CLA-2-85:RR:NC:1:108
Ms. Joan C. Mazur
Integrated Modular Systems Inc.
2500 W. Township Line Rd.
P.O. Box 616
Havertown, PA 19083
RE: The tariff classification of a medical software package from the United Kingdom.
Dear Ms. Mazur:
In your letter dated June 27, 2007, you requested a tariff classification ruling.
The subject merchandise is a software package used for medical image viewing and manipulation, denoted as IQ-System PACS. This software will be configured on CD-ROM or downloaded from a website. It is compatible with Windows 2000/XP. The IQ-System PACS software modules include IQ-LITE, IQ-Print, IQ-View (including IQ-3D, and IQ-Web.) In addition, the IQ-System PACS software has the characteristics of data, instruction, sound, image and interactivity.
The IQ-System PACS software CD-ROM is sold with a dongle device, a manual, and a user license card. The Dongle is a computer software security key that protects software from unauthorized use or copying. The printed manual provides the operating instructions for the software. The user license card is a piece of paper that contains an identification number, which acts as a certificate of authenticity.
In some instances, at the time of importation, the software with its accessories is put up in a manner suitable for sale directly to the users without repacking. In such instances the IQ-System PACS is classified as a set with the software imparting the essential character. On other occasions, the articles, though packaged together, are not packaged for retail sale at the time of importation; therefore, they do not meet the definition of a set for tariff classification purposes.
In your ruling request, you indicate that the software is either imported as a CD-ROM or downloaded from a website. As enumerated in HQ ruling 114459, software modules and products, which are imported into the United States via the Internet, are not subject to duty, nor are they required to be entered. Furthermore, in your letter you suggest a possible classification for this software under subheading 8524.39.10 or 8524.39.40, Harmonized Tariff Schedule (HTS); however, subheading 8524.39.10 does not exist and 8524.39.40 has been changed to subheading 8523.40.4000, HTS, in the 2007 Tariff.
The applicable subheading for the software CD-ROM, when imported as a set, will be 8523.40.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Discs, tapes, solid-state non-volatile storage devices, “smart cards” and other media for the recording of sound or of other phenomena, whether or not recorded … Optical Media: Other: For reproducing representations of instructions, data , sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine; proprietary format recorded discs. The rate of duty will be Free.
When this merchandise is not imported as a set for tariff classification purposes, then each article within the software package will be separately classified.
The applicable subheading for the software CD-ROM, when not imported as a set, will be 8523.40.4000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Discs, tapes, solid-state non-volatile storage devices, “smart card” and other media for the recording of sound or of other phenomena, whether or not recorded … Optical Media: Other: For reproducing representation of instructions, data , sound, and image, recorded in a machine readable binary form, and capable of being manipulated or providing interactivity to a user, by means of an automatic data processing machine; proprietary format recorded discs. The rate of duty will be free.
The applicable subheading for the Dongles will be 8471.80.1000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for Automatic data processing machines and units thereof…Other units of automatic data processing machines: Control or adapter units. The rate of duty will be Free.
The applicable subheading for the manual will be 4901.99.0050, Harmonized Tariff Schedule of the United States (HTSUS), which provides for printed technical, scientific and professional books. The rate of duty will be Free.
The applicable subheading for the user license card will be 4911.99.6000, Harmonized Tariff Schedule of the United States (HTSUS), which provides for other printed matter, other, other, other, printed on paper in whole or in part by a lithographic process. The rate of duty will be Free.
Duty rates are provided for your convenience and are subject to change. The text of the most recent HTSUS and the accompanying duty rates are provided on World Wide Web at http://www.usitc.gov/tata/hts/.
This ruling is being issued under the provisions of Part 177 of the Customs Regulations (19 C.F.R. 177).
A copy of the ruling or the control number indicated above should be provided with the entry documents filed at the time this merchandise is imported. If you have any questions regarding the ruling, contact National Import Specialist Lisa Cariello at 646-733-3014.
Sincerely,
Robert B. Swierupski
Director,
National Commodity
Specialist Division