TaxTMI 
TaxTMI 
2022 (6) TMI 1408
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.... THOR VM 1A Without SIM 2 THOR VM3A Without SIM 3 THOR VM3 With SIM 4 THOR VM3 Without SIM 5 THOR CV31 Without SIM 6 Tablet Computer RT10A With SIM 7 RT10A Without SIM 8 RT10W With SIM 9 RT10W Without SIM 10 SCANPAL EDA71 With SIM 11 SCANPAL EDA71 Without SIM 12 Mobile Computer CK65 Without SIM 13 SCANPAL EDA61K With SIM 14 SCANPAL EDA61 K Without SIM 15 CT45 With SIM 16 CT45 Without SIM 17 CT45XP With SIM 18 CT45XP Without SIM 19 CT40 With SIM 20 CT40 Without SIM 21 CT40 XP With SIM 22 CT40 XP Without SIM 23 CT60 With SIM 24 CT60 Without SIM 25 CT60 XP With SIM 26 CT60 XP Without SIM 27 SCANPAL EDA51 With SIM 28 SCANPAL EDA51 Without SIM 29 CN80 With SIM 30 CN80 Without SIM 31 CN80G With SIM 32 CN80G Without SIM 2. The applicant is a distributor of Information technology and telecommunication products. The applicant intends to import the above-mentioned types of portable computers, the essential features of which are listed below: - Category of Portable Computer Key Features/ functions performed Vehicle-mounted computers These are rugged mobile workstations that attach to industria....
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....cation devices/mobile phones. 2.2 As per the applicant, to qualify as an ADP machine, goods have to satisfy all the conditions mentioned in Note 5(A) to Chapter 84 and should not be covered by Note 5(D) and 5(E) ibid. The applicant has submitted that the portable computers in question comply with the above requirements, and therefore, are classifiable as ADP machine under CTH 84.71 as tabulated below: - Condition to be fulfilled by an ADP machine, as mentioned in Note 5(A) Compliance of the condition by the proposed Imports i. Storing the processing program/s and at least the data immediately necessary for the execution of the program; These devices can receive the inputs in form of barcodes, text fields, phone numbers, images signatures and even check boxes etc. The data so received is processed by these to provide the desired output. These machines have storage capability and also store programs which can be changed from job to job. They process data in a coded form ii. Being freely programmed in accordance with the requirements of the user; The devices come configurable with off-the-shelf, end-user applications allowing the programming of the various functions in accorda....
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....ssified under the heading 8517. The proposed imports are not primarily meant for communication purposes. Communication abilities like that of a traditional telephone/mobile telephone are only auxiliary functions that these portable computers perform. The applicant highlighted the following differences between conventional cellular phones/communication devices and impugned portable computers: - Feature Conventional Cell Phone / Smartphone Portable Computer Scanning Can scan only a few codes per hour, using apps. Mobile computers can scan around 500-1000 codes per hour. Tablet computers can scan around 20-60 codes per hour. Quality and speed are much better than conventional phone scanning. Ruggedness Not rugged. Can break on fall Mobile computers are extremely rugged. Designed to withstand huge falls and rough handling. Data edit Not available Can edit codes and scan partial codes. This is useful for specific industrial uses, and users need not spend time scanning whole codes and can get specific inputs instantly Security Has conventional security features which are not too good Has exceptional enterprise-level security features The applicant contends that the ....
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....assifiable under heading 8471 and not heading 8517. 2.7 Contesting the decision of the 64th and 68th Session of the World Customs Organization in respect of the classification of RFID readers'/ bar scanners having inter-alia SIM capability as classifiable under heading 8517, the applicant stated that the opinions of WCO are not applicable to the products proposed to be imported for the following reasons: a. The WCO rulings did not consider the classification of heading 8471 in the aforesaid opinions. b. Unlike the ruling on tablet computers, which has been expressly accepted by CBIC, no similar circular has been passed accepting and adopting the above ruling. c. The proposed imports are portable computers and not merely RFID readers. d. The WCO ruling on tablet computers is more appropriately applied to the proposed imports. e. The models proposed to be imported do not satisfy the criteria specified in the WCO opinion of the 68th Session as explained below: i. Many models (18 out of 32 models) do not contain the capability to make cellular phone calls. ii. The vehicle-mounted computers do not have the capability of scanning. f. Further, the products under consi....
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....ter and scanning functions (applies to mobile computers and tablet computers) in a single device that can be outfitted with off-the-shelf or custom software applications that perform everyday tasks, such as monitoring deliveries, tracking assets, and managing inventory (except vehicle-mounted computer which do not have the capability of scanning). And because they run on familiar operating systems such as Windows/Android, they offer the same functionality of a desktop computer or laptop. These processors are also equipped with a barcode scan engine and act as their own host, which means one can instantly update and edit information as it is captured. The applicant has suggested heading 8471 as an appropriate classification for these devices. GRI 1 provides that the classification of goods shall be "determined according to the terms of the headings and any relative section or chapter notes. " In the event that the goods cannot be classified solely on the basis of GRI 1, and if the headings and legal notes do not otherwise require, GR1S 2 through 6 may be applied in order. In order to merit classification under heading 8471, it is clear, that these devices need to satisfy the require....
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....network), other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28. As the devices also have communication capabilities, including cellular connectivity in 14 out of 32 devices, classification under heading 8517 needs to be examined. Note 3 to section XVI of the tariff stipulates that, "Unless the context otherwise requires, composite machines' consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function". From the note, it is clear that a composite machine performing various functions is to be classified according to the principal function performed by such a device. In the instant case, these devices combine computing and scanning functions for monitoring deliveries, tracking assets, and managing inventory. They also have communication capabilities. However, for the products under consideration, the automatic data processing appears to be the main function, while other functionalities of said machines are not di....
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....s for cellular networks. In fact, 18 out of 32 models do not have the functionality of cellular connectivity, which shows that the SIM is not an integral part of these devices, as these devices are able to perform their primary function with or without the SIM card. These devices do not appear to be convenient for the purpose of telephony. As per circular no. 20/2013- Cus, dated 14.05.2013, "the difference between a "smartphone" and "tablet computer is not based on whether the product has a voice calling function or not, but on the principal features that a producer has intended for the device when designing and developing it". The manufacturer is advertising these products as mobile computers/ handheld computers/ tablet computers. On their website (https://sps.honeywell.com/us/en/products/productivity/mobile-computers)the manufacturer mentions that their collection of mobile and vehicle-mounted computers are purpose-built for specialized operations, including retail-in-store, warehouses and distribution centres, transportation and logistics, courier/express/parcel delivery, manufacturing, service, fleet management, government. Elaborating on the mobile computers/ handheld computer....