2006 (1) TMI 156 - AAR - Customs

Classification of goods - Pump Units - Held that - pump units cannot come within the coverage of tariff heading 8543 whose scope have already examined in detail in earlier Ruling 2005 (11) TMI 94 - AUTHORITY FOR ADVANCE RULINGS in the applicant s case. Having regard to the functional characteristics of the two pump units we are of the view that they are a combination of optical, electronic and mechanical elements and their function is an integral part of the telecommunication system for transmission of aggregate data. Being so, they merit classification as an apparatus for carrier-current line systems or for digital line systems falling under tariff heading 8517 - Keeping in view the tariff structure under the relevant sub-heading 8517 50, it is apparent that the goods in question would fall under tariff item 8517 50 99.

Summary

Issues: Classification of Remote Pump and Raman Pump Unit under Customs Tariff Act, 1975

In this judgment, two applications were clubbed together to issue an advance ruling regarding the classification of Remote Pump and Raman Pump Unit under the Customs Tariff Act, 1975. The applicant sought clarification on whether these pump units, which are part of a submarine telecommunication system for data transmission, should be classified under Heading No. 8517 50 99. The technical information provided described these pump units as a hybrid of optical, electronic, and mechanical systems used for amplification of telecommunication signals in specific telecommunication applications. The Remote Pump Unit can be used for single channel or WDM applications, while the Raman Pump Unit can be used independently or with other units for WDM applications in the full-C band.

During the hearing, the applicant's representatives clarified that these pump units are not 'amplifiers' under tariff heading 8543 but are dedicated units for data transmission. They argued that based on the General Rules for Interpretation of the Customs Tariff Act, 1975, the pump units should be classified under tariff item 8517 50 99. The Commissioner initially suggested classifying the pump units under tariff item 8543 89 79 as amplifiers, but later agreed that they should be classified under 8517 50 99 based on the technical information provided by the applicant and recent rulings by the Authority on similar products.

The Authority examined the nature and function of the pump units and concluded that they do not fall under tariff heading 8543 but are a combination of optical, electronic, and mechanical elements integral to the telecommunication system for data transmission. Therefore, the pump units were classified as apparatus for carrier-current line systems or digital line systems under tariff heading 8517. The final ruling stated that both the Remote Pump and Raman Pump Unit are classifiable under tariff item 8517 50 99 of the Customs Tariff Act, 1975.