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TMI Blog2021 (10) TMI 1354X X X X Extracts X X X X X X X X Extracts X X X X ..... eration in the present proceedings are voice command devices with multiple functions, including answering questions, playing music, reading newspaper/audio-books, providing traffic, weather and other real-time information and controlling smart devices. These devices respond to the names Alexa , Amazon , Computer or Echo as wake up words. These Echo family devices are capable of voice interaction, music playback, making to-do lists, setting alarms, etc. - these four devices merit classification under sub-heading 8517 62 90. The specifications of Echo Auto and Echo Flex, as submitted by the applicant make it clear that they are not MIMO products. In view of this, it is held that these two devices would be eligible for the said exemption. Since Echo Link and Echo Link Amp are MIMO products, they are not eligible for the subject exemption. During the hearing held on 28-9-2021, the applicant has fairly conceded that they no longer are seeking exemption in respect of these two devices. The Audio Receiver (Echo Link) having Model No. SXP16E, Audio Transceiver and Amplifier (Echo Link Amp) having Model No. K9Y29E, Media Transmission Device (Echo Auto) having Model No. BP39CN, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omplexes at New Delhi, Mumbai, Chennai and Bangalore, as well as the seaports of Chennai and Nhava Sheva as the ports through which they wish to import the aforementioned items. Accordingly, these four applications were sent to all the aforementioned customs authorities. However, comments have only been received from the Commissioner of Customs (Import), Chennai port. The comments from the Commissioner have been shared with the applicant. 3. The items for which advance rulings have been sought are as follows :- (i) Audio Receiver (Echo Link) Model No. SXP16E - The device is used for streaming Hi-Fi music to any stereo system. In other words, it upgrades stereo system with high fidelity streaming music and Alexa. A user can connect echo link to the stereo and supported echo devices to play music throughout the home. When an Echo link is connected to Echo speaker as an input device and multiple existing speakers as output devices, the user may give command to Echo speaker (the input device), through Alexa, to play the preferred music in all the rooms or only certain rooms/areas though Echo Link. Echo Link would then connect to the respective speakers or all speakers (whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous functions such as voice interaction, music playback, making to-do lists, setting alarms, streaming podcasts, playing audiobooks, providing weather, traffic and other real time information and controlling smart devices. Echo Auto uses the data services of the smartphone connected to it to access the cloud and perform its functions. It is not capable of connecting to the internet by itself. Echo Auto is similar to other Echo Family devices. However, Echo Auto does not have a screen or speakers for playing output media as the in-built speaker is only for initial device setup. The device also cannot connect to the cloud on its own, but accesses the same via a smartphone through the Alexa app. (iv) Echo Flex with Model No. C77A68 - It is a hands-free cordless Alexa enabled device which can directly be plugged into the power socket for functioning. The device has a USB-A port for phone charging and for providing support to accessories like night light, clock display, air-freshener, sensors, etc. The device is compatible with Fire OS, Android, and iOS devices and is accessible via web browser, i.e., Alexa App. It supports Wi-fi and Bluetooth connectivity. With the help of this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eives command, processes it, and then reproduces sound as per given command. I also find that the Customs Authority for Advance Rulings, New Delhi; in his Ruling No. CAAR/Del/Amazon/17/2021, dated 20-7-2021, in the case of M/s. Amazon Wholesale India Pvt. Ltd. [2021 (378) E.L.T. 700 (A.A.R. - Cus. - Del.)], came to consider all the above mentioned four devices, among others, and reached the conclusion that all these four devices merit classification under sub-heading 8517 62 90. However, he has ruled that only Echo Auto and Echo Flex are eligible for exemption under the Sr. No. 20 of the Notification No. 57/2017-Cus., dated 30-6-2017 as amended vide Notification No. 3/2021-Cus., dated 1-2-2021. In reaching the conclusion w.r.t. the classification of these four devices, the CAAR, New Delhi has considered the product details submitted by the applicant, the description of these devices on the website www.amazon.in, the Rules 1 and 3 of the General Rules for Interpretation of Import Tariff, the possible classification entries etc. The relevant paragraphs for the said ruling, in the same order that these devices are listed in the present proceedings, are reproduced below :- 13.5 The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the user to do variety of things by simple voice command like voice call, listening to music, knowing location etc., making it convenient to operate various devices, while driving. On the Amazon website, it is described as Add Alexa to your car . Therefore, Echo Auto is a smart communication device. It merits classification under Heading 8517 of the Import Tariff and more specifically under sub-heading 