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TMI Blog2021 (8) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... b-heading 8517 62 90. It is seen that communicating with the AVS/Amazon cloud with the use of Alexa to deliver audio/video streaming content is the principal function of the device in question; it means that it receives voice/remote signals, converts the same into RF signals that are transmitted to the cloud, where processing takes place, after processing, processed signals, i.e. data/media requested by the user, are received by the device, which again undergoes conversion to be played through the speaker or be displayed on the compatible television. Thus, transmission or reception of voice, images or other data being the principal function of the device, sub-heading 8517 62 90 appears to be the most appropriate classification for Fire TV Cube. IR (Infra-Red) Extender Cable - HELD THAT:- As per the application, the extender cable allows Fire TV Cube to control devices that are hidden, out of sight or are far from the range of Fire TV Cube; the user can connect it by plugging the IR Extender Cable into Fire TV Cube and place the other end of it close to the device that the user wishes to control. The Amazon website describes the item as : (t)his replacement IR Extender Cable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty 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. The application was accordingly registered under Serial No. 8/2021-Delhi, dated 12-3-2021. 2. The applicant, vide entry in column 13 of the application Form CAAR-1, requested that in terms of provisions of Regulation 13 of the Customs Authority for Advance Rulings Regulations, 2021 (CAAR Regulations, in short), Central Board of Indirect Taxes and Customs (CBIC, in short) may designate a Principal Commissioner/Commissioner, in the matter. Accordingly, CBIC designated Principal Commissioner of Customs, ACC (Import), New Customs House, Near IGI Airport, New Delhi under the provisions of the Customs Act, 1962 read with the CAAR Regulations. 3. On designation of Principal Commissioner of Customs, ACC (Import), New Delhi, the Secretariat of CAAR, New Delhi sought comments of the designated Principal Commissioner on the application for advance ruling, vide letter dated 8-4-2021. In this regard, Principal Commissioner of Customs, ACC (Import), New Delhi vide their letter dated 1-6-2021 has forwarded the comments on the application for advance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satellite box on or off. change the volume level and put a specific channel on the satellite box. The Alexa Voice Remote is also included for those times when the user wants to control the Fire TV Cube without making a sound. With Alexa on Fire TV Cube, the user can control a wide range of devices through the cloud, infrared (IR), and HDMI-CEC. The working of Fire TV Cube is as follows : all devices with Echo functionality including Fire TV Cube are pre-programmed to catch few magic words like Alexa in the present case. The device has microphones to detect the sound. Once the device, through microphones, analyze these words, it becomes operative and starts recording user s voice. When the user finishes speaking, the device converts this voice data in radio frequency signals to be sent to AVS. AVS converts the RF signals into commands that it interprets. Thereafter, it analyses the command and sends back the results to the device in question, which in turn converts the results into electric signals played as audio/video output on the device. A user sends instruction either by way of audio instruction through in-built microphone in the remote or in the device or by pressing buttons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m incorporated in it. (ii) IR EXTENDER CABLE DETAILS : IR Extender Cable is an externally connected infrared (IR, in short) accessory that helps the Fire TV Cube in controlling appliances. The Fire TV Cube can control appliances like A/V receiver, Cable/Satellite set-top box, etc., through the integrated IR blaster or an externally connected IR accessory (IR Extender Cables). The IR Extender Cable allows Fire TV Cube to control devices that are hidden, out of sight or are far from the range of Fire TV Cube such as behind closed doors, in a cabinet or closet. The user can connect it by plugging the IR Extender Cable into Fire TV Cube and place the other end of it close to the device that the user wishes to control, such as the A/V receiver, Cable/Satellite set-top box, etc. It has an 8-foot cable for flexible placement and access to A/V components. The IR extender cable consists of a connector jack at one end and IR blasters at the other end. The cable carries IR codes in the form of electric signals to the IR blasters, wherein IR signals are generated and transmitted to entertainment devices to be controlled kept next to it. 4.1 In the light of above, questions on w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n perform multiple functions like it acts as a communication device for communicating with Amazon cloud/AVS for performing voice enabled services; it acts as a media streaming device, which allows the user to watch videos, listen to music, play games, etc.; it acts as a speaker for the audio function; it acts as a