.550 --> 00:36:11.945
While some wine dispensers had payment
00:36:11.945 --> 00:36:14.701
mechanisms, others didn't. So where were
00:36:14.701 --> 00:36:15.985
these units classified?
00:36:15.985 --> 00:36:17.762
Not as vending machines, unless they
00:36:17.762 --> 00:36:19.703
have a payment mechanism. The ones with
00:36:19.703 --> 00:36:22.809
a chip card payment mechanism were
00:36:22.809 --> 00:36:23.452
considered vending machines, whether or
00:36:23.452 --> 00:36:26.003
not they had refrigeration systems. But
00:36:26.003 --> 00:36:29.635
the wine dispensers with no chip
00:36:29.635 --> 00:36:32.637
mechanism -- no chip mechanism,
00:36:32.637 --> 00:36:36.786
refrigerator or not, fell in 8418.
00:36:36.786 --> 00:36:40.107
All right. Just to change gears for a
00:36:40.107 --> 00:36:42.197
moment, let's suppose we have a machine
00:36:42.197 --> 00:36:45.387
that in exchange for payment offers you
00:36:45.387 --> 00:36:48.108
only a chance to win a prize. And
00:36:48.108 --> 00:36:49.456
dispenses that prize to you only if you
00:36:49.456 --> 00:36:50.172
win it.
00:36:50.172 --> 00:36:53.578
And let's say the prize is, in fact, a
00:36:53.578 --> 00:36:55.641
physical product, such as a toy or a
00:36:55.641 --> 00:36:58.452
doll or jewelry of electronics and so
00:36:58.452 --> 00:36:58.453
on.
00:36:58.453 --> 00:37:01.766
And the dispensing machine is a sturdy
00:37:01.766 --> 00:37:04.161
machine, has a strong lock mechanism,
00:37:04.161 --> 00:37:09.264
it's in retail and high-traffic
00:37:09.264 --> 00:37:11.940
location. And but again, remember, the
00:37:11.940 --> 00:37:14.722
games of chance are precluded from
00:37:14.722 --> 00:37:14.723
8476.
00:37:14.723 --> 00:37:17.793
So what do you think? Is this --
00:37:17.793 --> 00:37:21.943
something like this an 8476 machine?I
00:37:21.943 --> 00:37:25.009
know I'm not providing you with lots of
00:37:25.009 --> 00:37:26.289
information, but let's go to the next
00:37:26.289 --> 00:37:29.855
slide and find out. I'm getting a lot of
00:37:29.855 --> 00:37:30.411
nos.
00:37:30.411 --> 00:37:35.195
Well, here we have the beloved Claw
00:37:35.195 --> 00:37:36.725
machine. This is a device that's provided
00:37:36.725 --> 00:37:47.009
lots of aamusement and produced grief
00:37:47.009 --> 00:37:49.848
and tears for children of all ages.
00:37:49.848 --> 00:37:51.485
They held prize articles like stuffed
00:37:51.485 --> 00:37:52.948
animals including a payment mechanism
00:37:52.948 --> 00:37:57.041
was determined to be an 8476 vending
00:37:57.041 --> 00:37:57.359
machine.
00:37:57.359 --> 00:38:02.104
With this machine, the player manipulated
00:38:02.104 --> 00:38:04.287
a claw down into a bed of items and
00:38:04.287 --> 00:38:05.794
tries to grip one of them and move the
00:38:05.794 --> 00:38:06.730
product into an opening.
00:38:06.730 --> 00:38:11.607
The prize then moves on to a delivery
00:38:11.607 --> 00:38:13.038
chute and is dispensed.
00:38:13.038 --> 00:38:15.354
While the player rarely does end up
00:38:15.354 --> 00:38:17.161
with the product, the machine does
00:38:17.161 --> 00:38:18.820
involve physical products that could be
00:38:18.820 --> 00:38:20.130
obtained.And
00:38:20.130 --> 00:38:23.199
I guess -- I suppose this distinguishes
00:38:23.199 --> 00:38:25.818
The Claw from pure amusement and chance
00:38:25.818 --> 00:38:27.850
machines of Chapter 95, but I do think
00:38:27.850 --> 00:38:30.169
this one is a close call, especially
00:38:30.169 --> 00:38:31.944
given how unlikely it is to actually
00:38:31.944 --> 00:38:36.161
obtain a product from the machine.
