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TMI Blog2023 (10) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... reless Connectivity Options Does Product have Cellular calling function 1 Barcode Mobile Computers Newland NLS-MT37H Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 2 Newland NLS-N7 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 3 Newland NLS-N7L Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 4 Newland NLS-MT65 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 5 Newland NLS-MT67 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 6 Newland NLS-MT90 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 7 Newland NLS-MT95 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 8 Newland NLS-NFT10 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 9 Speedata SD55 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 10 Specdata SD60 Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 11 Newland NLS-WD1 Wearable Watch Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 12 Speedata SD60 PRT Device with SIM Card & Wi-Fi YES Wi-Fi Only Device NO 13 RFID Mobile Computer Specdata SD55UHF Device with SIM Card & Wi-Fi Y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service (for some models which accommodate sims) RFID Mobile Computer (have RFID reader) These devices are adding the new capabilities wi (sic) integrated UHF/RAIN RFID readers. - 1D and 2D scanning of barcodes. - Securely access programs or databases stored in the cloud or office using the latest Wi-Fi technologies. - Take advantage of high-speed WLAN networks. - Add additional memory using expandable card slots. - Accurately pinpoint the locations of employee, assets, and businesses with optional GPS capabilities. - Easily sync with ring scanners, printers, and headset using Bluetooth wireless connectivity. - It can capture RFID tags up to 19.7 feet/6 m away. Its integrated circular antenna delivers extraordinary reliability, no matter the orientation of the tag. Tablet Mobile Computer (Tablet with displays larger than the above 2 categories of Portable computer) Handheld computers - for undertaking processing and communication activities in sensitive areas It is stated that each type of portable computer is available with S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gurable with off-the shelf, end-user applications allowing the programming of the various functions in accordance with the needs of the user. Different apps can be installed and accordingly the products are freely programmable. iii. Performing arithmetical computations specified by the user; and These devices automatically capture details pertaining to inventory, invoicing, real time delivery and subsequently process the same to perform relevant functions. These functions are performed with programming set in tune as basic logical sequence, comprising of data input, data processing and data output. Further, these Portable Computers are freely programmable with various external applications in order to cater to variety of user needs. iv. Executing, without human intervention, a processing program which requires them to mod their execution, by logical decision during the processing run. The Portable Computers while performing tasks like scanning, asset/inventory management/invoicing are essentially functioning without manual intervention on the basis of pre-programed logical sequence of operations As per the applicant's contention, Chapter Notes 6(D) and 6(B) read with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od Has exceptional Enterprise Level security features The applicant contends that the products in question are not classifiable as smartphones under sub-heading 8517 13 00 as the proposed imports are essentially ADP machines which have an additional feature of cellular connectivity. It is also to be noted that 18 out of the 36 models of portable computers (Para 1) do not have the cellular connectivity, identical models are available both with and without cellular connectivity options. Thus showing that SIM is not an integral part of theses device. The way the proposed imports are built, it is evident that it is meant for rugged use and is not sleek or delicate like smartphones available in a similar price range. The proposed imports also don't have most of the features which are there in smartphones of a similar price range. Furthermore, smartphones of the same price range like the price range of the impugned product are marketed as luxury items for personal use whereas these products are used purely for industrial/trade activities and not as luxury items. Their designs are not sleek or sophisticated like that of smartphones and are rather designed to be used in arduous env ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e classification of RFID readers/bar scanners having inter alia SIM capability as classifiable under Heading 8517. They have stated that the opinions of WCO are not applicable to the products proposed to be imported for the following reasons : (a) Unlike the ruling on tablet computers, which has been expressly accepted by CBI & C, no similar circular has been issued accepting and adopting the above ruling. (b) The proposed imports are portable computers and not merely RFID readers. (c) The ruling on tablet computers is more appropriately applied to the proposed imports. (d) Heading 84.71 has not at all been considered by the WCO in their ruling. 2.8 In relation to the above-mentioned device, the questions on which advance rulings have been sought are as follows :- (a) Whether portable computers, viz., Barcode Mobile Computers, RFID Mobile Computer and Tablet Mobile Computer to be imported by the applicant are classifiable under the Tariff Item 8471 30 90 of the Tariff of India? (b) If the answer to the above question is negative, then what would be the correct classification of the portable computers, viz., Barcode Mobile Comput ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ruling in their favour. 5. I have considered all the materials placed before me in respect of the subject devices. I have also gone through the submissions made by the applicant during the personal hearing. No reply has been received from the jurisdictional Customs Commissionerate. Therefore, I proceed to pronounce the rulings on the basis of information available on record. The issue before me is to decide the correct classification of Barcode Mobile Computers, RFID Mobile Computer and Tablet Mobile Computer. These are handheld/wearable/vehicle mountable portable devices used in enterprise environments to run mobile apps, capture barcodes, take photos and videos, and provide voice and data communications for workers and managers. These devices combine personal computer and scanning functions in a single wireless device that can be outfitted with off-the shelf or custom software applications that perform everyday tasks such as monitoring deliveries, tracking assets, and managing inventory. Because they run on familiar operating systems such as Windows/Android, they offer the same functionality as a desktop computer or laptop. These processors are also equipped with a barcode ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... data in a form (codes or signals) which can be used by the system. Separately presented units of an automatic data processing machine are to be classified in heading 8471. However, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of (ii) and (iii) above, are in all cases to be classified as units of heading 8471. However, from the working and features of the impugned devices, it appears that these are not the units of ADP machines, but ADP machines themselves. Note 6(D) to Chapter 84 lists certain separately presented products that are to be excluded from Heading 8471 , even if they can be classified as part of an ADP system. Note 6(f) to Chapter 84 mentions that a machine incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. As the impugned devices, as described by the applicant, appear to be akin to ADP machines performing capturing of data and its further processing, Notes 6(D) and 6(E) do not appear to have application in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ference between a "smartphone" and "tablet computer", is not based on whether the product has a voice calling function or not, but on the principal features that a producer has intended for the device when designing and developing it". Thus, as per the said circular, tablet computers are classifiable under Heading 8471 and not under Heading 8517 despite the fact that the product is having cellular connection functionality, considering its principal function as automatic data processing. Similarly, in this case, the principal function of the impugned devices is barcode scanning and data processing for monitoring deliveries, tracking assets and managing inventory. Therefore, these devices appear to merit classification under Heading 8471 and not under Heading 8517. 5.3 In regards to the classification opinion of the 68th session of the Harmonized System Committee, it is observed that the committee has classified RFID/barcode readers with a mobile operating system capable of scanning and cellular connectivity under sub-heading 8517 13. This sub-heading covers smartphones. Note 5 to Chapter 85 states that "For the purposes of Heading 85.17, the term "smartphones" means "telephone ..... 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