Thermal printer ribbons held parts under CTH 8443 99 59, not inked ribbons of 9612, applying Section Note 2(b)

The AAR classified the imported Thermal Printer Ribbons (TPRs) as parts of thermal printers under CTH 8443, specifically under sub-heading 8443 99 and tariff item 8443 99 59 of the First Schedule to the Customs Tariff Act, 1975. It held that TPRs are solely/principally used with thermal printers and constitute integral parts essential for their functioning, attracting Section Note 2(b) to Section XVI. The authority rejected classification under CTH 9612, finding that TPRs are not "inked ribbons" giving impressions by impact, but wax/resin-coated ribbons used via heat transfer, and are functionally and physically distinct from typewriter or similar ribbons.

---

---

1. ISSUES PRESENTED AND CONSIDERED

1.1 Whether thermal printers using thermal transfer technology are classifiable under Tariff Item 84433290 as "other" printers capable of connecting to an automatic data processing machine or to a network.

1.2 Whether thermal printer ribbons used solely/principally with such thermal printers are "parts" of those printers classifiable under Heading 8443, specifically under Tariff Item 84439959.

1.3 Whether thermal printer ribbons are excluded from Section XVI and instead classifiable under Heading 9612 as "typewriter or similar ribbons, inked or otherwise prepared for giving impressions."

1.4 How Section XVI Note 2 and Note 1(q), read with the General Rules for Interpretation, govern the classification of thermal printer ribbons.

2. ISSUE-WISE DETAILED ANALYSIS

Issue 1 - Classification of thermal printers under Heading 8443 / Tariff Item 84433290

Legal framework

2.1 The Court examined Heading 8443 covering "printing machinery...; other printers, copying machines and facsimile machines, whether or not combined; parts and accessories thereof", and sub-heading 844332 relating to other printers capable of connecting to an automatic data processing machine or to a network.

2.2 Reliance was placed on precedent holding that thermal printers, being devices capable of connection to automatic data processing machines and printing output without using plates or cylinders of Heading 8442, fall under Tariff Item 84433290 ("other").

Interpretation and reasoning

2.3 Thermal printers use a heated printhead to produce an image and are capable of being connected to automatic data processing machines. They are not printing machinery of the plate/cylinder type of Heading 8442.

2.4 There is no specific Tariff Item for thermal ribbon printers; therefore, they fall under the residual category "other" within sub-heading 844332.

Conclusions

2.5 Thermal printers using thermal transfer technology and capable of connecting to automatic data processing machines are correctly classifiable under Tariff Item 84433290 as "other" printers.

Issue 2 - Whether thermal printer ribbons are "parts" of thermal printers classifiable under Heading 8443 / Tariff Item 84439959

Legal framework

2.6 The classification of parts of machines of Section XVI is governed by Section Note 2 to Section XVI, which provides:

(a) Parts which are goods included in any heading of Chapters 84 or 85 (other than certain specified headings) are to be classified in their own headings.

(b) Other parts, if suitable for use solely or principally with a particular kind of machine or a number of machines of the same heading, are to be classified with the machines of that kind or in certain specified "parts" headings.

(c) All other parts are to be classified under specified "parts" headings or, failing that, under Heading 8485 or 8548.

2.7 Judicial precedents on the meaning of "part" were considered, wherein a "part" has been defined as an essential component of the whole, without which the whole cannot function or cannot suitably discharge the function for which it is designed.

Interpretation and reasoning

2.8 Thermal printer ribbons (TPRs) are designed to be used solely/principally with thermal printers. Without TPRs, thermal printers cannot function or discharge their intended function of printing.

2.9 TPRs are not independently classifiable under any specific heading of Chapters 84 or 85; hence Section Note 2(a) does not apply.

2.10 Applying Section Note 2(b), since TPRs are suitable for use solely/principally with thermal printers of sub-heading 844332, they must be classified along with those printers under Heading 8443 as "parts".

2.11 Within Heading 8443, parts and accessories of goods of sub-headings 844331 and 844332 are covered under sub-heading 844399, and TPRs, not being specifically provided for elsewhere therein, fall within Tariff Item 84439959 ("other").

Conclusions

2.12 Thermal printer ribbons are essential components without which thermal printers cannot operate and therefore constitute "parts" of thermal printers within the meaning of Section XVI Note 2.

