CAAR Delhi Classifies Telit 5G Modules Under CTH 8517 62 90 and Denies Customs Duty Exemption

In re AIL Dixon Technologies Private Limited (CAAR Delhi)

Summary :AIL Dixon Technologies Private Limited sought an advance ruling on the customs classification of Telit FN990A40 and FN990A28 5G communication modules proposed to be imported for installation in Mobile Network Video Recorders (MNVRs). The recorders process and store feeds from cameras installed in vehicles. The modules fit into an M.2 slot on the recorder’s motherboard, draw power from the host and connect to external antennas.

They transmit video feeds, logs and alerts over cellular networks and receive remote commands. The applicant had first approached CAAR Mumbai, which rejected its application on 27 April 2026 on jurisdictional grounds. CAAR New Delhi heard the applicant on 29 September 2026 and requested the manufacturer’s catalogue, which the applicant supplied on 1 October 2026. The Chennai-II (Import) Commissionerate furnished no comments on the merits despite reminders. The applicant claimed tariff item 8522 90 00 under Note 2(b) to Section XVI of the Customs Tariff Act, 1975, contending that the module was a part or sub-part intended solely or principally for a recorder of heading 8521.

It argued that the module lacked an independent power supply, housing and user interface and could communicate only when connected to the recorder. It also relied on commercial parlance and cited Motor Industries for its contention that a component incorporated in a sub-assembly could be treated as part of the finished machine. Separately, it claimed nil basic customs duty under Serial No. 292 of Notification No. 45/2025-Customs irrespective of classification, subject to intended use and compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022. The Authority found that the manufacturer’s catalogue described standard M.2 data cards with a SIM interface and applications in fixed wireless access, routers, gateways, customer premises equipment, broadcasting and surveillance.

This conflicted with the claim of exclusive design for the applicant’s recorder and with descriptions of the module as a soldered surface-mount device without a SIM interface. The host supplied power, data and instructions, while the module itself converted data into cellular radio signals, transmitted the signals and received and converted incoming signals. The recorder could continue operating as an ordinary network video recorder without cellular connectivity. The HSN Explanatory Notes for heading 8517 include modems and network interface cards, which also operate inside host equipment. Applying General Rules of Interpretation 1 and 6 and Note 2(a) to Section XVI, the Authority classified the modules as data communication apparatus under tariff item 8517 62 90. It treated Note 2(b) as residual once the modules were covered by heading 8517 and found that the catalogue also failed to establish sole or principal suitability for apparatus of heading 8521. The Authority referred to Secure Meters, where CESTAT classified communication modules imported for incorporation into smart meters under heading 8517.

On exemption, the Authority held that item (i) of Serial No. 292, covering eligible parts, components and accessories for manufacturing DVRs or NVRs, had ceased to have effect after 31 March 2026. Item (ii), scheduled to cease after 31 March 2028, covers sub-parts used to manufacture the parts, components or accessories described in item (i). The imported module was inserted directly into the recorder and remained a separate unit. The record identified no intermediate part, component or accessory in whose manufacture the module was used. CAAR therefore denied the exemption and expressly left open the classification of the MNVR itself and whether the applicant would follow the concessional-duty procedure.

Cases Discussed

• Commissioner of Customs (Import) Vs Welkin Foods — 2026 INSC 19, Civil Appeal No. 5531 of 2025, 6 January 2026 (Supreme Court). CAAR accepted the applicant’s reliance on sequential application of the interpretative rules, beginning with Rule 1.
• Secure Meters Ltd. Vs Principal Commissioner of Customs (Import), New Delhi — 2025 SCC OnLine CESTAT 109, Customs Appeal No. 51041 of 2020, 28 January 2025 (CESTAT New Delhi). CAAR cited the classification of separately imported smart-meter communication modules under heading 8517.
• Commissioner of Central Excise, Nagpur Vs Simplex Mills Co. Ltd. — 2005 (181) E.L.T. 345 (S.C.), (2005) 3 SCC 51, 1 March 2005 (Supreme Court). CAAR relied on the priority of the tariff headings and the relevant section and chapter notes under Rule 1.
• Collector of Central Excise Vs Delton Cables Ltd. — 2005 (181) E.L.T. 373 (S.C.) (Supreme Court). CAAR cited this decision for the sequence in which Notes 2(a) and 2(b) to Section XVI apply.
• Collector of Central Excise, Shillong Vs Wood Craft Products Ltd. — 1995 (77) E.L.T. 23 (S.C.), (1995) 3 SCC 454, 20 March 1995 (Supreme Court). CAAR cited the HSN Explanatory Notes as a guide to interpreting corresponding tariff entries.
• Motor Industries Company Ltd. Vs Collector of Central Excise, Aurangabad — 1995 (75) E.L.T. 65 (Tri.-Del) (Tribunal, Delhi). The applicant cited this decision in support of treating a component used in a sub-assembly as part of the final machine.

EXTRACT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI

M/s AIL Dixon Technologies Private Limited, A 12, Khemka Square, Sector-4, Gautam Buddha Nagar, Noida, Uttar Pradesh-201301, having IEC No. AAPCA1267K PAN AAPCA1267K (hereinafter referred as the ‘applicant’) has filed an application dated 11.08.2026, seeking advance ruling under section 28-H of the Customs Act, 1962, before the Customs Authority for Advance Rulings, New Delhi (hereinafter referred as the CAAR, New Delhi). The application was accordingly registered under Serial No. 68/2026-27 dated 14.08.2026. The applicant has requested for Classification of 5G Communication Module FN990A40/A28 as part of MNVR (Mobile Network video recorder) and the eligibility of SL No. 292 of Notification No. 45/2025-Customs dated 24.10.2025 under Customs Tariff Act, 1975.

1.1. The applicant in their application, submitted as follows:

STATEMENT OF RELEVANT FACTS HAVING A BEARING ON THE QUESTION (S) ON WHICH ADVANCE RULING IS REQUIRED

1.2. The application is being preferred by M/s ATL Dixon Technologies Private Limited (‘the Applicant’), a company incorporated in India under the provisions of the Companies Act, 1956 and having its registered address located at First floor, A-12, Sector-4, Gautam Buddha Nagar, Noida, Uttar Pradesh-201301, and has branch offices at multiple locations across India. The Applicant holds IEC No. AAPCA1267K under Section 7 of the Foreign Trade (Development and Regulation Act), 1992.

1.3. The Applicant is engaged in manufacture of Mobile Network video recorder (MNVR), which are used in mobile surveillance systems installed in buses, trucks, law enforcement vehicles, ambulances and other transport platforms. The MNVR receives, processes, compresses, stores and transmits audio and video signals received from multiple cameras installed in the vehicle.

