In re PN Trade and Services (CAAR Mumbai)
An intelligent flight battery is a lithium-ion rechargeable and removable battery to power a drone. As per HSN explanatory notes to heading 8507, these batteries. also known as electric accumulators, are characterised by the fact that the electrochemical action is reversible so that the accumulator may be recharged. They are used to store electricity and supply it when required. A direct current is passed through the accumulator producing certain chemical changes (charging); when the terminals of the accumulator are subsequently connected to an external circuit these chemical changes reverse and produce a direct current in the external circuit (discharging). This cycle of operations. charging and discharging, can be repeated for the life of the accumulator. Subheading 85076000 specifically mentions Lithium-ion based electric accumulators. Accordingly. the intelligent flight batteries are classifiable under subheading 85076000. The rate of duty i.e. basic customs duty (BCD) is 20%.
Two-way charging hub is used for charging the remote controller and three batteries in sequence. Up to 3 batteries can be inserted into the hub, which is connected to a separate USB charger. The hub automatically detects the battery with the most power and charges that one first. It can additionally act as a makeshift power bank. A USB Type-A output can draw from the battery’s power to provide up to 5V/2A to a compatible device. Heading 8537 covers boards. panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536. for electric control or the distribution of electricity. As per explanatory notes to heading 8537, these consist of an assembly of apparatus of the kind referred to in headings 8535 and 8536 (e.g., switches and fuses) on a board, panel, console. etc., or mourned in a cabinet, desk, etc. This heading also includes “programmable controllers” which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic. sequencing. timing. counting and arithmetic, to control, through digital or analogue input/output modules, various types of machines. Therefore, a two-way charging huh merits classification under 8537, specifically under subheading 85371000 (for a voltage not exceeding 1000 V). The rate of duty is 15%.
The impugned propellers are used to provide thrust to WI mini 3 pro drone. Subheading 88071000 specifically mentions, inter-alia, propellers to be used with drones falling under heading 8806. Therefore, these items are classifiable under subheading 88071000. The rate of duty is 2.5%.
The screws for propellers are made of stainless steel and have standard threading. The goods are classifiable under subheading 73181900 as other threaded screws of steel. The rate of duty is 15%.
The shoulder bag is used to store/carry one drone and accessories like one remote controller, three batteries, one charging hub, propellers, an ND filter set, a data cable, and an SD card. The interior has a divided compartment style. The outer surface is made up of Polyurethane (PU) sheeting of plastic, i.e., synthetic leather. The bag is designed to provide storage, protection, portability, and organization to a drone and its accessories. The applicable subheading is 42029200, which provides for “other containers or cases; with outer surface of sheeting of plastics”. The rate of duty is 15%.
The USB type-C cable is to be used for the two-way communication of information and data and/or DC voltage between the connected equipment. The cable is insulated by plastic material. There are standard connectors on both ends. The applicable sub-heading is 85444220, which provides for “Insulated wire, cable and other insulated electric conductors; Other electric conductors, for a voltage not exceeding 1,000 V; Fitted with connectors; Plastic insulated”. The rate of duty is 15%.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. PN Trade and Services (having PAN no. AACCN387 I F) filed an application on 25.07.2022 seeking advance rulings on the classification of WI Mini 3 Pro fly more kit and the rate of duty applicable to the said goods.
2. The applicant is predominantly engaged in the import of photography-related goods and their supply through the distribution system in the Indian market. The applicant intends to import a combo kit, namely DJI Mini 3 Pro Fly More Kit. They have stated that the combo kit is used specifically with DJI Mini Pro 3 drone. The said Unmanned Aerial Vehicle (UAV), incorporating a built-in camera for the purpose of aerial videography and photography, is categorised as a nano drone according to Drone Rules, 2021. The combo kit under consideration consists of the following items:
