AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1011
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....Front cover for sensor 85419000 3. Powder coated aluminium membrane 85419000 4. Piezo disc (G5.3 DISC) 85416000 5. Plug 5 GEN. 40169390 6. Gen 5.3 Contact (terminal pin) 85419000 7. PCBA CD Lin (Printed Circuit Board Assembly) 85419000 8. Shield cover for sensor (EMC protection) 85419000 9. HKMC 6PIN HV LIN Sensor housing 85419000 10. Wevopur 306 M/30 (Resin) 39095000 11. Wevonut 9015 (Hardener) 39093100 2. Submission by the Applicant: 2.1 M/s. Valeo India Private Limited ("the Applicant"), a Private Limited company is a leader in passenger car segment, engaged in the manufacture of automobile components. The applicant is a preferred supplier to automotive majors in the country. 2.2 The applicant is importing multiple parts of Ultrasonic Parking Sensor (hereinafter referred to as the "Parking Sensor"/ "the subject good") through Sea. The parts in question are parts of Ultrasonic parking sensors used in automotive rear parking alert / assist system. A picture of the finished goods are attached hereunder: 2.3 The Table-1 below shows the list of parts of the Ultrasonic Parking Sensor for wh....
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....roller 2.9 The controller processes the signal to calculate the distance and orientation between the vehicle body and the obstacle. The controller transmits a sine wave pulse to the sensor, processes the received signal, and obtains the corresponding distance value, and then communicates with the display. The main function of the controller is filtering and calculation. The controllers of different brands of parking sensor systems may be different, but the principles are basically the same. 2.10 In automobiles, the controller is generally installed around the dashboard, while the ultrasonic sensor is installed on the front and rear bumpers, and transmits signals through long wires. Display or buzzer 2.11 When the sensor detects that the distance between the car and the obstacle reaches a dangerous distance, the system will send an alarm through the display and buzzer to remind the driver. The display provides corresponding distance alarm sound according to the distance. Working of the Ultrasonic Parking Sensor in question: 2.12 An ultrasonic Parking Sensor is essentially a transducer as could be seen from the Technical Literature attached as Annexure II to the App....
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....this case. Section 28-I prohibits applications only if the issue is already pending or decided by any customs authority or court. The Applicant confirms that no similar case is pending in any forum. The Applicant submits that each import constitutes a separate taxable event, as held in Jain Exports Pvt. Ltd. v. Union of India, 1987 (29) E.L.T. 753 (Del.), and reaffirmed by the Supreme Court in 1992 (61) E.L.T. 173. This supports the position that an advance ruling can be sought for each import as a separate event. The Applicant also relies on Samsung Noida Display Pvt. Ltd. Vs The Commissioner of Customs [ 2024 (390) E.L.T. 73 (A.A.R. Cus. Del.], where it was held that advance rulings remain maintainable even for previously imported goods, provided the ruling pertains to future transactions and is not under dispute. Similarly, in Amazon Seller Services Pvt. Ltd., (2023) 5 Centax 186 (A.A.R. Cus. Mum.), it was held that advance rulings can be sought for ongoing activities if no litigation or dispute is pending on the same issue. 3.3 The Applicant meets all the necessary conditions for seeking an advance ruling: holding a valid IEC, filing the application before importation, raisi....
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....stoms Tariff Act, 1975 covers goods described as "Electrical machinery and equipment and parts thereof; sound recorders and reproducers, parts and accessories of such articles". Chapter 85 falls under Section XVI, titled "Optical, Photographic, Cinematographic, Measuring, Checking, Precision, Medical or Surgical Instruments and Apparatus; Clocks and Watches, Musical Instruments; Parts and Accessories Thereof". 3.9 Chapter Heading 8541 reads as under: "8541: Diodes, transistors and similar semi-conductor devices; photosensitive semi-conductor devices, including photovoltaic cells whether or not assembled in modules or made up unto panels; light emitting diodes; mounted piezo-electric crystals" 3.10 The primary function of an Ultrasonic Parking Sensor is to detect obstacles and measure distance using ultrasonic sound waves, not to emit audio signals or act as a signalling device. The signaling aspect (beeping or alerting the driver) is secondary and performed by other components (buzzer, beeper) of the entire parking sensor system. Since the sensor itself is responsible for detection, and detection is its primary function, it should not be classified under signaling eq....