00:38:36.161 --> 00:38:42.297
Okay. So let's say you're alt -- at a
00:38:42.297 --> 00:38:43.724
carnival or state fair and you come
00:38:43.724 --> 00:38:46.385
across this mysterious figure encased in
00:38:46.385 --> 00:38:52.199
a glass cabinet and he's hovering over
00:38:52.199 --> 00:38:54.111
some sort of crystal ball.
00:38:54.111 --> 00:38:57.539
And he promised to give you your fortune
00:38:57.539 --> 00:38:59.824
only if you insert a coin into the slot.
00:38:59.824 --> 00:39:04.729
Is this a vending machine? We have a
00:39:04.729 --> 00:39:06.851
point of sale transaction, a payment
00:39:06.851 --> 00:39:08.853
mechanism, it dispenses something to you,
00:39:08.853 --> 00:39:11.321
your fortune.
00:39:11.321 --> 00:39:12.417
It has a strong mechanism with a lock.
00:39:12.417 --> 00:39:14.695
It's in a high-traffic area.
00:39:14.695 --> 00:39:17.236
Let's see, I'm getting yeses.I'm
00:39:17.236 --> 00:39:20.758
getting nos. I'm getting big. I'm
00:39:20.758 --> 00:39:22.778
getting an LOL. Let's go to the next
00:39:22.778 --> 00:39:25.396
slide and find out.
00:39:25.396 --> 00:39:27.651
So, well, I'm not really sure about
00:39:27.651 --> 00:39:31.428
the fortune teller dude in the class
00:39:31.428 --> 00:39:36.119
cabinet, but in New York ruling 856362,
00:39:36.119 --> 00:39:37.744
customs reviewed several coin-operated
00:39:37.744 --> 00:39:40.183
machines that displayed various types of
00:39:40.183 --> 00:39:42.657
information on LCD display lines on the
00:39:42.657 --> 00:39:45.113
machines and they determined that these
00:39:45.113 --> 00:39:46.094
machines are not automatically vending
00:39:46.094 --> 00:39:48.067
machines of 8476.
00:39:48.067 --> 00:39:50.572
One of the machines will display the
00:39:50.572 --> 00:40:01.768
user's weight, love mood, horoscope and
00:40:01.768 --> 00:40:03.757
luckny number. And so customs ruled that
00:40:03.757 --> 00:40:06.636
a machine that provide only information,
00:40:06.636 --> 00:40:09.421
even for payment, is not a vending
00:40:09.421 --> 00:40:10.911
machine of 8476.
00:40:10.911 --> 00:40:12.762
So to recap here, if the machine
00:40:12.762 --> 00:40:13.634
provides you with information rather
00:40:13.634 --> 00:40:15.982
than a product or merchandise, you
00:40:15.982 --> 00:40:20.577
probably don't have a vending machine of
00:40:20.577 --> 00:40:20.578
8476.
00:40:20.578 --> 00:40:25.140
So now we come to an interesting and
00:40:25.140 --> 00:40:28.578
somewhat sticky issue for heading 8476
00:40:28.578 --> 00:40:28.579
classification.
00:40:28.579 --> 00:40:32.320
You may recall the so-called red box
00:40:32.320 --> 00:40:33.946
kiosks. I think some of these are still
00:40:33.946 --> 00:40:38.952
around, I haven't really seen one, but
00:40:38.952 --> 00:40:42.696
you could rent DVDs. They had a daily
00:40:42.696 --> 00:40:44.006
rental charge and requirement to return
00:40:44.006 --> 00:40:46.263
the DVDs by particular date and time.
00:40:46.263 --> 00:40:49.289
They are considered a type of automated
00:40:49.289 --> 00:40:51.701
retail vending kiosk or rental vending
00:40:51.701 --> 00:40:55.449
machines. But are they really 8476
00:40:55.449 --> 00:40:55.736
vending machines?
00:40:55.736 --> 00:40:57.787
So these provide physical product to
00:40:57.787 --> 00:41:02.139
you for payment, and a retro product to
00:41:02.139 --> 00:41:03.599
use or borrow rather than sell you a
00:41:03.599 --> 00:41:05.737
product for keeps. In other words, you
00:41:05.737 --> 00:41:07.695
don't acquire ownership in that product.
