Computer microprocessor classification as parts of computers allowed customs exemption under the notification.

Pentium-II/Celeron microprocessors were treated as integrated circuits meant for computers and, on that basis, classified as parts of automatic data processing machines rather than populated printed circuit boards. The exclusion in Notification No. 23/98-Cus did not apply because the goods fell outside the category of populated printed circuit boards. The classification under the heading for computer parts therefore supported eligibility for the customs exemption, and the notification benefit was held admissible.

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Issues: Whether Pentium-II/Celeron microprocessors were correctly classified as parts of automatic data processing machines and whether they were entitled to the benefit of Notification No. 23/98-Cus dated 02.06.1998.

Analysis: The controlling consideration was the earlier finding that the imported goods were microprocessors, which are integrated circuits meant for computers and function as parts of a computer. On that basis, they were held not to be populated printed circuit boards. The same finding also supported classification under the heading applicable to parts of computers, and the description in the notification excluding populated printed circuit boards did not defeat eligibility, because the goods were found to fall outside that excluded category.

Conclusion: The goods were held to be parts of computers and not populated printed circuit boards, and the benefit of Notification No. 23/98-Cus dated 02.06.1998 was held admissible.

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