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TMI Blog2023 (7) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... r CTH 9612 (which has been adopted purely for expedient reasons in order to avoid delay in clearance). Applicant states and submits that there has been no authoritative determination on classification of the said product by the proper officer of Customs in the applicant's own case at any time in the past. The present advance ruling application CAAR-1 is filed to get an authoritative ruling on the issue of classification and taxability of the product in question which can be used in future imports and has sought an advance ruling on following issues:- 1. Whether "Thermal Printer Ribbons" (TPR) proposed to be imported by the Applicant is classifiable under Tariff Item 8443 99 59 of the First Schedule to the Customs Tariff Act, 1975? 2. If the answer to the above question is in the negative, then what would be the correct classification of "Thermal Printer Ribbons" under First Schedule to the Customs Tariff Act, 1975? 3. What would be the rate of duty applicable on the import of "Thermal Printer Ribbons"? Applicant in their application has submitted as follows: 1.2 HID's direct-to-card (DTC) printer ribbons are solely dedicated for use with HID's dye sublimation/th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inting components of heading 8442; Other printers, copying machines, and facsimile machines, whether or not combined; parts and accessories thereof'. 2.2 In the case of Honeywell Automation India Ltd. vs. CC, ACC, Mumbai 2018 (359) E.L.T. 402 (Tri. -Mumbai), it has held that Thermal Printer is a printing device capable of being connected to an Automatic Data Processing Machine or a network to print output and thus would be covered under CTI I 8443 32 90. 2.3 TPR is part of the Thermal printer since it is integral to the functioning of the Thermal Printer and without TPR the thermal printers cannot function. It has been held that Part is one without which the particular machinery was not operational or could not suitably discharge the function for which it had been designed. Reliance is placed on Sandvik Asia Ltd. vs. Collector of Central Excise, Pune 1997 (93) ELT 475 (Tribunal), CCE, Delhi vs. Insulation Electrical (P) Ltd. 2008 (224) ELT 512 (SC) and Electrosteel Castings Ltd. vs. CCE 1989 (43) ELT 305 (Tribunal). 2.4 Since TPR is a part and accessory to Thermal Transfer Printers i.e. DTC and HDP thermal printers which are covered under CTH 8443 32., the classification wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elts or belting of textile material (heading 5910) or other articles of textile material for technical uses (heading 5911); (f) precious or semi-precious stones (natural, synthetic or reconstructed) of headings 7102 to 7104, or articles wholly of such stones of heading 7116 except unmounted worked sapphires and diamonds for styli (heading 8522); (g) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39); (h) drill pipe (heading 7304); (ij) endless belts of metal wire or strip (Section XV); (k) articles of Chapter 82 or 83; (l) articles of Section XVII; (m) articles of Chapter 90; (n) clocks, watches or other articles of Chapter 91; (o) interchangeable tools of heading 8207 or brushes of a kind used as parts of machines (heading 9603); similar interchangeable tools arc to be classified according to the constituent material of their working part (for example, in Chapter 40, 42, 43, 45 or 59 or heading 6804 or 6909); (p) articles of Chapter 95; or (q) typewriter or similar ribbons, whether or not on spools or in cartridges (classified according to their constituent material, or in heading 96 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... printing presses 8443 19 30 --- Proof presses --- Machinery for printing repetitive word or design or colour- 8443 19 41 ---- On cotton textile 8443 19 49 ---- Other 8443 19 90 --- Other - Other printers, copying machines and facsimile machines, whether or not combined : 8443 31 00 -- Machines which perform two or more of the functions of printing, copying or facsimile transmission, capable of connecting to an automatic data processing machine or to a network 8443 32 -- Other, capable of connecting to an automatic data processing machine or to a network 8443 32 10 --- Line printer 8443 32 20 --- Dot matrix printer 8443 32 30 --- Letter quality daisy wheel printer 8443 32 40 --- Laser jet printer 8443 32 50 --- Inkjet printer 8443 32 60 --- Facsimile machine 8443 32 90 --- Other 8443 39 -- Other: 8443 39 10 --- Ink-jet printing machine 8443 39 20 --- Electrostatic photocopying apparatus operated by reproducing the original image directly onto the copy (direct process) 8443 39 30 --- Electrostatic photocopying apparatus operated by reproducing the original image via and intermediate onto the copy (indirect proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... flanges, a RFID tag (communicates information to the printer) and a cleaning roller. The product does not consist of Ink cartridge and or Ink nozzle spray. It is the ink in the ribbon which melts from the heat in the print head and is transferred on the Card. Thus, in absence of Ink Cartridge or Ink nozzle spray, the product under no circumstance falls under entry 84439951 to 84439953 and accordingly shall fall under Entry 84439959 i.e. "Other". 2.7 To substantiate its contention, the Applicant places reliance on the Advance Ruling No. HQ H262583 dated 27.12.2016 issued by the US Customs and Border Protection (CBP) wherein identical product was held to be classifiable under sub-heading 844399 of HTSUS, which has been submitted along with the application. 