Case Law Details
In re HID India Private Limited (CAAR Mumbai)
Thermal Printer Ribbon (TPR) cannot be classified under Chapter Heading 9612 as the Thermal Printer Ribbon is different from typewriter/computer printer ribbons because of the difference in the physical characteristics and printing process. CTH 9612 comprises of “Typewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges”. The product in question cannot be described as a typewriter or similar ribbons, inked or otherwise, prepared for giving impressions. A typewriter ribbon is typically narrow and thin while the Thermal Printer Ribbon in the present case is wide. Further, the purpose of the typewriter ribbon is to serve as a medium for printing text on paper by impression from impact. In contrast, the purpose of ribbon in TPR is to serve as a medium for printing graphic images and text on an ID plastic card by use of heat. In the thermal printing process, pigmented dye and/or resin is never transferred to the card by means of impact but due to the heat on the printer head. In summary, the functionality and the physical characteristics of Thermal Printer Ribbon and typewriter ribbon are clearly not akin. I agree with this contention of the applicant. Based on section note 2 to Section XVI of the First schedule to the CTA, 1975, case laws referred by the applicant and explanatory notes submitted I find that Thermal Printer Ribbon is correctly classifiable under the CTH 8443 99 59 and not under the CTH 9612.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
1.1 The Applicant, HID India Pvt. Ltd., is engaged in import, sales and distribution of various HID brand products, primarily access control cards, readers and printers. The Applicant proposes to import the products commonly known as “Thermal Printer Ribbon” (“TPR”), which is specially designed for use with thermal ID card printers i.e. DTC and FIDP printers. Applicant submits that similar products imported in the past have been cleared under self-assessment under Customs Tariff Heading (CTH) 8443 (which according to the applicant is the correct CTH) as well as under CTH 9612 (which has been adopted purely for expedient reasons in order to avoid delay in clearance). Applicant states and submits that there has been no authoritative determination on classification of the said product by the proper officer of Customs in the applicant’s own case at any time in the past. The present advance ruling application CAAR-1 is filed to get an authoritative ruling on the issue of classification and taxability of the product in question which can be used in future imports and has sought an advance ruling on following issues:
1. Whether “Thermal Printer Ribbons” (TPR) proposed to be imported by the Applicant is classifiable under Tariff Item 8443 99 59 of the First Schedule to the Customs Tariff Act, 1975?
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