1.4. The Applicant proposes to import the Telit FN990A40/A28 5G Communication Module (hereinafter referred to as the “subject goods”) for incorporation into the MNVR during manufacture. The subject goods are imported in module form and are designed to be installed internally on the MNVR printed circuit board through a dedicated M.2 interface. The module is secured to the motherboard using a dedicated mounting arrangement and connected to external antennas mounted on the MNVR chassis.

1.5. The subject goods do not possess an independent enclosure, power source, display, keyboard, operating system, storage capability, SIM interface or user interface. The module receives electrical power exclusively from the MNVR motherboard and performs communication functions only under the command and control of the MNVR’s processor and firmware.

1.6. The SIM slot used for subscriber authentication is located on the MNVR motherboard and not on the imported module itself. In the absence of the host MNVR, the subject goods cannot independently receive, process, record, store, display or transmit video data. The subject goods are designed exclusively for integration into the Applicant’s MNVR platform and are neither marketed nor supplied as standalone telecommunication apparatus. Without the subject goods, the MNVR loses its mobile communication functionality and becomes an ordinary Network Video Recorder lacking real-time remote connectivity.

1.7. The applicant is of the bonafide belief that the subject goods are rightly classifiable under CTH 85229000 as “Other Parts of MNVR” and eligible to NIL BCD in terms of SI. No. 292 of Notification No. 45/2025-Customs dated 24.10.2025. Therefore, the present application is being filed to ascertain the correct classification for the subject goods.

1.8. It is submitted that the Applicant had initially filed an application before the Customs Authority for Advance Ruling, Mumbai on 26.12.2025 and the Hon’ble Authority heard the Applicant on merits finally on March 13, 2026. However, the Authority vide order dated 27.04.2026 rejected the application on the ground that the application ought to have been filed before the Customs Authority for Advance Ruling at New Delhi. Hence the present application is being filed.

1.9. The Applicant seeks an advance ruling on the following questions:

i) Whether the imported 5G Communication Module, namely Telit FN990A40/A28, intended for use solely and principally in the manufacture of Mobile Network Video Recorders (MNVR), is classifiable under Tariff Item 8522 90 00 as “Parts and accessories suitable for use solely or principally with the apparatus of Heading 8521”?

il) (ii) Whether the imported 5G Communication Module is eligible for exemption from Basic Customs Duty under Serial No. 292 of Notification No. 45/2025-Customs dated 24.10.2025, subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022?

1.10. The Applicant is filing present application to understand the classification of the one of the products proposed to be imported by them from outside India. The necessary background and functionality of the product is set out in the subsequent paragraphs.

Technical description and overview of product

1.11. The classification of 5G Communication Module FN990A40/A28 falls under chapter 8522. Chapter 8522 contains the following entries:

“8522 Parts and accessories suitable for use solely or Principally with the apparatus of headings Nos 8519 or 8521

8522 10 00 – Pick-up cartridges 8522 90 00 – Other

The Import item is a 5G communication module (Telit FN990A40/A28) is “Part of MNVR”. Mobile Network Video Recorder (MNVR) is classifiable under CTH 8521 90 90. The subject goods, namely, 5G communication module (Telit FN990A40/A28) is designed to enable high-speed, low-latency wireless data transmission from the Mobile Network Video Recorder (MNVR) to a centralized monitoring or storage location. It supports real-time streaming, remote access, and data synchronization over 5G networks, ensuring seamless connectivity during mobile surveillance operations.

1.12. It is submitted that the 5G module is embedded within the MNVR’s communication interface bay, typically housed in the upper compartment adjacent to the main processing unit. It interfaces with the MNVR’s onboard processor via PCIe or USB 3.0, and connects to external antennas mounted on the MNVR chassis for optimal signal reception. The subject goods are powered through the MNVR’s internal power distribution board, with firmware-level control for network configuration and diagnostics. The module acts as the primary or secondary uplink channel for transmitting video feeds, system logs, and alerts to remote servers or command centers. It ensures uninterrupted data flow even in transit, making it critical for law enforcement, fleet surveillance, and emergency response deployments.

1.13. 5G Communication Module (Telit FN990A40/A28) has to be inserted into the M.2 slot on the MNVR Board. The Antenna has to be connected to the module and 5G Communication Module powered through the MNVR’s internal power distribution board. The photograph of the subject product is given below:

1.14. It is submitted that the subject goods, namely, 5G Communication Module (Telit FN990A40/A28) is part of device or apparatus (MNVR) to which they are connected for the purpose enable high-speed, low-latency wireless data transmission from the Mobile Network Video Recorder (MNVR) to a centralized monitoring or storage location. It is necessary that the 5G Communication Module has to connect with a power source from the MNVR’s internal power distribution board and connects to external antennas mounted. on the MNVR chassis for optimal signal reception. 5G Communication Module (Telit FN990A40/A28) cannot function independently without other components of the device/ apparatus, to which the module would be connected to, for usage such as antennas and a power source. It is submitted that the import item 5G Communication Module (Telit FN990A40/A28) is a Module, which is a sub-part of the main equipment of MNVR mounted on its PCBA. It is axiomatic that ‘a part of a part is a part of its whole’, thus the 5G communication module being a sub-part used in the MNVR is also construed as other parts used in MNVR. The Applicant relies on the case of Motor Industries Company Ltd. vs. Collector of Central Excise, Aurangabad reported in 1995 (75) E.L.T. 65 (Tri.-Del) which establishes that components intended for use in a sub-assembly are ultimately parts of the final machine. Therefore, 5G Communication Module (Telit FN990A40/A28) is Sub-part because it is a constituent element of the MNVR’s internal communication sub-system, which is integrated onto main PCB of MNVR classifiable as ‘Other Parts of MNVR’ classifiable under 8522 90 00.

1.15. From the above, it is clear that the 5G Communication Module (Telit FN990A40/A28) is a sub-part of the main equipment MNVR, mounted onto the PCBA of the main equipment MNVR. Its specific purpose is to enable the host machine (MNVR) to transmit high-definition video data over 5G/4G networks and receive remote control commands and GNSS positioning data. 5G Communication Module (Telit FN990A40/A28) is rightly classifiable under CTH 85229000 as “Other Parts of MNVR” and eligible for BCD Notification benefit in terms of SI. No. 292 of Notification No. 45/2025-Customs dated 24. 10.2025.

1.16. It is submitted that as per note 2(b) of Section XVI to the Customs Tariff the Act, 1975, other parts, if suitable for use solely or principally with a particular kind of machine or with a number of machines of the same heading are to classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. Therefore, the parts which are suitable for use solely or principally with the apparatus of heading 8521 are classifiable under heading 8522 9000. It is not in dispute that mobile network video recorder is classifiable under heading 8521 9090. This is apparent from fact that Sl. No. 292 of Notification No. 45/2025 – Cus. dated 24.10.2025 states that network video recorders fall under heading 8521 9090. Therefore, the be 5G communication module which is an essential Sub-part used solely and principally in the manufacture of MNVR has to be classified under heading 8522 9000.

