2023 (2) TMI 1206 - AAR - Customs

Classification of goods proposed to be imported - Fire TV Stick, which is a HDMI digital media receiver - to be classified under sub-heading 8528 71 00 or under sub-heading 8517 62 90? - HELD THAT - The device Fire TV Stick, having been designed for reception, conversion and transmission of voice, images or other form of data through the internet and not through satellite/cable/terrestrial sources merits classification under six-digit Tariff Entry 8517 62. From technology perspective it was brought on record by one of the respondent Commissionerates that the Wi-Fi frequency range is based on IEEE 802.11 protocol and is different from that of a television signal. Customs Tariff Heading 8517 specifically excludes apparatus for the transmission or reception of radio-broadcasting or television signal (Headings 85.25, 85.27 or 85.28). As far as the contending Tariff Entry 8528 is concerned, it appears to be an unsuitable tariff entry for classification of the device under consideration in the present proceedings insofar as the said entry is primarily suitable for receivers of television broadcast signals. Therefore, the views expressed for classification of applicant s product under CTH 8528 viz. 8528 71 00 and 8528 73 90, examined on the background of technological facts discussed earlier, are not legally tenable. The Amazon Fire TV Stick/HDMI digital media receiver with dual core processor, dedicated Videocore4 GPU, 1 GB of memory and 8 GB of storage having a dual band, dual antenna 802.11 AC Wi-Fi is classifiable under CTH 8517 62 90 of the First Schedule of the Customs Tariff Act, 1975.

Issues Involved:
1. Classification of Amazon Fire TV Stick under the Customs Tariff Act.
2. Differing opinions from various Commissionerates on the appropriate classification.
3. Legal proceedings and interim stay from the Bombay High Court.
4. Analysis of technical specifications and functionalities of the Fire TV Stick.
5. Examination of relevant Customs Tariff Headings (CTH) 8517 and 8528.
6. Application of Harmonized System Nomenclature (HSN) Explanatory Notes.

Issue-wise Detailed Analysis:

1. Classification of Amazon Fire TV Stick under the Customs Tariff Act:
- The applicant, M/s. Amazon Seller Services Private Limited, sought an advance ruling on the classification of the Fire TV Stick. The device is described as an HDMI digital media receiver designed to stream digital content to high-definition televisions via the internet, not capable of receiving signals from satellite/cable/terrestrial sources.

2. Differing opinions from various Commissionerates on the appropriate classification:
- Comments from the jurisdictional Principal Commissioners/Commissioners varied:
- Bengaluru: Suggested classification under CTH 8528 73 90, emphasizing that the device connects to the HDMI port of a TV and functions via Wi-Fi.
- Chennai VII: Proposed CTH 8528 71 00, arguing that the device is a reception apparatus for television.
- Chennai II: Recommended CTH 8517 62 90, noting that the device functions as a media streamer deriving input from Wi-Fi.
- New Delhi: Suggested CTH 8525 50, referencing a US Customs ruling for a similar device.
- Mumbai: Supported CTH 8517 62 90, emphasizing the device's role in transmitting and receiving data over a network.
- Nhava Sheva: Also classified the device under CTH 8517 62 90.

3. Legal proceedings and interim stay from the Bombay High Court:
- The applicant had a pending show cause notice regarding the classification, which led to a writ petition in the Bombay High Court. The court granted an interim stay and later directed the Customs Authority for Advance Rulings (CAAR) to decide on the application within twelve weeks, quashing the show cause notice.

4. Analysis of technical specifications and functionalities of the Fire TV Stick:
- The device includes a dual-core processor, Videocore4 GPU, 1 GB of memory, 8 GB of storage, and dual-band Wi-Fi. It streams content from the internet to a TV and does not support cellular services or receive traditional TV signals.

5. Examination of relevant Customs Tariff Headings (CTH) 8517 and 8528:
- CTH 8517: Covers apparatus for the transmission or reception of voice, images, or other data via wired or wireless networks, excluding apparatus for radio-broadcasting or television signals.
- CTH 8528: Pertains to monitors, projectors, and reception apparatus for television, including devices capable of receiving television broadcasts.

6. Application of Harmonized System Nomenclature (HSN) Explanatory Notes:
- The HSN Explanatory Notes for CTH 8517 exclude apparatus for radio-broadcasting or television signals, aligning with the Fire TV Stick's functionality as a streaming device using the internet.
- The Fire TV Stick's primary function of receiving, converting, and transmitting data over Wi-Fi aligns with the description under CTH 8517 62 90.

Conclusion:
- The ruling concluded that the Amazon Fire TV Stick, with its specific technical specifications and functionalities, is classifiable under CTH 8517 62 90. This classification is based on the device's role in the reception, conversion, and transmission of data via the internet, excluding traditional television signal reception, thereby aligning with the HSN Explanatory Notes and previous rulings by the Customs Authority for Advance Rulings.

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