TMI Blog2023 (7) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... ing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at there has been no authoritative determination on classification of the said product by the proper officer of Customs in the applicant's own case at any time in the past. The present advance ruling application CAAR-1 is filed to get an authoritative ruling on the issue of classification and taxability of the product in question which can be used in future imports and has sought an advance ruling on following issues:- 1. Whether Thermal Printer Ribbons (TPR) proposed to be imported by the Applicant is classifiable under Tariff Item 8443 99 59 of the First Schedule to the Customs Tariff Act, 1975? 2. If the answer to the above question is in the negative, then what would be the correct classification of Thermal Printer Ribbons under First Schedule to the Customs Tariff Act, 1975? 3. What would be the rate of duty applicable on the import of Thermal Printer Ribbons ? Applicant in their application has submitted as follows: 1.2 HID's direct-to-card (DTC) printer ribbons are solely dedicated for use with HID's dye sublimation/thermal transfer DTC ID card printers. These printers are capable of being connected to an automatic data processing machine (ADP ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts and accessories thereof'. 2.2 In the case of Honeywell Automation India Ltd. vs. CC, ACC, Mumbai 2018 (359) E.L.T. 402 (Tri. -Mumbai), it has 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 CTI I 8443 32 90. 2.3 TPR is part of the Thermal printer since it is integral to the functioning of the Thermal Printer and without TPR the thermal printers cannot function. It has been held that Part is one without which the particular machinery was not operational or could not suitably discharge the function for which it had been designed. Reliance is placed on Sandvik Asia Ltd. vs. Collector of Central Excise, Pune 1997 (93) ELT 475 (Tribunal), CCE, Delhi vs. Insulation Electrical (P) Ltd. 2008 (224) ELT 512 (SC) and Electrosteel Castings Ltd. vs. CCE 1989 (43) ELT 305 (Tribunal). 2.4 Since TPR is a part and accessory to Thermal Transfer Printers i.e. DTC and HDP thermal printers which are covered under CTH 8443 32., the classification would be governed by Section Note 2 of Section 16 as under:- 2. Subject to Note 1 to this Section, Note 1 to Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al for technical uses (heading 5911); (f) precious or semi-precious stones (natural, synthetic or reconstructed) of headings 7102 to 7104, or articles wholly of such stones of heading 7116 except unmounted worked sapphires and diamonds for styli (heading 8522); (g) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39); (h) drill pipe (heading 7304); (ij) endless belts of metal wire or strip (Section XV); (k) articles of Chapter 82 or 83; (l) articles of Section XVII; (m) articles of Chapter 90; (n) clocks, watches or other articles of Chapter 91; (o) interchangeable tools of heading 8207 or brushes of a kind used as parts of machines (heading 9603); similar interchangeable tools arc to be classified according to the constituent material of their working part (for example, in Chapter 40, 42, 43, 45 or 59 or heading 6804 or 6909); (p) articles of Chapter 95; or (q) typewriter or similar ribbons, whether or not on spools or in cartridges (classified according to their constituent material, or in heading 9612 if inked or otherwise prepared for giving impressions'), or monop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etterpress printing machinery, other than reel fed, excluding flexographic printing 8443 16 00 -- flexographic printing machinery 8443 17 00 -- Gravure printing machinery 8443 19 -- Other: 8443 19 10 --- Flat bed printing presses 8443 19 20 --- Platen printing presses 8443 19 30 --- Proof presses --- Machinery for printing repetitive word or design or colour- 8443 19 41 ---- On cotton textile 8443 19 49 ---- Other 8443 19 90 --- Other - Other printers, copying machines and facsimile machines, whether or not combined : 8443 31 00 -- Machines which perform ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8443 99 10 --- Automatic documents feeders of copying machines 8443 99 20 --- Paper feeders of copying machines 8443 99 30 --- Sorters of copying machines 8443 99 40 --- Other parts of copying machines --- Parts and accessories of goods of sub-heading 8443 31, 8443 32 8443 99 51 ---- Ink cartridges, with print head assembly 8443 99 52 ---- Ink cartridges, without print head assembly 8443 99 53 ---- Ink spray nozzle 8443 99 59 ---- Other 8443 99 60 --- Parts and accessories of goods of sub-heading 8443 39 8443 99 90 --- Other I find that there are three single dash entries under Heading 8443 which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein the Brazilian Customs has ruled that TPR would be classifiable under sub-heading NCM 8443.99.49. The applicant submits that while the said ruling is not binding on the Indian Customs, the same will certainly have persuasive value. 2.9 The Applicant further submits that TPR cannot be classified under Chapter Heading 9612 as the TPR 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 . As demonstrated in the advance ruling application, 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 TPR 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 pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pewriter ribbons. Id. at 556. The court reasoned that typewriter ribbons are typically narrow while the ISRs were wide. Id. at 559. The court also noted that when typewriter ribbons are used, the ink is transferred to paper by impression which occurs when the ribbon is directly impacted by a mechanical striker. Thus, the court stated that the purpose of such ribbons is to serve as a medium for printing on paper by impression from impact, not the general purpose of printing. Id. at 559-560. By contrast, the court found that the purpose of the ISRs was to serve as a medium for the printing of graphic images on paper by use of heat. In the thermal printing process, pigmented wax is never transferred to the paper by means of impact. Id. at 560. As a result, the court found that the subject ISRs could not be classified in heading 9612, HTSUS 2.12 Therefore, in any event, the TPR ribbons cannot be classified as typewriter ribbons or similar ribbons under CTH 9612 as they arc not similar enough to typewriter ribbon and thus, the product in the present case would fall under Entry 8443 99 59. Based on both oral and written submissions applicant requested to issue a ruling. 3. I have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be imported by the Applicant is classifiable under Tariff Item 8443 99 59 of the First Schedule to the Customs Tariff Act, 1975 or otherwise. And what would be the rate of duty applicable on the import of Thermal Printer Ribbons . Applicant has quoted few case laws and few advance rulings pronounced by the Customs authorities of the different countries. 3.2 As explained in the application, 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 . 3.3 Applicant, based o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essories of goods of sub heading 8443 31, 8443 32 and further Tariff item 8443 99 59 --- Other. 3.5 In order to support their contention applicant has placed reliance on Sandvik Asia Ltd. vs. Collector of Central Excise, Pune 1997 (93) ELT 475 (Tribunal), CCE, Delhi vs. Insulation Electrical (P) Ltd. 2008 (224) ELT 512 (SC) and Electrosteel Castings Ltd. vs. CCE 1989 (43) ELT 305 (Tribunal) in which it has been held that part is one without which the particular machinery cannot be operational or could not suitably discharge the function for which it had been designed to justify their claim to the classification. I do not find anything contrary on the record against the arguments put forth by the applicant so far. 3.6 However before reaching any definitive conclusion it is essential to examine other possible classification i.e. Chapter heading 9612: Typewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges; ink-pads, whether or not inked, with or without boxes. As per the HSN Explanatory Notes for CTH 9612, in order for a ribbon to fall under the said category, it must be inked to give impressions. As per the D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ften in the form of a box. I land-operated ink-rollers are excluded from this heading and are classified according to their constituent material. As per the Dictionary meaning of the word 'impression' it means that the indentation or depression made by the pressure of one object on or into another . In the present case, the pigmented dye and/or resin is never transferred to the card by means of impact but due to the heat on the printer head. I find that there is nothing to dispute this argument of the applicant. 3.7 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 narro ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
