In re Smile Electronics Limited (CAAR Mumbai)
The Customs Authority for Advance Rulings (CAAR), Mumbai, considered an application filed by Smile Electronics Limited seeking an advance ruling on whether Completely Knocked Down (CKD) kits of motherboards proposed to be imported by the applicant were classifiable under Customs Tariff Heading (CTH) 8473, specifically under tariff item 8473 30 20 covering “Motherboards.” The application was received on 13 January 2026 under Section 28H(1) of the Customs Act, 1962.
The applicant, an Electronic Manufacturing Services provider, proposed to import all essential components of motherboards in CKD form and assemble them into finished motherboards at its manufacturing facility in Bengaluru. According to the applicant, the number of kits imported would correspond exactly with the number of motherboards to be assembled. The motherboard would consist of a printed circuit board populated with various electronic components such as resistors, capacitors, integrated circuits, ferrite beads and crystals, along with mechanical components such as socket assemblies, I/O plates and screws supplied as part of the imported kits. Following assembly, the products would undergo functional testing, final inspection, labelling and packing before dispatch to customers. Only soldering consumables and packing materials would be sourced domestically.
The applicant submitted that the kits would be imported from a single overseas supplier in a single consignment. Although individual components could be sourced by the supplier from different manufacturers or brands depending on commercial availability, the composition and essential character of the kits would remain unchanged. The applicant maintained that variations in brand or manufacturer of individual components would not alter the nature of the kits, as each import would contain the same set of components necessary to assemble complete motherboards.