8517 62 90 as other machines for the reception, conversion and transmission of voice, images or other data. 13.2 The next device Echo Flex is a blue tooth enabled device, taking voice command which are converted into radio frequency waves, this device enabling the smart home device to function without physical contact. It has been described by the applicant as plug-in device for smart home control which lets you use your voice to control compatible smart home devices and get help from Alexa in more places in your home. On the website www.amazon.in Echo Flex is described as Plug-in Echo for smart home control. Further, the website informs that this plug-in Echo device lets you use your voice to control compatible smart home devices and get help from Alexa in more places in yo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice Echo Auto is classifiable under the sub-heading suggested by the applicant and confirmed by the CAAR, New Delhi, the devices Echo Link and Link Amp are classifiable under sub-headings 8518 40 00 and 8518 50 00, respectively. The suggested classification for the device Echo Flex is 8519 89 90. In view of the divergence of opinion, it is necessary to examine the alternate tariff entries to arrive at the correct classification entries for the devices under consideration. 8517 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 APPARATUS OF HEADING 8443, 8525, 8527 OR 8528 8517 62 -- Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus : 8517 62 90 --- Other 8518 MICROPHONES AND STANDS THEREFOR: LOUDSPEAKERS, WHETHER OR NOT MOUNTED IN THEIR ENCLOSURES : HEADPHONES AND EARPHONES, WHETHER OR NOT COMBINED W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g amplifier or be incorporated in an amplifier). Audio-frequency amplifiers may contain a volume control for varying the gain of the amplifier, and also commonly incorporate controls (bass boost, treble lift, etc.) for varying their frequency response. The heading includes audio-frequency amplifiers used as repeaters in telephony or as measurement amplifiers. High or intermediate frequency amplifiers are classified in Heading 85.43 as electrical appliances having an individual function. Audio mixers and equalisers are also classified in Heading 85.43. Electric sound amplifier sets of Heading 8518 50, according to the Explanatory Notes, covers amplifier sets consisting of microphones, audio-frequency amplifiers and loudspeakers. This type of equipment is extensively used for public entertainment, public address systems, advertising vehicles, police vehicles or with certain musical instruments, etc. Similar systems are also used on large lorries (particularly those with trailers) for enabling the driver to hear irregular noises or sound signals from behind, which otherwise he could not hear above the sound of the engine. The Heading 8519 69, as per the Explanatory Notes, includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner of Customs, Chennai port that the device Echo Link merit classification under sub-heading 8518 40 00 as an audio-frequency electric amplifier. On the contrary, the line of reasoning adopted by the CAAR, New Delhi that the device is designed to receive, convert, transport, or regenerate voice, data etc. is based on sound logic and should be accepted. The device Echo Link Amp is similar to the Echo Link and can perform ail its functions. Additionally, this device incorporates an amplifier which allows the user not to use an external amplifier along with his passive speakers which are used as output. The feature of amplification, however, is not used when the signals get transmitted through RCA cables and in such a case, Echo Link Amp will transmit the audio signals to output speakers as are received by it from the input devices. In this scenario, it doesn t appear that the built-in amplifier is so central to the device that the proper classification should be under sub-heading 8518 50 00 as electric sound amplifier sets. On the other hand, I am more inclined to side with the views of CAAR, New Delhi that the built-in amplifier is an additional feature of the device, and not t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecorders or reproducers etc., since the device in question is significantly different. 8. To summarise, I hold that all the four Echo family devices under consideration in the present proceedings are voice command devices with multiple functions, including answering questions, playing music, reading newspaper/audio-books, providing traffic, weather and other real-time information and controlling smart devices. These devices respond to the names Alexa , Amazon , Computer or Echo as wake up words. These Echo family devices are capable of voice interaction, music playback, making to-do lists, setting alarms, etc. For the reasons outlined supra, I hold that all these four devices merit classification under sub-heading 8517 62 90. Besides, I also find that the Sr. No. 20 of the Notification No. 57/2017-Cus., dated 30-6-2017; as amended, extends the benefit of concessional rate of duty to goods falling under sub-headings 8517 62 90 and 8517 69 90 subject to listed exclusions. In the list of exclusions fall MIMO devices. The specifications of Echo Auto and Echo Flex, as submitted by the applicant make it clear that they are not MIMO products. In view of this, I hold that these tw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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