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NY N011627




June 4, 2007

CLA-2-85:RR:NC:1:108

CATEGORY: CLASSIFICATION

TARIFF NO.: 8523.40.20

Ms. Melissa Hoffman
Ericsson, Inc.
6300 Legacy Drive
M/S EVW 1-B-5
Plano, TX 75024

RE: The tariff classification of the “TEMS Investigation” software package from Sweden.

Dear Ms. Hoffman:

In your letter dated May 16, 2007, you requested a tariff classification ruling.

The TEMS Investigation software package contains two CD-ROM software applications, a USB dongle (software security key), a lanyard, various printed instruction manuals, a USB hubport, and a power cable. The individual items are packaged together for retail sale as a software kit. As per the importer, the recorded optical media is not capable of reproducing sound or image and only contains the data and instructions required to run the TEMS Investigation application.

The CD-ROM software application is used for troubleshooting, verification, optimization, and maintenance of wireless networks. The TEMS Investigation software can provide improved voice quality and increased accessibility. The dongle serves as a license key and is required to be connected to the PC for operating the PC application. Moreover, it protects software from unauthorized use and counterfeiting. The USB hubport contains four USB ports and is plugged into a laptop computer. Furthermore, the power cable plugs into the automobile’s cigarette lighter and is used to power the hubport which runs on DC power. The various instruction manuals provide operational instructions.

Based upon the indication that these items are packaged together for retail sale, they would be considered a set for tariff classification purposes with the software imparting the essential character of the set.

As per T.D. 85-124, published in the Customs Bulletin, Vol. 19, No. 32 (August 7, 1985), the software is to be valued only on the basis of the value of the carrier medium. However, although duty is to be assessed on the value of the carrier medium only, this does not relieve the importer of its obligations under 19 CFR §141.86(a) to set forth the purchase price of each item of this set on the invoice.

The applicable subheading for the TEMS Investigation software kit will be 8523.40.20, 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: Recorded optical media: For reproducing phenomena other than sound or image. 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,

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