TaxTMI 
TaxTMI 
2026 (3) TMI 1518
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....panies Act, 2013. The Applicant is one of India's leading national distribution partners for global technology brands in the Information and Communication Technology industry and offers comprehensive value-added services including pre-sales, solution design, techno-commercial assistance, marketing services, credit solutions, and warranty management services. 2.1 The Applicant is now proposing to import 'Oura Health ring / Smart Ring' (hereinafter referred to as "product" or "Ring") and 'Sizing Kit'. About the product i. 'Oura Health ring/Smart Ring' is a non-invasive, wearable health and wellness device made from titanium and designed in the form of a finger ring. The product image is extracted below: ii. The product uses advanced sensors like Accelerometer, digital temperature sensor, green/red/infrared LEDs for Photoplethysmography ("PPG")/Sp02 to collect physiological data continuously. This data is analyzed to provide insights and scores via a mobile application, tracking over 30 biometrics including sleep stages, heart rate variability, skin temperature variations, and other activities. The product is designed to be worn on t....
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....any other Bluetooth enabled device in order to use the application which displays the data collected by the product. The Bluetooth technology in the product is only active during a small portion of each day which is less than 1% of the time. Data is transmitted continuously only when the product syncs with the app and during firmware updates. The product does not have any capability to connect to the internet and does not have any signal of its own and accordingly, for the firmware update it has to connect with another device and then it updates via the Application. Further, the limit for Specific Absorption Rate for a device such as Smart ring is 2.0 W/kg for head and body, and the product's SAR level is just 0.0003 W/kg. In other words, the electromagnetic field levels of the product are about 3,000times lower than a typical smartphone. 2.5 About the Sizing Kit The 'Sizing Kit' is a ring-shaped product used to determine the most suitable ring size for the customer. It is meant to be purchased before the purchase of the Ring, to determine the accurate size of the Ring to be purchased. Picture of Sizing Kit is reproduced below: The Sizing Kit contains 12 dif....
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....ion 9031 Measuring checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors 903110 00 - Machines for balancing mechanical parts 9031 20 00 - Test benches - Other optical instruments and appliances: 903141 00 -- For inspecting semiconductor wafers, or devices or for inspecting photo masks or reticles used in manufacturing semiconductor devices 9031 49 00 -- Other 9031 80 00 - Other instruments, appliances and machines 903190 00 - Parts and accessories 3.2.1 The relevant portion of HSN Explanatory Notes to Heading 9031 is extracted below: "In addition to profile projectors, this heading covers measuring or checking instruments, appliances and machines, whether or not optical. It should, however, be noted that this group does not include any instruments, apparatus, etc., falling in headings 90.01 to 90.12 or 90.15 to 90.30; in particular, the following are therefore excluded: (a) Astronomical instruments of heading 90.05. (b) Microscopes (heading 90.11 or 90.12). (c) Surveying, etc. instruments and....
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....ination of sensors to measure health metrics of a person who wears it should also be classified under Heading 9031. The relevant extract from the HSN explanatory notes are: "Measuring or checking instruments, appliances and machines - These include: 3. Laboratory appliances of a kind used for testing fuels and in particular for measuring the octane index of Petroleum or the cetane index of diesel engine oils. This apparatus usually consists of an internal combustion engine, a dynamo, an ignition generator, heating resistors, measuring instruments (thermometers, pressure gauges, voltmeters, ammeters, etc.). ** 18. Apparatus for measuring or detecting vibrations, expansion, shock or jarring, used on machines, bridges, dams, etc. ** 25. Instruments for continuous measurement and checking of the thickness of metal sheets or strip in rolling mills, etc." Hence, the product is precisely a measuring device and the first condition that the product should be a measuring or checking device is satisfied. 3.2.3 The Oura Health ring/ Smart Ring is not included anywhere else in the Chapter 90 Further, the product cannot be classified....