1.17. It is submitted that a 5G communication module used in a MNVR is rightly classifiable under CTH 8522 9000 as “Other parts of MNVR” and it cannot be confused with the apparatus for transmission of data covered under heading 8517. It is submitted that the meaning of the word “Apparatus” as defined in the Merriam-Webster Dictionary is: “The instruments, materials, tools, etc needed for a specific use, experiment, or the like; any complex device or machine for a specific use”. Furthermore, Black’s Law dictionary defines them as “a complex device or machine designed for the accomplishment of a specific purpose”. It is submitted that an “Apparatus” is a functional unit that is capable to perform a task independently or as a complete system. In contrast, the subject 5G Module is a Surface Mount Device (SMD) and an internal component that cannot function on its own, It lacks a power source, an independent housing, and a user interface. It cannot transmit data in its imported state. It requires the host MNVR’s CPU to command it, the host’s SIM slot to authenticate and its power to energize it. It is merely a component that must be soldered onto the Printed Circuit Board (PCB) of the MNVR to function. Therefore, it is not a machine (apparatus) on its own but a part that gives the host machine the ability to communicate and classifying a component “module” as a finished “apparatus” under 8517 would be technically and legally incorrect.

1.18. The Applicant further relies on the HSN Explanatory Notes to Section XVI relating to (IL) Parts (Section Note 2). The said Explanatory Note states that parts which are suitable for use solely or principally with particular machines or apparatus or with group of machines or apparatus falling in the same heading are to be classified in the same heading as those machines or apparatus. The Explanatory Notes makes it clear that separate heading is however, provided for certain parts and this includes parts of apparatus of heading 85.19 to 85.21. The separate heading is 8522. In the present case, applying the above-cited HSN Explanatory Note, the 5G Communication Module would be classifiable under 8522, since it is a sub-part of MVNR, which is classifiable under 8521 and notification no.45/2025-Cus 24.10.2025 clearly indicates that MVNR is classifiable under 8521. Without the 5G Communication Module, the MNVR would lose its “Mobile Network’ capability, rendering it a standard NVR. Thus, the module is a principal part of the MNVR and its integration into the PCBA via the M.2 interface makes it an inseparable hardware component of the MNVR’s internal architecture.

1.19. It is submitted that the very same HSN Explanatory Notes also states that the above rule will not apply to parts which in themselves constitute an article covered by a heading of Section XVI. The HSN Explanatory Notes further states that the following parts would be classifiable under its respective heading.

(1) Pumps and compressors (headings 84.13 and 84.14).

(2) Filtering machinery and apparatus of heading (84.21)

(3) Lifting and handling machinery (Heading 84.25,84.26,84.28 or 84.86). (4) Taps, cocks, valves, etc. (heading 84.81).

(3) Ball or roller bearings, and polished steel balls of a tolerance not exceeding 1% or 0.05 mm whichever is less (heading 84.82)

(6) Transmission shaft, cranks, bearing housings, plain shaft bearings, gears and gearing (including friction gears and gear-boxes and other speed changers), flywheels, pulleys and pulley blocks, clutches and shaft couplings (heading 84.83)

(7) Gaskets and similar joints of heading 84.84

(8) Electric motors of heading 85.01,

(9) Electrical transformers and other machines and apparatus of heading

(10) 85.04 Electric accumulators assembled into battery packs (heading 85.07) (11) Electric heating resistors (heading 85.16).

(12) Electrical capacitors (heading 85.32)

(13) Electrical apparatus for switching, protecting, etc., electrical circuits (switches, fuses, junction boxes, etc.) (headings 85.35 and 85.36).

(14) Boards, panels, consoles, desks, cabinets and other apparatus for electric control or the distribution of electricity (heading 85.37)

(15) Lamps of heading 85.39 (16) Valves and tubes of heading 85.40 and diodes, transistors, elc., of heading 85.41

(17) Electrical carbons (e.g., arc lamp carbons, carbon electrodes and carbon brushes) (heading 85.45)

(18) Insulators of any material (heading 85.46)

(19) Insulating fittings for electrical machines, etc., of heading 85.47.

From the above list it is apparent that parts falling under 8517 will not be classifiable under the said heading if it can be established that the said part is used as an integral part of an MVNR classifiable under heading 8521. Therefore, the correct heading would be 8522.

1.20. Section XVI Note 2(a) provides that parts which are goods included in any of the headings of Chapters 84 or 85 are, in all cases, to be classified in their respective headings. Accordingly, it is necessary to first determine whether the imported module itself constitutes an apparatus of Heading 8517. The Applicant submits that the subject goods do not constitute an independent apparatus of Heading 8517. Heading 8517 covers, inter alia, machines for the reception, conversion and transmission or regeneration of voice, images or other data. The term “machine” or “apparatus” ordinarily denotes a complete and functional unit capable of independently performing its intended purpose. The subject goods, in their imported condition, cannot independently perform any telecommunication function. The subject goods lack essential elements required for autonomous operation, including:

(a) independent power supply;

(b) SIM authentication capability;

(c) user interface;

(d) operating software;

(e) data processing capability;

(f) storage capability;

(g) independent antenna assembly;

(h) network configuration interface; and

(i) external housing.

1.21. The imported module merely provides communication capability to the host MNVR and functions only when embedded in the MNVR motherboard and controlled by the MNVR processor. The subject goods cannot be directly connected to a communication network, accessed by a user, or employed for transmission of data in their imported condition. Therefore, the subject goods do not possess the essential character of a complete telecommunication apparatus falling under Heading 8517.

Commercial Parlance Test

1.22. In trade and industry, the subject goods are understood as embedded communication modules or connectivity modules intended for integration into host equipment. The subject goods are not bought or sold as independent telecommunication devices. The commercial identity of the subject goods is therefore that of an internal component or sub-part of the MNVR.

Eligibility under Notification No. 45/2025-Customs dated 24.10.2025

1.23. The Applicant further submits that Serial.No.292 of the notification No, 45/2025-Customs dated 24.10.2025 exempts duty for the goods classified under Chapter 85 or any other chapter if they are used as ‘Sub-Parts for use in manufacture of items mentioned at (1) above which includes components and accessories for manufacture of Digital Video Recorder (DVR)/Network Video Recorder (NVR) falling under 8521 90 90. As submitted above, the 5G Communication Module (Telit FN990A40/A28) is a sub-part of the main equipment MNVR, mounted onto the PCBA of the main equipment MNVR. Therefore, irrespective of the classification the goods are entitled to the benefit of Sl. No. 292 of notification No. 45/2025-Customs dated 24.10.2025, provided the goods are used for the intended purpose. The only condition stipulated under the notification is that the “importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022″. The Applicant confirms that it shall comply with the procedures of Customs IGCRS Rules, 2022 during the import of the goods and subject to the compliance of the aforesaid condition, the Applicant is automatically eligible for the exemption under notification regardless of the fact that the 5G communication module is classified under CTH 8522 or 8517. Therefore, it is submitted that the 5G Communication module classifiable under Chapter 85 which is specifically imported for the end use in manufacture of Mobile Network Video Recorder (MNVR) is eligible to the benefit of NIL BCD as per Notification no.45/2025-Cus 24.10.2025.