00:41:07.695 --> 00:41:09.085
But does this really matter?
00:41:09.085 --> 00:41:12.507
After all, rental sales, you know, are
00:41:12.507 --> 00:41:13.816
becoming more commonplace and accepted
00:41:13.816 --> 00:41:15.474
and they do involve obtaining product
00:41:15.474 --> 00:41:16.950
for payment.
00:41:16.950 --> 00:41:25.096
So let's revisit the notes of the term
00:41:25.096 --> 00:41:25.097
vending.
00:41:25.097 --> 00:41:31.385
As I noted earlier, define the term
00:41:31.385 --> 00:41:32.952
vending, ENs define it.They
00:41:32.952 --> 00:41:35.080
state that the term vending refers to a
00:41:35.080 --> 00:41:38.254
monetary exchange between the purchaser
00:41:38.254 --> 00:41:40.389
and the machine in order to acquire a
00:41:40.389 --> 00:41:41.606
product. They're using the term acquire
00:41:41.606 --> 00:41:42.663
a product.
00:41:42.663 --> 00:41:45.791
But does the term always mean sell a
00:41:45.791 --> 00:41:48.605
product to somebody for keeps or for
00:41:48.605 --> 00:41:49.446
permanent ownership?
00:41:49.446 --> 00:41:52.698
Could the term vendor sale also
00:41:52.698 --> 00:41:55.473
include a rental sale? The dictionary
00:41:55.473 --> 00:42:01.380
definition speak of obtaining or
00:42:01.380 --> 00:42:03.848
acquiring goods through a sale. And
00:42:03.848 --> 00:42:05.535
renting a product is certainly different
00:42:05.535 --> 00:42:07.976
than buying a service. Services are no
00:42:07.976 --> 00:42:10.893
good here, as was mentioned. And we do
00:42:10.893 --> 00:42:14.225
have an actual product discerned.
00:42:14.225 --> 00:42:17.263
There doesn't seem to be any explicit
00:42:17.263 --> 00:42:20.995
statement precluding rental sales. And
00:42:20.995 --> 00:42:24.950
the as noted, the industry definitions
00:42:24.950 --> 00:42:27.449
do appear broader than some of the more
00:42:27.449 --> 00:42:31.107
common dictionary definitions.
00:42:31.107 --> 00:42:33.441
So here is another common or
00:42:33.441 --> 00:42:35.761
traditional definition of the term sale
00:42:35.761 --> 00:42:38.321
suggesting a transfer of ownership. And
00:42:38.321 --> 00:42:41.725
also I put up here the definition of
00:42:41.725 --> 00:42:43.517
rent, which as you all know is paying for
00:42:43.517 --> 00:42:44.450
the use of something.
00:42:44.450 --> 00:42:46.450
So with these in mind, let's go back
00:42:46.450 --> 00:42:51.111
to the 8476 ENs. And there the ENs
00:42:51.111 --> 00:42:54.048
provide an example of a simple cover or
00:42:54.048 --> 00:42:56.821
cabinet that holds opera glasses for use
00:42:56.821 --> 00:42:59.696
during the opera, and also a baggage
00:42:59.696 --> 00:43:02.665
locker both with coin-operated locks. So
00:43:02.665 --> 00:43:04.879
both machines involve potential use of a
00:43:04.879 --> 00:43:06.322
product but not the sale of one.
00:43:06.322 --> 00:43:10.190
And these cabinets and lockers akugd
00:43:10.190 --> 00:43:13.712
to the ENs are excluded from heading
00:43:13.712 --> 00:43:22.272
8476 and classified in Section 15. Or in
00:43:22.272 --> 00:43:25.930
Chapter 94. Given the opera glass, does
00:43:25.930 --> 00:43:27.678
8476 preclude machines that be loan
00:43:27.678 --> 00:43:29.721
merchandise rather than sell it?On
00:43:29.721 --> 00:43:32.460
the one hand, the EN is not described in
00:43:32.460 --> 00:43:34.179
a machine are that dispenses a product
00:43:34.179 --> 00:43:35.914
or machine with a sturdy payment
00:43:35.914 --> 00:43:39.816
mechanism or a machine with a complex or
00:43:39.816 --> 00:43:45.312
substantial device or releasing a lock.
00:43:45.312 --> 00:43:47.403
I don't think it suggests machines
00:43:47.403 --> 00:43:49.491
that rent or loan you something are
00:43:49.491 --> 00:43:51.491
included. As we will see, historically
00:43:51.491 --> 00:43:53.960
it's not clearly required that the sale
00:43:53.960 --> 00:43:55.784
transaction at the machine result in a
00:43:55.784 --> 00:43:58.597
transfer of ownership of a product
00:43:58.597 --> 00:43:59.834
versus the rental sale.
00:43:59.834 --> 00:44:02.273
Let's look at a few rulings with
00:44:02.273 --> 00:44:12.120
examples to machines. New York E81780
00:44:12.120 --> 00:44:13.338
contain two freestanding machines and
00:44:13.338 --> 00:44:16.061
one in particular was the distributor
00:44:16.061 --> 00:44:18.096
vending machine. And here the customer
00:44:18.096 --> 00:44:21.960
selected and made payment for videotape,
00:44:21.960 --> 00:44:23.907
sale or rental, they did both. It sold
00:44:23.907 --> 00:44:25.655
you something for keeps and it also
00:44:25.655 --> 00:44:27.430
rented you the videotape.
00:44:27.430 --> 00:44:30.439
And the machine dispensed the
00:44:30.439 --> 00:44:33.124
videotape, but the machine rents the
00:44:33.124 --> 00:44:35.750
videotape in addition to selling them.
00:44:35.750 --> 00:44:38.405
So is that a problem for 8476?
00:44:38.405 --> 00:44:43.210
And according to customs, it didn't
00:44:43.210 --> 00:44:44.747
seem to be a problem. It didn't
00:44:44.747 --> 00:44:45.968
specifically address the issue of
00:44:45.968 --> 00:44:48.212
rentals there. The machine did both. And
00:44:48.212 --> 00:44:53.242
they found these to be 8476 vending
00:44:53.242 --> 00:44:53.243
machines.
00:44:53.243 --> 00:44:54.807
So whether we'd have a different
00:44:54.807 --> 00:44:57.219
result if the machine dispensed only
00:44:57.219 --> 00:44:59.126
rental videos, we don't know yet at this
00:44:59.126 --> 00:44:59.776
point of the presentation.
00:44:59.776 --> 00:45:05.993
All right. New York K82080 is similar
00:45:05.993 --> 00:45:09.246
to the ruling I just mentioned, rented
00:45:09.246 --> 00:45:09.979
and sold videos, just a little more
00:45:09.979 --> 00:45:11.194
current ruling.
00:45:11.194 --> 00:45:12.902
And I wanted to mention at the bottom
00:45:12.902 --> 00:45:14.947
here the driving range golf ball
00:45:14.947 --> 00:45:17.086
dispenser. If any of you play golf or
00:45:17.086 --> 00:45:18.600
practiced, you've seen these at the
00:45:18.600 --> 00:45:21.032
driving range. You basically put some
00:45:21.032 --> 00:45:22.745
sort of wire basket under the machine,
00:45:22.745 --> 00:45:26.218
put money into it, and it dispenses a
00:45:26.218 --> 00:45:28.875
number of golf balls into the bucket and
00:45:28.875 --> 00:45:30.619
you take that to the driving range and
00:45:30.619 --> 00:45:36.658
you hit the balls down on to a field
00:45:36.658 --> 00:45:37.503
and, you know, you don't take these balls
00:45:37.503 --> 00:45:39.304
home, right? They get knocked down the
00:45:39.304 --> 00:45:42.221
field, they get collected again and
00:45:42.221 --> 00:45:42.871
reused, probably put back into the
00:45:42.871 --> 00:45:44.783
machine if they're still in good shape.
00:45:44.783 --> 00:45:46.710
But here you're not owning the balls,
00:45:46.710 --> 00:45:48.583
right? You're sort of -- you're just
00:45:48.583 --> 00:45:50.774
using them while you're there. Customs
00:45:50.774 --> 00:45:56.309
found this to be a vending machine of
00:45:56.309 --> 00:45:57.935
8476.89. Again, it does deal with a
00:45:57.935 --> 00:45:59.621
product, but again, it doesn't address
00:45:59.621 --> 00:46:02.121
particularly the issue of owning or not
00:46:02.121 --> 00:46:04.911
owning what you're purchasing. It just
00:46:04.911 --> 00:46:07.336
-- it just found them to be vending
00:46:07.336 --> 00:46:09.156
machines, presumably because we have a
00:46:09.156 --> 00:46:10.648
product involved.
00:46:10.648 --> 00:46:14.661
Okay. So here we have what's become a
00:46:14.661 --> 00:46:18.496
very common sight in urban areas, the
00:46:18.496 --> 00:46:22.216
eBike or eScooter kiosk. These units hold
00:46:22.216 --> 00:46:25.588
or lock and unlock an eBike rental. On
00:46:25.588 --> 00:46:29.439
the four elements of 8476 met here? The
00:46:29.439 --> 00:46:30.960
units similar to the one shown in the
00:46:30.960 --> 00:46:34.494
slide was recently before our office, as
00:46:34.494 --> 00:46:38.960
a matter of fact. There is payment
00:46:38.960 --> 00:46:41.652
charged to debit to an account. And
00:46:41.652 --> 00:46:44.441
payment would trigger the docks lock
00:46:44.441 --> 00:46:47.503
which automatically released the bike.
00:46:47.503 --> 00:46:48.782
And the user returned the bike after
00:46:48.782 --> 00:46:52.124
use. There's no transfer of ownership
00:46:52.124 --> 00:46:54.502
here of the bike or scooter. They're
00:46:54.502 --> 00:46:56.037
sturdy units, located on the street in
00:46:56.037 --> 00:46:57.318
high traffic areas.
00:46:57.318 --> 00:46:59.472
So do we have a sale of product here?
00:46:59.472 --> 00:47:02.367
Is this really a vending machine? Feel
00:47:02.367 --> 00:47:04.713
free to put your answer in the --
00:47:04.713 --> 00:47:09.965
I'm getting nos, I'm getting nos. Some
00:47:09.965 --> 00:47:10.193
yeses.
00:47:10.193 --> 00:47:12.055
I should mention also that an argument
00:47:12.055 --> 00:47:14.942
was made because of the mechanism that
00:47:14.942 --> 00:47:18.577
-- that heading 8517 may have been
00:47:18.577 --> 00:47:20.879
played because there's a transmission of
00:47:20.879 --> 00:47:21.468
data going on.
00:47:21.468 --> 00:47:23.681
So this got sent up to headquarters
00:47:23.681 --> 00:47:27.214
for review, you know, we had some
00:47:27.214 --> 00:47:29.964
questions about the renting aspect
00:47:29.964 --> 00:47:34.929
versus the transfer of ownership
00:47:34.929 --> 00:47:37.970
circumstance. And so just recently,
00:47:37.970 --> 00:47:43.000
customs issued its decision here in
00:47:43.000 --> 00:47:45.496
H328731 they determined that the lift
00:47:45.496 --> 00:47:47.645
eBike, eScooter rental machine similar to
00:47:47.645 --> 00:47:49.379
the one you see in the picture, not
00:47:49.379 --> 00:47:51.186
exactly that, was classified as vending
00:47:51.186 --> 00:47:54.182
machine in 8476.89.
00:47:54.182 --> 00:47:59.974
So the elements of 8476 were satisfied
00:47:59.974 --> 00:48:03.034
here, according to customs. It did cite
00:48:03.034 --> 00:48:06.117
the rulings on DVD and video rental
00:48:06.117 --> 00:48:07.746
machines as precedence for allowing
00:48:07.746 --> 00:48:13.122
rental sales. And also cited the broad
00:48:13.122 --> 00:48:15.786
industry definitions of the term rent.
00:48:15.786 --> 00:48:18.462
And headquarters referenced the
00:48:18.462 --> 00:48:20.773
industrial machine rulings, the ones
00:48:20.773 --> 00:48:23.035
that, you know, payment didn't need to
00:48:23.035 --> 00:48:26.651
be simultaneous or direct. Somebody said
00:48:26.651 --> 00:48:28.401
they need a new career, they've gotten
00:48:28.401 --> 00:48:30.341
all these wrong. Don't worry, I did as
00:48:30.341 --> 00:48:36.026
well when I prepared for this, but for
00:48:36.026 --> 00:48:37.908
this webinar, and I'm supposed to be the
00:48:37.908 --> 00:48:40.497
expert. But this is a tricky area for
00:48:40.497 --> 00:48:40.498
sure.
00:48:40.498 --> 00:48:42.936
Again, the takeaway here, vending
00:48:42.936 --> 00:48:46.339
machines of 8476 encompass machines that
00:48:46.339 --> 00:48:50.780
make rental sales in addition to
00:48:50.780 --> 00:48:52.815
ordinary sales. All right.
00:48:52.815 --> 00:48:56.568
So final topic of our presentation
00:48:56.568 --> 00:48:58.285
today, assuming I have time, I think I
00:48:58.285 --> 00:49:00.903
do, I want to briefly address the
00:49:00.903 --> 00:49:02.498
vending machine parts provision of
00:49:02.498 --> 00:49:06.631
heading 8476.90. As most of you are
00:49:06.631 --> 00:49:08.401
aware, the term parts is not defined in
00:49:08.401 --> 00:49:10.462
the tariff but its meaning has been
00:49:10.462 --> 00:49:12.225
addressed in various court decisions.
00:49:12.225 --> 00:49:18.243
The ENs also remind us that the HTS
00:49:18.243 --> 00:49:20.019
provisions in Section XVI must be
00:49:20.019 --> 00:49:25.472
applied, specifically note 2 which I'll
00:49:25.472 --> 00:49:26.341
be discussing.
00:49:26.341 --> 00:49:31.004
But many general, all automatic
00:49:31.004 --> 00:49:33.381
vending machines and parts are covered
00:49:33.381 --> 00:49:35.851
under 8476.90.
00:49:35.851 --> 00:49:38.072
Let's review note 2 to Section XVI
00:49:38.072 --> 00:49:40.444
which sets forth the parts rule.
00:49:40.444 --> 00:49:42.593
Note 2-A provides that parts that are
00:49:42.593 --> 00:49:47.590
goods of any Chapter 84 or 85 heading
00:49:47.590 --> 00:49:49.236
with some exceptions are classified in
00:49:49.236 --> 00:49:50.722
those particular headings.
00:49:50.722 --> 00:49:55.910
Know the 2(b) provides that all other
00:49:55.910 --> 00:49:58.381
parts, if suitable for use with a
00:49:58.381 --> 00:49:59.433
particular type of machine are
00:49:59.433 --> 00:50:00.778
classified with those machines. You need
00:50:00.778 --> 00:50:02.400
to keep this rule in mind as we go
00:50:02.400 --> 00:50:04.597
through the parts provision here.
00:50:04.597 --> 00:50:09.065
And given the absence of a statutory
00:50:09.065 --> 00:50:15.254
definition for partscourts have put
00:50:15.254 --> 00:50:17.586
together two distinct but reconcilable
00:50:17.586 --> 00:50:21.032
tests for whether they think an item
00:50:21.032 --> 00:50:23.245
qualifies as a part for classification
00:50:23.245 --> 00:50:23.246
purposes.
00:50:23.246 --> 00:50:25.663
The first is that an import item is a
00:50:25.663 --> 00:50:27.722
part only if it's something necessary to
00:50:27.722 --> 00:50:29.976
the completion of that article without
00:50:29.976 --> 00:50:33.380
which the article to which it's to be
00:50:33.380 --> 00:50:34.720
joined cannot function as such an
00:50:34.720 --> 00:50:34.721
article.
00:50:34.721 --> 00:50:36.059
That's the Willoughby case.
00:50:36.059 --> 00:50:42.839
And the second test equates parts to
00:50:42.839 --> 00:50:44.561
an im -- to an imported item dedicated
00:50:44.561 --> 00:50:46.595
solely for use with another article. And
00:50:46.595 --> 00:50:49.527
when applied to that use, the article
00:50:49.527 --> 00:50:51.813
cannot function without the article in
00:50:51.813 --> 00:50:51.814
question.
00:50:51.814 --> 00:50:55.183
So really in short, to be a part of a
00:50:55.183 --> 00:50:57.499
machine, the part must contribute to the
00:50:57.499 --> 00:51:00.906
machine's function and be integral to it.
00:51:00.906 --> 00:51:00.907

00:51:00.907 --> 00:51:02.715
That's the key thing to understand for
00:51:02.715 --> 00:51:03.963
the part tests.
00:51:03.963 --> 00:51:09.681
I already mentioned the mini bar tray
00:51:09.681 --> 00:51:15.445
as an example of being part of the mini
00:51:15.445 --> 00:51:15.446
bar.
