2005 (11) TMI 97 - AAR - Customs

Whether the goods namely (a) Submerged passive tilt equalizer R4, (b) Submerged Adjustable slope equalizer Unit R3 and (c) Submerged Passive Equalizer Unit R2 are individually classifiable under the Tariff Item 8517 50 99 of the First Schedule of the Customs Tariff Act, 1975?

Summary

Issues Involved:
1. Classification of Submerged Passive Tilt Equalizer R4.
2. Classification of Submerged Adjustable Slope Equalizer Unit R3.
3. Classification of Submerged Passive Equalizer Unit R2.

Detailed Analysis:

1. Classification of Submerged Passive Tilt Equalizer R4:
The applicant, M/s. Alcatel India Ltd., sought an advance ruling on whether the Submerged Passive Tilt Equalizer R4 is classifiable under Heading No. 8517 50 99 of the First Schedule of the Customs Tariff Act, 1975. The applicant argued that the equalizers are telecommunication apparatus used in submerged telecommunications systems and should be classified under Tariff Heading 8517 50 99, which covers "other apparatus, for carrier-current line systems or for digital line systems." The Commissioner of Customs, however, contended that the appropriate classification would be under Tariff Heading Item 8543 89 99, which covers electrical appliances and apparatus not specified elsewhere in Chapter 85. The Authority examined the technical details and concluded that the Submerged Passive Tilt Equalizer R4, designed for telecommunication systems utilizing submerged equipment, is appropriately classifiable under Tariff Heading 8517 50 99.

2. Classification of Submerged Adjustable Slope Equalizer Unit R3:
The second application sought a ruling on whether the Submerged Adjustable Slope Equalizer Unit R3 is classifiable under Heading No. 8517 50 99. The applicant provided technical details indicating that this unit is inserted in a submerged telecommunication system to provide equalization of the gain/wavelength slope. The Commissioner argued for classification under Tariff Heading Item 8543 89 99. The Authority noted that the unit is a hybrid of optical, electronic, and mechanical systems, playing an integral part in the transmission of data as a telecommunication apparatus. Given the unit's specific function within telecommunication systems, the Authority ruled that it should be classified under Tariff Heading 8517 50 99.

3. Classification of Submerged Passive Equalizer Unit R2:
The third application addressed the classification of the Submerged Passive Equalizer Unit R2. The applicant described it as a unit used for equalization of residual gain/wavelength non-linearity in submerged telecommunication systems. The Commissioner again suggested classification under Tariff Heading Item 8543 89 99. The Authority reviewed the technical specifications and determined that the unit, a combination of optical and mechanical elements, functions as a telecommunication apparatus for carrier-current line systems or digital line systems. Consequently, the Authority concluded that the Submerged Passive Equalizer Unit R2 should be classified under Tariff Heading 8517 50 99.

Conclusion:
The Authority for Advance Rulings concluded that all three types of equalizers-Submerged Passive Tilt Equalizer R4, Submerged Adjustable Slope Equalizer Unit R3, and Submerged Passive Equalizer Unit R2-are appropriately classifiable under Tariff Heading 8517 50 99 of the First Schedule of the Customs Tariff Act, 1975. The Authority found the Commissioner's argument for classification under the more general and residual Tariff Heading 8543 89 99 unconvincing, emphasizing that the equalizers are integral parts of submerged telecommunication systems and thus fall under the specific heading for telecommunication apparatus.