1.24. In light of the above facts, technical specifications, and legal provisions, the Applicant prays that the Hon’ble Authority: i. Hold that the 5G Communication Module (Telit FN990A40/A28) is a “Sub-Part” of the Mobile Network Video Recorder (MNVR) and classify the subject goods under CTH 8522 90 00. i. Grant the benefit of NIL Basic Customs Duty (BCD) under Sl. No. 292(ii) of Notification No, 45/2025-Customs, subject to IGCRS compliance.

1.25. The applicant has made declaration in its Form CAAR-1 that the question raised in the applicant’s case is not pending before any officer of Customs, Appellate Tribunal or any Court of Law.

3. Record of Personal Hearing:

During the course of personal hearing on 29.09.2026, the authorised representative Ms. Punnagai M. Advocate appeared virtually and appeared for the applicant and reiterated the submissions made in the application. The authority sought Product Catalogue of the supplier. The authorised representative requested to submit the Product catalogue within 2 days.

4. Additional Submission

4.1.1. The authorised representative Ms. Punnagai M. Advocate on behalf of the applicant submitted Additional submission vide letter dated 01.10.2026 as under:

4.1.2. Kindly refer to the personal hearing held on September 29, 2026 in respect of the above referred advance ruling application filed in respect of the product “5G Communication module”. We have enclosed the copy of the Product literature/catalogue provided by the Manufacturer as sought by the authority during the virtual hearing. The literature is enclosed for your reference.

4.1.3. In addition, it is submitted that the import item, 5G communication module is eligible to notification benefit regardless of the classification. The Applicant is Serial.No.292 of the notification No. 45/2025-Customs dated 24.10.2025 exempts duty for the goods classified under Chapter 85 or any other chapter if they are used as ‘Sub-Parts for use in manufacture of items mentioned at (i) above which includes components and accessories for manufacture of Digital Video Recorder (DVR)/ Network Video Recorder (NVR) falling under 8521 90 90°. As submitted above, the 5G Communication Module (Telit FN990A40/A28) is a sub-part of the main equipment MNVR, mounted onto the PCBA of the main equipment MNVR. ‘Therefore, irrespective of the classification the goods are entitled to the benefit of Sl. No. 292 of notification No. 45/2025-Customs dated 24.10.2025, provided the goods are used for the intended purpose. The only condition stipulated under the notification is that the “importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022”. The Applicant confirms that it shall comply with the procedures of Customs IGCRS Rules, 2022 during the import of the goods and subject to the compliance of the aforesaid condition, the Applicant is automatically eligible for the exemption under notification regardless of the fact that the 5G communication module is classified under CTH 8522 or 8517. Therefore, it is submitted that the 5G Communication module classifiable under Chapter 85 which is specifically imported for the end use in manufacture of Mobile Network Video Recorder (MNVR) is eligible to the benefit of NIL BCD as per Notification no.45/2025-Cus 24.10.2025. Therefore, this means the benefit is classification-agnostic, provided the goods are used for the intended purpose.

4.1.4. In light of the above submissions, it is prayed that the Hon’ble Authority may be pleased to hold that the subject goods are classifiable under CTH 8522 9000 as a part of MNVR or in alternative, hold that the Applicant is entitled to the benefit of Notification No. 45/2025-Cus (Sr. No. 292) regardless of classification, subject to IGCRS compliance, as the module is a sub-part/component for the manufacture of NVR/MNVR.

4.1.5. The literature provided by the applicant is as under:

Product Description

The Telit Cinterion FN990A40 and FN990A28 data cards enable a new generation of 5G state-of-the-art data cards featuring sub-6 only technology with LTE, WCDMA and GNSS support. These data cards lay the foundation for businesses worldwide to future-proof loT, enterprise applications and video while leveraging all 5G’s and Gigabit LTE’s benefits immediately.

The industrial-grade M.2 form factor is suitable for many high-performance and bandwidth-intensive enterprise and industrial applications. Use cases include fixed wireless access, enterprise routers and gateways, indoor and outdoor CPE, professional broadcasting and surveillance. Designed for global usage, the FN990A40 and FN990A28 incorporate support for all scenarios prescribed by the 3GPP Rel.16 deployments of 5G, including non-standalone (NSA) LTE-5G NR dual connectivity (EN-DC), dynamic spectrum sharing between LTE and 5G and full 5G NR standalone (SA) mode.

Leveraging the full feature set of the groundbreaking fourth-generation Qualcomm® Snapdragon™ X65 and Snapdragon™ X62 5G Modem-RF System, the Telit Cinterion data cards support the latest 5G deployments.

The FN990A40 and FN990A28 support all major sub-6 GHz frequency bands, giving users maximum deployment flexibility.

The FN990A40 data card is based on Qualcomm® Snapdragon™ X65 targeting high-tier market needs. The FN990A28 data card is based on Qualcomm® Snapdragon™ X62 targeting mid-tier market needs.

Key Benefits

• Support of 5G sub-6 FDD and TDD for global deployment
• Support of SA and NSA operations, 5G core network Opt. 3a/3x and Opt. 2 for full network compatibility
• Latest generation 4G/5G Rel.16
• 4G Cat 20 up to 7 CA for FN990A40 4G Cat 19 up to 5 CA for FN990A28
• Intraband and interband UL CA supported on 4G networks for better throughput performance for uplink-centric applications, like surveillance cameras and 4K/8K video streaming
• 3G HSPA+ Rel. 8 for fallback to legacy networks
• Standard M.2 (NGFF) data card form factor
• Support for both PCIe Gen 3 and USB 3.1 Gen 2 for maximum application design flexibility
• Dedicated/shared (switchable) RF path/connector for GNSS LI to allow total flexibility in the design phase and low losses whenever high sensitivity is required
• Each variant is available with or without PC1.5 support on 5G TDD bands n41, n77, n78 and n79
• Internal GNSS L1 LNA allowing the use of less expensive passive antennas, lowering the total cost of ownership

