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TMI Blog2021 (7) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... by the applicant under sub-heading 8517 62 90 as a device that transmits/receives RF signals and converts it into a format readable by the system and transmits the same which is displayed on the screen - In support of classification under sub-heading 8528 71 00, it has been submitted that Fire TV Stick cannot support any other display device and can only be used for television. The applicant has accepted the fact that the device can work only with television. Whether Fire TV Stick/HDMI Digital Media Receiver is essentially and substantially a reception apparatus for television, akin to a set top box; or is a device designed for and capable of functions beyond or different from reception of broadcast signals and conversion of the same into a signal suitable for display? - HELD THAT:- It is a reception apparatus with an inbuilt PCB and software containing many applications which run on Over the Internet (OTT) platform and media is streamed to television sets for display. These devices do not receive signals from satellite/cable/terrestrial to convert them in the form suitable for display on the television screen, thus not hit by the exclusions mentioned in the CTH 8528. Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmanuel, Representative A WIPL, for the Assessee. RULING M/s. Amazon Wholesale India Private Limited, New Delhi, a company having IEC No. 0513081950 and PAN AAMCA0671Q, (M/s. Amazon Wholesale, in short) has filed an application dated 9-3-2021 seeking advance ruling under Section 28H of the Customs Act, 1962 before the Customs Authority for Advance Rulings, New Delhi (CAAR, New Delhi, in short). The application was received in the Secretariat of CAAR, New Delhi on 12-3-2021 and registered under Serial No. 7/2021-Delhi, dated 12-3-2021. 2. The applicant had, in terms of provisions of Regulation 13 of the Customs Authority for Advance Rulings Regulations, 2021 (CAAR Regulations, in short), requested Central Board of Indirect Taxes and Customs (CBIC, in short) to designate a Principal Commissioner/Commissioner in the matter. Accordingly, upon reference by this office, CBIC vide letter dated 5-4-2021 designated the Principal Commissioner of Customs, ACC (Import), New Customs House, New Delhi under the provisions of the Customs Act, 1962 read with the CAAR Regulations. 3. On designation of the Principal Commissioner of Customs, ACC (Import), New Delhi, this office vide let ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... music and more using their voice. Alexa Voice Remote Lite (1st Gen) is not infra-red enabled and cannot control functions like volume, power, mute for devices like television. On the other hand, Fire TV Stick (3rd Gen) comes with Alexa Voice Remote (2nd Gen). Alexa Voice Remote (2nd Gen) is a Bluetooth and infra-red enabled remote. It is primarily meant to operate the Fire TV Sticks paired with the remote. Being infra-red enabled, it can control a wide range of other infra-red devices also, including compatible televisions, cable and satellite boxes, and A/V receivers, thereby eliminating the need for a second remote. In addition to the buttons for regular Bluetooth enabled features, it has volume up and down buttons, mute button and power button, pressing of which sends out infra-red signals to infra-red controlled devices like television. The Fire TV stick device remains same for both Fire TV Stick Lite (1st Gen) and Fire TV Stick (3rd Gen). The Fire TV Stick (Lite 1st Gen/3rd Gen/3rd Gen) is a network appliance and entertainment device for streaming digital audio/video content from the internet to television. A user sends instruction either by way of audio instruction through in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s like Menu, Home, Back, Rewind, Play/Pause, Fast Forward, Select and Navigation for their respective functions. Since the Alexa Voice Remote Lite (1st Gen) does not have an infrared feature, therefore, it has no other buttons for controlling IR devices like television. The working of Alexa Voice Remote Lite (1st Gen) with audio instructions is as follows: The Alexa Voice Remote Lite (1st Gen) receives audio signals from the user, converts the same into radio signals and transmits the same securely through ether/air(wireless environment) to the Fire TV Stick Lite (1st Gen) for further demodulation/ processing of such radio signals. The Alexa Voice Remote Lite (1st Gen) is not MIMO enabled. (d) Alexa Voice Remote (2nd Gen) (for HDMI Digital Media Receiver) Model No. L5B83H [hereinafter referred to as Alexa Voice Remote (2nd Gen) ]. DETAILS : The features and functioning of Alexa Voice Remote (2nd Gen) is same as that of Alexa Voice Remote Lite (1st Gen), except that Alexa Voice Remote (2nd Gen) is also infra-red enabled. Being infra-red enabled, it can control a wide range of other infra-red devices also, including compatible televisions, cable and satellite bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said show cause notice does not relate to the applicant before me, viz. M/s. Amazon Wholesale. 