Handheld enterprise mobile computers classifiable under subheading 84713090

In re RET-Tech Private Limited (CAAR Mumbai)

M/s. RET-Tech Private Limited (the applicant, in short) filed an application before the Customs Authority for Advance Ruling, Mumbai (CAAR, in short) seeking advance rulings on the classification of the devices namely handheld enterprise mobile computers, having the following models: –

Table-1

2. The Applicant is engaged in the business of trading, designing, manufacturing, marketing and sale of Automated Identification and Data Capture (AIDC) products such as barcode scanners, barcode printers, mobile computers, POS printers and other information technology products utilised for primarily business and enterprise computing and IT solutions. The applicant intends to import the above-mentioned handheld mobile computers. These devices have Hard Keys (Volume up/down key, left/right scan, power, reset), Soft Keys (Three touch keys: Back, Home. Menu). are powered by Qualcomm or Mediatek Octa-core processor and possess the Android (7/8/9/10/11 or 1 2) operating system. They are equipped with front and rear cameras, battery and gorilla glass. They support GPS, Bluetooth and wi-fi system. They have multi touch capacitive screen, motion sensor equipped and have micro-SD card extension capability. As per the applicant, these devices are computers used for scanning barcode and processing data in order to increase efficiency of functions in supply chain management such as inventory management, asset tracking, stock taking etc. The product carries a processing ability of a laptop and the functionality of a scanner in a single wireless device. They essentially perform ID 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 although many models of handheld mobile computers do not have the feature of connecting to a cellular network. 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 Wi-Fi connectivity is not available. Some models may have such cellular network connectivity feature in addition to wireless LAN connectivity. Out of 13 devices specified in Table-1 above. devices at sl. nos. 1-5 do not have features to connect to cellular network whereas those at si. nos. 6-13 have feature to connect to cellular network.

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 It is submitted that the classification of the goods under the Customs Tariff is governed by the principles as enumerated in the General Rules of Interpretation (`GRI’) set out in the Tariff. As per Rule 1 of the GRI, classification of the products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require. according to the remaining Rules of the GRI. The product in question is an Automatic Data Processing Machine (ADP) and is specifically covered under the Heading 84.71.

Heading 84.71, inter alia, covers automatic data processing machines and units thereof. The Heading also includes portable ADP machines that do not require an external electrical output for functioning. The relevant entries of Heading 84.71 of are extracted in the table below:

Table-2