In re Cisco Commerce of India Pvt. Ltd. (CAAR Mumbai)
The ruling concerns the classification and duty eligibility of Small Form Factor Pluggable (SFP) Transceivers under the Customs Tariff. The applicant sought an advance ruling on whether these transceivers should be classified under CTI 85176290 and if they qualify for a concessional duty under Notification No. 57/2017-Cus. The applicant explained that SFP Transceivers combine transmission and reception functions, converting optical and electrical signals, and are used in networking devices like switches and routers. After examining legal provisions and HSN notes, the ruling determined that the transceivers should be classified under subheading 8517 6290, as they perform the function of converting signals, a category under “other machines for the reception, conversion, and transmission of data.” Regarding concessional duty eligibility, the ruling concluded that optical SFP Transceivers, used in optical transport systems, fall under the exclusion categories of Notification No. 57/2017-Cus., disqualifying them for concessional duty. However, electrical SFP Transceivers, which operate with copper cables, may not be subject to the same exclusions.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Cisco Commerce India Private Limited (IEC No.: 0711019673) (hereinafter referred to as ‘the Applicant’) filed an application (CAAR-1) for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling (CAAR) Mumbai. The said application was received in the secretariat of the CAAR, Mumbai on 11.09.2024 along with its enclosures in terms of Section 2811(1) of the Customs Act, 1962(hereinafter referred to as the ‘Act also’). The applicant is seeking advance ruling on the following issues:
a) Whether the product i.e. Small-Form Factor Pluggable (SFP) Transceiver is classifiable under CTI 85176290 as other machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus or otherwise?
b) If the product is classifiable under CTI 85176290, then whether the product is eligible for concessional rate of duty under Sr. No. 20 of Notification No. 57/2017-Cus. Dated 30.06.2017 or otherwise?
2. Submission by the Applicant:
