Classification of imported software on hard disk drive turns on essential character, with software assessed under Heading 85.24.

Computer software imported on a hard disk drive was held to be classifiable as recorded media under Heading 85.24, because the essential character of the consignment was the software rather than the physical drive. The fact that the software was stored on a hard disk did not alter its classification, and Chapter Note 6 of Chapter 85 supported treatment of such media under that heading. The goods were therefore assessable at 10% and not under Heading 84.71 as hard disk drives.

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Issues: Whether computer software imported on a hard disk drive was classifiable as hard disk drive under Heading 84.71 or as computer software under Heading 85.24, and whether duty was payable at 25% or 10%.

Analysis: The imported consignment consisted of hard disk drives carrying software, and the software value far exceeded the value of the physical hard disk containers. Heading 85.24 covered recorded media, and the exemption notification separately treated computer software as assessable at 10%. Applying the interpretative rules, the essential character of the goods was the software, not the hard disk drive. The fact that the software was stored on a hard disk did not change its character, and Chapter Note 6 of Chapter 85 supported classification of recorded media under that heading even when presented with the apparatus for which they were intended.

Conclusion: The goods were correctly classifiable under Heading 85.24 as computer software and were assessable at 10%, not under Heading 84.71 as hard disk drives.

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