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....e or instrument used by medical practitioners, the 'Samsung Galaxy Ring' is engineered for the quantification /measurement of a variety of physiological data. The primary component of 'Samsung Galaxy Unit' is the sensor array, which includes a PPG sensor, an accelerometer and a temperature sensor. These sensors are complemented by a battery that powers them and a memory module that temporarily stores the measured data. Additionally, a Bluetooth module is incorporated as an ancillary device for the transmission and reception of data to other devices such as tablet / smartphones. Consequently, it may be inferred that the essential character of the application items is embodied in the sensors responsible for the acquisition of physical information. Regarding the utility and functionality of the "Samsung Galaxy Ring', it is designed to be worn on the finger-a site rich in blood vessels-to optimize the efficiency of the PPG sensor. The sensor measures the blood flow from the capillaries, thereby calculating heart rate and oxygen saturation levels with a degree of accuracy superior to that of other devices. As a result, the application items not only aid in the preven....
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....der the Sub- Heading 9031.80". 5.2.4.4 Reliance can also be placed on American Customs Ruling number N209995 dated 30-12-2012 requested by LG Electronics for their activity trackers, which were imported from South Korea. These devices are designed to be worn on the wrist or belt and are primarily used to track physical activities. They utilize a 3-axis accelerometer to measure steps, estimate the distance travelled, and calculate energy expenditure (calories burned). Unlike devices that focus on time, these trackers emphasize cumulative activity and additionally, they also transfer the recorded data to other electronic devices, such as laptops, in the aforementioned case, the American Authority had classified the LG Electronics 'activity trackers' under the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 9031.80.8085. which pertains to miscellaneous measuring or checking instruments. 5.2.4.5 Furthermore, American Custom Ruling, in the case of Under Armour, Case no. N240358, dated 29-04-2013, has held that performance management system would be classified under HTSUS 9031.80.8085. The subject item in the aforementioned case consiste....
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....snoring hours Activity, heart rate (continuous), sleep stages/score, body temperature, blood oxygen (SpO2), readiness/activity score, stress resilience Connectivity Bluetooth and NFC Bluetooth Compatibility Connects with Samsung Health App to give personalised health insights Connects with Oura health App to give personalised health insights and also open for 3rd party App integration Accordingly, the Advance ruling classifying an identical product under Tariff Item 90318000, is squarely applicable to the product currently in question, as all the relevant features and sensors of the product in question are same as of the 'Samsung Galaxy Ring'. 3.4 Cross rulings for similar products, classifying them under Heading 9031 Classification of similar fitness trackers has been determined under Heading 9031 by various US cross rulings. The rulings are as follows: SI. No. Cross Ruling No. & date Particulars 1. N340510 dated June 10, 2024 Samsung Galaxy Smart Ring were classified under 9031.80.8085 HTSUS, relying on Rule 3(c) of GRI. 2. N348181 dated April 30, 2025 Smart Ring with various sensors were classified under 9031.80.80....
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....es the classification of devices that are designed for wireless transmission and reception. In accordance with Classification Opinion 3- 2223, dated August 13,2015, devices such as smartwatches that facilitate the use of smartphone functions-including the management of calls, messages, and outgoing communications -are recognized to possess communication as (heir intrinsic characteristic. Consequently, such devices have been duly classified under tariff heading 8517. 5.2.2.4 In the instant case, it is imperative to note that while the 'Samsung Galaxy Ring' is equipped with communication functionalities such as Near Field Communication (NFC) and Bluetooth Low Energy (BLE), it does not possess the capability to perform integral communication functions associated with smartphones, such as placing calls, managing message counts, or sending messages. Further, the 'Samsung Galaxy Ring' is also incapable of utilizing data from the smartphone. Therefore, it can safely be deducted that the 'Samsung Galaxy Ring', although capable of ancillary functions such as transmitting measured physical information to smartphones and providing location services, does not e....
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....be interpreted without adding or subtracting words, and its scope should not be expanded beyond what is explicitly stated. In the present case, the notification provides for exemptions under specific conditions but does not explicitly dictate the classification of goods. Therefore, while the exemption notification may indirectly influence the classification process by providing context or by highlighting certain characteristics of goods that could be relevant for classification, it is not a determinative instrument for classification per se. The classification should be based on the legal texts of the tariff, including the Section and Chapter Notes, and the GRI of the Harmonized System, rather than on the provisions of an exemption notification. ** 5.8 In light of the aforesaid submissions, it is can be summed up that the exemption notification cannot be used as a primary tool for the classification of goods and that the classification should be determined based on the appropriate legal framework and interpretative rules governing customs tariffs. " It is submitted that the above-mentioned ratio is squarely applicable to the present case. Accordingly, it can be....
