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Ferrite Beads in PCBAs Classifiable as Inductors Due to Functionality: CAAR Mumbai

Case Law Details

TaxGuru Citation
2025 taxguru.in 11038
Case Name
In re Sanmina-SCI India Pvt Ltd. (CAAR Mumbai)
Date of Judgement/Order
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In re Sanmina-SCI India Pvt Ltd. (CAAR Mumbai)

M/s Sanmina SCI India Private Limited (IEC No. 0403030714) filed an application (CAAR-1) before the Customs Authority for Advance Rulings (CAAR), Mumbai on 19 June 2025 under Section 28H(1) of the Customs Act, 1962, seeking an advance ruling on the classification of various ferrite beads imported for use in the manufacture of printed circuit board assemblies (PCBAs) for wi-fi receivers, wi-fi transmitters, up-link cards, data center switches, and other telecommunication equipment. The applicant operates both Special Economic Zone (SEZ) and Domestic Tariff Area (DTA) units and imports ferrite beads including “Ferrite Chip Beads for High Current Applications,” “Ghz Noise Suppression Chip Ferrite Bead – JENF243A_0021T-01,” “Chip Ferrite Bead – JENF243A_0018AP-01,” “Ghz Noise Suppression Chip Ferrite Bead – JENF243A_0034P-01,” and “Chip Ferrite Bead – JENF243A_0003AM-01” for different telecommunication projects.

The applicant contended that ferrite beads are distinct from ferrite cores under tariff item 8505 1110 in terms of composition, structure, functionality, and magnetic properties and do not satisfy the conditions for classification as ferrite cores. They argued that the beads are essential components in telecommunication devices and should be classified under tariff heading 8517 as parts of apparatus for transmission or reception of data. The applicant’s final products, including wi-fi receivers, transmitters, up-link cards, and data center switches, are apparatus for the transmission or reception of data in wired or wireless networks, making the ferrite beads integral parts of these devices.

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Author Info

CA Sandeep Kanoi
Qualification: CA in Job / Business
Company: Taxguru Consultancy
Location: Mumbai, Maharashtra
Articles Published: 20,985

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