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TMI Blog2023 (2) TMI 1206X X X X Extracts X X X X X X X X Extracts X X X X ..... Entry 8528 is concerned, it appears to be an unsuitable tariff entry for classification of the device under consideration in the present proceedings insofar as the said entry is primarily suitable for receivers of television broadcast signals. Therefore, the views expressed for classification of applicant s product under CTH 8528 viz. 8528 71 00 and 8528 73 90, examined on the background of technological facts discussed earlier, are not legally tenable. The Amazon Fire TV Stick/HDMI digital media receiver with dual core processor, dedicated Videocore4 GPU, 1 GB of memory and 8 GB of storage having a dual band, dual antenna 802.11 AC Wi-Fi is classifiable under CTH 8517 62 90 of the First Schedule of the Customs Tariff Act, 1975. - Shri Narendra V. Kulkarni, Authority for Advance Rulings, Customs Ms. Jyoti Pal, S/Shri Prasad Salvi, Advocates (LKS), Anand Tripurari and Jeshwin Immanuel, for the Assessee. RULING M/s. Amazon Seller Services Private Limited had proposed to import Fire TV Stick. The application of advance ruling, seeking the classification of the said device, was received in the Secretariat of the erstwhile Authority for Advance Rulings (Central Exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above mentioned show cause notice. The Hon ble High Court granted ad interim stay vide its order dated 24-2-2020. 4.2 From the information provided by the applicant and based on documents on record it is observed that the applicant has claimed that a Fire TV stick is a HDMI digital media receiver designed to stream digital audio/video content to high-definition television. This device is a dual-core processor with a dedicated Videocore4 GPU,1 GB of memory and 8 GB of storage having a dual band, duel antenna 802.11 AC Wi-Fi. It connects to the HDMI port of a television. Once connected, the user gets access to television episodes and movies on Amazon Instant Video, Netflix, HBO NOW, and more via the internet. The user can also play games, music and download additional applications. The applicant has further stated that the source of receiving signals by Fire TV Stick is an internet. Moreover, Fire TV sticks are not capable of receiving signals from satellite/cable/terrestrial source to convert them in the form suitable for display on the television. The Fire TV sticks do not support cellular services. They require an internet connection to perform their functions i.e. they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pal and Mr. Prasad Salvi, Advocates from M/s. Lakshmi Kumaran and Sridharan, Mr. Anand Tripurari and Jeshwin Immanuel from the applicant M/s. Amazon Seller Services Private Limited appeared and explained order of Hon ble High Court of Bombay, previous CAAR rulings and technical difference distinguishing CTH 8517 from CTH 8528 of Customs Tariff Act, 1975. They also invited attention to their earlier submissions in support of their application. Based on their oral as well as written submissions they requested to pass a ruling within the time frame given by the Hon ble High Court of Bombay. Applicant s CAAR-1 application along with enclosures describes in details the product specifications and product functioning. 9. I have gone through the records of the case and written as well as oral submissions made by the applicant. The applicant has filed the advance ruling application for six different ports/Jurisdictional Commissioners namely : (a) The Pr. Commissioner of Customs, Air Cargo Complex Airport, Air India SATS Air Freight Station Terminal, Devanahalli, Bengaluru (b) The Pr. Commissioner of Customs, Chennai VII (Air Cargo Commissionerate), New Custom House, Air C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d on the above and the product description and working of the device, there are three possible Classifications based on the Customs Tariff for Amazon Fire TV Stick : 8528 71 00 8517 69 60 8517 62 90 8528 71 00 (Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus not designed to incorporate a video display or screen) :- It is clear from the product description, catalogue and working that the Fire TV Stick does not receive signals from satellite/cable/terrestrial. Once connected to Wi-Fi, it converts the content into a form suitable for display on television screen and thus allows the user to access and view the movies, TV shows etc. already available on Netflix, Amazon video etc. Hence, based on the above, 8528 71 00 does not appear to be the appropriate classification for the product. 8517 69 60 (Set top boxes for gaining access to internet) :- The Oxford dictionary definition of a set top box is a device that changes a digital television signal into a form which can be seen on an ordinary television. Set top ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... including telephones for cellular networks or for other wireless networks : other apparatus for the transmission or reception of vice, 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 8537 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 u 20% - Customs Tariff Item 8517 62 90 HSN Explanatory Notes to heading 8517 provide This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current are optical waves flowing in a wire network are by electro-magnetic waves in wireless network. The signal may be analog or digital. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a network device, where the essential function remains that of receiving and demodulating the WI-FI signals. (f) Commissioner of Customs (Nhava Sheva-V), Jawaharlal Nehru Customs House, Nhava Sheva, Raigad had scrutinized on the basis of the submission made by the applicant regarding the product and have classified the product Fire TV stick under CTH 8517 62 90. 11. Application for advance rulings has sought a decision on classification of Amazon Fire TV Stick which is a HDMI digital media receiver having a technical specifications of a dual core processor with a dedicated Videocore4 GPU, 1 GB of memory and 8 GB of storage, a dual band, duel antenna 802.11 AC Wi-Fi. At the outset I find that technical specifications mentioned in CAAR-1 application are different from the products description and their specifications referred in show cause notice F. No. S/16-Audit-1626/2018-19 NCH, dated 25-7-2019 issued by Commissioner of Customs (Audit). Products referred in show cause notice are described as Amazon Fire TV Stick/HDMI digital media receiver Model No. LY73PR E9L29Y. However, I do not find any mention of these models in their CAAR-1 application. Hence the present r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion also does not support cellular services. It requires internet to perform. The Alexa Voice Remote Lite (1st Gen.) receives audio signals from the user, converts them into radio signals and transmits securely and wirelessly to the digital media receiver for further demodulation/processing of such radio signals. The second type of wireless remote essentially performs the same functions as described above. 