2.13 By application of Section XVI Note 2(b), TPRs are classifiable under Heading 8443 as parts and accessories of printers of sub-heading 844332, and specifically under Tariff Item 84439959.

Issue 3 - Applicability of exclusion under Section XVI Note 1(q) and Heading 9612

Legal framework

2.14 Section XVI Note 1(q) provides that the Section does not cover "typewriter or similar ribbons, whether or not on spools or in cartridges (classified according to their constituent material, or in heading 9612 if inked or otherwise prepared for giving impressions)...".

2.15 Heading 9612 covers "typewriter or similar ribbons, inked or otherwise prepared for giving impressions, whether or not on spools or in cartridges; ink-pads, whether or not inked, with or without boxes", including computer printer ribbons and other ribbons.

2.16 The Explanatory Notes to Heading 9612 clarify that:

- The heading covers ribbons (whether or not on spools/cartridges) for typewriters, calculating machines and other machines incorporating a device for printing by means of such ribbons.

- The ribbons must be inked or otherwise prepared to give impressions (e.g., impregnation or coating with colouring matter, ink, etc.).

- Ribbons not prepared by inking/impregnation/coating to give an impression are excluded and classified according to constituent material.

Interpretation and reasoning

2.17 The crucial requirement for Heading 9612 is that the ribbons be "inked or otherwise prepared for giving impressions", i.e., printing by impression/impact as per the ordinary meaning of "impression" (indentation or depression made by pressure of one object on another).

2.18 In thermal transfer printing using TPRs:

- The ribbon is a thin film coated on one side with wax, resin, or wax-resin.

- The heated printhead melts the wax/resin and transfers it from the ribbon onto the media.

- The process is effected by heat, not by impact or pressure, and does not involve impression-type printing.

2.19 TPRs in the present case are not "inked" in the sense contemplated by Heading 9612 and Explanatory Notes; they are not prepared to give impressions by impact but to transfer melted coating by thermal action.

2.20 Functionally and physically, TPRs differ from typewriter or similar ribbons: traditional ribbons are narrow, thin and designed for impact printing; TPRs are wider and configured for heat transfer printing.

2.21 Since TPRs do not satisfy the essential condition of being inked or otherwise prepared for giving impressions, they do not fall under Heading 9612. Consequently, the exclusion in Section XVI Note 1(q) for typewriter or similar ribbons of Heading 9612 does not apply to TPRs.

Conclusions

2.22 Thermal printer ribbons are not "typewriter or similar ribbons, inked or otherwise prepared for giving impressions" and hence are not classifiable under Heading 9612.

2.23 The exclusion under Section XVI Note 1(q) does not operate to remove TPRs from Section XVI; they remain classifiable within Heading 8443 as parts of printers.

Issue 4 - Application of General Rules for Interpretation

Legal framework

2.24 The Court referred to the General Rules for the Interpretation of the First Schedule to the Customs Tariff Act, particularly GRI 1, which requires classification according to the terms of the headings and any relevant Section or Chapter Notes.

Interpretation and reasoning

2.25 Applying GRI 1, the classification exercise was confined to:

- The text of Heading 8443 (printers and parts) and Heading 9612 (typewriter or similar ribbons), and

- Section XVI Notes 1 and 2, as directly bearing on parts and exclusions.

2.26 Since Heading 9612 does not cover TPRs (for want of the "inked or otherwise prepared for giving impressions" requirement), and Section XVI Note 2(b) expressly directs parts suitable solely/principally for particular machines to be classified with those machines, the proper heading is 8443.

Conclusions

2.27 By application of GRI 1 read with Section XVI Notes 1 and 2, thermal printer ribbons are correctly classified as parts of printers under Heading 8443 and Tariff Item 84439959.

Overall Conclusion

2.28 Thermal printers using thermal transfer technology and capable of being connected to automatic data processing machines are classifiable under Tariff Item 84433290.

2.29 Thermal printer ribbons, being essential parts used solely/principally with such thermal printers and not covered by Heading 9612, are classifiable under Heading 8443, sub-heading 844399, and specifically under Tariff Item 84439959 as "other" parts and accessories of printers of sub-heading 844332.

---