9911796707
TMI Blog2023 (6) TMI 905X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, portability, and organization to a drone and its accessories. The applicable subheading is 42029200, which provides for other containers or cases; with outer surface of sheeting of plastics . The rate of duty is 15% - The USB type-C cable is to be used for the two-way communication of information and data and/or DC voltage between the connected equipment. The cable is insulated by plastic material. There are standard connectors on both ends. The applicable subheading is 85444220, which provides for Insulated wire, cable and other insulated electric conductors; Other electric conductors, for a voltage not exceeding 1,000 V; Fitted with connectors; Plastic insulated'. The rate of duty is 15%. The applicant in their CAAR-1 application inquired about the rate of duty applicable to the impugned goods. Accordingly, the rate of duty specified above for various goods is only the basic customs duty (BCD. However, the applicant is advised to refer to the ICEGATE website (https://www.icegate.gov.in/Webappl/index_im.jsp). to know about the effective rate of duty on subject goods, which includes, besides BCD, various cesses, IGST levy, other duties, etc. Thus, the goods unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a propeller motor to generate propulsion for the drone. 4. Screws (12) These are used to fit propellers. 5. Shoulder bag (1) To carry the equipment. 6. USB 3.0 type -C data cable (l) For data transfer. 2.1 As per the applicant, the goods under consideration are specifically used with DJI Mini Pro 3 drones. Chapter 88 of the Customs Tariff Act, 1975 covers UAVs. The applicant stated that the said drone is classified under tariff entry 88069100. Heading 8807 covers parts of goods of headings 8801, 8802 or 8806. As the goods under consideration are solely used with DJI Mini Pro 3, they are classifiable under heading 8807, specifically under tariff entry 88073000. The applicant has also stated that the imported goods are sold as a complete kit and are not intended to be sold as loose items. 2.2 In their CAAR-1 application form the applicant has stated that neither the questions raised are pending in their case before any officer of customs, appellate tribunal or any court of law nor a similar matter raised in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uct is a combo kit, which is sold to be used with DJI Mini 3 Pro drone. The subject kit consists of multiple articles classifiable under separate headings. Therefore, whether the goods are to be classified as a kit or each item is to be classified separately, needs to be decided. 5.1 As per General Rule for Interpretation (GRI) 3(b), Mixtures, conposite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot he classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, ins'0far as this criterion is applicable . Explanatory note X to GRI 3(b) is reproduced below: (X) For the purposes of this Rule, the term goods put up in sets for retail sale shall be taken to mean goods which: (a) consist of at least two different articles which are, prima facie, classifiable in different headings. Therefore, for example, six fondue forks cannot be regarded as a set within the meaning of this Rule; (b) consist of products or articles put up together to meet a particular need or carry out a specific activity; and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... geable and removable battery to power a drone. As per HSN explanatory notes to heading 8507, these batteries, also known as electric accumulators, are characterised by the fact that the electrochemical action is reversible so that the accumulator may be recharged. They are used to store electricity and supply it when required. A direct current is passed through the accumulator producing certain chemical changes (charging); when the terminals of the accumulator are subsequently connected to an external circuit these chemical changes reverse and produce a direct current in the external circuit (discharging). This cycle of operations, charging and discharging, can be repeated for the life of the accumulator. Subheading 85076000 specifically mentions Lithium-ion based electric accumulators. Accordingly, the intelligent flight batteries are classifiable under subheading 85076000. The rate of duty i.e. basic customs duty (BCD) is 20%. 6.1 Two-way charging hub is used for charging the remote controller and three batteries in sequence. Up to 3 batteries can be inserted into the hub, which is connected to a separate USB charger. The hub automatically detects the battery with the most pow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terial. There are standard connectors on both ends. The applicable subheading is 85444220, which provides for Insulated wire, cable and other insulated electric conductors; Other electric conductors, for a voltage not exceeding 1,000 V; Fitted with connectors; Plastic insulated'. The rate of duty is 15%. 6.6 The applicant in their CAAR-1 application inquired about the rate of duty applicable to the impugned goods. Accordingly, the rate of duty specified above for various goods is only the basic customs duty (BCD. However, the applicant is advised to refer to the ICEGATE website (https://www.icegate.gov.in/Webappl/index_im.jsp). to know about the effective rate of duty on subject goods, which includes, besides BCD, various cesses, IGST levy, other duties, etc. 7. In view of the aforesaid discussion, I rule that the goods under consideration are classifiable under the following subheadings of the Customs Tariff Act, 1975 having rate of duty (BCD), as specified: Goods Subheading Rate of Duty (BCD) Intelligent flight battery 85076000 20% Two-way char ..... X X X X Extracts X X X X X X X X Extracts X X X X
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