HSN CODE CLASSIFICATION OF PLC SPLITTERS

[Vs Paripurnan]

PLC SPLITTERS CAN BE CLASSIFIED UNDER SEVERAL HSN CODES - 85177090 OR 85176290 OR 85176990 OR 85359000 OR 85371000 OR 85369090

Depending upon the classification, the customs duty rates vary.

Based on the usage that PLC SPLITTERS are used in a 'Fiber To The Home' network, where the PLC Splitter does not use any electrical power it has to be considered passive component & hence it should be classified under 85176990

Is this a correct legal approach

[YAGAY andSUN]

PLC Splitters are passive optical components deployed in FTTH (Fiber-To-The-Home) networks for the distribution of optical signals from a single input to multiple outputs. These devices operate exclusively through optical waveguide technology, contain no electronic or electrical components, and do not require power supply for functionality.

Under Chapter 85 of the Customs Tariff Act, particularly heading 8517 (covering "Telephone sets, and other apparatus for transmission or reception of voice, images or other data"), classification is determined based on the nature of transmission (optical/electrical), presence of electronic components, and whether the item is an active apparatus or a passive, standalone device.

Given the passive nature of PLC Splitters, classification under HSN 8517.69.90 – "Other apparatus for transmission or reception of voice, images or other data, not elsewhere specified" – is appropriate. This heading encompasses passive optical devices utilized in telecommunication networks, including FTTH systems.

Alternative classifications, such as 8517.62, 8517.70, 8517.76, 8535, 8536, or 8537, pertain to active devices, electrical switching apparatus, or control equipment, and do not align with the physical and functional characteristics of PLC Splitters.

Supporting Legal Precedents:

1. CAAR Mumbai (Ruling dated July 2025, in re: Sai NXT Technologies LLP - 2025 (7) TMI 1213 - CUSTOMS AUTHORITY FOR ADVANCE RULINGS, MUMBAI): Held that PLC Splitters are correctly classifiable under CTH 8517.79.90 (equivalent to 8517.69.90 under Indian Tariff), as passive telecommunication apparatus.
2. Customs Import Data (Zauba): Consistently reflects import of PLC Splitters under 8517.69.90, confirming prevailing industry and customs practice.
3. Kolkata Customs SCN (August 2023): Acknowledges classification of passive optical splitters used in FTTH/PON networks under heading 8517.69.90, citing their non-electrical nature.

In view of the above, PLC Splitters, being non-electrical, passive apparatus used in telecommunication networks, merit classification under HSN 8517.69.90. This position is supported by authoritative rulings, consistent import data, and technical specifications.

It is advised that import declarations be supported by technical literature, CAAR rulings, and manufacturer certification indicating the passive optical nature of the goods. Consultation with customs advisors is recommended to ensure consistency with current interpretative practice.

AI Summary

Classification of passive PLC splitters as telecommunication apparatus supports customs duty treatment; provide technical certification. Where PLC splitters contain no electronic components and require no power, they function solely as passive optical waveguide devices and should be classified as passive telecommunication apparatus under the HSN heading for other apparatus for transmission or reception of voice, images or other data not elsewhere specified. Importers should support declarations with technical literature and manufacturer certification and consider advisory rulings to ensure consistent customs treatment.