TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1745
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....y referred to as "Night Vision Devices"), under CTH 85258900 as digital camera, or under CTH 9005 as night vision binoculars/monoculars, of the First Schedule of the Customs Tariff Act, 1975. 2. Submission by the Applicant: 2.1 Future Media (hereinafter referred to as the "Applicant") is a proprietorship founded in the year 2010. The Applicant is one of the leading players in the Geospatial instrumentation industry. In connection with its business, the Applicant imports Nightfox Devices from Nightfox (hereinafter referred to as the "Supplier"). About the Nightfox Devices in question 2.2 The present application pertains to the classification of 5 night vision devices, namely (hereinafter collectively referred to as 'Nightfox Devices': i. Nightfox CORSAC 2 Binoculars ii. Nightfox Vulpes HD Rangefinder Night Vision Binocular iii. Nightfox Whisker Night Vision Binoculars iv. Nightfox Swift 2 Pro Night Vision Goggles v. Nightfox Prowl Night Vision Monocular 2.3 The Nightfox Devices and their images are captured below: Product Name Image Nightfox CORSAC 2 Binoculars Nightfox Vulpes HD Rangefinder Night Vis....
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....ght source to illuminate the scene. That is, these devices have an inbuilt infrared light emitting source. These devices utilise near infrared light, which have wavelengths longer than visible light, to illuminate the area. These devices capture artificial light similar to the way devices that use image intensification capture nature light, the devices in question do not contain any image convertor tubes/image intensifiers/image amplifiers to capture the light. This is because the devices utilise a Complementary Metal-Oxide-Semiconductor (CMOS) Sensor which captures the light and converts it into digital data. This raw digital data is processed through an image processor inside the device and then displayed on an LCD screen which is seen by the user. That is, the person using the device does not see what is before them using a lens (like in the case of the above 2 technologies) but instead sees a projection of same on the LCD screen in-built into the device. 2.10 The Nightfox Devices concerned in the present application utilize the third type of night vision technology called "active illumination". The technology used by the products now in question - Active Illumination 2....
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....g 8525 of the Tariff. The relevant extract of Heading 8525, from the Tariff is set out below: Headings/Sub- Headings / Tariff Item Tariff Description 8525 TRANSMISSION APPARATUS FOR RADIO-BROADCASTING TELEVISION, OR WHETHER OR NOT INCORPORATION RECEPTION APPARATUS OR SOUND RECORDING OR REPRODUCING APPARATUS; TELEVISION CAMERAS, DIGITAL CAMERAS AND VIDEO CAMERA RECORDERS 852550 - Transmission apparatus *** 852560 - Transmission apparatus incorporating reception apparatus: *** - Television cameras, digital cameras and video camera recorders. 85258100 -- High-speed goods as specified in sub-heading Note 1 to this Chapter 85258200 -- Other, radiation-hardened or radiation-tolerant goods as specified in sub-heading Note 2 to this Chapter 85258300 - Other, night vision goods as specified in sub-Heading Note 3 to this Chapter 85258900 - Other 3.5 The relevant portion of HSN Explanatory Notes to Heading 8525 is extracted below: 85.25 -Transmission apparatus for radio-broadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus;....
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....ers include input terminals so that they can internally record analogue or digital image files from such external machines. Generally, the cameras of this group are equipped with an optical viewfinder or a liquid crystal display (LCD), or both. Many cameras equipped with an LCD can employ the display both as a viewfinder when capturing images and as a screen for displaying images received from other sources or for reproducing images already recorded. 3.6 The Nightfox Devices in question are shaped like binoculars but function like a camera. Just as a camera shows a projection of the imagery captured, the Nightfox Devices also show an illuminated projection of the dark imagery captured. One cannot look through the Nightfox Devices like traditional binoculars which shows imagery in real time, whereas the Nightfox Devices in question have a slight delay between when the image is captured and is projected, owing to the frame rate (frames per second). 3.7 The projection of imagery on the LCD is the only way the Nightfox Devices can function, and there is no lens or viewfinder in the devices which can be directly used in the absence of this LCD. 3.8 The image capturing ....
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.... devices have the capability of recording the images on internal storage of the device, and have an output terminal which can be used for transmitting the images outside the device for viewing and storage. Cameras of Heading 8525 are equipped with an optical viewfinder or a liquid crystal display (LCD), or both. Some cameras are equipped with an LCD which functions as both, the display and the viewfinder. The devices have an LCD display which functions as both the viewfinder as well as the display. 3.10 Thus, it is clear that the Nightfox Devices in question are cameras and also have the characteristics of cameras of Heading 8525, namely the CMOS Sensor, LCD display, the ability to covert images into digital data, etc. Therefore, it is submitted that the products are correctly classifiable under Heading 8525 and more specifically under Tariff Item 85258900. 3.11 These devices are identical to a traditional digital camera- just the form factor is different. The viewing screen of a digital camera is the screen which the wearer of the device can see. And depending of if he/she wants to capture the same, the concerned command will have to be given. 3.12 The goods being n....