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.... (3) "Semiconductor-based sensor" is a type of semiconductor device, which consists of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of detecting physical or chemical quantities and converting these into electric signals caused by resulting variations in electric properties or displacement of a mechanical structure. For the classification of the articles defined in this Note, headings 8541 and 8542 shall take precedence over any other heading in this Schedule, except in the case of heading 8523, which might cover them by reference to, in particular, their function." (emphasis supplied) 3.13 The HSN explanatory Notes under CTH 8541 at page XVI-8541-3, also state as under: The types of semiconductor-based transducers are : (1) Semiconductor-based sensors, which are defined in Note 12 (a) (i) (3). One example of a sensor is a Micro-Electro-Mechanical Systems (MEMS) element used in silicon microphones as a semiconductor-based acoustic sensor. The MEMS element is made up of a stiff and perforated backplate and a flexible membrane on silicon substrate, and i....
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....ussed in detail in the below paragraphs: Classification of parts of Ultrasonic Sensor under CTH 85419000 3.19 When the classification of the Ultrasonic Sensors on their own under CTH 8541 5100 is justified, the classification of identifiable parts of such sensors will be governed again by Note 2 to Section XVI, extracted below: "2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable....
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....lying these principles, the Applicant seeks the classification of the parts of Ultrasonic Parking Sensor as listed in Table -2 below: Table -3 No. Description Picture Classification Sought Material, Function and Justification 1. Description: Shield cover for sensor CTH 85419000 Material: Copper & Zinc (CUZN30); Function: It will act as a shield for magnetic field. Justification: Ultrasonic Parking Sensor is classifiable under CTH 8541. As an identifiable part of an Ultrasonic Parking Sensor, classification under CTH 85419000 is appropriate in terms of Note 2(b) to Section XVI. 2. Description: a) De- coupling ring HKMC Lin; b) PSA de- coupling ring black colour CTH 40169390 Material: Silicon rubber Justification: Rings made of silicon rubber. Classification under CTH 40169390 will be appropriate in terms of Note 1(a) to Section XVI. 3. Description: a) PCBA CD LIN b) PSA PCBA CD LIN CTH 85419000 Material: PCB with resistors, capacitors and transformers Function: Signal filtering, controlling and voltage regularization Justification: Specifically designed for use with the Ultrasonic Parking sensor. As an identi....
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....n terms of GIR 1 classification under CTH 39093100 will be appropriate. MSDS attached Classification under CTH 85129000 as parts of the Reverse Parking Alert System 3.26 As already discussed supra, the parts in question are parts of the Ultrasonic Parking Sensor, which by itself is classifiable under CTH 85415100. As the Ultrasonic Parking Sensor is by itself an instrument and classifiable as an independent machine or apparatus under CTH 85415100, classification of identifiable parts of the Ultrasonic Parking Sensor will be governed by Note 2 to Section XVI. 3.27 Once this position is clear then classification under CTH 85129000 can be ruled out as CTH 85129000 can be justified only when it can be established that the parts of Ultrasonic Parking Sensors can be regarded as identifiable parts of Reverse Parking Alert systems of CTH 85122090. 3.28 Even granting that the Ultrasonic Parking Sensor, is by itself an identifiable component of the Reverse Parking Alert System, when the Ultrasonic Parking Sensor when presented separately is classifiable as an apparatus / instrument under CTH 85415100, classification of the parts of Ultrasonic Parking Sensor, should be independent....
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....ing HKM Lin U 40169390 2 Front cover for sensor 85419000 3 Powder coated aluminium membrane 85419000 4 Piezo disc (G5.3 DISC) 85416000 5 Plug 5 GEN. 40169390 6 Gen 5.3 Contact (terminal pin) 85419000 7 PCBA CD Lin (Printed Circuit Board Assembly) 85419000 8 Shield cover for sensor (EMC protection) 85419000 9 HKMC 6PIN HV LIN Sensor housing 85419000 10 Resing 39095000 11 Hardner 39093100 3.35 Given the highly technical nature of the data relating to the subject products being discussed and provided in the application, the applicant respectfully request that the information provided therein be treated as confidential. The application contains detailed technical information on the products that only unique to the applicant, and crucial to their competitive edge. Public disclosure of such technical data could potentially provide competitors with an unfair advantage, thereby compromising the applicant's business interests. They therefore kindly request that the ruling, along with any related information not be published, to prevent any unintended dissemination of sensitive and critical te....
