Motor speed control devices were classified as appliances with individual functions, not static converters, denying notification benefit.

Imported A.C. transistor inverter units were treated as motor speed control devices that first rectified alternating current into direct current and then inverted it into variable-frequency alternating current. The Tribunal applied the same reasoning used for frequency converters and found that the equipment did more than merely convert current: it performed a distinct and complete function of controlling motor speed. Because the function was specific and independent of the particular machinery with which the unit operated, the goods were classified as an appliance with an individual function under Tariff Heading 85.43, not as a static converter under Heading 8504.40. The claim for Notification No. 59/87 benefit was therefore rejected.

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Issues: Whether the imported A.C. transistor inverter units were classifiable under Chapter Heading 8504.40 as static converters with the benefit of Notification No. 59/87, or under Tariff Heading 85.43 as electrical machinery and apparatus having individual functions.

Analysis: The goods were found to be motor speed control devices that first rectified alternating current into direct current and then inverted it into variable-frequency alternating current output. The Tribunal treated the goods as similar to the frequency converters considered earlier and applied the same reasoning that such equipment does not merely convert current but performs a distinct and complete function of controlling motor speed. Since the function remained specific and independent of the particular machinery with which the unit operated, the goods were held to be an appliance by itself having an individual function, answering to Heading 85.43 rather than Heading 8504.40.

Conclusion: The classification under Tariff Heading 85.43 was upheld and the claim for classification under Chapter Heading 8504.40 with Notification No. 59/87 benefit was rejected.

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