In re Radiant Enterprises (CAAR Mumbai)
Summary: Customs Authority for Advance Rulings (CAAR), Mumbai ruled that embedded Wi-Fi, cellular communication and navigation/positioning (GNSS) modules proposed to be imported by Radiant Enterprises merit classification under Customs Tariff Item 8517 79 90 as parts of apparatus for transmission or reception of voice, images or other data. The application covered the 2DS Wi-Fi module; cellular modules Neoway N58, Quectel SC600Y Series, AirPrime WP76XX Series, Neoway M590, Neoway N706-CB and TT02-00; and GNSS modules TAU1114, TAU1204 and TT03-00. CAAR examined Heading 8517, the General Rules for Interpretation, HSN Explanatory Notes and Note 2 to Section XVI. It found that, in their imported condition, the modules do not independently perform the communication or positioning function for which the completed host apparatus is intended.
They become operational only after integration with a PCB and other essential components such as an antenna, power source and, for cellular modules, SIM/eSIM. Applying the test whether an item has a separate identifiable function and whether it can operate independently, CAAR held that the modules are parts rather than complete apparatus.
The Authority also relied on earlier rulings and judicial precedents concerning classification of modules and parts. Having classified the goods under CTI 8517 79 90, CAAR further held that they are covered by Sl. No. 5 of Notification No. 57/2017-Cus., dated 30.06.2017, as amended, and are eligible for Nil Basic Customs Duty because they are not parts of cellular mobile phones or wrist-wearable devices, nor inputs or sub-parts for manufacture of those excluded goods. The exemption remains subject to prescribed conditions and verification by jurisdictional Customs authorities at importation.