controlling device which controls the satellite box and smart devices (e.g. lights, fan, doors, etc.) even when the TV is off; etc.; All the above said functions can be performed only when the device is connected to an already enabled wi-fi or active Bluetooth connection, by the process of communication (transmission, conversion and reception) either with the Amazon cloud or with its user s phone; in other words, this device cannot function without its communication function; by applying Section Note 3 to Section XVI and on the basis of the functioning performed by the device, it can be stated that communicating with the AVS/Amazon cloud to deliver audio/video content is the principal function of the product in question; when it is said that the device communicates with AVS/Amazon Cloud, as explained above, it means that it receives voice/remote signals, converts the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s infrared devices for the remote control of television receivers, video recorders or other electrical equipment. ; hence, based on the functioning of the IR Extender Cable, read with HSN Explanatory Notes to CTH 8543, it can be said that the IR Extender Cable is an infrared device that transmits IR signals; thus, sub-heading 8543 70 appears to be the most appropriate classification for IR Extender Cable and specifically 8543 70 99, Others is most appropriate. 6. The comments received from the office of 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 item, Media Streaming Device (Fire TV Cube) is 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). The Principal Commissioner of Customs has also opined that IR Extender Cable to be imported appears to be classifiable under CTH 8517 62 90. No reasons for suggested classification have, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the application is valid in terms of the provisions of the Customs Act and the CAAR Regulations, 2021. The same is, therefore, allowed in terms of Section 28-I(2) of the Customs Act. 9. Thereafter, having gone through the details of the goods as described in the application, comments of the designated Principal Commissioner, hearing the applicant at length during the personal hearing and having perused other relevant material. I proceed to decide the matter on merit and give ruling on the questions raised in the application. 9. The application seeks ruling on the classification of a device, namely Fire TV Cube and its accessory, namely IR Extender Cable. 10.1 I first take up the issue of classification of Fire TV Cube. Since the applicant has suggested classification under CTH 8517, it s useful to note that the said CTH covers Telephone sets, including Telephone sets, including Telephones for 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, etc. The applicant during the personal hearing described the Fire TV Cube as an advance version of Fire TV Stick. In this regard, I find that the Amazon website provides a comparative chart for Fire TV Cube, Fire TV Stick 4K, Fire TV Stick, Fire TV Stick (3rd Gen.) and Fire TV Stick Lite, which support the argument that Fire TV Cube is an advance version of Fire TV Stick. The comparison highlights the aspect that Fire TV Cube comes hands-free with Alexa and is best for hands-free voice control of entertainment . It is observed that Fire TV Cube can perform multiple functions: it acts as a communication device for communicating with Amazon cloud/Alexa Voice Service (AVS) for performing voice enabled services; it acts as a media streaming device, which allows the user to watch videos, listen to music, play games, etc.; it acts as a speaker for the audio function; it acts as a controlling device which controls the satellite box and smart devices (e.g. lights, fan, doors, etc.) even when the TV is off; etc. Therefore, Fire TV Cube is a multi-function machine which is sold in the market highlighting it as a streaming device. In this regard, I note that this Authority in its Ruling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Fire TV Blaster, no additional set-up required. 15.1 In the light of the submissions and product description available on the Amazon website, the device appears to act as an accessory of Fire TV Cube, which is in the form of a cable with connector jack at one end and IR blaster at the other end. The cable carries IR codes in the form of electrical signals to the IR blaster where IR signals are generated and transmitted to entertainment devices to be controlled. In the light of the foregoing, I am of the view that in case this extender cable is presented along with the main device Fire TV Cube, then it also merits classification under Heading 8517 62 90. 15.2 However, in the event that IR Extender Cable is imported independently of the Fire TV Cube, it would need to be considered as a machine having independent function. Given the functions performed by the Extender Cable, it could have been considered for classification under Heading 8537. However, in view of Chapter Note 8, which provides that Heading 8537 does not include cordless infrared devices for the remote control of television receivers or other electrical equipment (Heading 8543) , I turn to Heading 8543, which c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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