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2023 (4) TMI 15 - AAR - CustomsClassification of import goods - Indra Smart Pro EVSE (Electrical Voltage Supply Equipment) - to be classified under Tariff Entry 8543 70 99 or under Tariff Entry 8504 40 30? - HELD THAT - It is gathered that the device in question is used primarily for providing power to the charger onboard an electric vehicle. In addition, the device has additional features, which make it a smart device. It is also on record that the device supplies AC power supply from the grid/solar module to the charger onboard the vehicle and it doesn t convert the AC supply to DC supply before supplying to the on-board charger. The difference between the device and a 50-kilowatt quick charger is that unlike the latter it doesn t include a converter. While the applicant has explained the functions of the device they have not provided the list of parts and/or components of the said device. It is merely stated that EVSE systems include electrical conductors, related equipment, software, and communication protocols that deliver energy efficiently and safely to the vehicle. Heading 8504 contains electrical transformers and static converters (for example, rectifiers) and inductors. From the description of the product, it is certain that it is neither a transformer nor an inductor. It needs to be examined whether the product is a static converter - Insofar as the device under consideration is concerned, it is incapable of converting electrical energy and merely supplies the AC power supply from the grid to the charger on-board of an EV. Therefore, it is found difficult to concur with the views of the Learned Commissioner that Heading 8504 would be a suitable tariff entry for the device. Heading 8537 covers boards, panels, consoles, desks, cabinets and other bases, equipped with two or more apparatus of Heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of Chapter 90, and numerical control apparatus, other than switching apparatus of Heading 8517. The basic function of the device under consideration is control of electricity and its distribution along with safety features providing protection against any electrical leakage or surge suppression - the smart programmable features, present in the product under consideration, fall within the ambit of this heading as per explanatory notes. Accordingly, the device merits classification under Heading 8537. More specifically the device is classifiable under six-digit entry 8537 10 which covers a device akin to the one under consideration operating on voltage below 1000V. It emerges that Heading 8537 squarely covers the device involved in this application for advance ruling. Under such circumstances, the device under consideration does not merit classification under Heading 8543. as suggested by the applicant, which is a residual entry and cannot take precedence over a specific heading - thus, Indra Smart Pro (Electrical Voltage Supply Equipment) merits classification under sub-heading 8537 10 00 of the First Schedule to the Customs Tariff Act, 1975.
Issues Involved:
1. Classification of "Indra Smart Pro" EVSE (Electrical Voltage Supply Equipment) for customs purposes. Issue-Wise Detailed Analysis: 1. Classification of "Indra Smart Pro" EVSE: Applicant's Position: - The applicant, M/s. Gulf Oil Lubricants India Ltd., proposed to import "Indra Smart Pro" and sought an advance ruling on its classification under Heading 8543. - The device provides electric power to the charger onboard an EV, recharging the vehicle's batteries. It includes features like all-weather functioning, app control, smart scheduling, solar charging, off-peak charging, house fuse protection, quick boost, and Over-The-Air (OTA) updates. - The applicant argued that since EVSE systems are not specifically covered under any chapter, they should be classified under Heading 8543, which covers electrical machines and apparatus with individual functions not specified elsewhere. Jurisdictional Commissioner's Position: - The Commissioner of Customs (Import), Air Cargo Complex, Sahar, suggested that the device should be classified under Tariff Heading 8504 40 30, which covers battery chargers, including EV battery chargers, as Heading 8543 is a residual heading and cannot be considered when a specific heading exists. - The Commissioner argued that the device is a feature-rich EV charger and thus falls under the specific heading for battery chargers. Applicant's Rejoinder: - The applicant reiterated that the device is akin to EVSE and argued that Heading 8504 involves apparatus that convert electrical energy, which their device does not do. - They emphasized that the device only supplies electricity without converting the current or altering the frequency, thus should not fall under Heading 8504. Personal Hearing: - During the personal hearing, the applicant's representatives explained that the device supplies AC power from the grid to the vehicle's charger without converting AC to DC. - They highlighted the smart features of the device and clarified that it requires manual intervention to start supplying electricity and can draw power from a solar supply after conversion from DC to AC. Authority's Analysis: - The authority considered the submissions, comments, and additional information from reliable sources, focusing on the classification of the Indra Smart Pro. - The device supplies AC power from the grid/solar module to the charger onboard the vehicle without converting the AC supply to DC. It also includes features like protective earth, neutral faults, earthling faults, simultaneous contact risks, touch voltage risks, DC leakage, and load curtailment. - The authority noted that the device incorporates necessary additional apparatus such as circuit boards, relays, and contactors, which are used for making and breaking electrical circuits. Classification Decision: - Heading 8504: The authority found that the device does not convert electrical energy and merely supplies AC power, making it unsuitable for classification under Heading 8504, which covers electrical transformers, static converters, and inductors. - Heading 8543: The applicant's suggested classification under Heading 8543 was considered. However, since the device has an individual function and its functions are covered under Heading 8537, it was necessary to examine Heading 8537. - Heading 8537: This heading covers boards, panels, consoles, desks, cabinets, and other bases equipped with two or more apparatus for electric control or distribution of electricity. The device under consideration fits this description as it controls and distributes electricity, provides safety features, and includes smart functionalities like app control and smart scheduling. - US Customs Ruling: The authority referenced a similar ruling by US Customs, which classified a comparable electric vehicle charging station under Heading 8537, emphasizing that such devices control and distribute electricity without converting it. Final Ruling: - The authority ruled that the "Indra Smart Pro" (Electrical Voltage Supply Equipment) merits classification under sub-heading 8537 10 00 of the First Schedule to the Customs Tariff Act, 1975, as it fits the description of devices covered under this heading for electric control or distribution of electricity.
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