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....y and very specifically includes the product in question, as the primary and dominant function of the product is to measure the health metrices of a person by using the sensors present in it. 3.6.2 The product is classifiable under Heading 9031 in terms of Rule 3(b) of the GRI Further, in terms of the HSN explanatory note I of Rule 3 of GRI, if a product cannot be classified in accordance with Rule 3(a) then Rule 3(b) of is to be considered for classifying such product: Accordingly, without prejudice to the above made submissions, reliance is being also placed on Rule 3(b) of GRI that deals with the composite goods consisting of different materials or made of different components, which are put up in sets for retail sale and are likely to be classifiable in two or more headings. Such goods shall be classified in terms of the component which gives them their essential character. The product is a composite good and the essential character of the product is embedded in the sensors, as the consumers buy the product to track their health and fitness. Such tracking is only possible with the help of sensors present in the device which measure the metrices. Accordingly, sensors....
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....ly, it is not being repeated here for the sake of brevity. As the sizing kit is solely used for measuring size of the finger, Chapter 90 may be examined for classification. Chapter 90 of First Schedule to the Tariff pertains to "Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof'. Heading 9031 pertains to "Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors". Sizing Kit constitutes of a comprehensive package designed exclusively for determining accurate size of the customer's finger. The kit comprises of sample rings covering all available sizes from 4 to 15, enabling customers to evaluate each size for a precise fit, as it is a non-functioning physical replica of the product in terms of internal structure and sensors. Hence, the Sizing Kit is precisely a measuring device and has no other use apart from measuring. Accordingly, the first condition is satisfied. 3.7.1 Identical product held to be classifiable under Tariff Item 90318000 in an Advance Ruling issued to Samsung India Electronics Pvt....
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....rrently in question. 3.7.2 Even if the Sizing Kit is not classifiable under Tariff Item 90318000 it will still be classifiable under Tariff Item 903190 00 Without prejudice to the submissions made above, the Sizing Kit may be classified under Tariff Item 903190 00 '- Parts and accessories'. HSN Explanatory Notes to Heading 9031 states that any part and accessories principally or solely identified to be suitable with instruments classified under this Heading will also be covered under this Heading itself. The relevant portion is extracted below: "PARTS AND ACCESSORIES Subject to the provisions of Notes 1 and 2 to this Chapter (see the General Explanatory Note), the heading also covers parts and accessories identifiable as being suitable for use solely or principally with the machines, apparatus and instruments described above, e.g., planimeter arms, stands and checking tables for dial comparators." Further, in terms of Note 2(b) of Chapter 90 the Sizing Kit will be classified in the same Heading as of the product, if it is suitable for use solely or principally with that product, relevant extract of which as follows: "2. Subject to Note 1 ....
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....ssionerate for their comments on 02.01.2026, 28.01.2026 and 16.02.2026. Comments received from the jurisdictional Commissionerate are as under: From the functional description provided, it is evident that the primary and essential function of the Smart Ring is the measurement and monitoring of physiological parameters. The Bluetooth module is incorporated solely to enable synchronization and transfer of measured data to a host device. The communication capability is thus incidental and supportive in nature. The device does not independently perform telecommunication functions such as voice transmission, messaging, internet access, or data communication in the manner contemplated under Heading 8517. It does not possess characteristics typically associated with apparatus for the transmission or reception of voice, images, or other data as envisaged in Chapter 85. In terms of Rule 1 of GRI, classification is to be determined according to the terms of the headings and any relevant Section or Chapter Notes. Chapter 90 covers, inter alia, measuring and checking instruments and apparatus. Heading 9031 provides for "Measuring or checking instruments, appliances and machines, not spec....
