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2022 (1) TMI 622 - AAR - CustomsClassification of imported goods - Echo 4th Generation - Echo Dot 4th Generation - Echo Dot 4th Generation with Clock - Echo Show 5 - Echo Show 8 -Echo Show 10 - Echo Flex - Echo Studio - Echo Auto - Echo Link) - Echo Link Amp - classifiable under Customs Tariff Item 8517 62 90 or not - effective rate of duty - benefit of Serial Number 20 of Notification No. 57/2017-Cus. dated 30-6-2017 as amended by Notification No. 3/2021-Cus. dated 1-2-2021 on import of Echo Show 5 Echo Auto Echo Flex Echo Dot 4th Generation and Echo Dot 4th Generation with Clock. Echo 4th Generation - Echo Dot 4th Generation - Echo Dot 4th Generation with Clock - HELD THAT - The principal function of the three devices namely Echo 4th Generation Echo Dot 4th Generation and Echo Dot 4th Generation with Clock is to reproduce sound and act as speaker. Admittedly for these devices to function as speaker they accept voice commands and with wifi capability manage to get the input sound for reproduction from various web channels. These devices are essentially required to have internet connectivity and the same is made feasible by virtue of wifi capability of such devices. These features make the devices as smart speakers retaining nonetheless the principal function as speaker. Therefore guided by GIR 1 and Note 3 of section XVI of the Import Tariff it is found that the said three devices being treated as smart speakers merit classification under Heading 8518; and more specifically sub-heading 8518 22 00. Echo Show 5 - Echo Show 8 - Echo Show 10 - HELD THAT - The principal function performed by these is to act as display or monitor other than those capable of connecting to ADP machine. These devices are principally meant for playing video from web channels or displaying video during video calling or to reproduce motion pictures as video with the help of camera installed in it - The devices named Echo Show though neither being television reception apparatus nor apparatus for the reception of television signals without display capabilities are nonetheless monitors/display not incorporating television reception apparatus. Therefore in the light of GI Rule 3(b) and Note 3 of Section XVI of the Import Tariff these three devices namely Echo Show 5 Echo Show 8 and Echo Show 10 merit classification under Heading 8528; and more specifically sub-heading 8528 59 00 as other monitors. Echo Flex - HELD THAT - Echo Flex is a blue tooth enabled device taking voice command which are converted into radio frequency waves this device enabling the smart home device to function without physical contact. It has been described by the applicant as plug-in device for smart home control which lets you use your voice to control compatible smart home devices and get help from Alexa in more places in your home - the website informs that this plug-in Echo device lets you use your voice to control compatible smart home devices and get help from Alexa in more places in your home. Therefore Echo Flex is a communication device akin to apparatus covered under Heading 8517 of the Import Tariff. It is therefore classifiable under Heading 8517; and more specifically under sub-heading 8517 62 90 covering other machines for the reception conversion and transmission of voice images or other data. Echo Studio - HELD THAT - Echo Studio is also smart speaker like Echo 4th Generation Echo Dot 4th Generation albeit of superior quality. Therefore Echo Studio merits classification under Heading 8518; and more specifically sub-heading 8518 22 00. Echo Auto - HELD THAT - The device Echo Auto is a blue tooth enabled device taking voice command which are converted into radio frequency waves this device enabling the user to do variety of things by simple voice command like voice call listening to music knowing location etc. making it convenient to operate various devices while driving - Echo Auto is a smart communication device. It merits classification under Heading 8517 of the Import Tariff; and more specifically under sub-heading 8517 62 90 as other machines for the reception conversion and transmission of voice images or other data. Echo Link - HELD THAT - It is seen that this device does not have full-fledged speaker for rendering high quality audio rather it is an accessory to a (high quality) speaker. Therefore its principal function is of reception conversion and transmission or regeneration of voice or other data. Echo Link accordingly merits classification under Heading 8517 of the Import Tariff; and more specifically under sub-heading 8517 62 90 as other machines for the reception conversion and transmission of voice images or other data. Echo Link Amp - HELD THAT - For determining the classification of this device the question that needs to be answered is role/significance of the built-in amplifier since audio-frequency electric amplifiers merit classification under sub-heading 8518 40 00 - the built-in amplifier is an additional feature of the device not the principal determining feature with the device having relevance even without the use of amplification feature. Therefore holding that the principal