Case Law Details
In re Amazon seller services Pvt Ltd (CAAR Mumbai)
From the functionality perspective, the product under consideration, therefore, appears to perform the function of reception, conversion and transmission in all three different scenarios described above. The first rule of interpretation of customs tariff is that goods under consideration should be classified in accordance with the terms of the heading or relevant section or chapter notes. Since, the applicant, as well as the Principal Commissioner/Commissioner of Customs of ACC(Import), Delhi; ACC (Import), Mumbai, ACC, Chennai; and Sea Port, Chennai all suggest that the heading 851762 is an appropriate classification entry for the device under consideration, I proceed to examine the said tariff entry first. Tariff Item 8517 includes ‘Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528.’ The six-digit tariff entry 851762 under the said heading contains within its ambit ‘Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus.’ Under the above tariff entry, the sub-heading 8517 62 90 is a residual entry titled as ‘Others.’ The relevant explanatory notes to HSN to heading 8517 provides that ‘This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electromagnetic waves in wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio telegraphy, local and wide area networks.’ The explanatory notes further clarify that ‘These apparatus (apparatus for telegraphic communication other than facsimile machines of heading 8443) are essentially designed for converting characters, graphics, images or other data into appropriate electrical impulses, for transmitting those impulses, and at the receiving end, receiving these impulses and converting them either into conventional symbols or indications representing the characters, graphics, images or other data or into characters, graphics, images or other data themselves.’ The applicant has also placed reliance on US Cross Ruling N027719 which classifies D-Link AirPlus Xtreme 2.4GHZ wireless access points as a communication device which is utilized within switches, routers, access points within a network and has a synchronous random-access memory (SDRAM) chips soldered onto a printed circuit board. It was held to be a complete networking device and classified under 851762, and also on the UK Customs tariff which classifies networking devices under sub heading 851762. In the Advance Ruling No. CAAR/Mum/ARC/59/2021, dated 08.10.2021, I had an occasion to examine the specifications and functions of other types of networking devices and on the basis of available information, had reached the conclusion that the said networking devices merit classification under sub-heading 85176290. In that ruling, considering the fact that the utility of the devices under consideration ultimately lies in their ability to provide content for view on a television set, the alternate tariff entry for these goods can be 8525 (TRANSMISSION APPARATUS FOR RADIO-BROADCASTING OR TELEVISION, WHETHER OR NOT INCORPORATION RECEPTION APPARATUS OR SOUND RECORDING OR REPRODUCING APPARATUS; TELEVISION CAMERAS, DIGITAL CAMERAS AND VIDEO CAMERA RECORDERS), was also examined, but rejected in view of the fact that the network devices under consideration do not transmit radio/video broadcast signals. On the contrary, their function is to extract the content from the hard disk drive or Amazon cloud/internet as per the demand of the user. The same line of reasoning would remain equally applicable in this case. Considering the functional aspects of the Networking Device Model No. D5N83A, discussed in detail in the preceding paragraphs, I agree with the suggestion of the applicant, as well as the views of the Principal Commissioner/Commissioner of Customs of ACC(Import), Delhi; ACC(Import), Mumbai; ACC, Chennai; and Sea Port, Chennai.
In view of the discussions as above, my ruling is as under: –
‘Networking Device Model No. D5N83A is correctly classifiable under sub-heading 85176290 of the first schedule to the Customs Tariff Act, 1975.’
FULL TEXT OF ORDER OF CUSTOMS AUTHORITY FOR ADVANCE RULINGS
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