10. From the features and functions described here-in-before, it is clear that the HDMI digital media receiver receives signals from Alexa Voice remote (Lite 1st Gen./2nd Gen.) via Bluetooth. Such instructions are to select the content that the user wants to watch on his television. The digital media receiver receives instructions of the user, converts them into RF signals and transmits them to the cloud for processing by AVS. AVS converts the signals into a readable format, extracts the requested content from the Amazon cloud and transmits the same to the media receiver, which on receipt of the output, retransmits the same for display on the user s television. Thus, HDMI digital media receiver is a device that transmits/receives RF signals and converts it into a format read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 u 20% - Description of goods and tariff rates applicable relevant to CTH 8528 are reproduced below Tariff Item Description of goods Unit Standard Rate of duty Preferential Areas Rate of duty 8528 Monitors and projectors, not incorporating television reception apparatus, reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recordi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or transmitting messages, such as dial or keyboard transmitters and automatic transmitters (e.g., tele-printer or teletypewriter transmitters). (2) Apparatus for receiving messages (e.g., teletypewriter receivers). In some cases, the receiver and the transmitter apparatus are combined into one receiver-transmitter. (3) Picture telegraphic apparatus. The ancillary photographic equipment used with this apparatus (e.g., developing equipment) falls in Chapter 90. (E) Telephonic or Telegraphic Switching Apparatus. (F) Transmitting and receiving apparatus for radio-telephony and radio-telegraphy. (G) Other communication apparatus. This group includes apparatus which allows for the connection to a wired or wireless communication network or the transmission or reception of speech or other sounds, images or other data within such a network. Communication networks include, inter alia, carrier-current line systems, digital-line systems and combinations thereof. They may be configured, for example, as public switched telephone networks, Local Area Networks (LAN), Metropolitan Area Networks (MAN) and Wide Area Networks (W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... graphs (time recorders) (heading 91.06). (o) Monopods, bipods, tripods and similar articles (heading 96.20). 15. HSN Explanatory notes of CTH 8528 read as follows : This heading includes : (1) Monitors and projectors, not incorporating television reception apparatus. (2) Television reception apparatus, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus, for the display of signals (television sets). (3) Apparatus for the reception of television signals, without display capabilities (e.g., receivers of satellite television broadcasts). Monitors, projectors and television sets utilize different technologies, such as CRT (cathode-ray tube), LCD (liquid crystal display), DMD (digital micromirror device), OLED (organic light-emitting diodes) and plasma, to display images. Monitors and projectors may be capable of receiving a variety of signals from different sources. However, if they incorporate a television tuner they are considered to be reception apparatus for television. (A) Monitors capable of directly connecting to and designed for use with an automatic data processing machine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AC Wi-Fi. The receiver provides HD/HDR support on compatible televisions. The HDMI digital media receiver is described by the applicant as network appliance and entertainment device for streaming digital audio/video content from the internet to television. A user sends instruction either by way of speech through inbuilt microphone in the remote (present in the kit) or by pressing buttons on the remote. Such instructions are meant to select the programme/movie/any other media that the user wants to watch through Fire TV stick. These instructions are transmitted wirelessly in the form of RF signals via Bluetooth to the Fire TV stick and further transmitted to the Amazon server on cloud through internet. The specific content requested by the user is received in return by the digital media receiver from the Amazon server. These signals are processed and converted into a form readable by a television. The processed signals are then transmitted to the connected television so that the requested media can be viewed by the user. I find that the HSN Explanatory notes issued by WCO (World Customs Organization) for CTH 8517 state that it excludes apparatus for the transmission or reception of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... phone, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks. It is further provided in the HSN that the communication apparatus includes one which allows for the connection to a wired or wireless communication network or the transmission or reception of speech or other sounds, images or other data within such network. The items to be classified under CTH 8517 are principally equipment for transmission and reception of voice, image or data. In other words, transmission and reception of voice, image or data must be the principal function for a product classifiable under CTH 8517. The Fire TV Stick does not receive signals from satellite/cable/terrestrial to convert them in the form suitable for display on television screen. Once connected to a WI-FI, it allows the user to access and view the movies, TV Shows etc. already available on Netflix, Amazon Video etc. The catalogue submitted by the applicant states that the product is connected to the display device following which it allows the user to access data available on Netflix, Amazon Instant Video, HBO Now and Hulu Plus etc. From a reading of the Tariff Heading and Explanatory Notes discussed above the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he RF signal to the Fire TV stick, where the signal is converted to a digital signal and transmitted over the internet to the desired server/cloud for retrieving the content requested by the user. This data is then converted into a form to be usable on TV. From the functionality point of view, there is no doubt the device carries out the functions of reception, conversion, transmission, and regeneration of voice, images, data etc. 15.8 From the HSN explanatory notes to Heading 8528, the reception apparatus for television includes (1) Receivers of television broadcasts (terrestrial, cable or satellite) (2) Television receivers for industrial use and (3) Television receivers of all kinds (LCD, plasma, CRT, etc.) used in the home (television sets). Therefore, the reception apparatus for television in Heading 8528 are apparatus capable of receiving television broadcasts or devices like CCTVs or television sets themselves. On the scrutiny of the functionality of the fire stick viz-a-viz above note, it is evident that the device is designed for or capable of functions beyond or different from reception of the broadcast signal and conversion of the same into a signal for display. From ..... X X X X Extracts X X X X X X X X Extracts X X X X
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