In re Sanmina-SCI India Private Limited (CAAR Mumbai)
Classification of Heatsinks for manufacturing of PCBA of data-center switches and up-link cards.
In the case of In re Sanmina-SCI India Private Limited, the Customs Authority for Advance Rulings (CAAR), Mumbai examined the classification of certain imported products—metal chassis, covers, backing plates, heat sinks, and light pipe shrouds—used in the manufacture of data center switches.
Background and Issue
The applicant sought an advance ruling on the appropriate classification of imported components designed specifically for use in data center switches. These items included “MTL, Newport Prime Cover, ASY, Newport Prime, Chassis Base (Lower Metal), ASY, Yuba, Lodoga Prime, Chassis, Top Cover, ASY, Yuba, Lodoga Prime, Chassis, Base Sheet Metal, ASY, Yuba, Marysville, Prime, 2-piece top cover, ASY, Yuba, Marysville, 2-piece chassis, Base Sheet Metal, ASY, Backing Plate, Fortuna Heatsink with Insulator, ASY, Backing Plate, Woodpecker, Double Heatsink with Insulator, ASY, PT Reyes, QSFP, Light Pipe Shroud.”
These goods were customized and tailored exclusively for specific customers’ data center switches and could not be used for any other purpose. The issue before the Authority was whether these products were classifiable as “parts” of communication apparatus under Chapter Heading 8517 of the Customs Tariff Act, 1975, and whether they could avail exemption from Basic Customs Duty under Notification No. 57/2017-Customs dated June 30, 2017.