00:51:15.446 --> 00:51:23.344
So let's look at a few examples. In
00:51:23.344 --> 00:51:24.157
H269223, this concerned in addition to
00:51:24.157 --> 00:51:27.158
the overall machine, it concerns
00:51:27.158 --> 00:51:30.121
classification of parts that were
00:51:30.121 --> 00:51:34.694
designated for use with the PPE and MRO
00:51:34.694 --> 00:51:36.155
industrial vending machines. These
00:51:36.155 --> 00:51:37.690
machines are designed to dispense
00:51:37.690 --> 00:51:41.256
equipment and located in the compartment
00:51:41.256 --> 00:51:41.935
of the machine.
00:51:41.935 --> 00:51:46.783
At issue here were a company parts for
00:51:46.783 --> 00:51:48.813
the machine, and these parts are really
00:51:48.813 --> 00:51:51.026
essential to the dispensing function of
00:51:51.026 --> 00:51:53.026
the machine. Customers had ruled out
00:51:53.026 --> 00:51:55.191
potential classification of furnisher
00:51:55.191 --> 00:51:58.564
with heading 9403. And found that these
00:51:58.564 --> 00:52:02.927
-- the rotary drum and those
00:52:02.927 --> 00:52:03.964
accompanying compartments to the vending
00:52:03.964 --> 00:52:08.312
machine parts of 8476.
00:52:08.312 --> 00:52:15.061
In ruling B87572 we have an iron
00:52:15.061 --> 00:52:17.969
pedestal stand for candy and gum ball
00:52:17.969 --> 00:52:19.309
machines. So here the item was not
00:52:19.309 --> 00:52:20.528
considered to be integral to the
00:52:20.528 --> 00:52:22.873
machine. If this is just an iron
00:52:22.873 --> 00:52:25.476
pedestal stand, it doesn't contribute to
00:52:25.476 --> 00:52:26.755
the machine's function and therefore
00:52:26.755 --> 00:52:31.215
it's not a part of the vending machine.
00:52:31.215 --> 00:52:35.372
It would fall in 7325.
00:52:35.372 --> 00:52:46.526
So here we have N119815. This
00:52:46.526 --> 00:52:48.601
concerned the classification of heat
00:52:48.601 --> 00:52:51.252
exchangers that are installed in vending
00:52:51.252 --> 00:52:51.464
machines.
00:52:51.464 --> 00:52:53.252
They're used with only particular vending
00:52:53.252 --> 00:52:54.756
machines, and they were found to be
00:52:54.756 --> 00:52:56.187
parts of vending machines by default in
00:52:56.187 --> 00:52:57.467
that the items did not meet the
00:52:57.467 --> 00:53:00.220
definition of a heat exchanger of
00:53:00.220 --> 00:53:06.122
heading 8419. If they had, Section XVI
00:53:06.122 --> 00:53:07.776
02 would have controlled the
00:53:07.776 --> 00:53:11.601
classification of articles under 8419.
00:53:11.601 --> 00:53:19.696
So in the last ruling here is K89814,
00:53:19.696 --> 00:53:23.475
addressing the so-called Dixie-elevator
00:53:23.475 --> 00:53:27.027
dispenser. Here we have a multicomponent
00:53:27.027 --> 00:53:30.716
linear motion system with a built-in
00:53:30.716 --> 00:53:33.329
electrical motor. This was designed for
00:53:33.329 --> 00:53:35.786
soda and candy machines, I think. It
00:53:35.786 --> 00:53:38.163
received payment for the product and the
00:53:38.163 --> 00:53:39.626
elevator dispenser collected the product
00:53:39.626 --> 00:53:41.284
and delivered it to the dispenser unit.
00:53:41.284 --> 00:53:43.315
So this is pretty integral to the
00:53:43.315 --> 00:53:46.934
functioning of the machine.
00:53:46.934 --> 00:53:51.977
So is the part classifiable as a good?
00:53:51.977 --> 00:53:56.191
It was classified 8476.90 as a vending
00:53:56.191 --> 00:53:58.253
machine part in accordance with Section
00:53:58.253 --> 00:54:00.811
XVI note 2(b).
