Classification of touch computer & mobile computers

In re Rashi Peripherals Private Limited (CAAR Mumbai)

M/s. Rashi Peripherals Private Limited filed 2 applications, specifically, application nos. 39 and application no. 40, on 23.05.2022 seeking advance rulings on the classification of handheld mobile computers, viz., touch computers and mobile computers, having the following model numbers: –

Both the applications contain similar devices, except for the additional feature of SIM card slots in devices mentioned under application no. 40

2. The applicant is a distributor of IT & mobility solutions in India and is engaged in the distribution of different types of electronic parts and products utilised for items such cameras, CPUs, gaming graphic cards, monitors, motherboards, printers etc. The applicant intends to import the above-mentioned handheld mobile computers. These devices are powered by Qualcomm Snapdragon processor and possess the Android 10 operating system. They are equipped with front and rear cameras, battery and gorilla glass. They support GPS, Bluetooth and wireless radio. They also incorporate micro USB 2.0. Out of 13 devices specified in Table 1, 5 devices of application no. 40 are SIM cards enabled. As per the applicant, these devices are used for scanning barcodes and processing data in order to increase the efficiency of functions such as inventory management etc. The products carry a processing ability of a laptop and the functionality of a scanner in a single wireless device. They essentially perform 1D and 2D barcode scanning, and additionally, have features like Wi-Fi/Bluetooth connectivity, data transfer etc. The predominant use of these handheld mobile computers is in warehousing/logistics/inventory operations for data capturing/storage and its transmission for allied functions. The applicant further submits that many models of handheld mobile computers do not have the feature of connecting to a cellular network and they operate on wireless LAN connectivity to fulfil their functions, though the handheld mobile computers can perform their function even in areas where cellular network or wifi connectivity is not available. Even on the SIM-enabled devices, the cellular network is used rarely in cases such as during last-mile delivery, when wi-fi is not readily available etc. In fact, the calling function provided in products with SIM is purely a supplementary function since the same has been provided as an additional mode of connectivity apart from Bluetooth, Wi-Fi and GPS. The applicant has highlighted the following features: –

a. Rugged design;

b. Fall proof;

c. Water-resistant;

d. Dust resistant;

e. Can withstand harsh working environments up to -20 °C to + 50 °C;

f. The screen can be read even in sunlight;

g. Extended battery life;

h. Barcode scanner for reading 1D and 2D barcodes, apart from reading QR codes. The barcode scanner is equipped with an enterprise-class scan engine. The advantage is the reduction in scanning time. This device can decode 60 barcodes per second, enabling scans of over 5000-10000 barcodes per hour in continuous mode;

i. The laser can read short, mid and long-range scanning capability;

j. No separate audio jack; for voice communication, it is generally advised to have earphones;

k. It is primarily designed for scanning applications and processing scanned data and not for voice communication;

l. Specialized applications are developed to run on mobile computers, which are not / cannot run on android based mobile phones;

m. The physical keyboard is akin to what is found on a conventional computer;

n. Extra keys are provided for scanning and for performing other data processing functions.

2.1 The applicant has submitted that the handheld mobile computers proposed to be imported by them are classifiable under heading 84.71 as automatic data processing (ADP) machines, for the following reasons:

a. These devices satisfy the criteria set out in heading 84.71 to be classified as ADP machines;

b. The principal function performed by these devices is that of processing data, and thus, they merit classification as ADP.

c. The proposed imports are commercially known as “mobile computers/ touch computers” and not as phones.

2.2 As per the applicant, to qualify as an ADP machine, goods have to satisfy all the conditions mentioned in Note 6(A) to Chapter 84 and should not be covered by Note 6(D) and 6(E) ibid. The applicant has submitted that the handheld mobile computers in question comply with the above requirements, and therefore, are classifiable as ADP machines under CTH 84.71 as tabulated below: –