The issue of classification
of cordless infrared devices for the remote control was taken up for discussion
in the May, 2012 Mumbai Conference of Chief Commissioners of Customs and
Directors General. The entries in National Import Data Base (NIDB) in tariff
item 84159000 (Parts of heading 8415), 85299090 (Part of TV, etc), indicated
that cordless infrared devices for the remote control is often being treated as
a part of the main device / equipment, while the entry in heading 85437099 -
"Other", under the heading 8543 provided that it is treated as,
"electrical machines and apparatus having individual functions, not
specified or including elsewhere in this chapter". During the conference
it was decided to further examine this issue in the Board.
2.
Accordingly, this issue was examined in the
Board. It emerged that when cordless infrared devices for the remote control
are imported along with the main equipment as a set, then the "essential
character rule" of GRI 3(b) has to be applied in order to determine under
which single heading the set had to be classified. However, when this product
is presented separately, then the classification is to be determined by
application of the General Rule for the Interpretation (GRIs) of the First
Schedule to the Customs Tariff Act (CTA), 1975. GRI 1 requires that in
classifying articles, for legal purpose it shall be determined according to the
terms of the headings and any relative Section or Chapter Notes,..".
Hence, all relevant legal texts must be considered.
Chapter Note 1 (m) to Chapter 95 reads as:
"Pumps for liquids
(heading 84.13), filtering or purifying machinery and apparatus for liquids or
gases (heading 84.21), electric motors (heading 85.01), electric transformers
(heading 85.04), discs, tapes, solid-state non-volatile storage devices,
"smart cards" and other media for the recording of sound or of other
phenomena, whether or not recorded (heading 85.23), radio remote control
apparatus (heading 85.26) or cordless infrared remote control devices (heading
85.43);". Heading 8543 provides for "Electrical... apparatus, having
individual functions, not specified or included elsewhere ... ".
Chapter Note 7 to Chapter 85 reads as:
"Heading 8537 does not include cordless infrared devices for the
remote control of television receivers or other electrical equipment (heading
8543).
3.
The Explanatory Notes to the Harmonized
Commodity Description and Coding System, which represent the official
interpretation of the tariff at the international level, facilitate
classification under the CTA, 1975 by offering guidance in understanding the
scope of the headings and the GRIs, and for the harmonised Customs Tariff
Heading 85.43, it states that, "the heading includes, "Cordless infrared
devices for the remote control of television receivers, video recorders, or
other electrical equipment". In addition, the exclusion
clause in the Explanatory Notes to Chapter 8537 provides that the heading
excludes, "Cordless infrared devices for the
remote control of television receivers, video recorders, or other electrical
equipment (8543)".
4.
In view of the aforesaid, the Board of the
considered view that:
(a) When cordless infrared devices for the
remote control are presented in a set put up for retail sale, that is, they are
put up in a manner suitable for sale directly to users without repacking, along
with principal / main device with which they are to be used, they shall be
classified along with the principal / main device by application of GRI 3(b)
and 6.
(b) In cases where cordless infrared devices
for the remote control are presented separately, they shall be classified under
heading 8543, sub-heading 8543.70, by application of GRI 1 and 6
5. Accordingly, all pending assessments, if
any, may be finalized and suitable instructions may be given to the field
formations.
6. Difficulties, if any, faced in the
implementation of this circular, may be immediately brought to the notice of
the Board.
Yours faithfully,
(Subodh Singh),
OSD (Customs), Tariff Unit
Fax: 011 - 23092173
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