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....riff Item 90058010 ? 3.16 The Nightfox Devices in question are marketed as night vision binoculars and monoculars. Binoculars and monoculars are classified under Heading 9005 of the Tariff. The relevant extract of Heading 9005, from the Tariff is set out below: Headings/Sub- Headings/Tariff Item Tariff Description 9005 BINOCULARS, MONOCULARS, OTHER OPTICAL TELESCOPES, AND MOUNTINGS THEREFOR; OTHER ASTRONOMICAL INSTRUMENTS AND MOUNTINGS THEREFOR, BUT NOT INCLUDING INSTRUMENTS FOR RADIO-ASTRONOMY 90051000 - Binoculars 900580 - Other instruments: 90058010 --- Monocular and refracting telescopes 90058020 --- Astronomical instruments 90058090 --- Other 900590 -Parts and accessories (including mountings) 3.17 The relevant portion of HSN Explanatory Notes to Heading 9005 is extracted below: 90.05 -Binoculars, monoculars, other optical telescopes, and mountings therefor; other astronomical instruments and mountings therefor, but not including instruments for radio- astronomy. 9005.10 -Binoculars 9005.80 -Other instruments 9005.90 -Parts and accessories (including mountings) This heading includes: ....
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....ular tubes with a glass lens to look through and see things which are far away. As stated above, the user cannot look through the Nightfox Devices in question. The user merely sees a projection of the surrounding as captured by the camera in the device. Thus, these products are not in the nature of binoculars/monoculars. 3.20 The Nightfox Devices in question function more like cameras of Heading 8525 which capture light and convert it into electronic signals for projection on an LCD screen. Further, these Nightfox Devices also have photo-taking and video-taking capabilities, which is an integral feature of the devices. 3.21 From a perusal of the HSN Explanatory Notes to Heading 9005, it covers military binoculars like night glasses. The relevant portion is reproduced for ease of reference: This heading includes: (1) Binoculars, such as opera glasses, binoculars for touring or hunting, military binoculars (including night glasses and certain periscopic binoculars) and binoculars made in the form of spectacles. 3.22 Military binoculars are advanced devices and do not utilise active illumination as the infrared light emitted can compromise the position of the militar....
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....s Heading. 3.26 As submitted in the foregoing paras, the night vision devices in question use active illumination technology. They do not contain any image convertor tubes or light amplifiers. The Nightfox Devices in question utilise a CMOS Sensor to convert the captured light to digital data. Therefore, the Nightfox Devices in question are not in the nature of those goods covered under Heading 9005. 3.27 For the reasons enumerated above, it is submitted that the goods are not classifiable under Heading 9005. 4. Port of Import and reply from jurisdictional Commissionerate: 4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. Nightfox devices at the jurisdiction of Office of the Commissioner of Customs, Air Cargo Complex, Hyderabad. The application was forwarded to the Office of the Commissioner of Customs, Air Cargo Complex, Hyderabad for their comments on 06.02.2025. The concerned jurisdictional Commissionerate vide their letter dated 06.03.2025 has submitted as follows: ⮚ From the supplier's website, it is observed that the items proposed to be imported are being categorized under binoculars (Item N....
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.... area of application. The importer intends to classify the goods to be imported under CTI 8525 8900, which is a residual entry under CTH 8525, rather than under CTH 9005 which is more specific and fits to the functioning of the goods to be imported. ⮚ From the foregoing, it appears that the imported goods merit classification under CTH 9005, irrespective of character, area/time of application and technology employed. This observation is further supported by the relevant portions of the explanatory notes for the heading 9005 produced below. 90.05 - Binoculars, monoculars, other optical telescopes, and mountings therefor; other astronomical instruments and mounting therefor, but not including instruments for radio- astronomy. 9005.10 -Binoculars 9005.80 - Other instruments 9005.90 - Parts and accessories (including mountings) This heading includes: (l) Binocular, such as opera glasses, binoculars for touring or hunting, military binoculars (including night glasses and certain periscopic binoculars) and binoculars made in the form spectacles. The heading also includes telescopes, and more particularly binoc....
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....ry (B): Television Cameras, Digital Cameras and Video Camera Recorders. They further elaborated on the characteristics of cameras classified under Heading 8525 and highlighted their similarity to those of the subject goods. Based on these features, they asserted that the subject goods closely resemble digital cameras classified under Chapter Heading 8525. Accordingly, they argued that classification under Customs Tariff Heading (CTH) 9005 is not appropriate, as the goods do not conform to the description provided under that heading and its corresponding HSN Explanatory Notes. Upon inquiry regarding the applicability of any specific Import Policy to the subject goods, the representatives undertook to verify the same and revert with the relevant details. A time period of one week has been granted to file any additional submissions, if necessary. 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 submissions made by the applicant during the hearing. Therefore, I proceed to pronounce a ruling on the basis of information....
