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2024 (2) TMI 1136 - AAR - CustomsSeeking advance ruling u/s 28H - classification and applicability of notification - importation of goods i.e. NIKON Camera Model N2120 - classification under CTH 8525 89 00 with benefit of Notification No. 50/2017-Cus - commercial quantity - Whether digital camera with still image as well as moving image capability would be eligible for exemption benefit under the entry as Digital Still Image Video Camera - HELD THAT - In view of the definition of Digital Still Image Video Camera in C.B.I. C. Circular 32/2007-Cus. whereby such cameras have the capability of taking still images and also include digital cameras that take moving images for a limited period of time, although they are primarily still image camera. Whereas regarding cameras which the applicant intends to import, recording time is not limited, it may appear that the subject goods fall outside the purview of Digital Still Image Video Camera . As regards apprehension that the subject goods fall out of the purview of the Digital Still Image Video Camera, for the reason that recording time is not limited and in view of the aforementioned circular, it appears that the subject goods is not eligible for the benefit of S. No. 502 Notification No. 50/2017-Cus. However, the wording used in the said Circular lay emphasis on principal function and not excludes cameras which have the capability to record moving images for a unlimited period of time. Language used in the Circular is of inclusive nature, whereby under the term. Digital Still Image Video Camera includes digital cameras that take moving image for limited period of time although they are primarily still image cameras. This may lead to inference that exemption under the notification is admissible to only those digital cameras whose principal function relates to still photography even though such cameras are capable of recording moving images. Based on the reasons cited by the applicant in the application, said model of digital camera proposed to be imported by the applicant is principally a still image digital camera. Accordingly exemption under Serial Number 502 Notification No. 50/2017-Cus., is admissible on import of said model no. if digital camera. In view of the above, I rule as under - Nikon Camera Model No. N2120 with standard accessories proposed to be imported by the applicant is correctly classifiable under sub-heading 8525 89 00 of the First Schedule to Customs Tariff Act, 1975. Also, in terms of, The Accessories (Condition) Rules, 1963 the said camera along with the standard accessory, if presented together shall be chargeable under the sub-heading 8525 89 00. However, any item/accessory, optional in nature, would merit classification in the tariff heading appropriate to it. The benefit vide S. No. 502 of Notification No. 50/2017-Cus., is available on import of the aforesaid Nikon Camera Model No. N2120. The applicant has submitted that the device is not launched commercially in India and requested to ensure maintenance of its confidentiality. In this regard, I note that the commercial import of the subject goods in question is already underway, thus, I am, of the view that maintaining confidentiality by invoking proviso to Rule 27 of the Customs Authority for Advance Rulings Regulations, 2021, is not required in the instant matter.
Issues Involved:
1. Classification of the imported goods. 2. Eligibility for benefit under S. No. 502 of Notification No. 50/2017-Cus. 3. Appropriate classification and duty rate if the above conditions are not met. Summary: Issue 1: Classification of Imported Goods The applicant, M/s. Nikon India Pvt. Ltd., sought an advance ruling on the classification of Nikon Camera Model No. N2120 under the Customs Tariff. The applicant argued that the camera, designed primarily for still photography but also capable of recording videos, should be classified under Customs Tariff Item 8525 89 00. The applicant emphasized that the camera's design, sensor size, and functionalities align more with still photography, despite its video recording capability. The Authority agreed, noting that the camera's principal function is still photography, thus classifying it under sub-heading 8525 89 00. Issue 2: Eligibility for Benefit under Notification No. 50/2017-Cus The applicant sought to claim the benefit under S. No. 502 of Notification No. 50/2017-Cus, which provides exemption from Basic Customs Duty (BCD) for "Digital Still Image Video Cameras." The Authority reviewed the applicant's arguments and relevant circulars, including Circular No. 32/2007-Cus, which clarifies that digital cameras primarily for still photography but also capable of recording videos for a limited period are eligible for the exemption. Despite the camera's unlimited video recording capability, the Authority concluded that the principal function remains still photography, thus granting the exemption under S. No. 502 of Notification No. 50/2017-Cus. Issue 3: Appropriate Classification and Duty Rate if Conditions are Not Met Given the affirmative answers to the first two questions, the third issue regarding alternative classification and duty rate was not applicable. However, the Authority noted that any optional accessories presented with the camera would be classified under their appropriate tariff headings. Confidentiality Request The applicant requested confidentiality for the device, stating it had not been commercially launched in India. The Authority denied this request, noting that commercial imports were already underway, making confidentiality unnecessary. Ruling: 1. Nikon Camera Model No. N2120 is classifiable under sub-heading 8525 89 00. 2. The benefit under S. No. 502 of Notification No. 50/2017-Cus is available for the import of Nikon Camera Model No. N2120. 3. Confidentiality is not required as commercial imports are already in progress.
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