2025 (12) TMI 1017 - AAR - Customs

Imported LVDS (HD) camera assembly components-parts under CTH 85299090, but complete kits classified under CTH 8525

Tailor-made components imported for assembly of an LVDS (HD) camera raised the issue whether they were classifiable as parts under CTH 85299090 or ... Classification of various components for assembly of LVDS camera - to be classified under CTH 85299090 of the First Schedule of the Customs Tariff Act, 1975 or not - HELD THAT:- On conjoint reading of the Section notes to Chapter 85, relevant terms of the heading there under and explanatory notes, it is observed that the components under consideration being tailor- made parts for assembly of a LVDS camera classifiable under CTH 8525, could be classified as parts of LVDS camera under CTH 8529 and more specifically under 85299090 - Other' - However, if the parts imported proved to the satisfaction that together under the same invoice/consignment, they constitute LVDS camera either completely or incompletely, having the essential character of LVDS camera, in terms of 2(a) of GRI, then said parts could be classified under the heading appropriate to classify the finished LVDS camera under CTH 8525. The subject goods i.e. LVDS (HD) Camera Lens, Back Housing (Aluminium Housing + Plastic Fakra Connector) of LVDS Camera and Front Housing of LVDS Camera are parts for assembly of a LVDS camera classifiable under CTH 8525, classifiable as parts of LVDS camera under CTH 8529 and more specifically under 85299090 - Other. Issues: Whether the imported components (LVDS (HD) Camera Lens; Back Housing (Aluminium Housing + Plastic Fakra Connector); Front Housing) used for assembly of LVDS camera in India are classifiable as parts of LVDS camera under Tariff Item 85299090 of the First Schedule to the Customs Tariff Act, 1975.Analysis: The classification is governed by Rule 1 of the GRI and Section/Chapter Notes to Chapter 85. LVDS cameras qualify as digital/video cameras classifiable under CTH 8525. Section XVI Note 2 and the explanatory notes provide that parts suitable for use solely or principally with apparatus of headings 85248528 are classified in heading 8529. The imported components are tailor-made, fit only for assembly of a LVDS camera and are not aerials or communication jamming parts. Jurisdictional responses and WCO/HSN explanatory notes support classification of such tailor-made components as parts under heading 8529. The authority also notes that if parts are imported together in a consignment/invoice and constitute the essential character of the camera, GRI 2(a) could lead to classification under the finished camera heading 8525.Conclusion: The subject imported components (LVDS (HD) Camera Lens; Back Housing (Aluminium Housing + Plastic Fakra Connector); Front Housing) are classifiable as parts of LVDS camera under Tariff Item 85299090 (Other) of the First Schedule to the Customs Tariff Act, 1975.Ratio Decidendi: Tailor-made components that are suitable solely or principally for use with LVDS cameras are to be classified under heading 8529 (CTH 85299090) pursuant to Rule 1 of the GRI and Note 2 to Section XVI; WCO/HSN explanatory notes are a guiding aid for tariff classification.