Case Law Details
In re Apple India Private Limit (Custom Authority for Advance Ruling, Mumbai)
Considering the attributes of the device in question, which is capable of receiving voice commands, covert such voice commands into text to perform multiple tasks, e.g., stream music from the internet or another Apple device, retrieve information available in the net like weather, traffic, news, sports updates etc., regenerate such information back to the user in the form of music/speech, and also act as a home automation device to control reconditioners, locks, lights etc., it is clear that the product in question has multiple facets, and therefore, its classification would depend upon identifying the essential character of the device. The product consists of an Apple designed A8 chip, a six-microphone array, a seven-tweeter array, and a high excursion woofer enclosed in a seamless mesh fabric. The device works wirelessly through Wi-Fi or Bluetooth and as already noted it can play music directly from the internet or from another Apple device through AirPlay 2. Through its digital assistant, Siri, a user can give voice commands not only for obtaining the preferred music, but also information like, weather, news etc. Therefore, unlike a mere speaker, which only reproduces sound, the HomePod is a convergence device which is capable of receiving voice commands and processing such commands internally to receive the desired end result, be it music or information, and regenerate such music or information back to the user via the speakers. The primary mode of interacting with the device is voice commands, though it is possible to play, pause and raise volume by tapping the top of the device. The home automation functions of the device to control a wide range of accessories is carried out via a hardware certification platfonn and a database system that makes possible integrate, configure, and communicate between a wide variety of products. The control of such devices is also done through Siri via voice commands. Considering the various functions that the device is capable of and taking into account the existing tariff classification system, I am of the considered opinion that the product in question answers to the description of six-digit entry 851762 which is meant for ‘Machines for reception, conversion and transmission or regeneration of voice, images, other data, including switching and routing apparatus’ and more specifically under the residuary sub-heading 85176290.
Full text of the order of Custom Authority for Advance Ruling, Mumbai
M/s. Apple India Pvt. Ltd. vide their application dated 22.12.2017 sought an advance ruling on the question, ‘Whether the import of Apple HomePod will be classified under Customs Tariff Heading (CTH) 8517.62.90?’ The application was received in the secretariat of the erstwhile Authority for Advance Rulings, Central Excise, Customs & Service Tax on 26.12.2017. The application was admitted on 25.05.2018 and was heard on 29.06.2018. However, no ruling has been given. Thereafter, on appointment of the Customs Authority for Advance Rulings, Mumbai under the provisions of section 28EA of the Customs Act, 1962; the secretariat of the erstwhile AAR transferred the said application to the CAAR, Mumbai.
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