Populated printed circuit boards fall outside the exemption where external components alter the board's character.

Printed circuit boards fitted with capacitors, transistors and similar external components change character into populated printed circuit boards. Because Notification No. 74/85 covered only printed circuit boards and unpopulated printed circuit boards, the qualifier "unpopulated" was material to the exemption. On the admitted facts, the goods had components affixed in the designated places and therefore fell outside the notification and were not eligible for exemption.

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Issues: Whether printed circuit boards on which capacitors, transistors and similar components are affixed become "populated printed circuit boards" and are therefore outside the scope of Notification No. 74/85.

Analysis: Notification No. 74/85 exempts only "printed circuit boards" and "unpopulated printed circuit boards". The expression "unpopulated" is material to the notification. A printed circuit board consists of an insulated board with conductors formed on it, whereas the addition of external components such as resistors, capacitors, transistors and integrated circuits changes its character into a populated board. On the admitted facts, the goods had such components affixed in the places provided for that purpose, and therefore could not be treated as merely printed or unpopulated circuit boards.

Conclusion: The goods were populated printed circuit boards and were not eligible for exemption under Notification No. 74/85.

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