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....f visual and audio signal which is carried to the driver. He submitted that this device is basically "Semiconductor based transducer" and merit classification under CTH 8541. He referred to Note 12 to Chapter 85 which specifically defines semiconductor-based transducers. Such devices are able to convert any kind of physical or chemical phenomenon or an action into electrical signal vice versa. He argued that since the subject goods are specifically covered under the CTH 8541, it cannot be classified in another CTH. Nobody appeared on behalf of the department for the hearing. DISCUSSION AND FINDINGS 6.1 I have considered all the materials placed before me in respect of the subject goods. I have gone through the submission made by the applicant, response received from the concerned commissionerate, the arguments presented during the hearing. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 6.2 The Applicant has sought advance ruling in respect of the following question: a. Whether the products i.e., Parts of Ultrasonic Parking Sensor are classifiable under CTH 8512, or under CTH ....
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....lay and buzzer to warn the driver. The display, in turn, generates visual or auditory warnings, including distance-based alarm sounds. An ultrasonic sensor is essentially a semiconductor-based (piezoelectric) transducer which converts a physical phenomenon (sound waves/mechanical vibrations) into a corresponding electrical signal, and vice versa. Before proceeding to examine the classification of the parts of ultrasonic parking sensors, it is necessary to first determine the appropriate classification of the main product, namely the rear parking alert/assist system, of which the ultrasonic parking sensor constitutes an integral component. 6.6 A rear parking alert/assist system in a vehicle is a driver-assistance technology designed to help the driver while reversing or parking by detecting obstacles behind the vehicle and alerting the driver to prevent collisions. It mainly consists of, Ultrasonic sensors (transducers that send/receive sound waves), Controller (ECU) (electronic processing unit), and Display / buzzer / alarm system (signaling device to the driver). When the driver engages reverse gear, the system activates automatically. The ultrasonic ....
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.... .......... (13) Electrical apparatus which emit audio signals to warn the driver of the proximity of vehicles or other objects behind the vehicle when reversing. These apparatus usually comprise ultrasonic sensors, an electronic control unit, a buzzer or beeper and associated wiring." From the above, it is evident that the rear parking alert/ assist system comprises of an ultrasonic sensor, a controller and display or a buzzer, is specifically covered under the Chapter Heading 8512 (Electrical lighting or signalling equipment (excluding articles of heading 85.39), windscreen wipers, defrosters and demisters, of a kind used for cycles or motor vehicles ) of the First Schedule of the Customs Tariff Act, 1975. 6.7 Now, I proceed to examine the classification of the Ultrasonic Parking Sensor, which is one of the component or part of rear parking alert/ assist system. The relevant HSN Explanatory Notes to Customs Tariff Heading (CTH) 8512, concerning the classification of "parts", are reproduced below for reference: "PARTS Subject to the general provisions regarding classification of parts (see the General Explanatory Note to Section XVI),....
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....chnical uses, of vulcanised rubber other than hard rubber (heading 4016); (b) articles of leather or of composition leather (heading 4205) or of furskin (heading 4303), of a kind used in machinery or mechanical appliances or for other technical uses; (c) bobbins, spools, cops, cones, cores, reels or similar supports, of any material (for example, Chapter 39, 40, 44 or 48 or Section XV); (d) perforated cards for Jacquard or similar machines (for example, Chapter 39 or 48 or Section XV); (e) transmission or conveyor belts or belting of textile material ( heading 5910) or other articles of textile material for technical uses (heading 5911); (f) precious or semi-precious stones (natural, synthetic or reconstructed) of headings 7102 to 7104, or articles wholly of such stones of heading 7116 except unmounted worked sapphires and diamonds for styli (heading 8522); (g) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39); (h) drill pipe (heading 7304); (ij) endless belts of metal wire or strip (Section XV); (k) articles of Chapter 82 or....
