TMI Blog2022 (1) TMI 325X X X X Extracts X X X X X X X X Extracts X X X X ..... Speaker Device with Model No. P5B83L (Echo Sub) - HELD THAT:- It is a single loudspeaker with a single drive unit mounted in their enclosure. Noting that a sub-woofer is a speaker that is designed to only reproduce low frequencies, also known as the bass, it is found that Echo Sub would merit classification as a speaker under Heading 85.18; and since it is a single loudspeaker, mounted in their enclosure, the appropriate classification would be under sub-heading 8518 21 00. - Ruling No. CAAR/Del/Amazon/13/2021 in Application No. VIII/(CAAR)/Delhi/Amazon/16/2021 - - - Dated:- 24-6-2021 - Shri Vijay Singh Chauhan, Authority for Advance Rulings of Customs Shri V. Lakshmikumaran, Rachit Jain, Lokesh Bulchandani, Ms. Jyoti Pal Ms. Shivani kalra, Advocates, Anand Tripurari Jeshwin Immanuel, Representative A WIPL, for the Assessee. RULING M/s. Amazon Wholesale India Private Limited, New Delhi, a company having IEC No. 0513081950 and PAN AAMCA0671Q, (M/s. Amazon Wholesale, in short) has filed an application dated 9-3-2021 seeking advance ruling under Section 28H of the Customs Act, 1962 before the Customs Authority for Advance Rulings, New Delhi (CAAR, New Delhi, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the switch present on the wall for the relevant socket. The button on the smart plug enables its users to reset it to manual set up mode or factory setting or to change the network. The user will get a clear, visual indication from the LED that the smart plug has successfully reverted back to the manufacturer s default state. A user can give a voice command to switch on/off the connected appliance to its phone having the Alexa application/Echo device/any other Alexa Voice Services (hereinafter referred to as AVS ) enabled device. These devices respond to the name Alexa , which is commonly known as the wake word . This wake word can be changed by the user to either Amazon , Computer or Echo . The phone with Alexa app/Echo device/any other AVS enabled device have microphones to detect the sound. Once such devices, through microphones, analyze these words, they become operative and start recording user s voice (command). When the user finishes speaking, such devices send this recording over the internet to Amazon. The service that processes this recording is called AVS. AVS analyses the command and sends back the results to the smart plug. As per the command received, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t will be mostly used in residential environment or small offices. Once connected to Internet, and paired with compatible Echo speakers, customers can listen to music on their speaker system. It has an MTK 8516 processor, 1 GB RAM and 4 GB of storage space. The function of Echo Sub is also to convert electrical variations into mechanical vibrations which are then communicated to air to produce sound. The speaker and woofer perform the similar function however, the woofer is normally the largest driver in a speaker cabinet and it is designed to produce the low frequencies. In the instant case, the Echo Sub which is a sub-woofer works on the frequency of approximately 80Hz which varies on the basis of the device it is paired with. It is designed to produce better quality sound and is compatible with various Echo Family Devices. It is a single loud speaker with a single drive unit mounted in its enclosure. 5. In the light of aforementioned, the applicant has posed the following questions for advance ruling : (a) Whether the Smart Plug is rightly classifiable under CTH 8537 10 00? (b) Whether Echo Sub is rightly classifiable under CTH 8518 21 00? (c) If the answ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns under Section 28-I(2) of the Customs Act, or (ii) for the final advance ruling to be given under Section 28-I(4) of the Customs Act. This office has clarified that in view of the shortened timelines as per Section 28-I(6) of the Customs Act, 1962 read with the CAAR Regulations, CAAR has been following the practice of single hearing in the application for advance rulings. I note that the practice followed by erstwhile AAR was to hold two-stage hearing on separate dates, first to decide the admissibility of the application and thereafter on the merits of the case. However, this office has been of the view that the procedure can be simplified and process of pronouncing advance rulings expedited by scheduling a common hearing, wherein the two stages relating to the admissibility of the application and technical discussion could be taken up together, noting that such a [procedure would not be INconsistent with the provisions of the Customs Act.] This office has been adopting such practice and proposes to continue to do so, unless the facts of a specific case require staggered two-stage hearing. 8.1 During the common hearings, which were conducted on 7-6-2021 and 8-6-2021, Shri V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted Principal Commissioner of Customs. Heading 8537 covers Boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of Heading 85.35 or 85.36 for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus other than switching apparatus of Heading 85.17. Sub-heading 8537 10 00 covers such goods for a voltage not exceeding 1000 v. 12.1 The applicant has sought reliance on : (a) Rule 1 of the General Rules for Interpretation of the Import Tariff, which provide that the classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and provided such headings or Notes do not otherwise require according to the following provisions; and (b) Section Note 3 to Section XVI provides that unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine whic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ling under Heading 85.37. Therefore, smart plug classifiable under Heading 85.37 is eligible for the benefit of concessional rate of duty under the said Notification No. 50/2017-Customs. 14. I now take up the classification of Wireless Speaker Device with Model No. P5B83L (Echo Sub). This device is described as a sub-woofer which is compatible with the Echo Family devices (via wifi or Bluetooth), which is used to provide high quality audio services. It is capable of playing music from Alexa cloud through paired Echo Family Devices. The classification suggested by the applicant for this device is 8518 21 00, which has also been suggested by the designated Principal Commissioner of Customs. The Heading 85.18 covers Microphones and stands therefor : Loudspeakers, whether or not mounted in their enclosures : Headphones and Earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; Audio-frequency electric amplifiers; sound amplifier sets. Sub-heading 8518 21 00 covers Single loudspeakers, mounted in their enclosures. 14.1 The applicant has submitted that the Echo Sub is a wireless speaker, which is a sub-woofer working ..... X X X X Extracts X X X X X X X X Extracts X X X X
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