The tariff classification of a technical software package from Germany.

N018940 November 13, 2007 CLA-2-85:OT:RR:NC:1:108 CATEGORY: Classification TARIFF NO.: 8523.40.4000 Mr. Harry M. Skolnik HMS Technology Sales 5 Echo Place Larkspur, CA 94939 RE: The tariff classification of a technical software package from Germany. Dear Mr. Skolnik: In your letter dated October 17, 2007, you requested a tariff classification ruling. The subject merchandise, based on the submitted information, is a software package that consists of the following: LASCAD™ computer software, which is comprised of a CD-ROM incorporating one, two, or all three program modules for designing and analyzing solid-state lasers; a hardware security key, for insertion into the computer’s USB port, that is required to operate the software; and an instructional manual that describes how to operate the program. This software has the inherent characteristics of instructions, data, sound, and image, as well as the capability of providing interactivity to the user. It is stated that this software provides multiphysics analysis of the complicated interaction between thermal and optical fields in solid-state lasers commonly known as the thermal-lensing effect. It is further stated that modelling of this effect and its influence on beam quality, cavity stability, and laser efficiency are essential for analysis and optimization of laser resonators. At the time of importation, this merchandise will be put up in a manner suitable for sale directly to the user without repacking; furthermore, this merchandise is considered to be a set for tariff classification purposes with the essential character being imparted by the software. The applicable subheading for this software package 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, including matrices and masters for the production of discs, but excluding products of Chapter 37: 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. 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