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2022 (4) TMI 786 - AAR - CustomsClassification of imported goods - networking device - to be classified under sub-heading 8517 62 90 or not - antenna - to be classified under 8517 70 90 or not - HELD THAT - In the present proceedings, the networking device model Nos. D5N87C and D5N87D9 have a function not very dissimilar to the three networking devices already considered. These two devices are also designed for use in conjunction with a Fire TV stick for providing access to audio-video content like movies, series, etc. These network devices are also designed to receive a command/signal in either electrical or radio form, convert the electrical signal into radio frequency signal or vice versa, and transmit the signal to the receiver or the Amazon cloud in the acceptable format. Therefore, there is no reason to depart from my earlier decision that network devices of the type discussed here merit classification under sub-heading 8517 62 90. Antennas - HELD THAT - The role of antennas in the network explained by the applicant is limited to transmit the commands of the user in the form of RF signals to CP Node via RF cables and to receive the desired content from CP Node and radiate the signals to the Fire TV for viewing by the customer - it is not be able to concur with the suggestion of the Commissioner of Customs, Chennai that antennas merit classification under Heading 8529 since that heading applies to parts suitable for use solely or principally with the apparatus of Heading 8525 to 8528. The networking devices model Nos. D5N87C (rooftop node or RT node) and D5N87D9 (customer premise node or CP node) are classifiable under sub-heading 8517 62 90; and passive antennas, one high gain and one low gain, having model No. HD3T2A are classifiable under sub-heading 8517 70 90 of the First Schedule to the Customs Tariff Act, 1975.
Issues Involved: Classification of networking devices and antennas under the Customs Tariff Act, 1975.
Issue-wise Detailed Analysis: 1. Classification of Networking Devices: The applicant, M/s. Amazon Digital Services Private Limited, proposed to import networking devices model No. D5N87C (rooftop node or RT node) and model No. D5N87D9 (customer premise node or CP Node). The primary function of these devices is to provide access to audio-video content through a network created by the applicant. The RT node receives internet access via LAN cable from an ISP and is connected to an external HDD storing cached content. The CP node transmits content wirelessly to a Fire TV stick connected to the customer's television. Both devices are MIMO enabled and convert signals between RF and digital formats. The applicant suggested classification under sub-heading 8517 62 90. The Principal Commissioner of Customs, ACC, New Delhi, and the Commissioner of Customs, Sea Port, Chennai, concurred with this classification. The Authority for Advance Rulings (AAR) referenced a previous ruling (No. CAAR/Mum/ARC/59/2021) where similar devices were classified under sub-heading 8517 62 90. The AAR concluded that the networking devices in question perform similar functions, such as receiving commands/signals, converting them, and transmitting them to the receiver or Amazon cloud. Therefore, the AAR agreed with the applicant and the customs authorities that the networking devices merit classification under sub-heading 8517 62 90. 2. Classification of Antennas: The applicant proposed to import passive antennas model No. HD3T2A, which include one high gain and one low gain antenna. These antennas are used to transmit and receive RF signals between the Fire TV stick and the CP node. The applicant suggested classification under sub-heading 8517 70 90, while the Commissioner of Customs, Sea Port, Chennai, suggested sub-heading 8529 10 29. The AAR referenced its earlier ruling (No. CAAR/Mum/ARC/59/2021), which classified similar passive antennas under sub-heading 8517 70 90. The AAR considered various sources, including the C.B.I. & C.’s Instruction No. 1/2018-Cus., the decision of the Hon’ble CESTAT in the case of Reliance Jio Infocom Ltd., and recommendations of the HS Committee of the WCO. The AAR noted that the antennas' role is limited to transmitting user commands and receiving content for viewing, which aligns with the functions covered under sub-heading 8517 70 90. The AAR disagreed with the Commissioner of Customs, Chennai, who suggested classification under Heading 8529, as this heading applies to parts suitable for use with apparatus of Heading 8525 to 8528. Summary: The AAR ruled that networking devices model Nos. D5N87C (rooftop node or RT node) and D5N87D9 (customer premise node or CP node) are classifiable under sub-heading 8517 62 90. Passive antennas model No. HD3T2A (one high gain and one low gain) are classifiable under sub-heading 8517 70 90 of the First Schedule to the Customs Tariff Act, 1975.
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