Driver Monitoring System Parts Classified Under CTH 8708, Not CTH 8512: CAAR Delhi

In re Mitsubishi Electric India Private Limited (CAAR Delhi)

The Customs Authority for Advance Rulings (CAAR), Delhi considered three applications relating to the import of components of a Driver Monitoring System (DMS) from Japan, namely Cable, Unit Assembly and Controller Assembly. The applicant sought advance rulings on the appropriate tariff classification of each component under the First Schedule to the Customs Tariff Act, 1975, and their eligibility for exemption under Notification No. 69/2011-Customs dated 29.07.2011. The Port Commissionerate concurred with the applicant’s proposed classifications, and the applications were held to be valid under the Customs Act, 1962 and the CAAR Regulations, 2021.

The Authority first examined the nature of the DMS. It observed that the DMS is an in-cabin automotive safety system comprising three principal components: the Unit Assembly, which captures the driver’s visual inputs; the Cable, which connects the Unit Assembly and the Controller Assembly; and the Controller Assembly, which processes the captured data. The processed information is transmitted to the vehicle’s Body Control Module (BCM), which ultimately activates alerts through a buzzer or indicator lamp. None of the three components independently performs a signalling or safety function.

With respect to the Cable, the Authority found that it is a PVC-insulated electric cable fitted with connectors at both ends, designed to transmit data and power between the Unit Assembly and the Controller Assembly. Heading 8544 specifically covers insulated electric conductors fitted with connectors, and CTH 8544 42 20 expressly covers plastic-insulated conductors fitted with connectors for a voltage not exceeding 1,000 volts. Applying Section Note 2(a) of Section XVI, the Authority held that where goods are specifically covered by a tariff heading in Chapter 84 or 85, they must be classified in that heading irrespective of their end use. Since Heading 8544 specifically covers the imported Cable, it remained classifiable under CTH 8544 42 20. As the Cable imported from Japan falls within sub-headings covered by Serial No. 733 of Notification No. 69/2011-Customs, it was also held eligible for the customs duty exemption under that notification.

The principal dispute concerned the classification of the Unit Assembly and Controller Assembly. The applicant argued that the DMS constitutes electrical signalling equipment under Heading 8512 and, consequently, both assemblies should be classified as parts of such signalling equipment under CTH 8512 90 00. The Authority analysed the HSN Explanatory Notes to Heading 8512 and observed that the heading covers equipment whose primary and essential function is to directly generate or emit warning signals to the driver, such as horns, anti-theft alarms, reversing sensors and similar signalling apparatus.

The Authority distinguished the DMS from such signalling equipment. It held that the Unit Assembly merely captures image data and the Controller Assembly merely processes that data before forwarding it to the BCM. The BCM, an external vehicle system, is the component that commands the buzzer or indicator lamp to issue the actual warning. Accordingly, the DMS itself does not directly generate or emit warning signals. The Authority further held that the HSN Explanatory Notes could not be extended by analogy to include data-capturing and data-processing systems whose signalling function depends on external vehicle modules. It also distinguished the authorities relied upon by the applicant, noting that those decisions involved equipment directly performing signalling functions, unlike the present DMS configuration. Consequently, it held that the DMS does not constitute electrical signalling equipment under CTH 8512 and that its Unit Assembly and Controller Assembly cannot be classified as parts under CTH 8512 90 00.

The Authority then examined whether the Unit Assembly and Controller Assembly were specifically classifiable under any other heading of Chapter 85. It found that the Unit Assembly, although containing a camera and LED, functions exclusively as a sub-module of the automotive safety system and is not independently classifiable as a camera or under any other specific Chapter 85 heading. Likewise, the Controller Assembly, comprising the PCB, cover, case and bracket, was held not to be specifically covered by any heading in Chapters 84 or 85. Since neither assembly was specifically classifiable under Chapter 85, the exclusion contained in Note 2(f) to Section XVII did not apply. The Authority therefore proceeded to classify the goods under Chapter 87.

The Authority held that both assemblies are permanently integrated into motor vehicles, are exclusively designed for automotive use, have no independent commercial application outside the DMS, and function solely as components of the vehicle safety system. As they are not covered by any specific heading in Chapters 84 or 85 and do not fall within any specific sub-heading of Heading 8708, they were held classifiable under the residual entry CTH 8708 99 00 as “Other” parts and accessories of motor vehicles. Consequently, they were held not entitled to classification under CTH 8512 90 00, and the question of exemption under Serial No. 656 of Notification No. 69/2011-Customs did not arise.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI

M/s Mitsubishi Electric India Private Limited. Plot No. 167-170, Sector 5, IMT Manesar, Gurugram. Haryana having IEC No. 0498049850 and PAN-AABCM8474A (the applicant, in short) filed the three applications in Form CAAR- I before the Customs Authority for Advance Rulings, New Delhi (CAAR. in short) for seeking advance ruling. The complete applications were received in the Secretariat of the CAAR, New Delhi on 16.02.2026 along with their enclosures in terms of Section 2841(1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’).

Application No. 01

1.1. The Applicant intends to import cable from its supplier in Japan. The application submitted by the applicant in respect of aforementioned goods is as under:

1.1.1. M/s Mitsubishi Electric Automotive India Private Limited, having registered office at Plot No. 167-170, Sector 5, IMT Manesar, Gurugram, Haryana — 122050 (`Applicant’) is a private limited company registered in India under the Companies Act, 1956 (now Companies Act, 2013,). The Applicant is a wholly owned subsidiary of Mitsubishi Electric Corporation, Japan and engaged in business of manufacturing, sale and trading of automotive & electric components.

1,1.2. The Applicant herein has been granted Importer-Exporter Code Number (IEC) as 0498049850 under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. Copy of the IEC issued to the Applicant is enclosed. Copy of Memorandum of Association and Articles of Association are enclosed. Copy of Certificate of Incorporation is enclosed.

1.1.3. The Applicant is engaged in import / intends to continue to import cable from its supplier in Japan. The Applicant supplies cables to various automotive OEMs in India like Maruti Suzuki etc. OEMs use cable to make Driver Monitoring System (`DMS’) in its vehicles. DMS is an automotive safety system for capturing driver’s facial data and triggers appropriate responses (warning alarm or alert message on information display panel) in vehicle for safety of driver, accompanying passengers & vehicle.

1.1.4. The Applicant is seeking Advance Ruling on following issues:

(i) Whether cable is classifiable as ‘Cable: plastic insulated’ under Customs Tariff Item (OT) 8544 42 20 of the First Schedule of the Customs Tariff Act, 1975?

(ii) Whether cable imported from Japan is eligible for exemption under S. No. 733 of Notification No. 69/2011-Customs dated 07.2011?

About DMS

1.1.5. DMS is in-cabin automotive safety system which captures driver’s attentiveness, drowsiness, distraction, impairment or unresponsiveness and triggers appropriate responses by alerting driver through sound or visual modes (warning alarm or alert message on information display panel) for safety of driver, accompanying passengers & vehicle.

1.1.6. DMS comprises of multiple components that are interconnected to function as a single electronic system namely Unit Assembly (which captures visual inputs), Cable (which connects Unit Assembly and Controller Assembly) and Controller Assembly (which processes captured data). DMS Controller Assembly is connected to BCM (`Body Control Module’) which performs alerting or signalling functions within vehicle and finally, safety action is performed through Buzzer / Indicator Lamp.

