Interactive software exemption for CD-ROMs denied where no user inter-activity during programme operation was shown.

Imported CD-ROM software was held not to qualify as interactive information technology software for customs exemption because inter-activity requires user communication with the computer while the programme is running to locate particular information. On the record, there was no evidence that the user could manipulate the data during operation, and the story CD-ROM and cook book CD-ROM were therefore not shown to fall within the notification. The claimed customs duty exemption was denied and the appeal failed.

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Issues: Whether the imported CD-ROM software qualified as interactive information technology software so as to get exemption from customs duty under the notification.

Analysis: The exemption notification covered software capable of being manipulated or providing inter-activity to the user by means of an automatic data processing machine. The finding in the adjudication order that the imported goods did not involve inter-activity was specifically challenged. The Tribunal held that inter-activity requires the user to communicate with the computer while the programme is running in order to locate particular information. On the record, there was no evidence that the user could manipulate the data during the running of the programme. The imported items, described as a story CD-ROM and a cook book CD-ROM, were therefore not shown to be interactive software within the meaning of the notification.

Conclusion: The imported goods were not entitled to the exemption under the notification, and the appeal failed.

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