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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 ..... ce 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 letter dated 8-4-2021 sought comments of the designated Principal Commissioner of Customs on the application for advance ruling. The comments of the Principal Commissioner of Customs, ACC (Import), New Delhi have been received vide letter dated 1-6-2021. 4. The applicant has sought ruling on classification of four devices, two of which are HDMI digital media receiver paired with Alexa voice remote, presented as kits [sub-paras (a) and (b)] below refer. The other two devices are Alexa Voice Remote Lite (1st Gen) and (2nd Gen) respectively, which are mentioned at sub-paras (c) and (d). The applicant has elaborated the details & described ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le 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 inbuilt microphone in the remote or by pressing buttons on the remote. Such instructions are to select the programme/movie/ any Other media that the user wants to watch through Fire TV Stick (Lite 1st Gen/3rd Gen). The service that processes audio instructions is called Alexa Voice Services ("AVS", in short). These instructions are transmitted wirelessly in the form of Radio Frequency (RF) signals via Bluetooth to the Fire TV Stick (Lite 1st Gen/3rd Gen) and further transmitted to Amazon server on cloud through ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 boxes, and A/V receivers, thus 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 Alexa Voice Remote (2nd Gen) is not MIMO enabled. 4.1 In relation to the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, 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 are imported then the essential character rule of Rule 3(b) of GI Rules has to be applied in order to determine under which single heading the set had to be classified. Alexa Voice Remote Lite (1st Gen) is a Bluetooth enabled remote that allows the user to operate the Fire TV Sticks. It can receive instructions from the user either ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 reception of voice, image or other data including apparatus for communication in a wired or wireless network (such as a local or wide area network). It is also opined that on the basis of facts mentioned in the application along with workability and functionality of the goods, they are of the view that benefit vide Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an 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 their additional submission, the claim of the applicant that Fire TV Stick can only be used with television (and not monitors, desktops or laptops) is accepted. The third specific issue discussed during the PH related to classification of Alexa voice remote under CTH 8526 as radio control apparatus, as suggested by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 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 apparatus. 12. Further, Since a decision regarding classification would involve interpretation of General Rules for Interpretation of Import Tariff (GI Rules, in short), the relevant Rule 3 of the GI Rules is reproduced below : 3. When by application of rule 2(b) or for any other reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V 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 classified 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. The applicant contends that since the device is used for recepti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 : "Radio apparatus for the remote control of ships, pilotless aircraft, rockets, missiles, toys, model ships or aircraft, etc." and "Radio apparatus for the detonation of mines, or for the remote control of machines". Therefore, these two Alexa Voice Remote devices are cl ..... 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