Chapter 85 covers electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles. This chapter is one of the most technology-intensive chapters in the HS classification, covering a wide range of goods from household appliances to semiconductor devices, integrated circuits, and communication equipment. The core characteristic of this chapter is that goods must have electrical or electronic functions and usually exist as standalone devices or key components, rather than merely as materials or simple mechanical parts. Heading 8542 specifically covers integrated circuits (ICs) and microelectronic assemblies, including monolithic integrated circuits, hybrid integrated circuits, multi-chip integrated circuits, memories, processors, controllers, logic circuits, analog circuits, etc., as well as smart cards (including chips) fitted with integrated circuits. This heading is a core heading for the classification of information technology products and is closely related to the semiconductor industry and trade in electronic components. Smart cards are classified under this heading because they contain integrated circuit chips and have data processing and storage functions. Code 854210 is a six-digit subheading. The first 2 digits "85" represent Chapter 85 (electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles). Digits 3-4 "42" represent heading 8542 (integrated circuits and microelectronic assemblies). Digits 5-6 "10" represent subheading 854210, specifically "smart cards (including chips)". This subheading was introduced in HS 2002 to separate card products with integrated circuits from other headings for statistical and regulatory purposes. Smart cards typically consist of a plastic substrate, an embedded chip, and contacts (contact type) or an antenna (contactless type), and their core function depends on the chip's microprocessor or memory. Smart cards are classified under heading 8542 because they contain integrated circuit chips and have data processing, storage, or logic operation functions, meeting the definition of "integrated circuits and microelectronic assemblies" under heading 8542. They are not classified under 8543 (electrical equipment with independent functions not specified or included elsewhere in this chapter) or 8471 (automatic data processing equipment), because smart cards themselves are carriers of integrated circuits, and 8542 explicitly names "smart cards (including chips)". In addition, unlike magnetic cards (classified under 8523) or optical cards, the core value of smart cards lies in the chip rather than the magnetic stripe or optical storage.

Product Name: The Chinese and English names of the declared goods should accurately reflect the product attributes, such as "smart card (including chip)" or "IC card". Brand: Fill in the brand or manufacturer name marked on the smart card; if there is no brand, indicate "no brand". Model: Fill in the specific model or specification code of the smart card, which should be consistent with the product technical documentation. Chip Type: State whether the chip is a microprocessor chip, memory chip, or logic encryption chip, and indicate whether it contains a CPU. Contact Type: Declare whether the smart card is contact type, contactless type, or dual-interface card; contact type has metal contacts, contactless type has an antenna. Storage Capacity: Fill in the chip's storage capacity, such as 8K, 16K, 32K, 64K, etc., in bytes. Use: Explain the specific application scenario of the smart card, such as telecom SIM card, financial IC card, identification card, transportation card, etc. Packaging Specification: Fill in the packaging method of the smart card, such as bulk, roll, quantity per package, etc., to facilitate customs counting. Product Name: Smart card (including chip); Brand: No brand; Model: SIM-2024; Chip Type: Microprocessor chip (including CPU); Contact Type: Contact type; Storage Capacity: 64K bytes; Use: For mobile communication phone SIM card; Packaging Specification: 500 pieces per roll. Confusing smart cards with magnetic cards; magnetic cards without chips should be classified under 8523, not 8542. Ignoring the chip type; if it is only a memory chip without a CPU, other subheadings may be involved, but 854210 covers all smart cards containing chips. Failure to declare whether it is contact type, affecting customs confirmation of product characteristics and potentially causing inspection delays.

The core basis for classification is the heading text and subheading notes of HS 8542. Smart cards must contain integrated circuit chips, and the chips must have data processing or storage functions. If the card contains only a magnetic stripe or optical storage, it is classified under 8523; if it is a plastic card without a chip, it is classified under Chapter 39 according to the material. In addition, smart cards must be standalone goods; if they are parts of equipment and clearly dedicated parts, they may be classified as equipment parts, but 8542 explicitly names smart cards, so they are classified there first. Relevant classification decisions of the General Administration of Customs also clarify that smart cards containing chips, whether or not they have contacts, are classified under 854210. 852321 Magnetic cards: Magnetic cards store information via a magnetic stripe and have no integrated circuit chip; smart cards contain chips and have microprocessors or memory. Magnetic cards are classified under 8523, smart cards under 8542. 854231 Processors and controllers: 854231 covers processors and controllers in integrated circuits, usually in chip form rather than card form. Smart cards are integrated circuits packaged as cards and are classified under 854210. 854232 Memories: 854232 covers memory integrated circuits, such as RAM, ROM, etc., usually in chip form. Although smart cards contain memory, they are classified as card products as a whole under 854210. 847190 Other automatic data processing equipment: 8471 covers computers and peripheral equipment; although smart cards can read and write data, they are not data processing equipment themselves but data carriers, so they are classified under 8542. 853400 Printed circuits: 853400 covers printed circuit boards, which are one possible component of smart cards, but finished smart cards contain chips and card substrates and are classified under 854210. Does the product contain an integrated circuit chip? Does the chip have data processing or storage functions? Is the card a standalone good rather than a part of equipment? Does it not belong to magnetic cards or optical cards? Does it meet the description of subheading 854210?

How are smart cards and magnetic cards distinguished in HS codes? Smart cards contain integrated circuit chips and are classified under 854210; magnetic cards store information via a magnetic stripe, have no chip, and are classified under 852321. When declaring, the presence of the chip must be clarified and technical documentation provided as proof. Are contactless smart cards also classified under 854210? Yes. 854210 covers all smart cards containing chips, whether contact, contactless, or dual-interface. Contactless cards communicate via an antenna, but the core is still the chip, so they are classified under the same subheading. If a smart card is used in a mobile phone, is it classified as a mobile phone part? No. Smart cards (such as SIM cards) are standalone goods with general applicability and are not dedicated to a specific mobile phone model, so they are classified as smart cards under 854210, not as mobile phone parts (8517). Does the storage capacity of a smart card chip affect the HS code? No. 854210 does not distinguish storage capacity; whether 8K or 64K, they are classified under the same subheading. However, the capacity must be truthfully filled in during declaration for customs statistics and inspection. How can I check the import tariff rate for smart cards? Tariff rates vary by country, trade agreement, and country of origin. It is recommended to check through the customs official website or official tariff inquiry system by entering HS code 854210 and the country of origin and destination. Also pay attention to whether the Information Technology Agreement (ITA) zero tariff applies. What special documents are required for smart card export declaration? In addition to regular customs declaration forms, invoices, and packing lists, if encryption functions are involved, a cryptographic export license or related certificates may be required. Specific requirements are subject to customs; it is recommended to consult a customs broker in advance. Is there any difference in classification between smart cards, IC cards, and CPU cards? No difference. IC cards and CPU cards are different names for smart cards; as long as they contain integrated circuit chips, they are classified under 854210. When declaring, fill in according to the actual chip type. If a smart card is damaged and cannot be read, is it still classified under 854210? Yes. Classification is based on the essential character and function of the goods and does not change due to damage. Damaged smart cards are still classified as smart cards, but the condition must be noted during declaration, which may affect customs valuation.