Automatic data processing classification applied to an imported workstation with embedded software; full value included in assessable value.

Imported media workstation systems with software etched on the hardware were treated as complete automatic data processing systems under Heading 84.71. The editing function was itself a data-processing function, so Chapter Note 5(E) to Chapter 84, which excludes machines performing a specific function other than data processing, did not apply. Because the software formed an integral part of the imported system and was not a separate item, its value was includible in assessable value. The entire import was classified under sub-heading 8471.49, and the full invoice value was taken for valuation.

---

---

Issues: Whether the imported media workstation system, including software etched on hardware, was classifiable under Heading 84.71 as an automatic data processing system and whether the software value was includible in the assessable value.

Analysis: The system consisted of a CPU with accessories and operating software loaded therein, imported for editing purposes. The editing function was itself a data-processing function, so Chapter Note 5(E) to Chapter 84, which applies to machines performing a specific function other than data processing, was inapplicable. The software was etched on the hardware and formed an integral part of the imported system. In that setting, the software could not be treated as a separate item for valuation. The imported system, including the software, was therefore to be treated as one complete automatic data processing system.

Conclusion: The entire imported system was classifiable under Sub-heading 8471.49, and the full invoice value was includible in the assessable value. The issue was decided against Revenue and in favour of the assessee.

---