9911796707
TMI Blog2005 (11) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... icant, the goods are classifiable under sub-heading 8517 50 which reads "other apparatus, for carrier-current line systems or for digital line systems". They have suggested that the proper classification would be under Tariff Item 8517 50 99. Copies of the rulings issued by UK Customs, USA Customs and Australian Customs have also been enclosed along with the application, all of whom have classified this product under tariff sub-heading 8517 50. The designated Commissioner, namely, the Commissioner of Customs, Air Cargo Exports, New Custom House, IGI Airport, New Delhi (hereinafter to be referred to as "the Commissioner") in his comments has, however, expressed the view that the classification of this item would be under Tariff Item 8543 89 79 on the ground that the repeater is an amplifier having an independent function and is not covered more specifically by a heading of any other Chapter of the Nomenclature, nor is it excluded by the operation of a legal note of Section XVI or to the Chapter 85. The Tariff Item 8543 89 79 would therefore be the appropriate classification of the repeater under consideration as a high or intermediate frequency amplifier mentioned at Sl. No. 9 of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an be compensated by an increase of output from the other." 5. While giving their response to the comments of the Commissioner, the applicant has reiterated the technical information already supplied as annexure to the application and has contended that the function of repeater is to amplify the signal for transmission in a local/wide area network. It is not an independent unit but is part of the transmission chain. It has been further submitted by them that the classification of repeaters was discussed at the World Customs Organization and it was agreed that repeaters for local area networks would properly fall under Heading 8471 while repeaters for wide area networks are classifiable under the Heading 8517. Furthermore, the Schedule submitted by India to the World Trade Organization in respect of ITA (Information Technology Agreement) clearly indicates that these products are classified under Heading 8517. The applicant has also submitted that the rulings already issued in other countries are based on the common understanding/principles of the World Customs Organization of which India is a member. Though they appreciate that there are differences in the interpretation of rules b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provide inter alia that :- "The electrical appliances and apparatus of this heading must have individual functions. The introductory provisions of Explanatory Note to Heading 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of this heading. Most of the appliances of this heading consist of an assembly of electrical goods or parts (valves, transformers, capacitors, chokes, resistors, etc.) operating wholly electrically. However, the heading also includes electrical goods incorporating mechanical features provided that such features are subsidiary to the electrical function of the machine or appliance". The introductory provisions of Explanatory Note to Heading 84.79 explains what has to be regarded as having "individual functions". The following two categories have been indicated therein :- "(A) Mechanical devices, with or without motors or other driving force, whose function can be performed distinctly from and independently of any other machine or appliance. --- --- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; --- --- ---- ---" 8. As per the technical information provided by the applicant the product in question is a hybrid of optical, electronic and mechanical systems. The mechanical characteristics, the electrical characteristics and the electro-optic characteristics have been separately narrated in the technical write up submitted by the applicant. It has been indicated under the heading "Amplifier electro-optic characteristics" that the transmission of aggregate data within the Alcatel Repeater is a telecommunication function supported by the following parts : (i) Optical amplifiers (ii) Amplifier automatic level control (iii) Pump control (iv) Monitor photodiodes (v) Wavelength division couplers (vi) Monitor coupler (vii)&nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "Line equipment" includes transmitters and receivers or electro-optical converters. Combined modulators-demodulators (modems) are also classified here." This supports the view that the Heading 8517 would be the more appropriate classification for the goods in question than 8543. As the possibility of coverage of the product under Heading 8543 stands eliminated, the question of applying Rule 3(c) of the General Rules of Interpretation, as suggested by the Commissioner, does not arise. Coming to the Heading 8517, since the goods in question are not covered by any of the sub-headings/tariff item from 8517 11 up to and including 8517 30 00, it will fall under sub-heading 8517 50 and more precisely under the Tariff Item 8517 50 99, after excluding rest of the specified Items 8517 50 10 to 8517 50 94. 9. Incidentally, from an authenticated copy of the Information Technology Agreement and India's schedule as amended, made available to us, it is noticed that goods bearing description "Electric amplifiers when used as repeaters in line telephony products falling within this agreement and parts thereof" are shown in the said schedule as classifiable under HS sub-headings "8517 50, 8517 90" ..... X X X X Extracts X X X X X X X X Extracts X X X X
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