2008 (1) TMI 168 - AT - Customs

Barcode Printers (Thermal Label Printers) - manual of the imported goods shows that the goods are printers connected to a computer - printers in question are connectible to the central processing unit - printers are able to accept or deliver data - since the goods are printers which satisfy the conditions of Note 5(B)(b) and (c), they are covered under heading 84.71 classifiable u/h 8471.60 of Custom Tariff Act, not under SH 8443.59 as merely printing machinery appeal allowed

Summary

Issues: Classification of 'Barcode Printers (Thermal Label Printers)' under Customs Tariff Heading 8471.60 as inputs or output units of automatic data processing machines as claimed by the importers or under CTH 8443.59 as "printing machinery other than Ink jet Printing machines" as held by the Revenue.

Analysis:
1. The issue at hand revolves around the classification of Barcode Printers under two possible headings. The importers claim classification under Customs Tariff Heading 8471.60 as input or output units of automatic data processing machines, while the Revenue argues for classification under CTH 8443.59 as "printing machinery other than Ink jet Printing machines."

2. The Tribunal examined the nature of the imported goods and noted that they are printers connected to a computer. Reference was made to Note 5D to Chapter 84 of the Customs Tariff Act, which states that printers satisfying the conditions of paragraphs 5B(b) and 5B(c) are to be classified as units of heading 84.71. The conditions include being solely or principally used in an automatic data processing system, connectable to the central processing unit, and able to accept or deliver data in a usable form by the system.

3. It was established that the printers in question meet the conditions stipulated in Note 5B(b) and (c), as they are connectible to the central processing unit and can accept or deliver data in a usable form. Therefore, the goods are deemed to be classified as units of Heading 84.71.

4. The lower authorities had excluded the goods from heading 84.71 by applying Note 5(E), which pertains to machines performing functions other than data processing. However, the Tribunal reasoned that since the printers meet the conditions of Note 5B(b) and (c) and Note 5D is not subject to Note 5(E), they cannot be excluded from the coverage of heading 84.71. Previous Tribunal decisions further supported this interpretation, emphasizing that Note 5(D) prevails over Note 5(E) in such cases.

5. Consequently, the Tribunal concluded that the Barcode Printers in question should be classified under CTH 84.71.60, thereby setting aside the previous order and allowing the appeal in favor of the importers.