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TMI Blog2021 (8) TMI 978X X X X Extracts X X X X X X X X Extracts X X X X ..... heading 90.26 and more specifically, under subheading 90261010 of the first schedule to the Customs Tariff Act, 1975. - CAAR/Mum/ARC/32/2021 in Application No. CAAR/CUS/APPL/15/2021 - - - Dated:- 12-8-2021 - M. R. MOHANTY CUSTOMS AUTHORITY FOR ADVANCE RULINGS, MUMBAI Present for the applicant : Shri. P. Shridharan, Shri. John Tomitim, Shri. Vijayan Bhaskar, Shri. Ganesh Arvind Present for the Department : None M/s Flextronics Technology India Private Limited filed an application on 30.04.21 (received on 09.05.21), seeking an advance ruling for classification of components for the assembly of iPERL flowmeter. 2. The applicant intends to import components required for assembly of flowmeter Sensus iPERL smart meter . These are solid-state smart meters to measure the rate of flow of water per unit time (litres/ hour), with integrated bi-directional communications capability. The data captured and communicated by a Sensus iPERL smart meter provides accurate information to identify and help manage network issues proactively and efficiently. The main function of the device is to measure the flow rate (quantity per unit of time) applying Faraday s law of electromagn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chnology, requires far less energy than traditional magnetic meters and permits much greater accuracy, even at intermittent or very low flows. The iPERL flowmeter is enabled with fixed wireless communication that enables meters to be read and even monitored and managed from a remote, central location. All measurements, including flow rate, calculated volume and flow rate dependent alerts are not simply displayed on an integrated LCD display, but are also included in an integrated radio communication data packet. This radio communication data packet can be used by an auxiliary device to help measure, monitor and manage the network more effectively. Based on above mentioned technical specifications and working principle, features of iPERL can be summarised as: low flow measurement, use of Remnant magnetic field technology, data at 15 second intervals, solid state meter with no moving parts, and collection and communication of data. 4. The applicant has proposed that they intend to import subject goods through the Air Cargo Complex, Chennai. The application was forwarded to the jurisdictional Principal Commissioner of Customs for comments on 21.05.2021. On non-receipt of any re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo different possible headings for classification of the impugned components of the device/instrument, i.e., 90.26 INSTRUMENT OR APPARATUS FOR MEASURING OR CHECKING THE FLOW LEVEL, PRESSURE OR OTHER VARIABLE OF LIQUID OR GASES (FOR EXAMPLE FLOWMETERS, LEVEL GAUGES, MANOMETERS, HEAT METERS,) EXCLUDING INSTRUMENT AND APPARATUS OF HEADING 9014,9015, 9028 OR 9032 or 90.28. Which is for GAS, LIQUID OR. ELECTRICITY SUPPLY OR PRODUCTION METERS, INCLUDING CAIBRATING METERS THEREFOR. 7. From the product catalogue, it appears that this flowmeter measures the mass flow of liquid. The flowmeter appears to be capable of measuring the value and the measured parameter(s) are displayed visually or provided as digital output. Hence, this instrument appears to match the description for goods covered under heading 90.26, as instrument and apparatus for measuring or checking the flow, level, pressure or other variable of liquid or gases. I find that the heading 90.26 specifically mentions flowmeter. The HSN Explanatory Notes for heading 90.26 states that, This heading covers instruments and apparatus for measuring or checking the flow, level, pressure, kinetic energy or other p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as entered, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), entered unassembled or disassembled. The second part of GRI 2 (a) provides that complete or finished articles presented unassembled or disassembled (which may occur for reasons related to the packing, handling, or transportation of the articles) are to be classified in the same heading as the assembled article. Therefore, I am convinced that the classification of components to be imported for assembly of iPERL will be classified under same heading as the iPERL. 8. The HSN Explanatory Notes for heading 90.28 states that, These meters are generally fitted with a device driven at a speed proportional to the rate of fluid flow or to the electrical quantity being measured. They are often fitted in a bypass or shunt off the main or connected to measuring transformers, so that only part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... med during personal hearing that there is an US Customs cross ruling that has classified iPERL under heading 90.28. The cross ruling was passed in respect of the review application filed for classification of the Sensus iPERL 100CF Household water meters on 03.04.2015. I have gone through the order passed. The review has emphasised on the principle of essential character of the product to classify iPERL , which appears to be the application of General Interpretation Rule 3(b). The heading 90.28 provides for gas, liquid or electricity supply or production meters, including calibrating meters; parts and accessories thereof. The supply meters of heading 90.28 include household supply meter. The Sensus iPERL consist of water meters used for household supply meters. Reliance has also been placed on the instructions issued by municipalities of Poway and Olivenhain in respect of usage of the said product. These instructions show that said product measures households water consumption per billing cycle and not water s flow. For above mentioned reasons the authority classified iPERL under heading 90.28. 10. The principle of essential character needs to be examined, which was the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tates that Subject to Note 1 above, parts and accessories for machines, apparatus, instruments or articles of this Chapter are to be classified according to the following rules : (a) Parts and accessories which are goods included in any of the headings of this Chapter or of Chapter 84, 85 or 91 (other than heading 84.87, 85.48 or 90.33) are in all cases to be classified in their respective headings; (b) Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instrument or apparatus of the same heading (including a machine, instrument or apparatus of heading 90.10, 90.13 or 90.31) are to be classified with the machines, instruments or apparatus of that kind; (c) All other parts and accessories are to be classified in heading 90.33 . Therefore, subject to Chapter Note 1, parts or accessories identifiable as suitable for use solely or principally with the machines, appliances, instruments, or apparatus of Chapter 90 are classified with those machines, appliances, etc. However, this general rule does not apply to: (1) Parts or accessories which in themselv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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