5. Further to the above description/functioning of devices in question, the applicant has explained that the Fire TV Sticks (Lite 1st Gen/3rd Gen) are network appliance and entertainment device, also known as digital media receiver, designed to stream digital audio/video content via the internet. Both the Fire TV Sticks comprise compatible remotes, i.e. Alexa Voice Remote 1st Gen Lite and 2nd Gen. It has been submitted that Fire TV stick (Lite 1st Gen/3rd Gen) come together with inbox voice remote control and accessories in a set for retail sales. Accordingly, classification of the set must be done as per Rule 3(b) of General Rules for Interpretation of Import Tariff (GI Rules, in short), i.e. as per the item that gives essential character to the entire set. In this regard, reference is made to Circular No. 1/2013-Cus., dated 1-1-2013 issued by the CBIC regarding classification of Cordless Infra-red Devices for the Remote Control under the Customs Tariff Act. As per the said circular, when along with the main equipment as a set cordless infra-red devices for the remote control a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (2nd Gen) has volume up and down buttons, mute button and power button, pressing of which sends out infra-red signals to infra-red controlled devices, like television. The applicant has submitted that from a reading of the Tariff heading, Explanatory Notes of CTH 8517 and the GI Rules, the heading most appropriate for classification of the Alexa Voice Remote (2nd Gen) is CTH 8517, i.e. apparatus for the transmission or reception of voice, images or other data. Transmission or reception of voice, image, and data in a wireless network must be the principal function for a product to be classifiable under CTH 8517, more specifically 8517 62 90. It is submitted that while the Alexa Voice Remote (2nd Gen) can control infra-red devices also like television, the Wireless remote is primarily meant to be used with the Fire TV Stick. 7. The comments received from the Principal Commissioner of Customs, ACC (Import), New Delhi vide letter dated 1-6-2021 have been shared with the applicant. The designated Principal Commissioner of Customs has, inter alia, suggested that the aforesaid four devices are appropriately classifiable under CTH 8517 62 90, i.e. other apparatus for transmission or rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made submissions regarding the description and function of the said devices, namely Fire TV Sticks and Alexa voice remote lite 1st and 2nd Gen. He highlighted the salient features of the devices, and submitted that the appropriate classification for all the four devices would be sub-heading 8517 62 90. Shri Lakshmikumaran further submitted that the designated Principal Commissioner of Customs, ACC (Import), New Delhi has also suggested the same classification for the four devices. 8.2 During the PH, as mentioned in para 4.3 above, the applicant referred to a show cause notice being issued to M/s. Amazon Sellers (a related party of the applicant) proposing re-classification of Fire TV Stick under CTH 8528. The applicant promised to make additional submission contesting the said proposal for Fire TV Stick under CTH 8528, which have since been received. In response to a query, the applicant contended that Fire TV Stick cannot be used with devices other than television, like monitors, desktops or laptops, even as there are certain material available on the internet claiming that Fire TV Stick can indeed be used other such other devices. In view of the reiteration by the applicant in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cellular Networks or for other Wireless Networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of Heading 8443, 8525, 8527 or 8528. Sub-heading 8517 62 covers Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus; and 8517 62 90 is the residual sub-heading thereof. 11.3 CTH 8528 covers Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus. Sub-heading 8528 71 00 covers Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus, which is not designed to incorporate a video display or screen. 11.4 CTH 8526 covers Radar apparatus, radio navigational aid apparatus and radio remote control apparatus; and sub-heading 8526 92 00 covers Radio remote control a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd and transmit message to internet to receive the desired signals as per the command given through the remote control and other constituent is inbox remote controller which works on radio frequency. However, Alexa Voice Remote 2nd Gen which is to be supplied in the kit of Fire TV Stick (Lite 3rd Gen) apart from working on radio frequency, also supports the infra-red frequency to control other compatible devices like television, satellite boxes etc. In this regard, the declaration of the applicant that the Alexa Voice Remote is primarily meant to operate Fire TV Stick is accepted. Since the devices are proposed to be imported in the form of set, wherein prima facie, the two main constituents merit classification under two different sub-headings, the classification of the kit (comprising HDMI digital media receiver and Alexa Voice Remote) would be as per Rule 3(b) of GI Rules. Since the essential characteristics of kit is derived from the HDMI digital media receiver, which get attached to the HDMI port of the television, the classification of the kit would be as per the characteristics of this constituent. 14.1 HDMI Digital Media Receiver [Model Number S3L46N] is proposed to be c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Lite (1st Gen) ] and Alexa Voice Remote (2nd Gen) (for HDMI Digital Media Receiver) Model No. L5B83H [ Alexa Voice Remote (2nd Gen) ]. The applicant has submitted that these two Alexa voice remote devices also merit classification under CTH 8517, i.e. as apparatus for transmission or reception of voice, image or other data. However, as discussed in the personal hearing, Amazon Inc. suggests classification of Alexa Voice Remote under sub-heading 8526 92 00, which covers Radio remote control apparatus. I find that the devices are principally remote controls working on radio frequency, with the difference that the second device i.e. Alexa Voice Remote (2nd Gen) is having one feature in addition to the features available in Alexa Voice Remote (1st Gen) and apart from working on radio frequency this additional feature makes the remote compatible with other devices and control such devices through infra-red frequency. Be that as it may, it is evident that the devices in question are radio (Bluetooth) remote control apparatus, which have specific sub-heading 8526 92 00. Further, with respect to Heading 8526, the HSN inter alia provides the following as general guidelines for inclusion : ..... X X X X Extracts X X X X X X X X Extracts X X X X
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