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TMI Blog2021 (8) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... nce on the relevant Chapter Notes, the WCO's classification advice, the Board circular No. 20/2013-Cus., dated 14.05.2013 on classification of tablet computers, and also considering the fact that the head mounted tablet devices of RealWear incorporate all the features of a tablet computer, except a touch screen, the applicant has argued that these devices are more akin to automatic data processing machines than apparatus for transmission or reception of voices, image, data, including apparatus for communication in a wired or wireless network. It is also emphasised by the applicant that these Android based devices are capable of allowing installation of third-party software products, examples of which, cited by the applicant, are Microsoft Teams, Cisco Expert on Demand etc. These third-party applications are stated to be capable of being stored in the device for use when needed. The HMT device is a hands-free remote collaboration tool. It acts as a virtual assist and can capture videos and photos and share the same with workers at another location for any assistance. One can view documents/workflows. The product catalogues also lay emphasis on the device aiding mentor/expert ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... conditions with diagrams, chart and data, and access of data by the operators in real time. These devices weigh between 380 to 430 grams and consist of a virtual (micro) display which appears as a 7 screen to the user, a 2.0 GHz 8-core Qualcomm Snapdragon 625 with Adreno 506 processor, four digital microphones and advanced algorithms, voice based operating system, integrated speaker and 3.5 mm audio jack, 16 MP 4-axis optical image stabilization, PDAF with LED flashlight for capturing pictures and recording videos, 16GB storage space and 2GB RAM with slot for micro SD card (supporting up to 256 GB), Bluetooth, Wi-Fi and GPS enabled. 2. The applicant has emphasised that these products work on open-source Android operating system with a hands-free interface. The input to the devices is through voice commands. They are not fitted with physical keyboards or touch screen keyboards but contain speech keyboard vide which text may be entered into a text field. These products are capable of supporting third party applications. They are digital workflow solutions enabling workers to reference visual instructions, complete checklists, enter data and capture images thereby improving prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of relevant parts and components; (vi) in the automobile industry, geographically dispersed field technicians need support from Product Quality Engineers (PQEs) to stay updated with the latest maintenance and repair procedures and the HMT devices connect hands free with PQEs, capture images and videos, playback training videos, refer to manuals etc.; (vii) helps workers to work efficiently on a manufacturing factory floor or gas infrastructure brimming with inherently dangerous machinery and navigate their way safely around them by providing them access to equipment manuals, multimedia files, complete documents and collaborate with experts in real time with video calls. 3. The applicant has indicated their desire to import these devices through the Air Cargo Complex, Mumbai. Therefore, the present application was forwarded to the Commissioner of Customs (Import), ACC, Mumbai Custom Zone - III for comments. It is the considered opinion of the Id. Commissioner that the correct classification of these devices is 85176290, and not 84.71 as opined by the applicant. In coming to the aforesaid conclusion reliance has been placed on the relevant chapter notes and the languag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sufficient storage space for storing of programs and data also prove that these devices have all the features and functions of a tablet computer. The applicant, therefore, contends from the above submissions that the principal function of the RealWear hands-free Android based HMTs is to process data, store and execute programmes similar to a laptop or a tablet computer. The communication/transmission feature are merely incidental to the data processing features. Just like laptops and computers have video calling and Wi-Fi capabilities. Hence, the RealWear hands-free Android tablet class wearable computers (Head Mounted Tablet) are automatic data processing machines classifiable under the Heading 84.71 and specifically under tariff Item 84713010. To the analogy of the Commissioner of Customs of the subject goods to smart watches (wearable advanced telecommunication device) classifiable under the Heading 85176290, it is contended that smart watches and RealWear head mounted tablets are completely different devices and are not comparable merely because both are wearable devices. The wearable feature of a device does not qualify it to be classifiable under the Heading 85.17. Furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lay comparable to the display of a 7-inch tablet device, a 2.0 GHz 8-core Qualcomm Snapdragon CPU, a 2 GB RAM, Bluetooth/GPS/GLONASS/A-GPS connectivity, Wi-Fi connectivity, 16 GB internal storage (expandable up to 254 GB with SD cards), 16 MP camera, among others. These devices weigh 380 to 430 grams and runs on 3250 mAh Li-ion rechargeable batteries having a battery life of 9 to 10 hours. These devices can process data, execute programmes, and connect to internet via a wireless network, send/receive e-mails, upload/download files, download software applications, conduct video/VolP (Voice over Internet Protocol) communication, among others. The input method for the device is voice commands, instead of a traditional keyboard. The device converts voice commands into text to execute desired functions. 6. The HS Committee of the WCO, in its 50th meeting, recommended classification of tablet computers, designed to be primarily operated by using a touch screen, and featuring Wi-Fi network, mobile network and Bluetooth connectivity, and having the dimensions of 190 x 120 x 12 mm, and weighing 0.4 kg. under heading 8471.30. This decision is based on GIRs I(Note 3 to Section XVI and Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction of the product, while other functionalities of said machines are not different from the auxiliary functions that could be seen on any computer, such as desktop or laptop computers, and also that the mobile phone calling function is only a supplementary function because it could not be activated without running an operating system of the Tablet Computer , and in order to use the function a headset had to be used. 8. Placing reliance on the relevant Chapter Notes, the WCO's classification advice, the Board circular on classification of tablet computers, and also considering the fact that the head mounted tablet devices of RealWear incorporate all the features of a tablet computer, except a touch screen, the applicant has argued that these devices are more akin to automatic data processing machines than apparatus for transmission or reception of voices, image, data, including apparatus for communication in a wired or wireless network. It is also emphasised by the applicant that these Android based devices are capable of allowing installation of third-party software products, examples of which, cited by the applicant, are Microsoft Teams, Cisco Expert on Demand etc. Thes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the 1+1=2 is written or connect user to remote mentor to get the answer. The device must be capable of executing, 'without human intervention', a processing programme which requires them to modify their execution, by logical decision during the processing run - this condition doesn't appear to be fully satisfied in the HMT device as each execution of the device is based on command, i.e., human intervention, at every stage. Even simple tasks like, to scan a QR code, present a data sheet etc., human voice command is mandatory. Processing of data obtained through pictures, videos etc. is achieved by human element on the user side or remote mentor side. The Board Circular No. 20/2013-Cus. refers to Tablet Computers that can be programmed in a variety of ways. HMT device doesn't appear to be amenable to be programmed in various ways. It also held that the tablet computers are those devices which have essentially the same functionality as laptop. The HMT device does not have the same functionality as a laptop, it is essentially a remote collaboration tool as indicated in the website of M/s. RealWear. The product catalogues also describe product as remote c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electromagnetic waves in a wireless network. The HMT device is a hands-free remote collaboration tool. It acts as a virtual assist and can capture videos and photos and share the same with workers at another location for any assistance. One can view documents/workflows. The product catalogues also lay emphasis on the device aiding mentor/expert connection with workers on field from remote location. Hence, it appears that HMT devices are a type of apparatus for the transmission or reception of speech, images and other data between two points. Based on the above discussion, it is my considered opinion that HMT devices are rightly classifiable under sub-heading 85176290. In view of the aforesaid, I rule that head mounted tablets of M/s. RealWear, namely HMT-I and HMT-1Z1 merit classification under heading 85.17, and more specifically under sub-heading 85176290 of the first schedule to the Customs Tariff Act, 1975. The rate of customs duty for these devices, as per the tariff in force, is 10% advalorem. IGST is payable on imports @ 18%. The imports w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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