The tariff classification of a software set from Germany.

NY H84899 August 16, 2001 CLA-2-85:RR:NC:1:108 H84899 CATEGORY: Classification TARIFF NO.: 8524.39.4000 Ms. Joan Mazur IMSI 14 Tanby Road P.O. Box 616 Havertown, PA 19083 RE: The tariff classification of a software set from Germany. Dear Ms. Mazur: In your letter dated August 8, 2001 you requested a tariff classification ruling. The item in question is denoted as RADIN software. The software package is composed of a CD-ROM software application , a PC Dongle, a printed reference manual and a 10-user license . It has been indicated, per a telephone conversation on August 15, 2001, that these items will be packaged and sold as a set upon importation. The software program is used by healthcare enterprises to distribute and display digitized images from various medical devices by radiology and cardiology professionals. The program operates on a Windows platform and displays the characteristics of data, instructions, sound, image and interactivity. The Dongle is to be installed on the user’s PC and allows the program to be run. The manual and license provide written instruction and operational approval for the program. Explanatory Note X to GRI 3b provides that for the purpose of this rule, the term “goods put up in sets for retail sale” shall be taken to mean goods which: A. Consist of at least two different articles which are, prima facie, classifiable in different headings. B. Consist of products or articles put up together to meet a specific activity; and C. Are put up in a manner suitable for sale directly to users without repackaging (e.g. in boxes, or cases or on boards). The RADIN Software package meets the three-part test and is considered a set. There are at least two articles, which are prima facie classifiable in different headings. The products together perform the specific activity of applying the software program for medical treatment and the items are put up in a manner suitable for sale directly to users without repackaging (per the above noted telephone conversation). Since the articles constitute a set and classification cannot be made in accordance with GRI 3(a), the essential character of the set must be determined in accordance with GRI 3(b). EN VIII to GRI 3(b) states that: The factor, which determines essential character, will vary as between different kind of goods. It may for example, be determined by the nature of the material or component, its bulk, quantity, weight or value, or use of the goods. The components, which merit equal consideration, of the set, contribute to the complete function of the RADIN software program. The individual components rely on each other to function properly and complete the necessary analytical medical procedure. It is the opinion of this office that no single item can be viewed as having an essential character. Therefore the classification of this set will be in accordance with Rule 3c of the General Rules for the Interpretation of the Harmonized System (GRI). The applicable subheading for the RADIN Software set will be 8524.39.4000, Harmonized Tariff Schedule of the United States (HTS), which provides for Records, tapes and other recorded media for sound or other similarly recorded phenomena, including matrices and masters for the production of records, but excluding products of chapter 37: Discs for laser reading systems: 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. 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 Michael Contino at 212-637-7039. Sincerely, Robert B. Swierupski Director, National Commodity Specialist Division