How do I classify software and hardware products for customs purposes?
Most countries, including the United States, classify exports and imports using a standard set of Harmonized System (HS) codes. Computer hardware falls in HS headings 84.71 (“units of automatic data processing machines”), or in 84.73 (“parts thereof”). Computer software falls in HS heading 85.24 (“records, tapes, and other recorded media…”). Manuals fall in HS heading 49.01. Particular products are classified by more specific HS numbers that can be six or more digits in length. Only the first six digits of HS codes are harmonized globally. Countries may designate more specific product classifications beyond those six digits. The 1984 GATT decision gave recommendations, not requirements, on how customs authorities should value software imports. Thus, the GATT decision has granted customs authorities broad latitude in determining software valuation. The United States values software only on the medium. Canada, Western Europe, and many Asian countries also adhere to this method, while man