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....nction as a receiver: the returning ultrasonic echoes exert pressure on the crystal, which in turn generates a corresponding electrical signal. This signal is then processed by the Electronic Control Unit (ECU), which calculates the time taken for the echo to return-a method known as the Time of Flight (ToF) technique. Based on this measurement, the system determines the distance between the vehicle and the obstacle and provides appropriate warnings to the driver. The applicant has submitted that the ultrasonic sensors in question incorporate a component described as G5.3 Disc Betacera (Piezo), which is a piezoelectric disc functioning as a transducer. It has further been argued that the ultrasonic parking sensor contains semiconductor-based components (such as piezoelectric crystals) and, therefore, functions as a semiconductor-based sensor. Relying upon Note 12 to Chapter 85 and the definitions under HS Heading 8541, the applicant has contended that semiconductor-based sensors are devices which convert physical phenomena (such as sound waves or proximity) into electrical signals, and that this description fits the ultrasonic parking sensor. On this basis, classification ....
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.... and manufactured for use with Reverse parking /alert system. Therefore, they are capable of being used solely or principally with such apparatus covered under Heading 8512. Accordingly, it is pertinent to note that the subject goods satisfy the "sole or principal use" criterion laid down under Section Note 2(b). As such, they are classifiable under Heading 8512 in accordance with General Interpretative Rule (GIR) 1, read with Section Note 2(b) to Section XVI. Further, Customs Tariff Item (CTI) 8512 90 00 specifically covers parts of the goods falling under Heading 8512. Accordingly, the Ultrasonic Parking Sensor, being a part of the reverse parking/alert system, is appropriately classifiable under CTI 8512 90 00 of the First Schedule to the Customs Tariff Act, 1975, in terms of Section Note 2(b) to Section XVI, read with the Explanatory Notes to Heading 8512. 6.8 I now proceed to examine the classification of the individual parts of the Ultrasonic Parking Sensor, which itself forms a part of the reverse parking/alert system classifiable under Customs Tariff Heading (CTH) 8512. The parts under consideration are as follows: Sr. No. Product Description 1. P....
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....is essentially a ring-shaped article of vulcanised rubber and thus falls within the scope of Heading 4016 of the Customs Tariff which covers "Other articles of vulcanised rubber other than hard rubber". Further, under this heading, the CTI 40169320 covers "Rubber rings (O-ring)" The product is a circular rubber ring used for sealing and fitting purposes, classification under this specific entry is appropriate in preference to a residual category, in line with the general rules of interpretation and the WCO Explanatory Notes. Therefore, by virtue of GIR1, Note 2(a) to Section XVI, and Explanatory Notes to Heading 8512, the PSA de-coupling ring Black Color Decoupling Ring HKM Lin U is appropriately classifiable under CTI 40169320 (Rubber rings (O-ring)) of the First Schedule of the Customs Tariff Act, 1975. 2. Front cover for sensor The applicant has submitted that the front cover for the sensor is made of plastic and is not in the nature of an electrical plug, wire, or cable. Given its specific design and application, the said front cover is intended solely for use with the Ultrasonic Parking Sensor and is not a general-purpose item. Accordingl....
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.... satisfy the "sole or principal use" criterion under Section Note 2(b). Consequently, the goods are classifiable under Heading 8512 in accordance with General Interpretative Rule (GIR) 1, read with Section Note 2(b) to Section XVI. Further, the single-dash entry under Heading 8512, namely CTI 85129000, covers "Parts" of all goods of Heading 8512. Therefore, by virtue of GIR 1, Section Note 2(b) to Section XVI, and the Explanatory Notes to Heading 8512, the product in question, i.e., the powder coated aluminium membrane, is appropriately classifiable under CTI 85129000 (Parts) of the First Schedule to the Customs Tariff Act, 1975. 4. Piezo disc (G5.3 DISC) The applicant has submitted that the part described as G5.3 Disc Betacera (Piezo) is a piezoelectric disc made of ceramic material. It is further stated that the said item is a mounted piezoelectric disc. It is seen that Piezoelectric discs, are typically manufactured from lead zirconate titanate (PZT) ceramics or similar piezoelectric ceramics. These ceramics have the property of generating an electric charge when subjected to mechanical stress, and conversely, they deform when an electric f....
