Interactive Display System (View Board) falls under Heading 8471: CAAR

In re Brightpoint India Pvt. Ltd. (CAAR Mumbai)

CAAR rule that Interactive Display System (View Board) models mentioned in para 1 merit classification under Heading 8471 and more specifically under sub-heading 84714190 of the first schedule to the Customs Tariff Act, 1975.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI

1. M/s. Brightpoint India Pvt. Ltd. (hereinafter referred to as ‘the applicant’) filed an application for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR, in short). The said application was received in the secretariat of the CAAR, Mumbai on 03.04.2023, along with its enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’). The applicant is seeking advance ruling on the classification of ‘Interactive Display System (ViewBoard) (hereinafter referred to as ‘subject goods’)’. The details of models proposed to be imported and technical information regarding the same are as follows:

2. The applicant, a registered private limited company, is engaged in the distribution of Information Technology and Telecommunication products. They intend to import aforementioned 30 models of Interactive Display System (ViewBoard) from their supplier, ViewSonic, and sell it further to their distributors/consumers. As submitted by the applicant, the subject goods, also known as Interactive Flat Panel, comprise of Liquid Crystal Display panels with LED backlight. They have an in-built Central Processing Unit and RAM for execution of programs. They have pre-installed operating system, namely, Android 7.0 that is customized for the subject goods, along with an Open Pluggable Specification Slot, thus enabling the user to download and install new programmes and operate other operating systems like Windows etc. As informed, the products use Ultra Fine Touch Technology to offer more precise writing and faster processing time, it has an air quality sensor, germ resistant screen, two touch pens (stylus), remote control and 70-80% glare free surfaces with a flicker free display. They are touch enabled with additional features such as multi-touch interaction, handwriting recognition, freehand touch, go typing, etc. along with applications such as calculator, stopwatch, buzzer, etc. The subject goods have slots for HDMI, VGA, LAN, USB, RS232 and audio ports, along with a high internal storage capacity. They are used in classrooms for teaching and in companies for presentations, meetings, etc. Their physical features include being wall mounted, not incorporating tilt, swivel or height adjustment mechanism and being available in different sizes ranging from 24 inches to 98 inches. Internet can be accessed by connecting them to a dongle via USB ports or by the use of a LAN cable. These Interactive Display Systems can also be connected to laptops, and input can be given either from the Interactive Display Systems to the laptop or vice versa. The subject goods allow user to record and share lectures/ notes/ presentations via email or QR codes. Further being cloud enabled, user can upload the notes on a pre-set cloud storage.

2.1 Building their argument on functionality and physical characteristics of the product, the applicant has submitted that the subject goods are not portable as they weigh more than 10 kg and their dimensions viz. 55″,65″, 75″, 86″ and 98″ make it illogical and unviable for daily transit. Further, they have submitted that the ADP machines that comprise central processing unit, and an input and output unit (all within the same housing) are neither in the nature of a microcomputer (small or personal computer) nor in the nature of a large or main frame computer. Thus, it is contested that the subject goods are ‘Automatic Data Processing Machines’ classifiable under Chapter heading 8471 of Customs Tariff Act, 1975, specifically classifiable under the residual entry of sub heading 847141, that covers APDM “Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined”. Relevant extracts from Chapter heading 8471and Note 5(A) to Chapter 84 as submitted by the applicant is reproduced below: