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2021 (4) TMI 1362 - AAR - CustomsClassification of goods proposed to be imported - Portable Computers viz. Barcode Mobile Computers, RFID Mobile Computer and Tablet Mobile Computer - to be classified under heading 8471 or not - HELD THAT:- From the working and features of the impugned devices, it appears that these are not the units of ADP machines, but ADP machines themselves. Note 6(D) to chapter 84 lists certain separately presented products that are to be excluded from heading 8471, even if they can be classified as part of an ADP system. Note 6(E) to chapter 84 mentions that a machine incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. As the impugned devices, as described by the applicant, appear to be akin to ADP machines performing capturing of data and its further processing, notes 6(D) and 6(E) do not appear to have application in this case. From the note, it is clear that a composite machine performing various functions is to be classified according to the principal function performed by such a device - In the instant case, these devices combine computing and scanning functions for monitoring deliveries, tracking assets, and managing inventory. 18 out of 36 devices also have communication capabilities. However, for the products under consideration, automatic data processing appears to be the main function, while other functionalities of said machines are not different from auxiliary functions that could be seen on any computer, such as desktop or laptop computers. In circular no. 20/2013- Cus, dated 14.05.2013, clarification has been given by the Central Board of Excise and Customs (CBEC) regarding the classification of "tablet computers" under heading 8471 - as per the said circular, tablet computers are classifiable under heading 8471 and not under heading 8517 despite the fact that the product is having cellular connection functionality, considering its principal function as automatic data processing. Similarly, in this case, the principal function of the impugned devices is barcode scanning and data processing for monitoring deliveries, tracking assets and managing inventory. Therefore, these devices appear to merit classification under heading 8471 and not under heading 8517. The devices under consideration are principally not telephones for cellular networks. In fact, 18 out of 36 models do not have the functionality of cellular connectivity, which shows that the SIM is not an integral part of these devices, as these devices are able to perform their primary function with or without the SIM card. These devices do not appear to be convenient for the purpose of telephony as a principal function. As per circular no. 20/2013- Cus., dated 14.05.2013, "the difference between a "smartphone" and "tablet computer", is not based on whether the product has a voice calling function or not, but on the principal features that a producer has intended for the device when designing and developing it". These devices are essentially ADP machines with additional connectivity capabilities, including cellular connectivity for 18 models - the devices under consideration are not classifiable as smartphones. They merit classification under subheading 8471 30 90. Thus, the 36 devices are classifiable under Customs tariff heading 8471 and more specifically, under subheading 8471 30 90 of the first schedule to the Customs Tariff Act, 1975.
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