function of Echo Link Amp is also of reception conversion and transmission or regeneration of voice or other data it is found that the device merits classification under Heading 8517 of the Import Tariff; and more specifically under sub-heading 8517 62 90 as other machines for the reception conversion and transmission of voice images or other data. Eligibility of the applicant to claim benefit of Serial Number 20 of Notification No. 57/2017-Cus. dated 30-6-2017 as amended by Notification No. 3/2021-Cus. dated 1-2-2021 - import of Echo Show 5 Echo Auto Echo Flex Echo Dot 4th Generation and Echo Dot 4th Generation with Clock - HELD THAT - The common and distinguishing feature of these five devices as distinct from the other seven devices covered by this application is that these devices are not MIMO enabled. It is seen that the benefit of Serial No. 20 of the said Notification No. 57/2017-Cus. is available only to goods falling under sub-heading 8517 62 90 and 8517 69 90; with certain goods including MIMO products etc. being excluded even if they were classifiable under the said two sub-heading. Put simply for a good to be eligible for the benefit it would need to meet twin criteria - (a) being classifiable under sub-heading 8517 62 90 or 8517 69 90 and (b) not be covered by the excluded items mentioned under the S. No. 20 of the said notification (MIMO products are mentioned in the list of excluded items). Therefore benefit of concessional rates of duty is available only to two devices namely Echo Auto and Echo Flex classifiable under sub-heading 8517 62 90 and not being MIMO enabled - The other three devices namely Echo Show 5 Echo Dot 4th Generation and Echo Dot 4th Generation with Clock are not classifiable under sub-heading 8517 62 90 or 8517 69 90; and therefore not eligible for the benefit of concessional rate of duty under the said notification. Application disposed off.
Issues Involved:
1. Classification of eleven Echo Family devices under the Customs Tariff Act. 2. Eligibility for concessional duty benefits under Notification No. 57/2017-Cus., as amended by Notification No. 3/2021-Cus. Detailed Analysis: 1. Classification of Eleven Echo Family Devices: Issue: Whether the Echo Family devices are classifiable under Customs Tariff Item 8517 62 90. Analysis: - Echo 4th Generation, Echo Dot 4th Generation, Echo Dot 4th Generation with Clock: These devices are primarily smart speakers with the principal function of sound reproduction. They require internet connectivity and have Wi-Fi capability, making them "smart" speakers. They are classified under Heading 8518, specifically sub-heading 8518 22 00. - Echo Show 5, Echo Show 8, Echo Show 10: These devices function as monitors or displays with capabilities for video calling, video streaming, and displaying visual information. They are classified under Heading 8528, specifically sub-heading 8528 59 00 as other monitors. - Echo Flex: This device is a Bluetooth-enabled communication device for smart home control, converting voice commands into radio frequency waves. It is classified under Heading 8517, specifically sub-heading 8517 62 90. - Echo Studio: Similar to other Echo smart speakers but with superior sound quality, it is classified under Heading 8518, specifically sub-heading 8518 22 00. - Echo Auto: A Bluetooth-enabled device for use in vehicles, allowing voice commands for various functions. It is classified under Heading 8517, specifically sub-heading 8517 62 90. - Echo Link: This device streams high-fidelity music to stereo systems and improves audio quality. It functions as a receiver and transmitter of audio data, classified under Heading 8517, specifically sub-heading 8517 62 90. - Echo Link Amp: Similar to Echo Link but with an additional built-in amplifier. Its principal function remains the reception, conversion, and transmission of audio data. It is classified under Heading 8517, specifically sub-heading 8517 62 90. 2. Eligibility for Concessional Duty Benefits: Issue: Whether the applicant is eligible to claim the benefit of Serial Number 20 of Notification No. 57/2017-Cus., as amended by Notification No. 3/2021-Cus., on import of certain Echo devices. Analysis: - Eligible Devices: Echo Auto and Echo Flex are classifiable under sub-heading 8517 62 90 and are not MIMO enabled. Therefore, they are eligible for the benefit of Serial Number 20 of Notification No. 57/2017-Cus. - Non-Eligible Devices: Echo Show 5, Echo Dot 4th Generation, and Echo Dot 4th Generation with Clock are not classifiable under sub-heading 8517 62 90 or 8517 69 90. Hence, they are not eligible for the concessional duty benefit. Judgment: 1. Classification: - Echo Auto, Echo Flex, Echo Link, Echo Link Amp: Classifiable under sub-heading 8517 62 90. - Echo 4th Generation, Echo Dot 4th Generation, Echo Dot 4th Generation with Clock, Echo Studio: Classifiable under sub-heading 8518 22 00. - Echo Show 5, Echo Show 8, Echo Show 10: Classifiable under sub-heading 8528 59 00. 2. Concessional Duty Benefit: - Eligible: Echo Auto and Echo Flex. - Non-Eligible: Echo Show 5, Echo Dot 4th Generation, Echo Dot 4th Generation with Clock.
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