2006 (1) TMI 155 - AAR - Customs

Whether Optically Post Amplifier unit (unrepeatered) proposed to be imported into India, is classifiable under Heading No. 8517 50 99 of the First Schedule of the Customs Tariff Act, 1975?

Summary

Issues: Classification of Optical Post Amplifier Unit under Customs Tariff Act

Analysis:
1. Description of Goods: The applicant sought a ruling on whether the Optical Post Amplifier Unit proposed for import into India falls under Heading No. 8517 50 99 of the Customs Tariff Act, 1975. The unit, Alcatel OPA28C, is a crucial component of a submarine telecommunication system, designed for high power amplification of WDM communication signals before transmission into submarine cables.

2. Technical Details: The OPA28C amplifies signals using an Erbium-doped Fibre Amplifier and is part of a larger system including optical, electronic, and mechanical components. The equipment ensures signal integrity by boosting power without distortion. The applicant argued that the unit is not covered by Heading 8543 for electrical apparatus but should be classified under Heading 8517 for carrier-current or digital line systems.

3. Commissioner's Position: Initially, the Commissioner suggested classifying the unit under Tariff Item 8543 89 79 as a high or intermediate frequency amplifier. However, during the hearing, the Commissioner agreed that the unit is more appropriately classified under Tariff Item 8517 50 99, citing previous rulings on similar equipment like 'Equalisers' and 'Repeaters.'

4. Ruling Basis: After considering the technical aspects and functional role of the apparatus, the Authority concluded that the unit is a combination of optical, electronic, and mechanical elements essential for data transmission in carrier-current or digital line systems. Referring to previous rulings and the HSN Explanatory Note, the Authority determined that the unit falls under Heading 8517, not 8543. The final ruling confirmed classification under Tariff Item 8517 50 99.

5. Conclusion: The Authority ruled that the Optical Post Amplifier Unit is classifiable under Tariff Item 8517 50 99 of the Customs Tariff Act, 1975, based on its technical composition and functional role in telecommunication systems. The decision was pronounced on January 5, 2006, following a thorough examination of the equipment's specifications and classification rules.