Available For

NA | EMEA | APAC

Variants

	FN990A28, FN990A28-HP	FN990A40, FN990A40-HP
Market	North America, EMEA, APAC	North America, EMEA, APAC
5G FR1 bands	n1, n2, n3, n5, n7, n8, n12, n13, n14, n18, n20, n25, n26, n28, n29, n30, n38, n39, n40, n41, n48, n66, n71, n75, n76, n77, n78, n79
5G FR1 bandwidth	120 MHz, 2CC CA DL	200 MHz, 3CC CA DL
PC1.5 support on n41, n77, n78, n79 bands	FN990A28-HP and FN990A40-HP only
5G FR2	N/A
LTE bands	B1, B2(B25), B3, B4(B66), B26(B5, B18, B19), B7, B8, B12(B17), B13, B14, B20, B28, B29(DL), B30, B32(DL), B34, B38, B39, B40, B41, B42, B43, B46(LAA), B48(CBRS), B66, B71
WCDMA bands	B1, B2, B4, B5(B6, B19), B8
Approvals	Anatel*, FCC, IC, RED, NCC, JATE/TELEC, KC, CCC*, RCM, GCF, PTCRB, AT&T, FirstNet, KDDI, KT*, Telstra, T-Mobile US, VzW, Various MNOs

* FN990A28 only

Product Features

• * 5G sub-6 FDD and TDD, SA and NSA operations * 5G core network Opt. 3a/3x and Opt. 2
• * 4G:7CA up to 20 layers DL/2 CA UL, 256-QAM DL/UL for FN990A40 4G: 5 CA up to 19 layers DL/2 CA UL, 256-QAM DL/UL for FN990A28
• * 3G: HSPA+ Rel. 8 (DL/UL 42/11 Mbps) * GNSS: gpsOne Gen 9 Band L1 on dedicated RF connector
• * 4×4 MIMO DL support on bands: 5G FR1: n1/n2/n3/n7/n25/n30/n38/n4.0/n4 1 /n48/n66/n75/n77/n78/n79 4G: B1/B2/B3/B4/B7/B25/B30/B38/B39/B40/B4 1/B42/B43/B48/B66
• * 2×2 MIMO UL support on bands: 5G FR1: n38, n41, n48, n77, n78, n79
• * Antenna types: four LTE/sub-6 + one GNSS
• * FOTA support
• * Support of SIB9-based network time communication
• * Compliant with GSMA SGP.22 Remote SIM Provisioning (RSP) standard * Validated against Telit Cinterion NExT SGP.22 eSIMs

Hardware and Electrical Specifications

• ° Dimensions: 30 x 52 x 2.25 mm
• 1.8/3 V SIM Interface
• * USB 3.1 Gen 2
• * PCIe Gen3 – one lane
• * Drivers support: Windows 10, Linux
• * Operating temperature range: -40 °C to +85 °C
• * LTE/SG sub-6 output power
• — 23 dBm (Power Class 3)
• — 26 dBm (Power Class 2) on B41/n41, n77, n78 and n79
• — 29 dBm (Power class 1.5) on n41, n77, n78 and n79: FN990A28-HP and FN990A40-HP only
• Supply voltage — Nominal: 3.3 V dc

Data Throughput

• ¢ 5G NSA up to: 4.9 Gbps DL / 0.55 Gbps UL for FN990A40 3.4 Gbps DL / 0.46 Gbps UL for FN990A28
• 5G SA up to:
• 4.1 Gbps DL / 0.90 Gbps UL for FN990A40
• 2.5 Gbps DL / 0.90 Gbps UL for FN990A28 ¢ 4G up to:
• 2.0 Gbps DL / 211 Mbps UL for FN990A40
• 1.6 Gbps DL / 211 Mbps UL for FN990A28
• + 3G up to 42 DL/11 UL Mbps

5. Comments of Concerned Port

The application was forwarded to the jurisdictional Commissionerate for its comments vide letter dated 14.08.2026 and subsequently many reminders. However, the concerned Port Commissionerate has not furnished any comments on the merits of the application,

6. Discussion, Findings & Conclusion

6.1. Having examined the CAAR-1 application, the record of personal hearing and the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I, therefore, allow the application and proceed to determine the questions posed for advance ruling as under:-

“Question 1. i) Whether the imported 5G Communication Module, namely Telit FN990A40/A28, intended for use solely and principally in the manufacture of Mobile Network Video Recorders (MNVR), is classifiable under Tariff Item 8522 90 00 as “Parts and accessories suitable for use solely or principally with the apparatus of Heading 8521”?

Question (ii) Whether the imported 5G Communication Module is eligible for exemption from Basic Customs Duty under Serial No. 292 of Notification No. 45/2025-Customs dated 24.10.2025, subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022?”

6.2. Product description

6.2.1. The description of the goods which follows is drawn entirely from the application and the Product Catalogue produced by the applicant.

6.2.2. According to the application, the applicant proposes to import Telit FN990A40 and FN990A28 5G Communication Module for incorporation in to the Mobile Network Video Recorder (MNVR). The MNVR receives, processes, compresses, stores and transmits audio and video signals received from cameras installed in vehicles. The module has no enclosure, power source, display, keyboard, operating system, storage capability. They are installed on the MNVR printed circuit board through a dedicated M.2 interface, inserted into the M.2 slot on the MNVR board, secured to the motherboard by a dedicated mounting arrangement and connected to external antennas mounted on the MNVR chassis. They interface with the MNVR’s processor via PCIe or USB 3.0 and are powered through the MNVR’s internal power distribution board, with firmware-level control for network configuration and diagnostics. They are designed to enable high-speed, low-latency wireless data transmission from the MNVR to a centralised monitoring or storage location; they support real-time streaming, remote access and data synchronisation over 5G networks ensuring seamless connectivity during mobile surveillance operations., act as the primary or secondary uplink channel for video feeds, system logs and alerts, and enable the MNVR to transmit video data over 5G/4G networks and to receive remote control commands and GNSS positioning data. Without the module, the MNVR “loses its mobile communication functionality and becomes an ordinary Network Video Recorder lacking real-time remote connectivity”.

