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

Ms. Nicole Mulligan
UPS Supply Chain Solutions
140 Thad Johnson Road
Unit 3
Ottawa, Ontario K1V 0R4
Canada

RE: The tariff classification of NovAtel’s GrafNav/GrafNet software and NovAtel’s Inertial Explorer software from Canada.

Dear Ms. Mulligan:

In your letter dated September 18, 2009, on half of NovAtel Inc., you requested a tariff classification ruling.

The merchandise subject to this ruling request is NovAtel’s GrafNav/GrafNet software and NovAtel’s Inertial Explorer software. NovAtel’s GrafNav/GrafNet software is GPS/GLONASS post-processing software and NovAtel’s Inertial Explorer software is GPS/GLONASS/INS post- processing software. Both of these post-processing software packages are used with a Global Navigation Satellite System (GNSS); however, they are not directly installed onto the GNSS. Based on the information provided, these recorded optical media discs do not reproduce representations of instructions, data, sound and image.

In your letter you requested classification under subheading 8523.80.2000, HTSUS, which provides for media other than magnetic, optical, or semiconductor. However, the merchandise in question is optical media; therefore, it is more specifically provided for elsewhere. Alternatively, you requested classification under subheading 8523.40.4000, HTSUS, which provides for other optical media 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. Since the merchandise in question does not meet the provisions of this subheading, it is not classified under subheading 8523.40.4000, HTSUS.

The applicable subheading for NovAtel’s GrafNav/GrafNet software and NovAtel’s Inertial Explorer software will be 8523.40.5000, 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: Other: Other. The rate of duty will be 2.7 percent ad valorem.

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