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....s intended to be purchased prior to the Smart Ring for the limited purpose of determining the appropriate ring size by physical trial. The applicant has clarified that the Sizing Kit does not contain any sensors, electronic components, or measuring mechanisms. It does not perform any physiological measurement, data processing, or technical function. It is merely used by the customer to wear and assess comfort and fit before placing an order for smart ring. From the description furnished, it is evident that the Sizing Kit does not qualify as a "measuring or checking instrument" within the meaning of Heading 9031 of the Customs Tariff. The kit does not contain any calibrated scale, dimensional markings, or precision measuring mechanism. It does not determine size through measurement but rather through trial fitting. Therefore, it cannot be regarded as an instrument or appliance performing measurement or checking within the scope of Chapter 90. Further, the Sizing Kit does not qualify as a "part" or "accessory" of the Smart Ring under Tariff Item 9031 90 00. In tariff jurisprudence, a part or accessory must either form an integral component of the functioning of the principal ar....
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....ct and US cross rulings. 5.2 Nobody appeared for PH from the department side. 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 personal hearing. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 6.2 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act. 6.3 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. 6.4 Rule 1 of the General Rules for Interpretation provides that the classification of goods shall be determined according to the ter....
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....vities like cycling and basketball, with the help of heart rate to give credit for every move a person make. Activity Score Analyse activity levels, consistency over time, and recovery time to help a person understand if he is finding a healthy balance between movement and rest. Personalized Activity Goals Oura creates a personalized activity goal every day based on recovery. Depending on a person's health priorities, this goal might focus on daily activity or calorie burning. Readiness Readiness Score Readiness Score uses body temperature trends, heart rate, sleep, and more to highlight how energized a person is for the day. Illness Detection Oura monitors shifts in body temperature and heart rate so can predict when a person may be getting sick. Stress Daytime Stress Understand what stresses out and what helps a person recover. A person can see how your daily movement, activities, and tags contribute to your stress levels, and bounce back faster. Resilience Monitor how well a person's body recovers from day-to-day physiological stress and learn how to build resilience to stress over time. Cumulative Stress Track the hidden t....
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.... wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528 **** - Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): 8517 61 00 -- Base stations 8517 62 -- Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: **** 8517 62 90 --- Other The HSN Explanatory Notes to Heading 8517 state that the heading covers apparatus for transmission or reception of any kind of data between two points by any wired or wireless network. The relevant extract of HSN Explanatory Notes to Heading 8517 is as follows: "This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electro-magnetic waves in a wireless network. The sig....
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....nce with Classification Opinion 3-2223, dated August 13, 2015, devices such as smartwatches that facilitate the use of smartphone functions-including the management of calls, messages, and outgoing communications-are recognized to possess communication as their intrinsic characteristic. Consequently, such devices have been duly classified under tariff heading 8517. In the instant case, the product is Bluetooth Low Energy (BLE) enabled, however, it does not possess the capability to perform integral communication functions associated with smartphones, such as placing calls, managing message counts, or sending messages. Therefore, it can be implied that transmission of the data obtained by the sensor is a function of the subject goods. It is observed that the subject goods perform two functions: 1. Measurement of physiological data by means of sensors 2. Transmission of the measured data via Bluetooth connectivity As the subject goods do not possess the capability to perform integral communication functions associated with smartphones, such as placing calls, managing message counts, or sending messages so it can be implied that the subject goods do not exhibit co....
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....0.26. (h) Instruments and apparatus for measuring and checking electrical quantities and instruments and apparatus for measuring or detecting ionising radiations of heading 90.30. (i) Automatic regulating or controlling instruments and apparatus (heading 90.32)" the General HSN explanatory notes to Section XVIII provides- Chapter 90 covers a wide variety of instruments and apparatus which are, as a rule, characterised by their high finish and high precision. Most of them are used mainly for scientific purposes (laboratory research work, analysis, astronomy, etc.), for specialised technical or industrial purposes (measuring or checking, observation, etc.) or for medical purposes. The Chapter includes in particular: (A) A wide group comprising not only simple optical elements of headings 90.01 and 90.02, but also optical instruments and apparatus ranging from spectacles of heading 90.04 to more complex instruments used in astronomy, photography, cinematography or for microscopic observation. (B) Instruments and apparatus designed for certain specifically defined uses (surveying, meteorology, drawing, calculating, etc.). ....