6.3. The manufacturer’s product literature, furnished by the applicant with its letter dated 01.10.2026 describes the Telit Cinterion FN990A40 and FN990A28 as “data cards” in the “Standard M.2 (NGFF) data card form factor”, based respectively on the Qualcomm Snapdragon X65 and X62 “5G Modem-RF System”. The data cards enable a new generation of 5G state-of-the-art data cards featuring sub-6 only technology with LTE, WCDMA and GNSS on a dedicated RF connector; support for both PCIe Gen 3 and USB 3.1 Gen 2. It lists, among other things, a “1.8/3 V SIM Interface”; compliance with the GSMA SGP.22 Remote SIM Provisioning (RSP) standard: “Drivers support: Windows 10, Linux”; FOTA support; “Antenna types: four LTE/sub-6 + one GNSS”; a nominal supply voltage of 3.3 V dc; dimensions of 30 x 52 x 2.25 mm; and approvals of several regulators and network operators. It incorporates support for all scenarios prescribed by the 3GPP Rel.16 deployments of 5G, including non-standalone (NSA) LTE-5G NR dual connectivity (EN-DC), dynamic spectrum sharing between LTE and 5G and full 5G NR standalone (SA) mode. It states that the industrial-grade M.2 form factor is suitable for many high-performance and bandwidth-intensive enterprise and industrial applications, and that “Use cases include fixed wireless access, enterprise routers and gateways, indoor and outdoor CPE, professional broadcasting and surveillance”. The cards support high-speed data connectivity across 5G NSA, 5G SA, 4G, and 3G networks. The FN990A40 delivers peak speeds of up to 4.9 Gbps DL / 0.55 Gbps UL (5G NSA); 4.1 Gbps DL / 0.90 Gbps UL (5G SA) and 2.0 Gbps DL / 211 Mbps UL (4G) while the FN990A28 offers up to 3.4 Gbps DL / 0.46 Gbps UL (5G NSA) ; 2.5 Gbps DL / 0.90 Gbps UL (5G SA) and 1.6 Gbps DL / 211 Mbps UL(4G). Both support 3G speeds of up to 42 Mbps DL /11 Mbps UL.

6.4. There is some inconsistencies in the application itself and between the application and the literature of the goods. Para I of the grounds Annexure II to the application, describes the impugned goods as a “Surface Mount Device (SMD)” to be soldered onto the board, whereas the application elsewhere describes a card inserted into the M.2 slot of the MNVR board and secured by a mounting. The applicant’s literature describes a “Standard M.2 (NGFF) data card form factor”. Further, the applicant states that the module has no SIM interface, whereas the literature lists a'”1.8/3 V SIM Interface” and compliance with the GSMA SGP.22 Remote SIM Provisioning standard.

6.5. Statutory Framework

6.5.1. I note that Rule 1 of the General Rules of Interpretation (GRI) provides that classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the succeeding provisions. The Hon’ble Supreme Court in Commissioner of Central Excise v. Simplex Mills Co. Ltd., 2005 (181) E.L.T. 345 (S.C.) held that the Rules are to be applied in sequence, that Rule 1 gives primacy to the terms of the headings read with the Section and Chapter Notes, and that only if no clear picture emerges from that exercise does recourse lie to the succeeding Rules. The applicant has also placed reliance upon the decision of the Hon’ble Supreme Court in the case of Welkin Foods for the proposition that the Rules are to be applied sequentially and that classification begins, and in most cases ends, at Rule 1. I accept that proposition and apply it below.

6.5.2. Rule 6 provides that the classification of goods in the sub-headings of a heading shall be determined according to the terms of those sub-headings and any related sub-heading Notes and, mutatis mutandis, to the preceding Rules, on the understanding that only sub-headings at the same level are comparable.

6.5.3. The First Schedule to the Customs Tariff Act, 1975 is aligned with the Harmonized System, and it is settled by the Hon’ble Supreme Court in Collector of Central Excise v. Wood Craft Products Ltd., 1995 (77) E.L.T. 23 (S.C.) that where a tariff entry corresponds to the Harmonized System, the Explanatory Notes are a safe guide to its interpretation. Heading 8517 and heading 8522 of the First Schedule reproduce headings 85.17 and 85.22 of the Harmonized System without alteration.

6.6. Issue of classification

6.6.1. I have examined the submissions made by the applicant and have also considered the applicable statutory provisions, Explanatory Notes to the Harmonized System, and relevant judicial precedents. The classification of goods under the Customs Tariff is governed by the General Rules for Interpretation (GIR), read with relevant Section and Chapter Notes.

6.6.2. The competing headings in the present case are heading 8522 [Parts and accessories suitable for use solely or principally with the apparatus of headings 8519 to 8521], claimed by the applicant and heading 8517 [Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks: other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528]. Therefore, the competing headings 8522 and 8517 are examined further.

6.7. Examination of the scope of HSN 8522

6.7.1. The applicant contends classification 8522 90 00 as “other parts of MNVR” and exemption from Basic Customs Duty under Serial No. 292 of Notification No. 45/2025-Customs dated 24.10.2025, subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022. The applicant’s contention rests on Note 2(b) to Section XVI to the Customs Tariff the Act, 1975 that the subject goods are parts suitable for use solely or principally with the MNVR, an apparatus of heading 8521, and therefore fall in the parts heading 8522. Note 2 to Section XVI to the Customs Tariff the Act, 1975 is reproduced below:-

“2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note I to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules :

(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503. 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529. (c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548.

(c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548,”

6.7.2. The contention of the applicant shall sustain only after exclusion of Note 2(a). Clause 2(b) is residuary and applies only to “other parts”, which are not caught by clause (a). In CCE v. Delton Cables Ltd., 2005 (181) E.L.T. 373 (S.C.), the Hon’ble Supreme Court held that Note 2(b) can be resorted to only after classification under Note 2(a) has been excluded. In order to examine whether the subject goods are excluded from Clause 2(a), the examination of the scope of HSN 8517 has been done as follows.

6.8. Examination of the scope of HSN 8517

6.8.1. I find that HSN 8517 covers “Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks: other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528”. The HSN has two limbs:-

a. Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; and b. other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528”

6.8.2. The subject goods are not Telephone sets. Hence the subject goods are not covered under first limbs. The question, therefore, narrows to whether the subject goods is an apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528.

6.8.3. The subject goods themselves perform the function described in heading 8517. On the applicant’s own description, it is the module that transmits the MNVR’s video feeds, logs and alerts over 5G/4G networks, receives commands and data, and serves as the MNVR’s primary or secondary “uplink channel” to remote servers. It ensures uninterrupted data flow even in transit. The host supplies power, data and instructions; the module converts that data into radio signals conforming to the cellular standards, transmits them, receives and converts the incoming signals, and conducts the exchange with the network. It supports real-time streaming, remote access, and data synchronization over 5G networks, ensuring seamless connectivity during mobile surveillance operations. The applicant accepts that without the module the MNVR has no mobile communication capability at all. The module is not a part that helps the MNVR to communicate; it is the apparatus by which the MNVR communicates.

