Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No.13 / 2013 - Customs
229A, North Block, New Delhi,
5th April, 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 “Low Noise Block” (LNB) down converter in the
harmonised Customs Tariff - regarding.
Doubts have been raised regarding classification of Low Noise Block (LNB) down
converter which is designed to be mounted on aerial (dish) of a system for
receiving satellite broadcasts (Satellite Television Reception System). The
low-noise-block (LNB) down converter amplifies the weak signals and converts the
frequencies from very high levels (2.5 to 12.45 GHz) to levels within the VHF
and UHF range (less than 2 GHz). The competing Customs tariff headings are 8525
(as transmission apparatus), 8529 (as part to be used with dish antenna, and
8543 (as electrical machines and apparatus having individual functions, not
specified or included elsewhere in chapter 85).
- The issue was examined in the Board. Classification of goods in the First
Schedule under the Customs Tariff Act (CTA), 1975 is determined on the basis of
the General Rules of Interpretation (GRI). Rule 1 of GRI inter alia provides
that, “the titles of Sections, Chapters and sub-Chapters are provided for ease
of reference only; for legal purposes, classification shall be determined
according to the terms of the headings and any relative Section or Chapter Notes
..”. Accordingly, in view of the Section Note 2(a) to Section XVI, LNB will not
qualify for classification in heading 8529, if it is regarded as transmission
apparatus of heading 8525 or of heading 8543, as a device performing an
electrical function not specifically covered by any heading of Chapter 85, since
the said Section Note stipulates that “parts which are goods included in any of
the headings of Chapter 84 or 85 (other than headings 84.09, 84.31, 84.48,
84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to
be classified in their respective headings”.
- The Harmonized Commodity Description and Coding System (HS) Explanatory Notes
can be used to determine the proper interpretation of the entries in the Customs
Tariff. In part, Explanatory Note (EN) 8543 includes, “High or intermediate
frequency amplifiers (including measurement amplifiers and aerial amplifiers)”,
and Explanatory Notes to heading 85.18 also provides for, “High or intermediate
frequency amplifiers are classified in heading 85.43 as electrical appliances
having an individual function”. Since the principal function of Low-Noise-Block
(LNB) down converter is to amplify the weak signals and converts the frequencies
from very high levels (2.5 to 12.45 GHz) to levels within the VHF and UHF range
(less than 2 GHz), and this device performs an electrical function not
specifically covered by any heading, the classification in subheading 8543 would
seem most appropriate.
- In view of the aforesaid, the Board is of the view that by application of
GRIs 1 (Note 2 (a) to Section XVI), and 6, separately presented LNB down
converter (LNB) would be appropriately classifiable in heading 85.43, more
specifically in subheading 8543.70, tariff item 854370 99.
- Accordingly, all pending classifications, if any, may be finalized. 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
F.No. 528/104/2011-STO (TU)
Internal circulation – As usual