Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Circular No. 52/2011-Customs
229A, North Block, New Delhi,
11th November, 2011.
To
All Chief Commissioners / Commissioner of Customs / Customs (Prev.),
All Chief Commissioners / Commissioners of Customs & Central Excise,
All Director Generals under CBEC.
Subject: Customs Tariff classification of TV Tuners used with ADP machines of
Harmonised Customs Tariff 8471 - Regarding
Sir / Madam,
References have been received on divergent practices being followed by field
formations regarding classification of TV tuners. It was reported that external
TV tuners are being classified in heading 8528 or 8529, and internal PCI TV
tuners / cards are being classified in subheading 8528 or 8529 or subheading
8473.
- These issues were discussed during Conference of Chief Commissioners of
Customs held on 9th-10th May, 2011 in Bangalore. There was agreement on
principal function of TV tuners and it was held that said device provide the
television function through the reception of broadcast signal from television
station and conversion in to audio and video information of the broadcast signal
enabling television broadcasts to be viewed on the screen. Broadly, there are
two types of TV tuners, viz., (i) internal PCI TV Tuner / card, and (ii)
external TV Tuner.
- Reportedly, an internal PCI TV tuner is a device that is connected to the
expansion port of the motherboard of Automatic Data Processing (ADP) machine of
heading 8471. An external TV Tuner is generally not connected to the PC
expansion bus. Reportedly, in such cases the TV signals are controlled and
processed by the tuner and the television is operated independently from the
regular computer functions without the use of any software and the computer does
not have to be turned on for one to receive television broadcast signals. Some
external TV tuners are connected as USB device as well. TV Tuner is a device for
reception of television broadcast signal as well as a conversion device.
However, even if this device does function as a dual device with each function
operating independently, the principal function of the device is critical in
determining its classification in terms of Note 3 to Section XVI of first
Schedule to the Customs Tariff Act, 1975, which states that unless the context
requires otherwise, machines adapted for the purpose of performing two or more
complimentary or alternative functions are to be classified as if consisting
only of that component or being that machine which performs the principal
function.
- The principal function of TV tuner is reception of television broadcast
signal and hence the applicable subheading under consideration is in 8528 which
includes: “Reception apparatus for television, whether or not incorporating
radio-broadcast receivers or sound or video recording or reproducing apparatus:
85287100: Not designed to incorporate a video display or screen”
-2-
Harmonised System Commodity Explanatory Notes to heading 8528 states that,
“Monitors and projectors may be capable of receiving a variety of signals from
different sources. However, if they incorporate a television tuner they are
considered to be reception apparatus for television.” Further, for subheading
Reception Apparatus for Television Harmonised System Commodity Explanatory Notes
mentions that, “receivers are intended to be used with video recording or
reproducing apparatus, monitors, projectors or televisions. However, devices
which simply isolate high-frequency television signals (sometimes called video
tuners) are to be classified as parts in heading 85.29.”
- The issues raised have been examined by the Board. External TV Tuners merit
classification under CTH 8528 on application of GIR 1, 6 and read with Note 3 to
section XVI and Chapter Notes. As regard to Internal TV Tuners cards it is
observed that generally these cards are connected to the ADP via a peripheral
component interconnect PCI slot. The internal TV tuner works with the software
installed on the computer and can not function without the ADP machine. It even
fulfils the conditions stipulated under paragraph 5(C) of Chapter Note 84.
However, it can qualify as a part of ADP systems only if it is outside the ambit
of items listed in paragraph 5 (D) and those which meet the criteria stipulated
in paragraph 5 (E) to chapter Note 84. In this regard, it is seen that
paragraphs D (ii) covers apparatus for the transmission or reception of voice,
images or other data, including apparatus for communication in a wired or
wireless network (such as a local or wide area network). Whether external or
internal, the principal function of TV tuner cards remains the same, that is, to
provide the television function through the reception of broadcast signal from
television station. The conversion into audio and video information of the
broadcast signal enabling television broadcasts to be viewed on the screen
remains the secondary reception. Taking into consideration the principal
function of TV tuners, and provisions of paragraph 5(D) and 5(E) to chapter 84,
internal TV tuner cards are found to be outside the ambit of heading 8473.
- Also TV tuners are other than those devices which simply isolate
high-frequency television signals (sometimes called video tuners) and hence can
not be classified as parts in the heading 85.29. Therefore, on application of
General Interpretative Rules (GIR) 1 and 6, read with Note 3 to Section XVI and
Chapter Notes 5(C) to Chapter 84, it is clarified that TV tuners, both internal
and external are more appropriately classifiable in Harmonised Customs Tariff in
tariff item 85287100.
- Suitable instructions may be given to the field formation and all pending
assessments, if any, may be finalized accordingly. Difficulty faced, if any, may
be brought to notice of the Board.
Yours faithfully,
(Subodh Singh),
OSD (Customs), Tariff Unit,
Fax-011-23092173
F. No. 528/122/2011-STO (TU)