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2021 (9) TMI 208 - AAR - CustomsClassification of goods - Alexa voice remote 3rd Generation Model No. L5B83G, intended to be imported - classifiable under Custom Tariff Item 851762 90 or under 8526? - eligibility to claim benefit of Serial number 20 of Notification No. 57/2017-Customs dated 30.06.2017 - interpretation of General Rules for Interpretation of Import Tariff - HELD THAT - CTH 8517 covers Telephone sets, including Telephone sets, including Telephones for Cellular Networks or for other Wireless Networks; other 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), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528. Sub-heading 8517 62 covers Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus; and 8517 62 90 is the residual sub-heading thereof - CTH 8526 covers Radar apparatus, radio navigational aid apparatus and radio remote control apparatus; and sub-heading 8526 92 00 covers Radio remote control apparatus. The Alexa Fire Stick is to be connected to the HDMI port of a television and its function is to receive the command and transmit message to Internet to receive the desired signals as per the command given through the Alexa voice remote. In this regard, the applicant has declared that the Alexa voice remote (3rd Gen) is primarily meant to operate Fire TV Stick. Therefore, prima facie, the device does function as a transmission and reception apparatus, but the primary objective of the transmission and reception function is to act as a remote control device, giving the device the essential character of a remote control device. Blue tooth devices connected in a Bluetooth network communicate with each other using ultra-high frequency (UHF) radio waves . Therefore, the contention of the applicant that Alexa voice remote (3rd Gen) does not merit classification as radio remote control apparatus under 8526 92 00 since it uses Bluetooth technology is facile and not accepted - the appropriate classification of Alexa voice remote (3rd Gen) based on rule 1 and rule 3(b) of GI Rules is under CTH 8526, and specifically under sub-heading 85269200. Benefit of Serial No. 20 of Notification No.57/2017-Customs, dated 30.06.2017, as amended vide notification No.22/2018-Customs dated 02.02.2018 - HELD THAT - The benefit is available for all goods other than wrist wearable devices (commonly known as smart watches) falling under sub-heading 8517 62 90. Therefore, the same is not admissible to Alexa voice remote (3 rd Gen), which is classifiable under sub-heading 85269200.
Issues Involved:
1. Classification of Alexa voice remote (3rd Gen) under the Customs Tariff. 2. Eligibility for duty exemption under Serial No. 20 of Notification No. 57/2017-Customs dated 30.06.2017. Issue-wise Detailed Analysis: 1. Classification of Alexa Voice Remote (3rd Gen) under the Customs Tariff: The applicant, M/s Amazon Wholesale India Private Limited, sought an advance ruling on the classification of the Alexa voice remote (3rd Gen) under the Customs Tariff Act, 1975. The applicant proposed classification under Custom Tariff Item (CTI) 8517 62 90, which covers apparatus for the transmission or reception of voice, image, or other data, including communication apparatus in a wired or wireless network. The Principal Commissioner of Customs, ACC (Import), New Delhi, concurred with the applicant's proposed classification under CTI 8517 62 90. However, the Customs Authority for Advance Rulings (CAAR) considered an alternative classification under CTI 8526 92 00, which covers radio remote control apparatus. The CAAR analyzed the device's functionality, noting that it operates primarily as a remote control for the Fire TV Stick, using Bluetooth technology to transmit and receive commands. Despite the applicant's argument that Bluetooth technology differentiates the device from radio remote control apparatus, the CAAR found that Bluetooth operates using ultra-high frequency (UHF) radio waves. Therefore, the principal function of the Alexa voice remote (3rd Gen) aligns with radio remote control apparatus. The CAAR referenced the Harmonized System Nomenclature (HSN) guidelines and Canada's Border Service Agency's memorandum, concluding that the principal function of the Alexa voice remote (3rd Gen) is to act as a radio remote control apparatus. Thus, the appropriate classification is under CTI 8526 92 00. 2. Eligibility for Duty Exemption under Serial No. 20 of Notification No. 57/2017-Customs: The second issue addressed whether the Alexa voice remote (3rd Gen) qualifies for duty exemption under Serial No. 20 of Notification No. 57/2017-Customs, dated 30.06.2017. This notification provides duty exemptions for goods falling under sub-heading 8517 62 90, excluding wrist wearable devices (smartwatches). Since the CAAR determined that the Alexa voice remote (3rd Gen) is classifiable under sub-heading 8526 92 00, it does not qualify for the duty exemption specified under Serial No. 20 of Notification No. 57/2017-Customs. The exemption is only applicable to goods classified under sub-heading 8517 62 90, which does not include the Alexa voice remote (3rd Gen). Conclusion: The CAAR ruled that the Alexa voice remote (3rd Gen) is classifiable under CTI 8526 92 00 as a radio remote control apparatus. Consequently, it does not qualify for the duty exemption under Serial No. 20 of Notification No. 57/2017-Customs, which is limited to goods under sub-heading 8517 62 90.
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