2023 (6) TMI 656 - AAR - Customs

Classification of LED Socket Assembly for Automobiles under Customs Tariff Act

The LED socket assembly imported by M/s. India Japan Lighting Private Limited for the manufacture of front fog lamps for automobiles is classified under ... Classification of goods proposed to be imported - import of LED socket assembly for the manufacture of Front Fog Lamp for automobile applications - classifiable under heading 8512 2010 or under Heading 8512 9000? - benefit under N/N. 69/2011 dated 29.7.2011 as amended (SI. No. 656) - HELD THAT:- The applicant intends to import 'LED socket plug assembly' (subject goods) for the manufacture of front fog lamp of an automobile. From the submitted information and images it appears that the subject goods are one of the parts to be used alongwith other parts in the manufacture of front fog lamp for automobiles. From the HSN Explanatory notes it is seen that Chapter Heading 8541 of CTA provides for 'Semiconductor devices (for example, diodes, transistors, semiconductor-based transducers); photosensitive semiconductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light-emitting diodes (LED), whether or not assembled with other light-emitting diodes (LED); mounted piezo-electric crystals. Whereas, it is not the case in respect of the subject goods, i e , LED socket assembly, which as per the information provided, is merely a part for the production of anti-fog lamp for automobiles. Considering the same, the subject goods do not merit classification under Heading 8541. The subject goods namely 'LED Socket Plug Assembly' is a combination of assembly of LED with associated circuit with a fixture for anti-fog lamp for vehicle. Further, this is required to be assembled with other parts viz. Lens, Inner Lens, Holder, Filter, Adjusting Screw Assembly and Body to produce a complete fog lamp for automobiles. CTH 8512 provides for Electrical lighting or signalling equipment of a kind used for cycles or motor vehicles. Headlamps of all kinds including lamps fitted with dimming or dipping attachments diffused driving lamps; anti-fog lamps are covered under this heading - by virtue of Section note 2 of the Section XVI of the schedule Ito the Customs Tariff Act, 1975 read with the general provisions regarding the classification of parts i.e., the General Explanatory Note to Section XVI of Harmonized Commodity Description and Coding System Explanatory Notes, parts of the goods of heading 8512 are also classified under heading 8512 - the subject goods merit classification under Heading '8512 90 00' as parts. Whether subject goods are eligible for the benefit of duty exemption under serial no. 656 of the notification no. 69/2011-Cus. dated 29.7.2011? - HELD THAT:- The entry at serial no. 656 in the said notification provides for eligibility for nil Basic Custom duty in terms of India -Japan Free Trade Agreement upon production of valid Country of Origin (COO) Certificate for all goods falling under heading 8512 90 of the Customs Tariff Act, 1975. The subject goods namely 'LED socket assembly' merit classification under Heading 8512 and more appropriately under sub-heading '8512 9000' of the Customs Tariff Act, 1975 - the subject goods would be eligible for benefit of serial number 656 of notification No. 69/2011-Cus., dated 29.7.2011. Issues Involved:1. Classification of the subject goods under the Customs Tariff Act, 1975.2. Applicability of Notification No. 69/2011 dated 29.7.2011 on the rate of duty.Summary:Issue 1: Classification of the Subject GoodsThe applicant, M/s. India Japan Lighting Private Limited, intends to import 'LED socket assembly' for the manufacture of front fog lamps for automobiles and seeks an advance ruling on its classification. The applicant proposed the classification under Heading '8512 9000' of the Customs Tariff Schedule, which covers 'Parts' of electrical lighting or signaling equipment used for cycles or motor vehicles. The applicant argued that the LED socket assembly, being a part of the anti-fog lamp for automobiles, falls under this heading. The Authority examined competing classifications under Headings 8539 and 8541 but concluded that the subject goods do not fit these categories due to the absence of control circuitry and other elements specified in the HSN Explanatory Notes for these headings. Therefore, the Authority ruled that the 'LED socket assembly' is appropriately classifiable under Heading '8512 9000.'Issue 2: Applicability of Notification No. 69/2011The applicant also sought a ruling on the eligibility for duty exemption under serial no. 656 of Notification No. 69/2011-Cus., dated 29.7.2011, which pertains to goods imported from Japan under the India-Japan Free Trade Agreement. The Authority noted that the notification provides for nil Basic Customs duty for all goods falling under Heading 8512 90, subject to the production of a valid Country of Origin certificate. Given that the 'LED socket assembly' is classified under Heading '8512 9000,' the Authority ruled that the subject goods are eligible for the benefit of serial number 656 of the said notification.Ruling:1. The 'LED socket assembly' merits classification under Heading '8512 9000' of the Customs Tariff Act, 1975.2. The subject goods are eligible for the benefit of serial number 656 of Notification No. 69/2011-Cus., dated 29.7.2011.