In re Amazon Wholesale India Private Limited (CAAR Delhi)
The applicant, M/s Amazon Wholesale India Private Limited, sought an advance ruling on the classification of the proposed Echo Dot devices. They contended that the devices are communication devices, primarily voice command devices with multiple functions. However, the customs authority, after considering various factors, including public perception and advertising, concluded that the principal function of the devices is to act as smart speakers.
The ruling highlights that the devices fall under Heading 8518 of the Import Tariff, covering loudspeakers, headphones, microphones, and audio-frequency electric amplifiers. It dismisses the argument that the devices should be classified under Heading 8517, which includes other apparatus for transmission or reception of voice and data, as they retain the essential character of a speaker.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI
Ruling
M/s Amazon Wholesale India Private Limited, 14th Floor, Unit 1401 to 1421, Block E, International Trade Tower, Nehru Place, New Delhi- 110019, having IEC No. 0513081950 and PAN – AAMCA0671Q (applicant, in short) has filed an application dated 23.12.2022, received in this office on 29.12.2022 seeking advance ruling under section 28-H of the Customs Act, 1962 before the Customs Authority for Advance Rulings, New Delhi (CAAR, New Delhi, in short).The application was accordingly registered under Serial No. 32/2022 dated 29.12.2022.
2. The applicant vide the aforesaid application, has sought ruling on the question of classification of the proposed items of import, Echo Dot (5th Generation) Model No. C2N6L4 [‘Echo Dot (5’1′ Gen)’, in short] and Echo Dot (5th Generation) with clock Model No. C4E8S3 [‘Echo Dot (5th Gen) with clock’, in short]. Ruling has also been sought on applicability of various notification on import of the subject goods.
3.1 The applicant has stated that, both the devices are collectively referred to as ‘the Echo Dot devices’; they will sell the Echo Dot devices to the distributors, retailers and customers in India. [Images as below]
3.2 As per the applicant, the Echo Dot devices, are voice command devices with multiple functions, including answering questions, playing music, reading news/ audio-books, providing traffic, weather and other real-time information and controlling smart devices; the Echo Dot devices are communication devices in the form of speaker with Alexa Technology built in it; these devices respond to the name “Alexa”, which is commonly known as the ‘wake word’; this ‘wake word’ can be changed by the user to either “Amazon”, “Computer” or “Echo”; Echo Dot (5th Gen) is an upgraded version of Echo Dot (4th Generation) Model No. B7W64E; Echo Dot (5th Gen) is a hands-free Alexa-enabled device that comes with an inbuilt speaker; Echo Dot (5th Gen) has an ultrasonic-based presence and motion detection feature to detect when a user enters or exits a room; Echo Dot (5th Gen) also comes with a new AZ2 Neural Edge Processor to detect and react to common household and customs sounds; it also has a built in temperature sensor.
3.3 Further, the applicant has stated that, Echo Dot (5th Gen) with clock is a hands- free Alexa-enabled device and is similar to Echo Dot (5th Gen) in terms of basic functions and features; Echo Dot (5th Gen) with clock, additionally, has a 5×21 dot- matrix display for viewing time and presenting artist name or name of song during music playback, showing calendar/reminder events etc; Echo Dot devices are compatible with Fire OS, Android, and iOS devices and are accessible via web browser i.e. Alexa App; the Echo Dot devices support Wi-fi, Bluetooth connectivity and temperature sensor; with the help of the Echo Dot devices, a user can perform various functions such as voice interaction, music playback, making to-do lists, setting alarms, streaming podcasts, playing audio books, providing weather, traffic update, other real-time information and controlling smart devices; the user can also set a routine for performance of these functions basis the ultrasonic-based presence and motion detection by Echo Dot devices; the Echo Dot devices have an ultrasonic-based presence and motion detection feature to detect and react to common household and customs sounds such as when a user enters or exits a room.
3.4 The applicant has also submitted technical details of Echo Dot devices as under:
