Classification of Digital LCD / Flat Panel Monitor - Admissibility of Notification benefits - Customs - 033/2007

Classification of Digital LCD / Flat Panel Monitor - Admissibility of Notification benefits Circular No.33/2007-Cus. F. No. 528/96/2001-Cus.(TU) Government of India Ministry of Finance Department of Revenue Central Board of Excise Customs 159A, North Block, New Delhi-1. Dated 10th September, 2007 . To All Chief Commissioners of Customs. All Chief Commissioners of Customs Central Excise. Chief Departmental Representatives, CESTAT. All Commissioners of Customs. All Commissioners of Customs Central Excise. Subject: Classification of Digital LCD / Flat Panel Monitor - Admissibility of Notification benefits - reg. *** 1. It has been represented by the trade and industry association that certain difficulties have been faced in classification of monitors for use with Automatic Data Processing (ADP) machine and consequent import duty exemption benefits. Doubts have been expressed by field formations as to whether 'LCD or Flat Panel Monitors, if used along with ADP Machines would be classifiable as 'ADP Monitor' and whether exemption from Customs duty vide Sl.No.17 of Notification No. 24/2005-Cus dated 1.3.2005 would be admissible. 2. The issue was examined in the Board. Monitors used along with ADP machines were classified till 31.12.2006, under heading 8471 of the First Schedule to the Customs Tariff Act, 1975. Due to HS 2007 changes brought into effect from 1.1.2007, such monitors are presently classifiable under sub heading 8528 40. All types of monitors and projectors which are solely or principally used with an ADP machine is covered under the sub headings 8528 41(Cathode Ray Tube Monitors), 8528 51(Other types) and 8528 61(Projectors) and are extended with exemption of customs duty vide Sl.No.17 of notification No. 24/2005-Customs dated 1.3.2005. Further, television or video monitors were classifiable earlier under heading 8528. Presently these monitors used as Television or Video reception apparatus are classified under sub heading 8528 71 or 8528 72 as the case may be, and are not eligible for the aforesaid exemption. 3. This issue was also deliberated at the Conference of Chief Commissioners' on Tariff and Allied Matters, wherein it was decided that the Board may issue guidelines on the basis of assessment practice that is being followed by Customs Commissionerate, Aircargo, Mumbai to distinguish 'computer monitors' from that of monitors for use with TV / Video and for classifying the goods under 8528 41 or 8528 51 (earlier classifiable under CTH 8471). However, to ensure uniformity, it was decided that Board could issue a circular in this regard. 4. Accordingly the technical features distinguishing the computer monitors from the other types of Television/video monitors are enclosed. These could be used by the officers of the field formation as guidance for assessment, examination of the said goods for determining its proper classification and extension of the notification benefit. Yours faithfully, (M.M.Partiban) Director (Customs) Tel.No.2309 3908 Comparative chart of physical characteristics of Computer monitors versus Video monitors. Computer Monitors TV/ Video Monitors Computer Monitors cannot receive video / TV signals (eg: NTSC, SECAM, PAL) because they do not incorporate a TV tuner. They have DVI *** and/or mini D - Stub connectors to connect to the Central Processing Unit (CPU). TV/ Video Monitors receive television signals through a co-axial cable (S-video input connector). They do not have a mini D - Stub connector. Only few ports like VGA * , DVI, USB are provided to receive signals from CPU or storage devices Presence of composite video port, S-video port ** are essential for multi functional screen. These enable the monitors to receive broadcast signals or other video signals from DVD player or video gaming devices. May also additionally have DVI Port. Computer monitors receive RGB signals, which is only video information and horizontal and vertical sync information. They do not possess separate audio circuits. TV / Video monitors are capable of receiving composite signals which are a modulated signal containing both video and audio signal. Thus, they require built-in Tuner Cards Computer monitors are characterized by low emission standards (brightness of 400 cd/m2 or less is an indication that a display is an ADP monitor) and have various ergonomic features such as swivel, tilt mechanism, glare free and flicker free surfaces, to enable close proximity and prolonged viewing. TV displays are designed to be viewed across a room which is brighter than the computer displays. They are generally not provided with ergonomic features such as swivel and tilt. Technical specifications: Display pitch size is small usually 0.28mm or less; Band width more than 15MHZ; Horizontal frequency 15 to 155 KHZ; Marked by high resolution to enable clear and sharp text messages Technical specifications: Display pitch is larger 0.41 mm or greater; Band width or video frequency range is less than 6 MHZ to cover national, international broadcast frequency; Horizontal frequency is fixed between 15.6 to 15.7 KHZ; Low resolution. Computer Monitors TV/ Video Monitors Computer monitors do not contain components like TV Tuner Card, Audio Amplifying System, Remote Function, Control Panel function These components are necessary for functioning as a video monitor Computer monitors do not contain the features mentioned opposite to this Entry in the column TV / Video Monitors . Channel selection panel with buttons for volume, channel etc., on display unit, wall mounting facility are present for facilitating television/video viewing The aspect ratio for ADP monitor is generally 16:10 (for wide angle). The aspect ratio for TV is generally 16:9 (for wide angle). * Note 1: Image of VGA connector - mini D-Stub connector (Seen only in computer monitors) they carry anolog video RGB signal on which computer monitors, specifically CRT computer monitors work. ** Note 2: S-Video connector - A Co-axial cable used to Television monitors and carry composite signal with both audio and video information. *** Note 3: Image of DVI connector DVI connectors are seen in Flat panel computer monitors which are digital monitors and carry digital video RGB signal. ……….