Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No.01 / 2013- Customs
229-A, North Block, New Delhi
1st January, 2013
To
All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE,
All Directors General of CBEC,
All Commissioners of Customs / Customs (Prev.) / C&CE
All Commissioners of Customs & Central Excise (Appeals).
Sir / Madam,
Subject: Classification of Cordless Infrared Devices for the Remote Control –
reg.
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.
- 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).
- 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)”.
- In view of the aforesaid, the Board of the considered view that:
- 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.
- 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
- Accordingly, all pending assessments, if any, may be finalized and suitable
instructions may be given to
the field formations.
- 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
Internal circulation – As usual.
F.No. 528/48/2012-STO (TU)