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....nfrared LEDs measure blood oxygen levels (SpO2) while you sleep. Green and infrared LEDs track heart rate (HR) and heart rate variability (HRV) 24/7, as well as respiration rate during sleep. b. Digital temperature sensor: Measures skin temperature variations for early signs of sickness, menstrual cycle tracking, and recovery insights. c. 3D accelerometer: Monitors movement and activity 24/7, capturing steps, exercise intensity, and nighttime restlessness. From the above, it is observed that the sensor array performs the core and determinative function of the device, namely the measurement and monitoring of physiological parameters. The remaining components, including the Bluetooth module, merely facilitate storage and transmission of the measured data and do not independently define the nature, purpose, or commercial identity of the product. Therefore, it is asserted that the component conferring the essential character upon the application product is the sensor, by virtue of its pivotal role. 6.7.1 From the perusal of the Tariff Heading and the HSN explanatory notes pertaining to it, for a product to be classified under Heading 9031, it must satisfy the fo....
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....90.12 or 90.15 to 90.30, nor in the specific exclusion list of the HSN explanatory notes. As the subject goods measure data by its embedded sensors and cannot be classified under any other heading of chapter 90. 6.7.2 Basis the above, Rule 1 of GIR, classification must be in accordance with the terms of Chapter heading and any other relevant Section and Chapter Notes. As mentioned above, the 'Oura Smart Ring' is not merely a small wearable device in the shape of a ring. Rather, the functions of the ring include measuring multiple parameters of health, fitness and sleep- related information, Heart rate measurement, Blood Oxygen Sensing, menstrual cycle, temperature, sleep monitoring, Automatic Activity Detection (walking, running, cycling) etc. On the basis of its individual functions and features, and applying General Rules for the Interpretation of the Harmonized System (GRI) Rule 1, the Oura Smart Ring may, if each function is considered in isolation, be prima facie classifiable under different tariff headings, read with the relevant Chapter Notes and Section Notes, depending upon the specific function under consideration. However, Rule 1 of GRI, further states that if....
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....nce to material or component which gives them their essential character. In the present case, rings measure data by means of various sensors and also transmit the data via Bluetooth to analyse and display through app on mobile or laptop or PC. Thus, it is observed that both functions are equally important and complementary to each other. Neither of the two dominates the other and are equally important. Therefore, the subject goods cannot be classified by applying the Rule 3(b) of GRI. GRI 3 (c) states that when the essential character of a composite good cannot be determined, classification is based on the heading that occurs last in the numerical order among those which equally merit consideration. The product senses and measure the data, the Bluetooth connects the product to a device which then displays the data after analysing it. Both the above-mentioned components can be said to be dependent on each other for the proper functioning of the product. The product, which has Bluetooth capabilities as essential characteristic, may be covered under the Heading 8517, on the contrary if the measuring capabilities of sensor are considered as an essential characteristic, then that ....
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....st wearable and other smart wearable devices including smart ring. The applicant has submitted that the exemption notification in question does not, in itself, offer direct guidance for the classification of goods. Further, "It is settled law that while statutory notifications may be looked at for the purpose of ascertaining the scope of entries in tariff schedules, they cannot be used to determine or settle disputed classification of goods for which the relevant headings and section notes and chapter notes read with relevant judgments, if any, are the guides". Therefore, it can be summed up that the subject goods are not classifiable under CTH 8517 in view of the above-mentioned notification no. 57/2017-Customs dated 30.06.2017 as amended by notification No. 17/2024-Customs dated 14.03.2024. 6.8 Now, I will discuss the classification of sizing kit: The Sizing Kit does not have any other feature; neither contains any sensor and cannot be used in any other way. It is only meant to be purchased before purchasing the product and then find a perfect fit. Further, even the packaging of the Sizing Kit makes it very clear that it is only compatible with the product. The Sizing Ki....
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....nd of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of heading 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind; " The Sizing Kit does not qualify as a "part" or "accessory" of the Smart Ring under Tariff Item 9031 90 00. At first, a part or accessory must either form an integral component of the functioning of the principal article or facilitate its operation or performance. The Sizing Kit does neither an integral part nor contributes to the functioning of the Smart Ring. It only helps in finding the correct size for the customer. Second, as smart ring, itself, does not classifiable under CTH 9031, therefore, sizing kit cannot be classified under CTH 9031 as per chapter Note 2. As per the chapter note 1(g) to Section XVI and chapter Note 1(f) to chapter 90 excludes the parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39). Since, the sizing kit is plastic ring sizer of general use without any electronic component and calibrated measurement mechani....