2.8 Further, reliance is also placed on Brazilian Advance Ruling (Solucao de Consulta) no 98.439 dated 20.12.2018 given by Brazilian Customs (which pertained to a similar printer ribbon for dye sublimation printer) wherein the Brazilian Customs has ruled that TPR would be classifiable under sub-heading NCM 8443.99.49. The applicant submits that while the said ruling is not binding on the Indian Customs, the same will certainly ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed to print graphics with automatic data processing equipment. The printers could not function as intended without color ISRs. Id. at 551. In their condition as imported, the ISRs consisted of a thin polymer (i.e., plastic) film to which paraffin wax pigments (or 'inks') in varying color configurations (i.e., yellow, magenta, cyan, and black) had been applied. Id. at 551. The ISRs varied in size, depending on the color thermal transfer printers for which they are specially designed. They were between 228 and 325 millimeters in width, between 105 and 291 meters in length, and between 50 and 74 millimeters in diameter when lightly wound around a reinforced cardboard core. Id. at 551-552. The court first considered classification in heading 9612, HTSUS, as typewriters or similar ribbons, and found that the subject ISRs could not be classified there because of the differences in physical characteristics and printing processes between ISRS and typewriter ribbons. Id. at 556. The court reasoned that typewriter ribbons are typically narrow while the ISRs were wide. Id. at 559. The court also noted that when typewriter ribbons are used, the ink is transferred to paper by impre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n automatic data processing machine (ADP) of heading 8471. The printer is specially designed to print images and text directly on the surface of ID cards, such as employee badges, student identification cards, etc., using heat. HID's high-definition-printer (HDP) printer ribbons are solely dedicated for use with HID's dye sublimation/ thermal transfer HDP ID card printers (known in the industry as a retransfer printer). These printers are capable of being connected to an ADP of heading 8471. the HDP printer is specially designed to print images and text on ID cards (employee badges, student identification cards, etc.). However, instead of printing the image directly on the surface of the card, it first prints the image on HID INTM (Intermediate Transfer Media) film (i.e. retransfer film), which then gets laminated to the surface of the card. On this background applicant wants to know whether the product "Thermal Printer Ribbons" proposed to be imported by the Applicant is classifiable under Tariff Item 8443 99 59 of the First Schedule to the Customs Tariff Act, 1975 or otherwise. And what would be the rate of duty applicable on the import of "Thermal Printer Ribbons". Appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 03, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8485 or 8548." 3.4 In addition to the support from the section note, I find that, the applicant has relied upon judgment of the CESTAT, Mumbai in the case of Honeywell Automation India Ltd. vs. CC, ACC, Mumbai 2018 (359) E.L.T. 402 (Tri. - Mumbai) whereunder it was held that Thermal Printer is a printing device capable of being connected to an Automatic Data Processing Machine or a network to print output and thus would be covered under CTH 8443 32 90. Based on the established ratio of CESTAT, Mumbai's decision in case of Honeywell Automation India Ltd. vs. CC, ACC, Mumbai 2018 (359) E.L.T. 402 (Tri. - Mumbai) applicant has further stated that since Thermal Printer Ribbon (TPR) is an integral part of the Thermal printer and without TPR the thermal printers cannot function, the TPR be classified as a part of Thermal Printer under CTH 8443 99 ---Parts and accessories of goods of sub heading 8443 31, 8443 32 and further Tariff item 8443 99 59 --- Other. 3.5 In order to support their contention applicant has placed reliance on Sandvik Asia Ltd. vs. Collector of Central Excise, Pune 1997 (93) ELT 475 (Tribunal), CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to give impressions (e.g., impregnation of textile ribbons, or coating of plastics strip or paper with colouring matter, ink, etc.). The heading does not cover: (a) Rolls of carbon or other copying paper strip, not suitable for use as typewriter, etc., ribbons, but designed to produce duplicate copies in accounting machines, cash registers, etc. This strip, which is usually much wider than typewriter ribbons (generally more than 3 cm in width), falls in Chapter 48. (b) Ribbons not prepared by inking, impregnation, coating, etc., to give an impression; these are classified in Chapter 39, Section XI, etc., according to the constituent material. (c) Empty spools (classified according to their constituent material). (3) Ink-pads, whether or not inked, for date stamps, etc. They are generally composed of felt, woven fabric or other absorbent material on a wooden, metallic or plastic support which is often in the form of a box. I land-operated ink-rollers are excluded from this heading and are classified according to their constituent material. As per the Dictionary meaning of the word 'impression' it means that "the indentation or depression made by the pressure of one obj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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