00:54:00.811 --> 00:54:04.058
All right. So that concludes my
00:54:04.058 --> 00:54:06.625
presentation on classification of
00:54:06.625 --> 00:54:08.419
automatic goods vending machines. If you
00:54:08.419 --> 00:54:09.847
have any questions, I'll try to answer
00:54:09.847 --> 00:54:12.124
them now in the time we have left.
00:54:12.124 --> 00:54:38.037
And thank you. Wanda Moore assists me
00:54:38.037 --> 00:54:41.371
in the NIS line. You can reach out to us
00:54:41.371 --> 00:54:42.855
at any time with questions.
00:54:42.855 --> 00:54:46.313
And here if you're interested, I've
00:54:46.313 --> 00:54:48.631
tried to be very detailed about listing
00:54:48.631 --> 00:54:51.656
my public domain citations for all these
00:54:51.656 --> 00:55:00.396
images and references. I don't think --
00:55:00.396 --> 00:55:02.751
some of these had a question about
00:55:02.751 --> 00:55:04.738
something about 3D printers, I didn't
00:55:04.738 --> 00:55:08.877
quite catch that.
00:55:08.877 --> 00:55:13.876
Let me see if I can make this chat box
00:55:13.876 --> 00:55:28.572
larger to see. Sorry, having trouble
00:55:28.572 --> 00:55:28.727
locating that question.
00:55:28.727 --> 00:55:31.790
>> I don't think I saw a question on
00:55:31.790 --> 00:55:31.973
3D printers.
00:55:31.973 --> 00:55:32.977
>> ARTHUR PURCELL: It wasn't a
00:55:32.977 --> 00:55:33.312
question.
00:55:33.312 --> 00:55:35.736
>> I don't think so. If anyone has
00:55:35.736 --> 00:55:37.648
one, if you could retype it in the chat
00:55:37.648 --> 00:55:39.620
box. But I don't think I saw something on
00:55:39.620 --> 00:55:40.013
that.
00:55:40.013 --> 00:55:41.984
>> ARTHUR PURCELL: Okay.
00:55:41.984 --> 00:55:46.636
Where does Coin Star machine fall under?
00:55:46.636 --> 00:55:48.453
These machines kind of gives out a
00:55:48.453 --> 00:55:50.893
service and in exchange for your coins
00:55:50.893 --> 00:55:59.909
or dollars -- oh, for -- okay. So you
00:55:59.909 --> 00:56:02.033
put -- I'm not sure exactly what this
00:56:02.033 --> 00:56:04.501
machine is, but is it -- is it changing
00:56:04.501 --> 00:56:10.040
the denomination of the machine in some
00:56:10.040 --> 00:56:14.841
way? Feel like reducing a bill to a coin
00:56:14.841 --> 00:56:16.489
and that sort of thing?
00:56:16.489 --> 00:56:23.474
I mean, those could be 8476 under the
00:56:23.474 --> 00:56:32.718
-- go back here a second. Try to figure
00:56:32.718 --> 00:56:37.065
out a way to get back to the beginning
00:56:37.065 --> 00:56:41.507
of this. These could be the money
00:56:41.507 --> 00:56:43.811
changing machines that be fall there. If
00:56:43.811 --> 00:56:45.346
that's what that is. I don't know. I'd
00:56:45.346 --> 00:56:52.009
have to take a look at it.
00:56:52.009 --> 00:56:58.218
Okay, I don't see any other slides --
00:56:58.218 --> 00:57:01.479
oh, somebody asked what the HCS is for a
00:57:01.479 --> 00:57:02.595
printer.Those
00:57:02.595 --> 00:57:06.028
are 8485, the 3D printers.That's
00:57:06.028 --> 00:57:08.065
in my line as well, as I mentioned.
00:57:08.065 --> 00:57:10.537
That's a fairly new provision, came out
00:57:10.537 --> 00:57:15.943
beginning of 2022.
00:57:15.943 --> 00:57:17.822
Okay, I think that's all there is,
00:57:17.822 --> 00:57:19.316
unless I'm missing a question. Thank you
00:57:19.316 --> 00:57:36.662
all very much for tuning in.
00:57:36.662 --> 00:57:39.442
>> This concludes our webinar for this
00:57:39.442 --> 00:57:42.602
afternoon. If you have logged in using
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your email, you will receive an email
00:57:44.752 --> 00:57:50.219
with the CSE, CCS code within 24 hours.
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00:57:57.168 --> 00:57:57.168
enjoy the rest of your day.