Classification of imported telephone components turns on Rule 2(a), where separately packed parts were held to be parts, not instruments.

Imported telephone components separately priced and packed, with key items such as PCBs absent, were treated as parts rather than complete or incomplete telephone instruments. Rule 2(a) of the General Rules for Interpretation did not apply because the goods were not presented as finished or unassembled sets for simple fixing, and assembly required manufacture or procurement of PCBs with engineering skill and machinery. The goods were therefore classifiable as parts of telephone instruments, and the Commissioner's contrary finding was set aside.

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Issues: Whether the imported telephone parts were classifiable as complete or incomplete telephone instruments under Rule 2(a) of the General Rules for the Interpretation of the Customs Tariff Schedule, or as parts of telephone instruments.

Analysis: The imported consignments consisted of separately priced and separately packed parts, with key components such as PCBs absent. The goods were therefore presented as parts and not as finished, unassembled, or incomplete telephone sets for convenience of packing, transport, or handling. The assembly required manufacture or procurement of PCBs and involved engineering skill and machinery, so the process was not a simple fixing operation of the kind contemplated by Rule 2(a) and the HSN explanatory notes.

Conclusion: Rule 2(a) was not attracted, and the imported goods were required to be classified as parts and not as telephone instruments. The finding of the Commissioner was set aside.

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