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July 26, 1999

CLA-2-85: RR:NC:1:108 E84886


TARIFF NO.: 8524.99.4000, 9801.00.10

Mr. Don Page
Fuji America Corporation
171 Corporate Woods Pkwy.
Vernon Hills, IL 60061

RE: The tariff classification and marking of software from Japan and the United States.

Dear Mr. Page:

In your letter dated July 16, 1999 you requested a tariff classification ruling.

This ruling requests the classification of an item denoted as FujiCam Software and its proper country of origin marking requirements.

The FujiCam Software is actually a kit (unmarked sample provided), which is composed of a CD-ROM software application (8524.39) of U.S. origin, a Dongle (8471.80) of U.S. origin and a 3.5 inch Floppy Disk software application (8524.99) from Japan. It has been indicated, per a telephone conversation on July 20, 1999, that the items are packaged together for retail sale in Japan without any of the items being substantially transformed or advanced in value.

The CD-ROM provides the FujiCam programs. The Dongle works in conjunction with the floppy disk allowing users to access the programs. The Floppy Disk has the necessary coded information for access to the specific program modules by the user. The entire software kit is used to control the Surface Mount Technology (SMT) for placing machines, glue machines and screen printers which are manufactured by Fuji. This software kit allows engineers to write programs which control the placement of components, solder and adhesives into printed circuit boards and allowing such programs to be transmitted to the various machines for the purpose of monitoring the operations from a remote location. The software kit is sold to customers that own and operate the various types of Fuji machinery.

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 FijiCam Software Kit 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 controlling the Surface Mount Technology for specific type of Fuji machinery and the kit is put up in a manner suitable for sale directly to users without repackaging. All of the items in the software kit contribute equally to the function of control of the Surface Mount Technology (SMT) of the specific Fuji machinery. 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 FujiCam Software Kit will be 8524.99.4000, 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; Other: Other: Other. The rate of duty will be free.

In accordance with TD 91-7 the American components of the set are qualified for classification under 9801.00.10 Harmonized Tariff Schedule of the United States (HTS), which provides for Products of the United States when returned after having been exported, without having been advanced in value or improved in condition by any process of manufacture or other means while abroad. The duty rate will be free.

Section 304 of the Tariff Act of 1930 as amended (19 USC 1304), requires that, unless excepted, every article of foreign origin, or its container, must be legibly, permanently, and conspicuously marked to indicate the country of origin to an ultimate purchaser in the United States.

In accordance with TD 91-7 it must be determined if the components of the set have undergone a substantial transformation by their inclusion in the set. In the case of the instant merchandise the CD-ROM, Dongle and 3.5 inch Floppy Disk have merely been packaged together in their completed state, in Japan. A substantial transformation has not occurred therefore each item must be separately marked with its own country of origin. However it should be noted that in accordance with 19 CFR 134.32(m) items manufactured in the United States would be exempted from country of origin marking requirements.

Should you decide to indicate that the CD-ROM and Dongle are of U.S. origin then such marking needs to comply with the requirements of the Federal Trade Commission. Any such inquiry should be directed to the Federal Trade Commission, 6th & Pennsylvania Avenue, N.W., Washington D.C. 20508.

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.


Robert B. Swierupski

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