6.8.4. As per literature, the subject goods is not merely a passive electronic component. The applicant’s own literature lists a “1.8/3 V SIM Interface” compliance with the GSMA SGP.22 Remote SIM Provisioning (RSP) standard. The data cards enable a new generation of 5G state-of-the-art data cards featuring sub-6 only technology with LTE, WCDMA and GNSS on a dedicated RF connector; support for both PCIe Gen 3 and USB 3.1 Gen 2. It incorporates support for all scenarios prescribed by the 3GPP Rel.16 deployments of 5G, including non-standalone (NSA) LTE-5G NR dual connectivity (EN-DC), dynamic spectrum sharing between LTE and 5G and full 5G NR standalone (SA) mode. It states that the industrial-grade M.2 form factor is suitable for many high-performance and bandwidth-intensive enterprise and industrial applications, and that “Use cases include fixed wireless access, enterprise routers and gateways, indoor and outdoor CPE, professional broadcasting and surveillance”. The cards support high-speed data connectivity across 5G NSA, 5G SA, 4G, and 3G networks. The FN990A40 delivers peak speeds of up to 4.9 Gbps DL / 0.55 Gbps UL (5G NSA); 4.1 Gbps DL / 0.90 Gbps UL (5G SA) and 2.0 Gbps DL/ 211 Mbps UL (4G) while the FN990A28 offers up to 3.4 Gbps DL / 0.46 Gbps UL (5G NSA); 2.5 Gbps DL / 0.90 Gbps UL (5G SA) and 1.6 Gbps DL / 211 Mbps UL (4G). Both support 3G speeds of up to 42 Mbps DL/ 11 Mbps UL.

6.8.5. The HSN 8517 is also supported by the Explanatory Notes to heading 85.17. Group (G) of Part (11) “Other communication apparatus” of Explanatory Notes to heading 85.17 is reproduced as under:

(G) Other communication apparatus

This group includes apparatus which allows for the connection to a wired or wireless communication network or transmission or reception of speech or other sounds, images or other data within such a network. Communication networks include, inter alia, carrier-current line systems, digital-line systems and combinations thereof. They may be configured, for example, as public switched telephone networks, Local Area Networks (LAN). Metropolitan Area Networks (MAN) and Wide Area Networks (WAN), whether proprietary or open architecture,

This group includes:

(1) Network interface cards (e.g. Ethernet interface cards),

(2) Modems (combined modulators-demodulators).

(3) Routers, bridges, hubs, repeaters and channel to channel adaptors.

(4) Multiplexers and related line equipment (e.g., transmitters, receivers or electro-optical Converters).

(5) Codecs (data compressors/decompressors) which have the capability of transmission and reception of digital information.

(6) Pulse to tone converters which convert pulse dialled signals to tone signals.

The above cited explanatory notes include network interface cards and modems. A network interface card is, by its nature, installed in host equipment, powered by it and commanded by its processor; it has no enclosure, display or keyboard of its own and cannot connect to anything until it is placed in a host. If such cards are apparatus of heading 85.17, the absence of those features cannot take the subject goods out of the heading.

6.8.6. The contention of the applicant that the subject goods are not an “apparatus” of heading 8517, because an apparatus is a complete unit capable of performing its function independently, whereas the module has no enclosure, power source, user interface, operating software, storage or SIM interface, cannot be connected to a network or accessed by a user in its imported condition, and works only when embedded in the MNVR and commanded by its processor is not sustainable. It runs against the scheme of Note 2(a) itself. Note 2(a) operates on “parts which are goods included in any of the headings of Chapter 84 or 85”. It presupposes that an article may be a part of a machine — built into it, powered by it and controlled by it — and yet be goods of a heading in its own right. If an article ceased to be goods of a heading merely because it is designed to be built into a host, draws its power from the host and works under the host’s control, Note 2(a) would have little field of operation. The subject goods have a separate, identifiable function, cellular data communication, which is not the function of a video recorder. The applicant’s own statement that the MNVR without the module remains a Network Video Recorder, only without real-time remote connectivity shows that the module’s function is distinct from that of its host.

As per Note 2(a) to Section XVI to the Customs Tariff the Act, 1975, the subject goods are to be classified in that heading “in all cases”, whatever the machine into which they are built. Heading 8522, which Note 2(a) expressly sets aside, is not available to them. Further, in Secure Meters Ltd. v. Principal Commissioner of Customs (Imports) (Customs Appeal No. 51041 of 2020, decided on 28.01.2025; 2025 SCC OnLine CESTAT 109), the Tribunal held that communication modules imported for incorporation in smart meters were to be classified in the form in which they were imported, in heading 8517, and not as parts of the meters.

6.8.7. In view of above, I, therefore find that the subject goods are classifiable in heading 8517.

6.9. Exclusion from HSN 8522

6.9.1. The applicant contends classification 8522 90 00 as “other parts of MNVR”. The applicant’s contention rests on Note 2(b) to Section XVI to the Customs Tariff the Act, 1975 that the subject goods are parts suitable for use solely or principally with the MNVR, an apparatus of heading 8521, and therefore fall in the parts heading 8522. The contention of the applicant sustains only after exclusion of Note 2(a) only. Since the subject goods are themselves, goods included in HSN 8517 [Clause 2(a)] as discussed above, the residuary Clause 2(b) shal! not apply. Clause 2(a) lays down that parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings. It excludes the parts heading 8522 which the applicant claims.

6.9.2. The applicant points out that S. No. 292 of Notification No. 45/2025-Customs refers to DVRs and NVRs “falling under 8521 90 90”, and contends that the parts of the MNVR must therefore fall in heading 8522. The submission of the applicant itself in application that without the subject goods, the MNVR loses its mobile communication functionality and becomes an ordinary Network Video Recorder lacking real-time remote connectivity shows that Network Video Recorder can also work without the subject goods.

6.9.3. The statement that they are “designed exclusively for integration into the Applicant’s MNVR. platform” and “neither marketed nor supplied as standalone telecommunication apparatus” is contradicted by that literature, and no material has been placed on record to show that they have been designed or adapted for the applicant’s MNVR. Goods of this description are not suitable for use solely or principally with video recording apparatus of heading 8521, and Note 2(b) would not take them to heading 8522. Most of the host equipment named in the literature (routers, gateways and customer premises equipment) is itself apparatus of heading 8517.

6.9.4. The claim of the applicant to classification under tariff item 8522 90 00 accordingly fails.

6.10 Classification at the sub-heading and tariff item level

6.10.1. Heading 8517 having been found to apply, I turn to Rule 6 of the GRI. The relevant entries are extracted below:

Heading / sub-heading / tariff item	Description of goods
8517	Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks: other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528
	– Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network):
8517 61 00	— Base stations
8517 62	— Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus:
8517 62 10	— PLCC equipment
8517 62 20	— Voice frequency telegraphy
8517 62 30	— Modems (modulators-demodulators) for xDSL based Wireline Telephony
8517 62 50	— Digital loop carrier system (DLC)
8517 62 60	— Synchronous digital hierarchy system (SDH)
8517 62 70	— Multiplexers, statistical multiplexers for PDH based Wireline Telephony
8517 62 90	— Other
8517 69	— Other
	– Parts:
8517 71 00	— Aerials and aerial reflectors of all kinds; parts suitable for use therewith
8517 79	— Other:
8517 79 10	— Populated, loaded or stuffed printed circuit boards
8517 79 90	— Other

6.10.2. Within heading 8517, the subject goods are not telephone sets (sub-headings 8517 11 to 8517 18) or base stations (sub-heading 8517 61).

