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2023 (11) TMI 68 - AAR - CustomsClassification of goods proposed to be imported - Routers - to be classified under sub-heading 8517 62 90 or not - eligibility benefit of exemption under Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended - HELD THAT:- The impugned goods are devices that connect two or more packet-switched networks or sub-networks and deliver Wi-Fi network access to all parts of the house. They serve two primary functions: managing traffic between these networks by forwarding data packets to their intended IP addresses, and allowing multiple devices to use the same internet connection. The Wavlink models Quantum D2G, Quantum S2K and WL-WN529E4 are wireless routers, which use an Ethernet cable to connect to a modem. A mesh Wi-Fi system is a home networking solution that opts for a more decentralised approach. Instead of connecting all the devices through the same router, mesh Wi-Fi systems rely on multiple Wi-Fi nodes. One node is the designated primary router and is directly wired into the gateway connection, while the other nodes act as satellites. Collectively, the nodes function as a single network. The device gets connected to the node that is closest to it. As per the applicant, the subject goods are classifiable under Chapter Heading 8517 of Customs Tariff Act, 1975 and ought to be specifically classified under sub-heading 8517 62 90, as they are routing apparatus and are supported by the HSN Explanatory notes under Heading 85.17. Further they attract eligibility benefit of exemption under Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended. In order to merit classification under 8517, it is essential that the subject goods under consideration meet the criteria as laid down in the relevant headings, sub-heading and notes cited above. From the relevant headings and HSN notes reiterated above, it is apparent that (a) Switching and routing apparatus are specifically covered under sub-heading 8517 62, (b) Routers are covered as other communication apparatus in the HSN notes under sub-heading 8517 62 and (c) Communication apparatus of sub-heading 8517 62 including routers, support the reception, conversion and transmission of signals and allow for the connection to a wired or wireless communication network - As the goods under consideration satisfy all the above conditions, they merit classification under sub-heading 8517 62. As the routers are not specifically covered under any tariff entry under said sub-heading 8517 62, they are classified under the residual Tariff Heading 8517 62 90. Further, Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended, exempts “Routers” falling under Heading 8517 62 90 from the whole of the duty of customs leviable thereon. As the impugned goods are held as classifiable under sub-heading 8517 62 90 they are entitled to the duty exemption benefit under the notification. The Routers covered under present application are classifiable under sub-heading 8517 62 90 of the First Schedule to the Customs Tariff Act, 1975 and would be eligible to avail benefit of duty exemption under Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended.
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