HQ 085348: Systems Studies (engineering studies)

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                                       HQ 085348

                                   November 30, 1989

            CLA-2 CO:R:C:G 085348 jlj 844155

            CATEGORY: Classification

            TARIFF NO.: General Note 4(c)

            Philip Yale Simon
            Freeman, Wasserman & Schneider
            90 John Street
            New York, New York 10038

            RE:  Systems Studies (engineering studies)

            Dear Mr. Simon:

                 On behalf of your client, Asea Brown Boveri, Inc., you
            request a ruling under the Harmonized Tariff Schedule of the
            United States Annotated (HTSUSA) that certain System Studies
            imported from Sweden are not goods subject to the provisions of
            the tariff schedule under General Note 4(c), HTSUSA.  You
            submitted a portion of a System Study as a sample.

            FACTS:

                 The merchandise at issue is engineering studies called
            System Studies.  They are commissioned when high voltage
            electrical equipment is purchased by public utilities for the
            generation, transmission or distribution of electricity.

                 The high voltage electrical equipment is connected to
            existing electrical networks.  Utility companies want to know
            how the equipment to be installed will interact with the local
            electric network and what will happen to the network if it is
            disturbed by outside forces, such as lightning.  They
            commission System Studies which calculate the results of events
            based on a mathematical model of the local electric network.

                 Almost all the System Studies consist of columns of
            computer-generated numbers printed on computer paper.  These
            numbers represent solutions to mathematical equations.




















                                          -2-


                 In Customs Headquarters Ruling Letter (HRL) 084780 of
            August 1, 1989, we held that a set of such Systems Studies was
            an intangible under General Headnote 5(e) of the Tariff
            Schedules of the United States.

            ISSUE:

                 Are the Systems Studies exempted from the provisions of
            the tariff schedule under General Note 4(c) HTSUSA?

            LAW AND ANALYSIS:

                 General Note 4(c), HTSUSA, reads as follows:

                      4. Exemptions.  For the purposes of
                           general note 1--

                           *   *   *   *   *

                         (c) records, diagrams and other data
                             with regard to any business,
                             engineering or exploration
                             operation whether on paper, cards,
                             photographs, blueprints, tapes or
                             other media...

                                 * *  *  *  *

                 are not goods subject to the provisions of the tariff
                 schedule.

                 Inasmuch as the instant merchandise does consist of data
            regarding an engineering operation, we find that it is an
            exemption under General Note 4(c), HTSUSA.

            HOLDING:

                 The System Studies described above are exemptions under
            General Note 4(c), HTSUSA.

                                        Sincerely,




                                        John Durant, Director
                                        Commercial Rulings Division














            6 cc: Area Director, N.Y. Seaport (NIS-234)
            T. Jones library/peh
            085348 JLJ