Project Import eligibility for software development units and computer systems was upheld on an industrial activity reading.

Computer software development and data processing were treated as industrial activity for Project Import purposes, and service industries were not excluded from the scheme. Applying earlier Tribunal decisions, the note rejects the objection that compiling data on floppies was neither manufacture nor production so as to fall outside Regulation 3(3)(b). On that reasoning, the imported computer system was regarded as eligible for concessional assessment under Heading 84.66 of the Customs Tariff Act, 1975, and Project Import benefit was stated to be available.

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Issues: Whether the computer software development unit and the import of the computer system were eligible for Project Import benefits under Heading 84.66 of the Customs Tariff Act, 1975, and whether such activity fell within the scope of industrial plant for purposes of the Project Import (Registration of Contract) Regulations, 1965.

Analysis: The claim for project import treatment was examined in the light of the earlier Tribunal decisions which had recognised software servicing and data processing as industrial activity and had held that service industries were not excluded from the scope of Project Import. The objection that compilation of data on floppies did not amount to manufacture or production so as to fall outside Regulation 3(3)(b) was rejected by following those decisions. On that basis, the imported computer system was treated as eligible for the concessional assessment scheme under Heading 84.66.

Conclusion: The benefit of Project Import was held to be available, and the Revenue's challenge was rejected.

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