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2023 (2) TMI 1213 - AAR - CustomsClassification of goods proposed to be imported - Optoma Creative Touch 3-series Interactive Flat Panel (IFP) (Model - 3652RK, 3752RK, 3862RK) - to be classified under sub-heading 8471 41 90 or not. Whether the features and specifications of the subject goods under consideration meet the criteria as laid down in the Note 6(A) to Chapter 84? HELD THAT - From the open source available, it is understood that Automatic Data Processing (ADP) machines have storage capability and also stored programs which can be changed as per the performance of tasks. Digital machines process data in coded form. A code consists of a finite set of characters (binary code, standard six-bit ISO code, etc.). The data input is either automatic through the use of data media such as magnetic tapes or manual by means of keyboards, touch screen etc. The input data are converted by the input units into signals which can be used by the machine and stored in the storage units. The data is then operated by the CPU and operating system to produce output. From Para 2 and 2.1, it is evident that these machines have a main storage capability which is directly accessible for the execution of a particular program and which has a capacity sufficient to store those parts of the processing translating programs and the data immediately necessary for the current processing run. Therefore, the goods satisfy the condition specified in Note 6(A)1. As per Note 6(A) 2, the machine should be able to be freely programmed in accordance with the requirement of the user. From the product details submitted, it appears that these goods come configurable with off-the-shelf, end-user applications allowing the programming of the various functions in accordance with the needs of the user. As per the product details available on the website, these devices have pre-installed apps including Office Suite, which allows users to open and edit all Microsoft Office documents. Applications available include GoToMeeting, Firefox, Evernote, and many more. Therefore, the goods satisfy condition as per 6(A)2. Creative Touch 3-Series Interactive Flat Panels, perform the arithmetical computations specified by the user which satisfy condition 6(A)(3) of the chapter notes. Thus, the subject goods satisfy all the requirements as mandated under Note 6(A) previously referred to as 5(A) to Chapter 84 of the Customs Tariff Act, 1975. Accordingly, the subject goods are classifiable under CTH 8471 as ADP. As the machines under consideration do not have a keyboard, they appear to be classifiable as other ADP machines under 2nd one-dash sub-heading. Sub-heading 8471 41 covers other ADP machines; comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined. For the machines under consideration, the LED screen satisfies the requirement for output and the touchscreen satisfies the requirement for input apart from the CPU inbuilt into the device. Therefore, the subject goods appear to be classifiable under sub-heading 8471 41 and more specifically under sub-heading 8471 41 90 as Other automatic data processing machines. Optoma Creative Touch 3-series Interactive Flat Panels (IFP) (Model - 3652RK, 3752RK, 3862RK) merit classification under Heading 8471 and more specifically under sub-heading 8471 41 90 of the First Schedule to the Customs Tariff Act, 1975.
Issues Involved:
1. Classification of 'Optoma Creative Touch 3-series Interactive Flat Panel (IFP)' under the Customs Tariff Act, 1975. Detailed Analysis: 1. Classification of 'Optoma Creative Touch 3-series Interactive Flat Panel (IFP)': The applicant, M/s. Audio Distribution House Pvt. Ltd., sought an advance ruling on the classification of 'Optoma Creative Touch 3-series Interactive Flat Panel (IFP)' (Models 3652RK, 3752RK, 3862RK) proposed to be imported from China. The applicant contended that the subject goods should be classified under Chapter Heading 8471 of the Customs Tariff Act, 1975, as 'Automatic Data Processing Machine' (ADP) and specifically under sub-heading 8471 41 90. Analysis of Hardware and Software: The subject goods are described as an All-In-One (AIO) Computer System, functioning like a large tablet computer, with integrated hardware components such as a Motherboard, CPU, Graphics Card, RAM, ROM, Touch Screen, and Video Display Unit. The goods come loaded with operating systems like Android 9.0 (Oreo) and Microsoft Windows, and have built-in facilities like Marketplace, Cloud Drive, and file manager. Reference to Chapter Heading 8471: Chapter Heading 8471 covers "Automatic data processing machines and units thereof." The applicant argued that the subject goods meet the criteria under Note 5(A) of Chapter 84, which defines ADP machines as those capable of storing and processing programs, being freely programmed, performing arithmetical computations, and executing processing programs without human intervention. Previous Rulings and International Reference: The applicant referenced previous rulings (CAAR/Mum/ARC/15/2022 and CAAR/Mum/ARC/04/2022) where similar goods were classified under CTH 8471 41 90. Additionally, a US Cross-ruling (NY N2800009) classified similar flat panel displays under the Harmonized Tariff Schedule of the United States. Jurisdictional Comments and Hearing: Comments from the jurisdictional Pr. Commissioner of Customs, NS-V, JNCH, Nhava Sheva, were invited but not received. During the hearing, the applicant reiterated their grounds and requested a ruling based on the facts on record. Authority's Examination and Conclusion: The authority examined the subject goods' characteristics, functionality, and utility, and determined that they satisfy the requirements of Note 6(A) to Chapter 84, which outlines the criteria for ADP machines. The goods have storage capability, can be freely programmed, perform arithmetical computations, and execute processing programs without human intervention. Classification under CTH 8471: The authority concluded that the subject goods are ADP machines themselves and not merely units of ADP machines or systems. They fall under the second one-dash sub-heading of CTH 8471, which covers "Other automatic data processing machines." Specifically, they are classifiable under sub-heading 8471 41 90 as "Other automatic data processing machines: Comprising in the same housing at least a central processing unit and an input and output unit, whether or not combined: Other." Typographical Error and Correction: A typographical error in the model number was corrected by the applicant, confirming the correct model number as 3652RJK. Final Ruling: The authority ruled that 'Optoma Creative Touch 3-series Interactive Flat Panels (IFP)' (Models 3652RK, 3752RK, 3862RK) merit classification under Heading 8471 and more specifically under sub-heading 8471 41 90 of the First Schedule to the Customs Tariff Act, 1975.
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