Cable

1.1.7. Cable is part of DMS which connects Unit Assembly with Connector Assembly. The cable is made up of PVC with connectors on both sides to connect with Unit Assembly and Controller Assembly. The image of cable is under:

1.1.8. STATEMENT CONTAINING APPLICANT’S INTERPRETATION OF LAW AND/OR FACTS, AS THE CASE MAY BE, IN RESPECT OF THE QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED

Cable merits classification under CTH 8544 42 20

As per the Applicant, Cable is appropriately classifiable under CTH 8544 42 20. The relevant extract of CTH 8544 is reproduced hereunder:

Tariff Item		Description
8544		INSULATED (INCLUDING ENAMELLED OR ANODISED) WIRE, CABLE (INCLUDING CO-AXIAL CABLE) AND OTHER INSULATED ELECTRIC CONDUCTORS, WHETHER OR NOT FITTED WITH CONNECTORS; OPTICAL FIBRE CABLES, MADE UP OF INDIVIDUALLY SHEATHED FIBRES, WHETHER OR NOT ASSEMBLED WITH ELECTRIC CONDUCTORS OR FITTED WITH CONNECTORS
8544 42	–	Other electric conductors, for a voltage not exceeding 1,000V fitted with connectors:
8544 42	—	Fitted with connectors:
8544 42 10	—	Paper Insulated
8544 42 20	—	Plastic Insulated

1.1.9. The subject goods are insulated PVC cables fitted with connectors at both ends and are specifically designed to transmit electrical signals and power between Unit Assembly and Controller Assembly within DMS.

1.1.10. Heading 8544 covers insulated wires, cables and other insulated electric conductors, whether or not fitted with connectors. Subheading 8544 42 specifically covers insulated electric conductors fitted with connectors. Further CTH 8544 42 20 covers plastic insulated wires and, with connectors. Hence, cables are specifically covered under CTH 8544 42 20.

1.1.11. HSN Explanatory Notes (Harmonised Commodity Description and Coding System developed by World Customs Organization) provides that this heading also includes wire etc. made up in sets (e.g., multiple cables for connecting motor vehicle sparking plugs to the distributor).

1.1.12. Applicant’s Understanding: Cable is part of DMS which connects Unit Assembly with Connector Assembly. The functionality of cable is to connect Unit Assembly with Connector Assembly for transmission of data collect by Unit Assembly. The cables are insulated with PVC and fitted with connectors. Therefore, they are specifically covered under CTH 8544 42 20 as ‘Plastic insulated’. Furthermore, since the Applicant is importing cable from Japan, these will be eligible for exemption under S. No. 733 of Notification No. 69/2011-Customs dated 29.07.2011 as S. No. 733 covers ‘All goods’ of sub-heading 8544 20 to 8544 60 and Cable merits classification under CTH 8544 42 20.

Application No. 02

1.2. The Applicant intends to unit assembly from its supplier in Japan. The application submitted by the applicant in respect of aforementioned goods is as under:

1.2.1. The Applicant is engaged in import/intends to continue to import Unit Assembly from its supplier in Japan. Unit Assembly comprises of panel, camera, LED, chassis and harness. The Applicant supplies Unit Assembly to various automotive OEMs in India like Maruti Suzuki etc. OEMs use Unit Assembly to make Driver Monitoring System (‘DMS’) in its vehicles. DMS is an automotive safety system for capturing driver’s facial data and triggers appropriate responses (warning alarm or alert message on information display panel) in vehicle for safety of driver, accompanying passengers & vehicle. In this regard, sample import invoice and Bill of Entry filed by importer is enclosed. The Applicant is seeking Advance Ruling on following issues:

(i) Whether Unit Assembly is classifiable as ‘parts’ of ‘Electrical Lighting or Signalling Equipment’ under Customs Tariff Item (‘CTH’) 8512 9000 of the First Schedule of the Customs Tariff Act, 1975?

(ii) Whether Unit Assembly imported from Japan is eligible for exemption under S. No. 656 of Notification No. 69/2011-Customs dated 29.07.2011?

About DMS

1.2.2. DMS is in-cabin automotive safety system which captures driver’s attentiveness, drowsiness, distraction, impairment or unresponsiveness and triggers appropriate responses by alerting driver through sound or visual modes (warning alarm or alert message on information display panel) for safety of driver, accompanying passengers & vehicle. The positioning of DMS is as under:

1.2.3. DMS comprises of following parts (functionality of each part is explained hereunder):

1.2.4. DMS comprises of multiple components that are interconnected to function as a single electronic system. These components are Unit Assembly (which captures visual inputs), Cable (which connects Unit Assembly and Controller Assembly) and Controller Assembly (which processes captured data). DMS Controller Assembly is connected to external BCM (which performs alerting or signalling functions within vehicle) and finally, performs safety action through Buzzer / Indicator Lamp. Each component performs distinct and yet interdependent role.

Unit Assembly

1.2.5. Unit Assembly is part of DMS which is mounted inside vehicle compartment. Unit Assembly consists of camera, LED, panel, chassis and harness. The primary function of Unit Assembly is to capture driver’s data which is further sent to Controller Assembly in form of digital signals to judge driver’s conditions. The image of Unit Assembly is under:

1.2.6. The functionality of each part of Unit Assembly is explained hereunder:

• • • Camera: It captures driver’s facial region to ascertain attentiveness / drowsiness (eyes, eyelids, mouth, head pose, gaze) in all lighting conditions without distracting driver. Camera detects yawn (large opening and duration), fatigue / distraction, head pose & gaze to determine on-road v. off-road attention.
    • LED: It is an accessory to camera for providing light in no or low visibility. Camera requires light to capture image of driver and assess condition of driver. LED provides light through continuous blinking for camera to perform its functionality.
    • Panel, Chassis and Harness: Panel is placed inside dashboard of motor vehicle and fitted through chassis. Camera and LED are placed inside panel and mounted on chassis. Harness connects Unit Assembly with Controller Assembly through Cable.

1.2.7. The subject goods functions as part / module of integrated DMS. These components are engineered and collectively serves supporting role within a comprehensive vehicle safety system.

1.2.8. Unit Assembly, therefore, performs subordinate image-capturing function and helps to trigger appropriate responses by alerting driver through sound or visual modes (warning alarm or alert message on information display panel). Signalling or alert mechanism becomes operational only after image data flows sequentially from Unit Assembly to Controller Assembly and thereafter to BCM which gives final alert/ alarm signals.

STATEMENT CONTAINING APPLICANT’S INTERPRETATION OF LAW AND/OR FACTS, AS THE CASE MAY BE, IN RESPECT OF THE QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED

1.2.9. DMS merits classification under CTH 8512

As per the Applicant, DMS is appropriately classifiable under CTH 8512 and Unit Assembly being part of DMS merits classification under CTH 8512 90 00. The relevant extract of CTH 8512 is reproduced hereunder:

Tariff Item	Description
8512	ELECTRICAL LIGHTING OR SIGNALLING EQUIPMENT (EXCLUDING ARTICLES OF HEADING 8539), WINDSCREEN WIPERS, DEFROSTERS AND DEMISTERS, OF A KIND USED FOR CYCLES OR MOTOR VEHICLES
8512 10 00	Lighting or visual signalling equipment of a kind used on bicycles
8512 20	Other lighting or visual signalling equipment:
8512 20 10	Head lamps, tail lamps, stop lamps, side lamps and blinkers
8512 20 20	Other automobile lighting equipment
8512 20 90	Other
8512 30	Sound signalling equipment
8512 30 10	Horns
8512 30 90	Other
8512 40 00	Windscreen wipers, defrosters and demisters
8512 90 00	Parts

1.2.10. Heading 8512 covers electrical lighting or signalling equipment of a kind used for motor vehicles. The essential nature of DMS is to generate warning signals directed towards driver of motor vehicle. Such system constitutes signalling equipment and is covered under Heading 8512.

