In re Samsung India Electronics India Private Limited (CAAR Delhi)
An application for advance ruling was filed seeking classification of “Side Key FPCB” proposed to be imported for use in the manufacture of smartphones. The applicant is engaged in manufacturing and sale of electronic products including smartphones and imports various components, including the subject product, which is a sub-assembly incorporated into smartphones.
The subject product is a flexible printed circuit board encased in a steel bracket and functions as part of the side key mechanism of smartphones, including power and volume buttons. It connects these buttons to the main printed circuit board assembly and includes tactile switches that detect physical presses and convert them into electrical signals. The product also contains multiple electrical and non-electrical components such as capacitors, inductors, antenna clips, conductors, rubber domes, and conductive tapes. It operates as a connector between sub-assemblies and is specifically designed for use in smartphones, with model-specific variations.
The applicant submitted that the product is solely and principally used with smartphones and cannot function independently. It argued that classification should be under tariff heading 8517, which covers telephone sets including smartphones and their parts. Specifically, it was claimed that the product qualifies as a populated printed circuit board under CTI 8517.79.10. The applicant relied on General Rules for Interpretation (GRI), particularly Rule 1, and Section Note 2(b) of Section XVI, which provides that parts suitable for use solely or principally with a particular machine are to be classified with that machine.