6.10.3. Sub-heading 8517 62 covers machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus. The subject goods receive data from the cellular network, convert data between the digital form used by the host and the radio signals of the network, and transmit data over it. Therefore, the subject goods fall within sub-heading 8517 62, and the residuary sub-heading 8517 69 does not arise. At the eight-digit level, sub-heading 8517 62 comprises tariff items 8517 62 10 (PLCC equipment), 8517 62 20 (voice frequency telegraphy), 8517 62 30 [Modems (modulators-demodulators) for xDSL based Wireline Telephony)], 8517 62 50 [digital loop carrier system (DLC)], 8517 62 60 (synchronous digital hierarchy system), 8517 62 70 (multiplexers, statistical multiplexers for PDH based wireline telephony) and 8517 62 90 (other). The subject goods communicate over cellular wireless networks. None of the other specific tariff items describes them. They are accordingly classifiable under the residuary tariff item 8517 62 90.

Upon classification of the subject goods under the appropriate HSN code, I refrain from discussing any further HSN classifications.

6.10.4. I, accordingly, find that the subject goods are classifiable under tariff item 8517 62 90 of the First Schedule to the Customs Tariff Act, 1975, by application of Rule 1 of GRIs read with Notes 2(a) to Section XVI) and Rule 6 of the GRIs, and not under tariff item 8522 90 00.

6.11. Exemption from Basic Customs Duty under Serial No. 292 of Notification No. 45/2025 Customs dated 24.10.2025 as amended by Notification No. 02/2026-Customs dated 01.02.2026

6.11.1. The applicant contends exemption from Basic Customs Duty under Serial No. 292 of Notification No. 45/2025-Customs dated 24.10.2025 as amended by Notification No. 02/2026-Customs dated 01.02.2026, issued under Section 25(1) of the Customs Act, 1962 (hereinafter referred as the ‘the Notification’). The relevant entry of the Notification’ is reproduced as under:

S. No.	Chapter or Heading or sub-heading or tariff item	Description of goods	Standard rate	Integrated Goods and Services Tax	Condition No.
(1)	(2)	(3)	(4)	(5)	(6)
292.	85 or any other Chapter	i) Parts, components and accessories for manufacture of Digital Video Recorder (DVR)/Network Video Recorder (NVR) falling under 8521 90 90, other than the following items, namely: – (a) populated printed circuit boards; (b) charger or power adapter; (ii) Sub-parts for use in manufacture of items mentioned at (i) above “Provided that item (i) shall cease to have effect after 31st March, 2026 Provided further that item (ii) shall cease to have effect after 31st March, 2028.”	Nil	–	3

By virtue of the Condition 3 of the Notification, availment of the concession is expressly made subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 (herein after referred as the IGCRD Rules, 2022)

6.11.2. The entry under column (3) of Sr. No. Sr. No. 292 of the Notification has two items as under: – (i), Parts, components and accessories for manufacture of Digital Video Recorder (DVR)/ Network Video Recorder (NVR) falling under 8521 90 90, other than the following items, namely: –

(a) populated printed circuit boards; (b) charger or power adapter; and

li) Sub-parts for use in manufacture of items mentioned at (i) above.

The first item (i) has ceased to have effect after 31.03.2026. The only item (ii) is available. The question is whether the subject goods answer the description in item (ii) of column (3 or not.

6.11.3. The expression “sub-parts” in item (ii) takes its meaning from the words that follow it: goods “for use in manufacture of items mentioned at (i)”, that is, goods which go into the making of Parts, components and accessories for manufacture of Digital Video Recorder (DVR)/ Network Video Recorder (NVR).

6.11.4. An article fitted directly into the DVR or NVR as one of its components is goods of the description in item (i), not item (ii). On the applicant’s own description, the subject goods are inserted into the M.2 slot of the MNVR board. It remains a separate unit of the MNVR, fitted into the slot that the board provides. A component for the manufacture of a DVR/NVR is precisely what item (i) described which has ceased to have effect after 31.03.2026.

6.11.5. Nothing on record identifies any part, component or accessory of the MNVR, other than the MNVR itself, in whose manufacture the subject goods are used. The subject goods are therefore a component of the MNVR, which is goods of the description in item (1), now lapsed; they are not sub-parts for use in the manufacture of items mentioned at item (i).

6.11.6. Moreover, the applicant’s own statement that without the subject goods, the MNVR loses its mobile communication functionality and becomes an ordinary Network Video Recorder lacking real-time remote connectivity also shows that the subject goods are not parts of Network Video Recorder.

6.11.7. The applicant’s own question | posed for advance ruling “Whether the imported 5G Communication Module, namely Telit FN990A40/A28, intended for use solely and principally in the manufacture of Mobile Network Video Recorders (MNVR), is classifiable under Tariff Item 8522 90 00 as “Parts and accessories suitable for use solely or principally with the apparatus of Heading 8521” also shows that the subject goods are being used for manufacture of MNVR and do not answer the description in item (ii) of S. No. 292.

6.11.8. The subject goods, being a component incorporated directly in the Mobile Network Video Recorder, are not “sub-parts for use in manufacture of items mentioned at Gi)” within item (ii) of the S. No. 292, and are not eligible to the exemption from Basic Customs Duty under Serial No. 292 of the Notification.

6.11.9. Since the subject goods do not answer the description in item (ii) of S. No. 292, it is unnecessary to examine whether the MNVR is a DVR or NVR falling under tariff item 8521 90 90, or whether the procedure under the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022 would be followed. I express no view on either question. This ruling is confined to Sr. No. 292 of Notification No. 45/2025-Customs, which is the only entry on which the ruling has been sought.

7. For the reasons recorded in the foregoing discussion and findings, the answers to the questions raised by the applicant are as follows: –

“Question 1. Whether the imported 5G Communication Module, namely Telit FN990A40/A28, intended for use solely and principally in the manufacture of Mobile Network Video Recorders (MNVR), is classifiable under Tariff Item 8522 90 00 as “Parts and accessories suitable for use solely or principally with the apparatus of Heading 8521”?

Answer: – No.

Question (ii) Whether the imported 5G Communication Module is eligible for exemption from Basic Customs Duty under Serial No. 292 of Notification No. 45/2025-Customs dated 24.10.2025, subject to compliance with the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules, 2022?”

Answer: – No.”

8. I rule, accordingly.