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....where precise distance estimation is critical. These binoculars and monoculars are designed for versatile use. They can be operated as handheld devices or mounted on a helmet for hands-free functionality. This flexibility makes them suitable for a wide range of applications, including tactical operations, surveillance, and outdoor activities such as wildlife observation, hunting or navigation in low-light conditions. 6.6 Before classifying these devices, it is important to understand how infrared night vision binoculars and monoculars function. Infrared night vision binoculars or monoculars operate by utilizing infrared (IR) light to illuminate objects in complete darkness, enabling the device to "see" in conditions where the human eye cannot. These devices are equipped with a built-in infrared illuminator that emits IR light, which is invisible to the naked eye but reflects off objects in the environment. A CMOS or CCD sensor inside the device captures this reflected IR light and converts it into an electronic signal. The signal is then processed and displayed as a visible image on a screen inside the eyepiece, allowing the user to view objects clearly in low-light or no-....
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....te a device so that they can be used only after the insertion of a coin. **** The heading also includes telescopes, and more particularly binoculars, which utilize infra-red light and which incorporate image converter tubes to convert the magnified infra-red image into an image which can be seen by the human eve: these infra-red instruments are used at night, particularly by armed forces. Also included are telescopes, binoculars and the like which utilise light amplifiers (also known as image intensifiers) to increase the brightness of an image which is below the visual threshold to a level where the image can be seen. These explanatory notes explicitly mention the inclusion of night vision binoculars and telescopes that utilize infrared technology to produce images visible to the human eye, especially for use at night by armed forces or other applications. In light of the above, it is clear that the devices in question, which operate using infrared illumination and electronic image conversion to aid vision in darkness, fall within the scope of the instruments described in CTH 9005. Therefore, these are appropriately classifiable under Customs Tariff Heading....
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....E-2012)/2009-2014 dated 29.8.2012 Amends Schedule-I (Imports) of the ITC(HS) Classifications of Export and Import Items, 2009-14, Chapter-90. S.O. (E) - In exercise of powers conferred by Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, as amended, read with paragraph 1.3 and paragraph 2.1 of the Foreign Trade Policy - 2009-14, the Central Government hereby amends Schedule - I (Imports) of the ITC(HS) Classifications of Export and Import Items, 2009-14, Chapter-90 as under: 2. Presently, the import policy for Binoculars (HS Code: 9005.10.00) is free. Night Vision Binoculars/ Passive Night Vision Devices (PNVs) are classified under the same HS Code: 9005.10.00. But these items will be 'restricted' for import. So the amended entry HS Code: 9005.10.00 will read as follows: Exim Code Item description Policy Policy Condition 9005 10 00 1. Binoculars (except Night Vision Binoculars/ Passive Night Vision Devices-PNVs) 2. Night Vision Binoculars/ Passive Night Vision Devices-PNVs Free Restricted To be imported against an import authorization 3. Effect of Notification: Import of Night Vision Bin....
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....ight into a visible image. The core function of these devices is similar to that of conventional binoculars or monoculars, which are classified under CTH 9005 and are used for the observation of distant objects. The core design, features, and user interface of a digital camera are specifically optimized for photography and videography, focusing on capturing and recording images and videos. These devices are not intended for continuous real-time viewing or the observation of distant objects. Instead, they are equipped with functions that support image composition, exposure adjustment, and media storage. In contrast, devices such as night vision binoculars or monoculars are primarily designed for ongoing observation, particularly in low-light or night-time conditions, making their principal function distinctly different from that of a digital camera. The applicant itself has submitted that the said devices allow the users to view images which are far away and specially at night having inbuilt night vision capabilities. Further, these devices utilize near infrared light, which have wavelength longer than visible light and they have infrared light emitting source. The applicant, ....
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.... (CTH) 9005 of the First Schedule to the Customs Tariff Act, 1975. Although these devices possess additional capabilities, such as capturing images and recording videos similar to a digital camera, they remain classified under CTH 9005, as their primary function aligns with that heading. This conclusion is also supported by the judgment of the Hon'ble Supreme Court in Thermax Ltd. v. Commissioner of Central Excise [2022 (382) E.L.T. 442 (SC)], wherein it was held that an additional purpose cannot alter the primary character or functionality of a product. 7. The jurisdictional Commissionerate has argued that the items proposed for import are categorized by the supplier as binoculars and monoculars, and are not marketed as cameras. These devices are primarily designed to view distant objects in low-light and nighttime conditions, and despite having additional features like image and video recording, their principal function remains observation, fitting the classification under CTH 9005. Applying Rule 1 of the General Rules of Interpretation (GRI) and considering the product's design, function, and supplier nomenclature, the goods are more appropriately classified under CTH....