Classification of viewsonic creative touch interactive flat panels

In re Audio Distribution House Pvt. Ltd. (CAAR Mumbai)

The digital data processing (ADP) machines have storage capability and also stored programs which can be changed as per requirement of performance of tasks. Digital machines process data in coded form. A code consists of a finite set of characters (binary code, standard six-bit ISO code, etc.). The data input is usually automatic, by the use of data media such as magnetic tapes, or by direct reading of original documents, etc. There may also be arrangements for manual input by means of keyboards or the input may be furnished directly by certain instruments (writing instruments e.g.. stylus etc.). The input data are converted by the input units into signals which can be used by the machine, and stored in the storage units. Part of the data and program or programs may be temporarily stored in auxiliary storage units such as those using ma^gnetic discs. ma^gnetic tapes. etc. But these machines must have a main storage capability which is directly accessible for the execution of a particular program and which has a capacity at least sufficient to store those parts of the processing and translating programs and the data immediately necessary for the current processing run. Digital data processing machines may comprise in the same housing the central processing unit, an input unit (e.g., a keyboard or a scanner) and an output unit (e.^g., a visual display unit), or may consist of a number of interconnected separate units. In the latter case, the unit forms a “system” when it comprises of at least the central processing unit, an input unit and an output unit (see Subheading Note 2 to this Chapter). The ^goods under consideration termed as Viewsonic Creative Touch Interactive Flat Panels (IFP), consists of an integrated system with Central Processin^g Unit. Mother Board, Graphic Card, Memory (RAM + Storage). graphic processing unit. touch screen as virtual key board as an input device and video display unit as an output device, all in one place, within the display’s body. The subject item typically comes loaded like a tablet computer system, with a mobile operatin^g system and touch screen display processin^g circuitry, and can be used with either of the operating systems, i.e., mobile operating system like Android 9.0 (Oreo) and/or desktop operating systems like Microsoft Windows, Apple Mac and Chrome OS. It is observed that the subject item satisfies all the requirements as mandated under Note 6 (A) (previously referred as 5(A)) to Chapter 84 of Customs Tariff Act. 1975.

The impugned item, as seen in para 6.2 above, appears to be able to satisfy the requirements of an ADP machine. Note 6 (B) to chapter 84 states Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Note 6 (c) to chapter 84 specifies the conditions for a unit to be classified as being part of an automatic data processing system. However, from the working and features of the impu^gned item, it appears that these are not units of ADP machines, but ADP machines Note 6 (c) to chapter 84 lists certain separately presented products that are to be excluded from heading 8471, even if they can be classified as part of an ADP system. Note 6 (E) to chapter 84 mentions that a machine incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. The tariff entry 8471.80 at six-digit level provides for — “Other units of automatic data processing machines” and as discussed above the subject items are not ‘other units of ADP machines’, but ‘ADP machines’ themselves, and hence they are not classifiable under 8471 8000.

From the facts on the record and forgoing discussion, it is observed that the conditions mandated under Note 6 (A) to Chapter 84 of Customs Tariff Act, 1975 are fulfilled by the goods under consideration for which the advance ruling is sought. Technical literature available on record portrays the subject item as an All-In-One (AIO) which is a fully functional ADP machine that operates without restrictions. The AIO is equipped with hardware and software which allow it to perform, without artificial constraints, general computing tasks, where users are free to add or remove applications of their choice. In view of these facts, 1 rule that Viewsonic Creative Touch Interactive Flat Panel with model numbers specifically mentioned in Table-A merit classification under Heading 8471 and more specifically under sub-heading 84714190 of the first schedule to the Customs Tariff Act, 1975. Further, since BIS certification is a mandatory requirement for import of these goods, necessary certificate from BIS authorities shall be produced before the Customs authorities at the time of import.

FULL TEXT OF THE ORDER OF CAAR MUMBAI

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