In re Vivo Mobile India Private Limited (CAAR Delhi)
The Customs Authority for Advance Rulings (CAAR), Delhi, examined an application filed by a company engaged in manufacturing smartphones, seeking classification of imported AMOLED display assemblies used in mobile phones. The core issue was whether such display assemblies should be classified under Customs Tariff Item (CTH) 85177990 as “parts” of mobile phones or under CTH 85249220 as flat panel display modules (OLED).
The applicant argued that the display assemblies included a driver IC capable of converting and decoding digital signals into analogue signals, thereby excluding them from heading 8524 in terms of Note 7 to Chapter 85 of the Customs Tariff Act. The applicant contended that such assemblies function as integral parts of mobile phones, lack independent utility, and should therefore be classified under heading 8517 based on their principal use. Reliance was placed on interpretative rules, judicial precedents, and the predominant use test to support classification as “parts.”
The jurisdictional Customs Commissionerate acknowledged that display modules are generally classifiable under heading 8524 but suggested that modules with video-conversion drivers may fall under heading 8517. However, the Authority found these comments to be general and lacking specific technical analysis of the goods in question.