1.2.11. In this regard, relevant extract of HSN Explanatory Notes (Harmonised Commodity Description and Coding System developed by World Customs Organization) to CTH 8512 is reproduced below:

“This heading covers electrical apparatus and appliances specialised for use on cycles or

motor vehicles for lighting or signalling purposes;

The heading includes, inter alia:

………………………

(10) Parking equipment operated by means of external feelers, which, when they touch the curb or other object, cause a light or other signal to warm the driver.

(11) Anti-theft alarms which emit visual or audio signals to warn of attempts to break in to a vehicle.

(12) Horns, sirens and other electrical sound signalling appliances.

(13) Electrical apparatus that emits audio signals to warn the driver of the proximity of vehicles or other objects behind the vehicle when reversing. These apparatus usually comprise ultrasonic sensors, an electronic control unit, a buzzer or beeper and associated wiring.

(14) Electrical apparatus of a kind used in a motor vehicle to warn the driver, by visual or audio signals, that a speed detection device, such as a radar gun or a laser gun, is operating in the vicinity.

1.2.12. HSN Explanatory Notes to CTH 8512 clearly demonstrates that Heading 8512 covers equipment that provides warnings or signals to drivers through visual or audio modes. DMS performs same function by generating by alerting driver through sound or visual modes (warning alarm or alert message on information display panel) when unsafe driving behavior is detected and therefore, merits classification under CTH 8512.

1.2.13. In Re: Intel Solutions & Services India Pvt. Ltd, 2023 (385) ELT 788 (AAR – Cus. – Mum.), the Authority for Advance Ruling held that the principal function of ‘Advance Driver Assistance System’ is to operate as alert system for vehicle driver by visual and sound modes and therefore, classifiable under CTH 8512.

1.2.14. In the case of Commissioner of C Ex., Mumbai-II v. A.J. Industries, 2005 (188) ELT 428 (TrL-Bom), the Tribunal held that Horn Button Assembly functioned as part of horn system which was a signalling device used in motor vehicles and treated it as signalling equipment. Accordingly, goods were classified under CTH 8512.

1.2.15. In U.S. Customs ruling HQ 964844, the question was whether Ultrasonic Parking Guide System was classifiable under Heading 8512 as sound signalling equipment for motor vehicles. The system consisted of ultrasonic sensors, controller, display unit and an audible alarm. It measured distance to obstacles and produced warning sounds. It was held that sound signalling function imparted essential character to system. Accordingly, system was classified under sub-heading 8512.30.00 as sound signalling equipment for motor vehicles.

1.2.16. In U.S. Customs Ruling HQ 964660, the issue was whether an automotive burglar alarm system was classifiable as sound signalling equipment of a kind used for motor vehicles under Heading 8512. The device comprised an electronic circuit incorporating a piezo buzzer that emitted loud alarm upon detection of changes in vehicle’s electrical current. It was held that device functioned as an audible signalling appliance, similar to horns and sirens, and belonged to a class or kind of sound signalling equipment principally used in motor vehicles. Accordingly, it was classified under sub­heading 8512.30.00 as sound signalling equipment for motor vehicles.

1.2.17. In view of the above, DMS falls under CTH 8512.

Unit Assembly merits classification under CTI 8512 90 00

1.2.18. CTH 8512 90 00 covers parts and preceded by single As per General Explanatory Notes to Import Tariff, where in column (2), the description of an article under a heading is preceded by the said article or group of articles shall be taken to be a sub-classification of the article covered by said heading. Hence, CTH 8512 90 00 will cover all ‘parts’ of electrical lighting or signalling equipment. Hence, parts of DMS will be classified under CTH 8512 90 00 as CTH 8512 90 00 is preceded by single

1.2.19. Rule 1 of GRI provides that titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to terms of headings and any relative Section or Chapter Notes. CTH 8512 is covered under Section XVI. Hence, relevant Section Notes should be referred to determine scope of CTH 8512. In this regard, the relevant extract of CTH 8512 is reproduced hereunder:

“2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:

(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529; “

1.2.20. Further, the HSN Explanatory Note to CTH 8512 provides as under:

“…..

PARTS

Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading are also classified here.”

1.2.21. Note 1 to Section XVI, Chapter 84 and Chapter 85 nowhere excludes subject product. Further, Section Note 2(a) and 2(b) provides that parts suitable for use solely or principally with a particular kind of machine are to be classified with machines of that kind. Unit Assembly is designed exclusively for use with DMS installed in vehicle and has no independent or general application outside such system.

1.2.22. The subject good is engineered exclusively for monitoring and safety integration and is incapable of independent operation as signalling apparatus. The imaging output has no practical use unless transmitted to Controller Assembly and thereafter, processed by BCM.

1.2.23. Unit Assembly merely captures visual input and transmits it onward to Controller Assembly. Hence, Unit Assembly performs a limited, preparatory role within DMS and therefore, fits description of a part rather than finished signalling device.

1.2.24. The Applicant submits that subject goods are appropriately classifiable under CTH 8512 90 00 which covers parts of electrical equipment of a kind used for cycles or motor vehicles. Unit Assembly is not a finished equipment covered within any specific entry under Heading 8512; instead, it is part of DMS. As such, it falls squarely within ambit of parts designed for use with automotive electrical equipment, therefore, merit classification under CTH 8512 90 00.

1.2.25. Reliance is also placed on Order-in-Original No. MUN-CUSTOM-000-COM-22-25-26 dated 08.09.2025 passed by Principal Commissioner of Customs, Customs House, Gujarat in Valeo India Pvt. Ltd wherein dispute was classification of ECUs which formed part of ultrasonic reverse parking signalling systems. It was held that that ECU is an essential component of the ultrasonic Reverse Parking Assistance System (RPAS) which detects obstacles and alerts driver through audible signals. ECU receives data from ultrasonic sensors, processes it and sends output signals to buzzer or display panel. It was held that RPAS is an electrical sound-signalling apparatus of Heading 8512 as it ultimately warns driver through sound. Since ECU is indispensable for functioning of RPAS, it qualifies as part of such sound-signalling equipment and is classifiable under CTH 8512 90 00.

1.2.26. In U.S. Cross Ruling NY M86527, the question was classification of snap ring (intended to securely snap into place around visual signalling light), mounting bracket for emergency vehicle lights and aluminum base plate (strobe power supply circuit board is attached to this plate). The above products were part of signalling equipment. It was held that products merit classification under CTH 8512.90.2000.

1.2.27. In U.S. Cross Ruling N217605, the question was classification of Seat Sensor Assemblies, namely Seat Belt Reminder (SBR) and Child Seat Presence and Orientation Detection (CPOD) systems, used in motor vehicles. SBR consisted of a sensor mat inserted into seat to detect occupant presence through resistance thresholds, while CPOD sensor mat detected presence and orientation of a passenger, incorporating both seat-belt reminder and passenger presence detection functions along with antennas and an electronic control unit. It was held that both items were parts of motor-vehicle signalling equipment and accordingly classified them under sub-heading 8512.90.2000, HTSUS, as parts of electrical signalling equipment of a kind used for motor vehicles.

1.2.28. Applicant’s Understanding: Unit Assembly is part of DMS. The functionality of Unit Assembly is limited to capturing visual inputs from driver and transmitting them to Controller Assembly for further processing and onward transmission to BCM. Owing to its specialised automotive design, exclusive use within DMS and its limited function, the Applicant understands that the goods merit classification as part of signalling equipment of a kind used in motor vehicles under CTH 8512 90 00. Furthermore, since the Applicant is importing Unit Assembly from Japan, these will be eligible for exemption under S. No. 656 of Notification No. 69/2011-Customs dated 29.07.2011 as S. No. 656 covers ‘All goods’ of sub-heading 8512 90 and Unit Assembly merits classification under CTH 8512 90 00.

Application No. 03

1.3. The Applicant intends to Controller Assembly from its supplier in Japan. The application submitted by the applicant in respect of aforementioned goods is as under:

1.3.1. The Applicant is engaged in import / intends to continue to import Controller Assembly from its supplier in Japan. Controller Assembly comprises of cover, PCB, case and bracket. The Applicant supplies Controller Assembly to various automotive OEMs in India like Maruti Suzuki etc. OEMs use Controller Assembly to make Driver Monitoring System (‘DMS’) in its vehicles. DMS is an automotive safety system for capturing driver’s facial data and triggers appropriate responses (warning alarm or alert message on information display panel) in vehicle for safety of driver, accompanying passengers & vehicle. In this regard, sample Import invoice and Bill of Entry filed by importer is enclosed.

1.3.2. The Applicant is seeking Advance Ruling on following issues:

(i) Whether Controller Assembly is classifiable as ‘parts’ of ‘Electrical Lighting or Signalling Equipment’ under Customs Tariff Item (‘CTV) 8512 90 00 of the First Schedule of the Customs Tariff Act, 1975?

(ii) Whether Controller Assembly imported from Japan is eligible for exemption under S. No. 656 of Notification No. 69/2011-Customs dated 29.07.2011?

About DMS

1.3.3. DMS is in-cabin automotive safety system which captures driver’s attentiveness, drowsiness, distraction, impairment or unresponsiveness and triggers appropriate responses by alerting driver through sound or visual modes (warning alarm or alert message on information display panel) for safety of driver, accompanying passengers & vehicle. The positioning of DMS is as under:

1.3.4. DMS comprises of following parts (functionality of each part is explained hereunder):

1.3.5. DMS comprises of multiple components that are interconnected to function as a single electronic system. These components are Unit Assembly (which captures visual inputs), Cable (which connects Unit Assembly and Controller Assembly) and Controller Assembly (which processes captured data). DMS Controller Assembly is connected to external BCM (which performs alerting or signalling functions within vehicle) and finally, performs safety action through Buzzer / Indicator Lamp. Each component performs distinct and yet interdependent role.

Controller Assembly

1.3.6. Controller Assembly is part of DMS and consists of cover, PCB, case and bracket. The primary function of Controller Assembly is to analyse and process inputs received from Unit Assembly and transmit evaluated data to vehicle’s BCM. The image of Controller Assembly is under:

1.3.7. The functionality of each part of Controller Assembly is explained hereunder:

• • • Cover: Cover forms upper protective enclosure of PCB and used for packaging PCB.
    • PCB: Printed Circuit Board (PCB) is main electronic component of the Controller Assembly. It houses integrated circuits, processors and other electronic components that control and manage DMS including signal processing, data analysis and communication with other vehicle systems.
    • Case: Case forms main body or lower housing of PCB. Case is fitted with PCB to provide secure enclosure for PCB.
    • Bracket: Bracket is used for mounting PCB on motor vehicle. It provides necessary support and alignment, allowing PCB to be securely fixed to vehicle.

1.3.8 Controller Assembly analyses and processes inputs from Unit Assembly. Controller Assembly estimates^– head pose, blinks, yawn and other reactions of driver captured by Unit Assembly and processes information and runs fail-safe tests. Thereafter, Controller Assembly promotion information to BCM for creating warning signals.

1.3.9. The subject goods function as part of integrated DMS. These components are engineered and collectively serve a supporting role within comprehensive vehicle safety system.

1.3.10. Controller Assembly, therefore, performs intermediate processing and control function by receiving image data from Unit Assembly, analysing inputs and transmitting processed signals to BCM. It does not trigger any alerts or warnings independently. Signalling or alert mechanism becomes operational only after processed data is forwarded from Controller Assembly to BCM which acts as command component within vehicle’s safety system and initiates appropriate driver alerts through sound or visual modes.

STATEMENT CONTAINING APPLICANT’S INTERPRETATION OF LAW AND/OR FACTS, AS THE CASE MAY BE, IN RESPECT OF THE QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED

1.3.11. DMS merits classification under CTH 8512

As per the Applicant, DMS is appropriately classifiable under CTH 8512 and Controller Assembly being part of DMS merits classification under CTH 8512 90 00. The relevant extract of CTH 8512 is reproduced hereunder:

Tariff Item	Description
8512	ELECTRICAL LIGHTING OR SIGNALLING EQUIPMENT (EXCLUDING ARTICLES OF HEADING 8539), WINDSCREEN WIPERS, DEFROSTERS AND DEMISTERS, OF A KIND USED FOR CYCLES OR MOTOR VEHICLES
8512 10 00	Lighting or visual signalling equipment of a kind used on bicycles
8512 20	Other lighting or visual signalling equipment:
8512 20 10	Head lamps, tail lamps, stop lamps, side lamps and blinkers
8512 20 20	Other automobile lighting equipment
8512 20 90	Other
8512 30	Sound signalling equipment
8512 30 10	Horns
8512 30 90	Other
8512 40 00	Windscreen wipers, defrosters and demisters
8512 90 00	Parts

1.3.12. Heading 8512 covers electrical lighting or signalling equipment of a kind used for motor vehicles. The essential nature of DMS is to generate warning signals directed towards driver of motor vehicle. Such system constitutes signalling equipment and is covered under Heading 8512.

1.3.13. In this regard, relevant extract of HSN Explanatory Notes (Harmonised Commodity Description and Coding System developed by World Customs Organization) to CTH 8512 is reproduced below:

“This heading covers electrical apparatus and appliances specialised for use on cycles or motor vehicles for lighting or signalling purposes;

………………

(10) Parking equipment operated by means of external feelers, which, when they touch the curb or other object, cause a light or other signal to warm the driver.

(11) Anti-theft alarms which emit visual or audio signals to warn of attempts to break in to a vehicle.

(12) Horns, sirens and other electrical sound signalling appliances.

(13) Electrical apparatus that emits audio signals to warn the driver of the proximity of vehicles or other objects behind the vehicle when reversing. These apparatus usually comprise ultrasonic sensors, an electronic control unit, a buzzer or beeper and associated wiring.

(14) Electrical apparatus of a kind used in a motor vehicle to warn the driver, by visual or audio signals, that a speed detection device, such as a radar gun or a laser gun, is operating in the vicinity.

1.3.14. HSN Explanatory Notes to CTH 8512 clearly demonstrates that Heading 8512 covers equipment that provides warnings or signals to drivers through visual or audio modes. DMS performs same function by generating by alerting driver through sound or visual modes (warning alarm or alert message on information display panel) when unsafe driving behavior is detected and therefore, merits classification under CTH 8512.

1.3.15. In Re: Intel Solutions & Services India Pvt. Ltd, 2023 (385) ELT 788 (AAR – Cus. – Mum.), the Authority for Advance Ruling held that the principal function of ‘Advance Driver Assistance System’ is to operate as alert system for vehicle driver by visual and sound modes and therefore, classifiable under CTH 8512.

1.3.16. In the case of Commissioner of C Mumbai-I1 v. A.J. Industries, 2005 (188) ELT 428 (Tri.-Bom), the Tribunal held that Horn Button Assembly functioned as part of horn system which was a signalling device used in motor vehicles and treated it as signalling equipment. Accordingly, goods were classified under CTH 8512.

1.3.17. In U.S. Customs ruling HQ 964844, the question was whether Ultrasonic Parking Guide System was classifiable under Heading 8512 as sound signalling equipment for motor vehicles. The system consisted of ultrasonic sensors, controller, display unit and an audible alarm. It measured distance to obstacles and produced warning sounds. It was held that sound signalling function imparted essential character to system. Accordingly, system was classified under sub-heading 8512.30.00 as sound signalling equipment for motor vehicles.

1.3.18. In U.S. Customs Ruling HQ 964660, the issue was whether an automotive burglar alarm system was classifiable as sound signalling equipment of a kind used for motor vehicles under Heading 8512. The device comprised an electronic circuit incorporating a piezo buzzer that emitted loud alarm upon detection of changes in vehicle’s electrical current. It was held that device functioned as an audible signalling appliance, similar to horns and sirens, and belonged to a class or kind of sound signalling equipment principally used in motor vehicles. Accordingly, it was classified under sub­heading 8512.30.00 as sound signalling equipment for motor vehicles.

1.3.19. In view of the above, DMS falls under CTH 8512.

1.3.20. Controller Assembly merits classification under CTI 8512 90 00

1.3.21. CTH 8512 90 00 covers parts and preceded by single As per General Explanatory Notes to Import Tariff, where in column (2), the description of an article under a heading is preceded by the said article or group of articles shall be taken to be a sub-classification of the article covered by said heading. Hence, CTH 8512 90 00 will cover all ‘parts’ of electrical lighting or signalling equipment. Hence, parts of DMS will be classified under CTH 8512 90 CTH 8512 90 00 preceded by single

1.3.22. Rule I of GRI provides that titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to terms of headings and any relative Section or Chapter Notes. CTH 8512 is covered under Section XVI. Hence, relevant Section Notes should be referred to determine scope of CTH 8512. In this regard, the relevant extract of CTH 8512 is reproduced hereunder:

1.3.23. “2. Subject to Note Ito this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules:

(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529;”

1.3.24. Further, the HSN Explanatory Note to CTH 8512 provides as under:

“…….

PARTS

Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading are also classified here.”

Note 1 to Section XVI, Chapter 84 and Chapter 85 nowhere excludes subject product. Further, Section Note 2(a) and 2(b) provides that parts suitable for use solely or principally with a particular kind of machine are to be classified with machines of that kind. Controller Assembly is designed exclusively for use with DMS installed in vehicle and has no independent or general application outside such system.

1.3.25. The subject good is engineered exclusively for monitoring and safety integration and is incapable of independent operation as signalling apparatus. The published information has no practical use unless transmitted to BCM and thereafter, processed for signalling.

1.3.26. Controller Assembly merely receives visual data from Unit Assembly, performs processes information and transmits processed signals onward to BCM. Hence, Controller Assembly performs an intermediate, supportive role within DMS and therefore fits description of a part rather than a finished signalling device.

1.3.27. The Applicant submits that the subject goods are appropriately classifiable under CTH 8512 90 00 which covers parts of electrical equipment of a kind used for cycles or motor vehicles. Controller Assembly is not a finished equipment covered under any specific entry under Heading 8512; instead, it is a part of DMS. As such, it falls squarely within the ambit of parts designed for use with automotive electrical equipment and therefore merits classification under CTH 8512 90 00.

Reliance is also placed on Order-in-Original No. MUN-CUSTOM-000-COM-22-25-26 dated 08.09.2025 passed by Principal Commissioner of Customs, Customs House, Gujarat in Valeo India Pvt. Ltd. wherein dispute was classification of ECUs which formed part of ultrasonic reverse parking signalling systems. It was held that that ECU is an essential component of Ultrasonic Reverse Parking Assistance System (RPAS) which detects obstacles and alerts driver through audible signals. ECU receives data from ultrasonic sensors, processes it and sends output signals to buzzer or display panel. It was held that RPAS is an electrical sound-signalling apparatus of Heading 8512 as it ultimately warns driver through sound. Since ECU is indispensable for functioning of RPAS, it qualifies as part of such sound-signalling equipment and is classifiable under CTH 8512 90 00.

1.3.28. In U.S. Cross Ruling NY M86527, the question was classification of snap ring (intended to securely snap into place around visual signalling light), mounting bracket for emergency vehicle lights and aluminum base plate (strobe power supply circuit board is attached to this plate). The above products were part of signalling equipment. It was held that products merit classification under CTH 8512.90.2000.

1.3.29. In U.S. Cross Ruling N2I7605, the question was classification of Seat Sensor Assemblies, namely Seat Belt Reminder (SBR) and Child Seat Presence and Orientation Detection (CPOD) systems used in motor vehicles. SBR consisted of a sensor mat inserted into seat to detect occupant presence through resistance thresholds while CPOD sensor mat detected presence and orientation of a passenger incorporating both seat-belt reminder and passenger presence detection functions along with antennas and an electronic control unit. It was held that both items were parts of motor-vehicle signalling equipment and accordingly classified them under sub-heading 8512.90.2000, HTSUS, as parts of electrical signalling equipment of a kind used for motor vehicles.

1.3.30. Applicant’s Understanding: Controller Assembly is part of DMS. The functionality of the Controller Assembly is limited to receiving visual data from the Unit Assembly, carrying out intermediate processing and transmitting processed signals to BCM for further action. Owing to its specialised automotive design, exclusive use within DMS, and its limited, supportive function, the Applicant understands that goods merit classification as parts of signalling equipment of a kind used in motor vehicles under CTI 8512 90 00. Furthermore, since the Applicant is importing the Controller Assembly from Japan, these will be eligible for exemption under S. No. 656 of Notification No. 69/2011-Customs dated 29.07.2011 as S. No. 656 covers ‘All goods’ of sub-heading 8512 90 and Controller Assembly merits classification under CTH 8512 90 00.

Comments of the Port Commissionerate:

2.1. As per the provision of CAAR Regulation, 2021, the complete applications of the applicant were provided to the concerned Custom Port, and requested to furnish the requisite comments in the instant matters. The port authority vide their letter dated 24.03.2026 furnished its comments in respect of the three different applications, which are reproduced as under:-

2.2. The applicant is eligible in terms of Section 28-E of the Customs Act, 1962 to seek such advance ruling.

2.3. The Applications of the party may be accepted under Section 28-1(2) of the Customs Act, 1962.

2.4. As per available data with ICES 1.5, the claims of the applicant, as mentioned at SI. No. 06 to the Form CAAR- I regarding the nature of activity, appears to be correct.

2.5. As per available records with this office, no such application is pending before any officer of Customs, the Appellate Tribunal or any Court.

2.6. with the technical literature, it appears that cable is insulated with PVC having connectors on both the side. It is a part of DMS, which connects controller assembly and Unit assembly on either side. In view of its’ PVC insulation and connectors on both the sides, it may be classified under CTH 85444220.

2.6.1. Yes, Cable for use in Driver Monitoring System, imported from country ‘Japan’ and classified under CTH 85444220 is eligible for exemption under SI. No. 733 to Notification 69/2011 dated 29.07.2011.

2.7. With the technical literature, it appears that Unit assembly is not a finished product, instead it is a part of ‘Driver Monitoring System’ which comprises of panel, camera, LED, chassis and harness. It captures drivers’ data and transmits them to controller assembly for further processing and onward submission to BCM. Therefore, in view of its’ specific use within DMS and its’ limited functionality, the commodity ‘Unit Assembly’ may be treated as a part of signaling equipment and the same may be classified under CTH 8512 9000.

2.7.1. Yes, Unit Assembly imported from country ‘Japan’ and classified under CTH 85129000 is eligible for exemption under SI. No. 656 to Notification 69/2011 dated 29.07.2011.

2.8. With the technical literature, it appears that Controller Assembly consists of cover, PCB, case and bracket, its main function is to process and analyze the input received from Unit Assembly. It estimates head pose, blinks, yawn and other reaction of driver as captured by unit assembly. Since, it does not trigger any alert or warning in warning independently and it becomes operational only after processed data is forwarded to BCM, which acts as a command component within vehicle safety system and initiates action to alert the driver through sound or visual modes. Therefore, in view of its’ specific use within DMS and its’ limited functionality, the commodity ‘Controller Assembly’ may be treated as a part of signaling equipment and the same may be classified under CTH 8512 9000.

2.8.1. Yes, Controller Assembly imported from country ‘Japan’ and classified under CTH 85129000 is eligible for exemption under SI. No. 656 to Notification 69/2011 dated 29.07.2011.

3. Record of Personal hearing:

The authorized representatives of the applicant appeared for the personal hearing conducted in physical mode on 09.06.2026 and reiterated the submissions already furnished through the applications. The authorized representative highlighted the case laws in support of their claim. It is further placed on record that no authorized representative appeared on behalf of the Department at the time of personal hearing.

4. Discussion, Findings & Conclusion:

4.1 The three applications filed by applicant relate to the import of three components of a Driver Monitoring System (‘DMS’) from Japan viz. (i) Cable, (ii) Unit Assembly; and (iii) Controller Assembly. The Applicant seeks advance rulings on the appropriate classification of each of these goods under the First Schedule of the Customs Tariff Act, 1975 (‘the Tariff Act’) and on their eligibility for exemption under Notification No. 69/2011-Customs dated 29.07.2011.

4.2 The Applicant has proposed the following classifications: Cable under CTH 8544 42 20 (plastic insulated cable fitted with connectors); Unit Assembly under CTI 8512 90 00 (parts of electrical lighting or signalling equipment for motor vehicles); and Controller Assembly under CTI 8512 90 00 (parts of electrical lighting or signalling equipment for motor vehicles). The Port Commissionerate has concurred with these proposed classifications in its comments.

4.3 Having examined the CAAR-1 application, the comments received from the jurisdictional Customs Commissionerate, the record of personal hearing held on 09.06.2026, and the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I, therefore, allow the application and proceed to determine the classification of the proposed imports on the basis of the information on record.

Product under consideration:

4.4 Before examining the classification of individual components, it is necessary to understand the nature and function of DMS as a whole. As described in the Applications, DMS is an in-cabin automotive safety system which captures the driver’s attentiveness, drowsiness, distraction, impairment or unresponsiveness and triggers appropriate responses by alerting the driver through sound or visual modes viz. “a warning alarm or alert message on the information display panel”, for the safety of the driver, accompanying passengers and the vehicle.

4.5 The DMS comprises three principal components: the Unit Assembly (which captures visual inputs of the driver), the Cable (which connects the Unit Assembly and Controller Assembly), and the Controller Assembly (which processes the captured data). The Controller Assembly is connected to the vehicle’s Body Control Module (‘BCM’), which then actuates alerts through the Buzzer or Indicator Lamp. Each component performs a distinct yet interdependent role, and none of the components is capable of independent operation as a signalling or safety apparatus.

Classification of Cable (Application No. 01)

4.6 The Cable is a PVC-insulated electric cable fitted with connectors on both sides, designed to connect the Unit Assembly with the Controller Assembly within the DMS. It transmits data and power between the two assemblies. The Cable is imported as a distinct article and does not itself perform any signalling, image-capturing, or data-processing function.

4.7 The Applicant’s claim that the Cable merits classification under Tariff Heading 8544 and specifically under CTH 8544 42 20. The Tariff Heading 8544 covers as follows:-

8544		INSULATED (INCLUDING ENAMELLED OR ANODISED) WIRE, CABLE (INCLUDING CO-AXIAL CABLE) AND OTHER INSULATED ELECTRIC CONDUCTORS, WHETHER OR NOT FITTED WITH CONNECTORS; OPTICAL FIBRE CABLES, MADE UP OF INDIVIDUALLY SHEATHED FIBRES, WHETHER OR NOT ASSEMBLED WITH ELECTRIC CONDUCTORS OR FITTED WITH CONNECTORS
	–	Winding wire:
8544 11	—	Of copper:
8544 11 10	—	Enameled
8544 11 90	—	Other
8544 19	—	Other:
8544 19 10	—	Asbestos covered
8544 19 20	—	Plastic insulated
8544 19 30	—	Rubber insulated
8544 19 90	—	Other
8544 20	–	Co-axial cable and other co-axial electric conductors:
8544 20 10	—	Co-axial cable
8544 20 90	—	Other
8544 30 00	–	Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships
	–	Other electric conductors of a voltage not exceeding 1,000 V.
8544 42	—	Fitted with connectors:
8544 42 10	—	Paper insulated
8544 42 20	—	Plastic insulated
8544 42 30	—	Rubber insulated
	—	Other:
8544 42 91	—	Paper insulated, of a kind used in telecommunication
8544 42 92	—	Plastic insulated, of a kind used in telecommunication
8544 42 93	—-	Rubber insulated, of a kind used in telecommunication
8544 42 99	—-	Other
8544 49	—	Other:
8544 49 10	—	Paper insulated
8544 49 20	—	Plastic insulated
8544 49 30	—	Rubber insulated
	—	Other:
8544 49 91	—	Paper insulated, of a kind used in telecommunication
8544 49 92	—-	Plastic insulated, of a kind used in telecommunication
8544 49 93	—-	Rubber insulated, of a kind used in telecommunication
8544 49 99	—-	Other
8544 60	–	Other electric conductors, for a voltage exceeding 1000 V
8544 60 10	—	Paper insulated
8544 60 20	—	Plastic insulated
8544 60 30	—	Rubber insulated
8544 60 90	—	Other
8544 70	–	Optical fibre cables: .
8544 70 10	—	Lead alloy sheathed cables for lighting purposes
8544 70 90	—	Other

4.8 On perusal of the tariff heading 8544, it is evident that the same covers “insulated wires, cables and other insulated electric conductors, whether or not fitted with connectors”. Within this, the sub­heading 8544 42 specifically covers “conductors for a voltage not exceeding 1,000V, fitted with connectors”. CTH 8544 42 20 further narrows this to plastic insulated cables fitted with connectors. The subject Cable, being PVC (plastic) insulated and fitted with connectors at both ends, squarely falls within the description of CTI 8544 42 20.

4.9 I also note that the HSN Explanatory Notes to Heading 8544 additionally provide that the heading covers wire sets made up in sets such as multiple cables for connecting motor vehicle sparking plugs to the distributor. The subject Cable, being a purpose-built connector cable for an automotive system, is consistent with the scope of this heading. It is noted that the Cable, while forming a part of the DMS, is specifically and expressly covered by the terms of CTH 8544 42 20. In terms of Section Note 2(a) of Section XVI, parts which are goods included in any of the headings of Chapter 84 or 85, other than the excluded headings listed, are in all cases to be classified in their respective headings. Since, the Cable is a good specifically covered under Heading 8544, it must be classified there, regardless of its end-use as a part of DMS. Heading 8544 is not among the headings excluded under Section Note 2(a) of Section XVI.

4.10 The classification of the Cable under CTH 8544 42 20 is therefore confirmed. Since the Cable is being imported from Japan as per CAAR application and falls under sub-heading 8544 42, which is covered under S. No. 733 of Notification No. 69/2011-Customs dated 29.07.2011 (which covers ‘All goods’ of sub-headings 8544 20 to 8544 60), the Cable is eligible for the customs duty exemption under the said Notification.

Classification of Unit Assembly and Controller Assembly (Application No. 2 & 3)

4.11 The Applicant has proposed classification of both the Unit Assembly and Controller Assembly under CTH 8512 90 00, as parts of electrical lighting or signalling equipment of a kind used for motor vehicles. For the reasons elaborated below, this Authority does not accept the said classification and instead proceeds to examine whether the goods are more appropriately classifiable under Chapter 87, specifically under CTH 8708 99 00.

Tariff Code		Description
8512	–	ELECTRICAL LIGHTING OR SIGNALLING EQUIPMENT (EXCLUDING ARTICLES OF HEADING 8539), WINDSCREEN WIPERS, DEFROSTERS AND DEMISTERS, OF A KIND USED FOR CYCLES OR MOTOR VEHICLES
8512 10 00	–	Lighting or visual signalling equipment of a kind used on bicycles
8512 20	—	Other lighting or visual signalling equipment:
8512 20 10	–	Head lamps, tail lamps, stop lamps, side lamps and blinkers
8512 20 20	–	Other automobile lighting equipment
8512 20 90	–	Other
8512 30	—	Sound signalling equipment:
8512 30 10	–	Horns
8512 30 90	–	Other
8512 40 00	–	Windscreen wipers, defrosters and demisters
8512 90 00	–	parts
8708		PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705
8708 10	–	Bumpers and parts thereof :
8708 10 10	—	For tractors
8708 10 90	—	Other
	–	Other parts and accessories of bodies (including cabs) :
8708 21 00	—	Safety seat belts
8708 22 00	—	Front windscreens (windshields), rear windows and other windows specified in Subheading Note 1 to this Chapter
8708 29 00	—	Other
8708 30 00	–	Brakes and servo-brakes; parts thereof
8708 40 00	–	Gear boxes and parts thereof
8708 50 00	–	Drive-axles with differential, whether or not provided with other transmission components, non-driving axles; parts thereof
8708 70 00	–	Road wheels and parts and accessories thereof
8708 80 00	–	Suspension systems and parts thereof (including shock-absorbers)
	–	Other parts and accessories : _
8708 91 00	—	Radiators and parts thereof
8708 92 00	—	Silencers (mufflers) and exhaust pipes; parts thereof
8708 93 00	—	Clutches and parts thereof
8708 94 00	—	Steering wheels, steering columns and steering boxes; parts thereof
8708 95 00	—	Safety airbags with inflator system; parts thereof
8708 99 00	—	Other

4.12. On perusal of the Tariff Heading 8512, it is evident that the same covers “Electrical Lighting or Signalling Equipment (excluding articles of Heading 8539), Windscreen Wipers, Defrosters and Demisters, of a kind used for cycles or motor vehicles”. The Applicant contends that DMS constitutes ‘signalling equipment’ within the meaning of tariff heading 8512, and that the Unit Assembly and Controller Assembly, being parts thereof, merit classification under CT1 8512 90 00.

4.13. The Applicant has placed reliance on item (13) and item (14) of the HSN Explanatory Notes to Tariff Heading 8512, which refer to (i) electrical apparatus that emits audio signals to warn the driver of the proximity of vehicles or other objects behind the vehicle when reversing (typically comprising ultrasonic sensors, an electronic control unit, a buzzer and associated wiring); and (ii) electrical apparatus used in a motor vehicle to warn the driver, by visual or audio signals, that a speed detection device is operating in the vicinity.

4.14. However, a careful examination of the HSN Explanatory Notes to Tariff Heading 8512 reveals that the scope of the heading, insofar as signalling or warning equipment is concerned, is confined to apparatus whose primary and essential function is to generate or emit signals or warnings directed at the driver. The relevant extract of HSN Explanatory Notes (Harmonised Commodity Description and Coding System developed by World Customs Organization) to CTH 8512 is reproduced below:

“This heading covers electrical apparatus and appliances specialised for use on cycles or motor vehicles for lighting or signalling purposes;

The heading includes, inter alia:

……

(11) Anti-theft alarms which emit visual or audio signals to warn of attempts to break in to a vehicle.

(12) Horns, sirens and other electrical sound signalling appliances.

(13) Electrical apparatus that emits audio signals to warn the driver of the proximity of vehicles or other objects behind the vehicle when reversing. These apparatus usually comprise ultrasonic sensors, an electronic control unit, a buzzer or beeper and associated wiring.

(14) Electrical apparatus of a kind used in a motor vehicle to warn the driver, by visual or audio signals, that a speed detection device, such as a radar gun or a laser gun, is operating in the vicinity.

…….”

The examples enumerated in items (10) through (14) of the Explanatory Notes viz. “parking sensors, anti­theft alarms, horns, sirens, reversing sensors, and radar detectors”, are all apparatus that directly generate or transmit a warning signal or sound as their essential output. The common thread in these examples is that the apparatus directly produces the signal or alarm, or actively transmits it to the driver.

4.15 The DMS, however, operates on a fundamentally different principle. The DMS does not itself emit any warning or signal. The Unit Assembly merely captures image data of the driver; the Controller Assembly merely processes that data and transmits processed information to the vehicle’s BCM. It is the BCM, an entirely separate and external system within the vehicle, that receives the processed data and then commands the Buzzer or Indicator Lamp to emit the actual warning. The DMS thus does not fit within the class of goods described in items (10) to (14) of the Explanatory Notes to Tariff Heading 8512.

4.16 I note that Item (13) of the Explanatory Notes to tariff heading 8512, which is the closest analogue cited by the Applicant, refers to reversing-sensor systems that ’emit audio signals’ to warn the driver of proximity to obstacles. The key distinction is that such systems, comprising sensors, an ECU, a buzzer and wiring, form a complete, self-contained apparatus that directly generates and outputs the warning signal. In contrast, the DMS does not directly emit any warning. The alert chain in DMS runs from the Unit Assembly to Controller Assembly to BCM (an external module) to Buzzer/Indicator Lamp. The signalling function is thus not inherent or essential to the DMS components themselves but is an output of a chain involving multiple external vehicle systems beyond the DMS.

4.17 It is a well-settled principle of tariff interpretation that the scope of Explanatory Notes cannot be extended beyond what is explicitly described therein, nor can items be brought within the ambit of a heading by analogy alone. The Explanatory Notes represent the authoritative guidance on the scope of headings, and item (14) of the EN to CTH 8512 does not cover a system which merely captures and processes data for onward transmission to an external module for eventual alarm triggering. To extend the scope of CTH 8512 to cover image-capturing and data-processing units of a driver monitoring system would be to enlarge the heading beyond its clear terms without any legal or factual basis.

4.18 This Authority notes that the ruling in In Re: Intel Solutions & Services India Pvt. Ltd. [2023 (385) ELT 788 (AAR – Cus. – Mum.)], relied upon by the Applicant, concerned an ‘Advance Driver Assistance System’ (ADAS) whose principal function was to operate as an alert system for the vehicle driver. The facts of that case, including the specific configuration and direct alerting function of the system in question, are materially different from the DMS in the present case, where the actual alert function is executed by the BCM and Buzzer/Indicator Lamp, systems external to and independent of the DMS. Accordingly, that ruling cannot be directly applied to the present facts.

4.19 Similarly, the rulings in Commissioner of C. Ex., Mumbai-II v. A.J. Industries [2005 (188) ELT 428 (Tri.-Bom)], U.S. Customs Ruling HQ 964844, and U.S. Customs Ruling HQ 964660, all concerned equipment that directly functioned as sound or visual signalling apparatus viz. horns, parking guides, and alarm systems, which are self-contained in their signalling function, None of these rulings support classifying a data-capture and data-processing sub-system, which relies on external modules to complete the alert chain, as signalling equipment under CTH 8512.

4.20 For the foregoing reasons, this Authority holds that DMS, as a whole, does not constitute ‘Electrical Signalling Equipment’ within the scope of CTH 8512, and consequently, the Unit Assembly and Controller Assembly cannot be classified under CTI 8512 90 00 as parts of goods of Heading 8512.

4.21 The Applicant has argued that the Unit Assembly and Controller Assembly, being parts of the DMS (which is installed in motor vehicles), should be classified under Chapter 85. Before proceeding, it is necessary to first examine Note 2 to Section XVII of the Customs Tariff, which governs the scope of the expressions ‘parts’ and ‘parts and accessories’ for goods of that Section (which includes Chapter 87 covering vehicles and their parts).

4.22 Note 2(f) to Section XVII provides as under:

“The expressions ‘parts’ and ‘parts and accessories’ do not apply to the following articles, whether or not they are identifiable as for the goods of this Section:… (I) Electrical machinery or equipment (Chapter 85).”

4.23 The Note 2(f) of Section XVII is unambiguous: articles falling within Chapter 85, whether or not they are identifiable as parts or accessories for vehicles of Section XVII, are excluded from treatment as ‘parts and accessories’ of vehicles and cannot be classified under Chapter 87 on that basis. The Note creates an absolute and unconditional exclusion. The only question, therefore, is whether the Unit Assembly and Controller Assembly are goods of Chapter 85.

4.24 As discussed above, the Unit Assembly and Controller Assembly are not classifiable under CTH 8512 (since the DMS, of which they form part, does not constitute electrical signalling equipment within the scope of that heading). It is therefore necessary to further examine whether they fall under any other heading of Chapter 85.

4.25 Having excluded CTH 8512, it is necessary to examine whether the Unit Assembly and Controller Assembly are specifically covered by any other heading within Chapter 85.

4.26 The Unit Assembly consists of a camera, LED, panel, chassis and harness. Its primary function is to capture image data of the driver using a camera. However, examined as a whole, the Unit Assembly is not classifiable as a camera under CTH 8525 (transmission apparatus, cameras), as it is specifically designed and configured as a sub-module of an automotive safety system and has no independent photographic or transmission function outside the DMS context. Nor does it fall under CTH 8543 (other electrical machines and apparatus) with any specificity.

4.27 The Controller Assembly consists of a cover, PCB, case and bracket, with the PCB serving as its primary electronic component. The Controller Assembly receives image data from the Unit Assembly, processes it and transmits processed signals to the vehicle’s BCM. While a PCB in isolation might conceptually fall within various headings of Chapter 85, the Controller Assembly, comprising the PCB in its assembled enclosure with bracket for vehicle mounting, does not fall specifically within any enumerated heading of Chapter 84 or 85 to the exclusion of other headings.

4.28 Significantly, Section Note 2(a) of Section XVI provides that parts which are goods included in any of the headings of Chapter 84 or 85 (other than certain excluded headings) are in all cases to be classified in their respective headings. This rule mandates classification in a specific Chapter 84 or 85 heading only where the part is specifically covered by such a heading. In the present case, neither the Unit Assembly nor the Controller Assembly is specifically and exclusively classifiable under any heading of Chapter 84 or Chapter 85. No heading in Chapter 85 specifically enumerates driver monitoring sub-units, image-capture assemblies for automotive safety systems, or purpose-built automotive data-processing modules of the kind in question.

4.29 In the absence of specific classification of either the Unit Assembly or the Controller Assembly under any heading of Chapter 85, Note 2(f) of Section XVII which excludes from Chapter 87 only those articles falling within Chapter 85, does not operate as a bar to their classification under Chapter 87. The exclusion under Note 2(f) applies only to articles that are goods of Chapter 85 by specific coverage. Since the Unit Assembly and Controller Assembly are not specifically covered by any heading of Chapter 85, the exclusion does not apply, and their classification must be considered under Chapter 87.

4.30 Chapter 87 covers ‘Vehicles other than railway or tramway rolling stock, and parts and accessories thereof. Tariff Heading 8708 covers ‘Parts and accessories of the motor vehicles of headings 8701 to 8705’. CTH 8708 99 00 is the residual sub-heading covering ‘Other’ parts and accessories of motor vehicles not specifically covered elsewhere within CTH 8708.

4.31 The Unit Assembly is mounted inside the vehicle compartment and is an integral component of the DMS, which is permanently installed in motor vehicles (such as those manufactured by Maruti Suzuki). It has no independent use or application outside the motor vehicle context. It is specifically engineered for exclusive use as part of the DMS in motor vehicles and functions solely in conjunction with other vehicle systems (Controller Assembly, BCM, Buzzer/Indicator Lamp). These facts establish that the Unit Assembly is apart of a motor vehicle within the meaning of Section XVII and CTH 8708.

4.32 Similarly, the Controller Assembly is mounted on the motor vehicle by means of its bracket, is exclusively designed for use within the DMS in motor vehicles, and performs no function independent of the vehicle-integrated system. It is not a finished piece of standalone equipment; it is a purpose-built sub-assembly designed exclusively for automotive integration. The Controller Assembly is accordingly apart of a motor vehicle.

4.33 Having regard to Section Note 2(b) of Section XVI, it bears emphasis that the Note 2(b) principle which directs that parts suitable for use solely or principally with a particular kind of machine are to be classified with the machines of that kind, is a rule applicable within the framework of Chapter 84 and 85. Since neither the Unit Assembly nor the Controller Assembly is specifically classifiable under any heading of Chapter 84 or 85, the goods fall to be classified by reference to Section XVII and Chapter 87.

4.34 As per Rule I of General Rule of Interpretation, classification is determined by the terms of the headings and any relevant Section or Chapter Notes. Tariff Heading 8708, read with Section XVII Notes, covers parts and accessories of motor vehicles. The Unit Assembly and Controller Assembly are parts of a system permanently integrated into motor vehicles for the purpose of monitoring driver safety, a function that is automotive in character and without analogue outside the motor vehicle context.

4.35 Within Tariff Heading 8708, the Unit Assembly and Controller Assembly do not fall within any of the specifically enumerated sub-headings (such as bumpers, brakes, gear boxes, drive axles, etc.). They are accordingly classifiable under the residual entry CTH 8708 99 00 which covers ‘Other’ parts and accessories of motor vehicles of headings 8701 to 8705. This conclusion is consistent with the principle that where a part is purpose-built and designed exclusively for use as a component of an automotive system, having no general or independent application outside that context, and is not specifically covered by any more specific heading in Chapter 84 or 85, it falls to be classified under Chapter 87 as a part of the vehicle in which it is permanently incorporated.

5. In view of the foregoing discussion, this Authority rules as under:

(1) Application No. 01 — Cable: The Cable, being a PVC (plastic) insulated electric cable fitted with connectors at both ends, is correctly classifiable under CTH 8544 42 20 of the First Schedule to the Customs Tariff Act, 1975, as ‘Plastic Insulated’ cable fitted with connectors for a voltage not exceeding 1,000V. The Cable imported from Japan is eligible for customs duty exemption under S. No. 733 of Notification No. 69/2011-Customs dated 29.07.2011, which covers ‘All goods’ of sub-headings 8544 20 to 8544 60.

(2) Application No. 02— Unit Assembly: The Unit Assembly (comprising panel, camera, LED, chassis and harness), being exclusively designed and used as a sub-assembly of the Driver Monitoring System installed in motor vehicles, and not being specifically covered by any heading of Chapter 85, is classifiable under CTH 8708 99 00 of the First Schedule to the Customs Tariff Act, 1975, as ‘Other’ parts and accessories of motor vehicles of headings 8701 to 8705. The Unit Assembly is not classifiable under CTH 8512 90 00. Consequently, the question of eligibility for exemption under S. No. 656 of Notification No. 69/2011-Customs dated 29.07.2011 does not arise.

(3) Application No. 03 — Controller Assembly: The Controller Assembly (comprising cover, PCB, case and bracket), being exclusively designed and used as a sub-assembly of the Driver Monitoring System installed in motor vehicles, and not being specifically covered by any heading of Chapter 85, is classifiable under CTH 8708 99 00 of the First Schedule to the Customs Tariff Act, 1975, as ‘Other’ parts and accessories of motor vehicles of headings 8701 to 8705. The Controller Assembly is not classifiable under CTH 8512 90 00. Consequently, the question of eligibility for exemption under S. No. 656 of Notification No. 69/2011-Customs dated 29.07.2011 does not arise.