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....e in electronic or electromechanical devices. In the present case, the G5.3 Disc Betacera (Piezo) is a piezoelectric disc provided with electrical connections, thereby meeting the criteria of a mounted piezoelectric crystal. Consequently, the as Piezo disc (G5.3 DISC) is classifiable under Heading 8541 in accordance with General Interpretative Rule (GIR) 1, read with Section Note 2(a) to Section XVI. Further, the single-dash entry under Heading 8541, namely CTI 85416000, covers "Mounted Piezo Electric Crystals". Therefore, by virtue of GIR 1, Section Note 2(a) to Section XVI, and the Explanatory Notes to Heading 8541, the product in question, i.e., Piezo disc (G5.3 DISC), is appropriately classifiable under CTI 85416000 (Mounted Piezo Electric Crystals) of the First Schedule to the Customs Tariff Act, 1975. 5. Plug 5 GEN. The applicant submitted that Plug 5 GEN is made of Butyl Rubber. In terms of Note 1(a), the Section XVI does not cover the following goods as under: (a) transmission or conveyor belts or belting, of plastics of Chapter 39, or of vulcanised rubber (heading 4010), or other articles of a kind used in machinery or mechanical or electrical ap....
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....nic Parking Sensor, and hence, satisfy the "sole or principal use" criterion under Section Note 2(b). Consequently, the goods are classifiable under Heading 8512 in accordance with General Interpretative Rule (GIR) 1, read with Section Note 2(b) to Section XVI. Further, the single-dash entry under Heading 8512, namely CTI 85129000, covers "Parts" of all goods of Heading 8512. Therefore, by virtue of GIR 1, Section Note 2(b) to Section XVI, and the Explanatory Notes to Heading 8512, the product in question, i.e., the Gen 5.3 Contact (terminal pin) is appropriately classifiable under CTI 85129000 (Parts) of the First Schedule to the Customs Tariff Act, 1975. 7. PCBA CD Lin (Printed Circuit Board Assembly) The applicant submitted that PCBA CD Lin (Printed Circuit Board Assembly) is a PCB with resistors, capacitors and transformers. It is used for signal filtering, controlling and voltage regularization. These are specifically designed for use with the Ultrasonic Parking sensor. Given its specific design and application, the PCBA CD Lin (Printed Circuit Board Assembly) is intended solely for use with the Ultrasonic Parking Sensor and is not a gene....
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....esigned and manufactured for use with the Ultrasonic Parking Sensor, and hence, satisfy the "sole or principal use" criterion under Section Note 2(b). Consequently, the goods are classifiable under Heading 8512 in accordance with General Interpretative Rule (GIR) 1, read with Section Note 2(b) to Section XVI. Further, the single-dash entry under Heading 8512, namely CTI 85129000, covers "Parts" of all goods of Heading 8512. Therefore, by virtue of GIR 1, Section Note 2(b) to Section XVI, and the Explanatory Notes to Heading 8512, the product in question, i.e., the shield cover for sensor is appropriately classifiable under CTI 85129000 (Parts) of the First Schedule to the Customs Tariff Act, 1975. 9. HKMC 6PIN HV LIN Sensor housing The applicant has submitted that HKMC 6PIN HV LIN Sensor housing is made of plastic material and it is an identifiable part of the Ultrasonic senor. Given its specific design and application, the HKMC 6PIN HV LIN Sensor housing is intended solely for use with the Ultrasonic Parking Sensor and is not a general-purpose item. Accordingly, it does not fall within the ambit of Note 1 to Section XVI. Upon sequential appli....
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.... mass of 4,4'-methylenediphenyl diisocyanate and O-(p-isocyanatbenzyl) phenyl isocyanate predominates with a content of 50%-70%. The product is used as a hardener in combination with polyurethane resin for encapsulation and protective applications. Since poly(methylene phenyl isocyanate) (PMDI) is not a single substance but a mixture of monomeric MDI and related oligomeric/polymeric isocyanates, the composition and functional use of Wevonut 9015 align with the characteristics of PMDI. Accordingly, Wevonut 9015 can be considered a form of poly(methylene phenyl isocyanate). It is noted that the Explanatory Notes to Heading 3909 specifically cover "poly(methylene phenyl isocyanate)." Therefore, by virtue of General Interpretative Rule (GIR) 1 read with the Explanatory Notes to Heading 3909, the product in question, i.e., Wevonut 9015, being a form of poly(methylene phenyl isocyanate), is appropriately classifiable under CTI 39093100 (Poly(methylene phenyl isocyanate) (crude MDI, polymeric MDI))of the First Schedule to the Customs Tariff Act, 1975. 7. The applicant, in their submission, has requested that the ruling and related information not be published, cit....