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2023 (7) TMI 1065 - AAR - CustomsClassification of goods proposed to be imported - Thermal Printer Ribbons (TPR) - classifiable under Tariff Item 8443 99 59 of the First Schedule to the Customs Tariff Act, 1975 or not? - rate of duty applicable on the import of Thermal Printer Ribbons - HELD THAT:- TPR consist of the following core components viz., supply and take-up spools, thermal transfer ink ribbon, geared and non-geared flanges, a RFID tag (communicates information to the printer) and a cleaning roller. The product does not consist of Ink cartridge or Ink nozzle spray. It is the ink in the ribbon which melts from the heat in the print head and is transferred on the Card. It has been submitted that "Thermal Printer Ribbon" is a part of Thermal Transfer Printing Machinery and therefore falls for classification under Heading 8443 "Printing machinery used for printing by means of plates, cylinders and other printing components of heading 8442; Other printers, copying machines, and facsimile machines, whether or not combined; parts and accessories thereof”. The applicant has relied upon judgment of the CESTAT, Mumbai in the case of M/S HONEYWELL AUTOMATION INDIA LTD. VERSUS COMMISSIONER OF CUSTOMS, ACC, MUMBAI [2017 (10) TMI 409 - CESTAT MUMBAI] whereunder it was held that Thermal Printer is a printing device capable of being connected to an Automatic Data Processing Machine or a network to print output and thus would be covered under CTH 8443 32 90. Based on the established ratio of CESTAT, Mumbai's decision in case of Honeywell Automation India Ltd. applicant has further stated that since Thermal Printer Ribbon (TPR) is an integral part of the Thermal printer and without TPR the thermal printers cannot function, the TPR be classified as a part of Thermal Printer under CTH 8443 99 -Parts and accessories of goods of sub heading 8443 31, 8443 32 and further Tariff item 8443 99 59 -Other. Applicant while basing their argument on functionality and physical characteristics of the product has further submitted that 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. Thermal Printing Ribbon (TPR) proposed to be imported by the applicant falls under CTH 8443 99 59 of the First schedule to the CTA, 1975. Rate of duty applicable to the Thermal Printer Ribbon falling under the CTH 8443 99 59 is BCD- Nil & IGST -18%.
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