AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (12) TMI 1747
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.... brochure of 'Samsung Galaxy Ring' advertises the said product as a 'Smart Ring' which gives a personalized health experience to its users. The above-mentioned personalized health experience comprises of tracking and monitoring health, fitness and sleep-related information such as Heart rate measurement, oxygen saturation, menstrual cycle, skin temperature, sleep monitoring, step count, automatic exercise recognition (walking, running) etc. The predominant features of the 'Samsung Galaxy Ring' as have been outlined in the Product Brochure as well include the following: Category Feature Detail Overall Index Energy Score (New) Provides a comprehensive index based on daily activities as well as sleep (based on Sleep, Activity, ARV Resting HR) Sleep Sleep Latency (New) Sleep Time: Time in Bed Sleep Sleep Duration (New) Actual Sleep time Sleep Score Sleep Stage Nighttime Movement SPO2 Skin Temp, Heart Rate (New) Respiratory Rate (New) Sleep Consistency Snoring Sleep Coaching * Sleep Type (7 type) Time taken to fall asleep Sleep latency:-Sleep Duration : From the time tie down t....
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....Easy Pairing with other devices - The ring is Bluetooth enabled and can be connected to another device through Bluetooth connectivity. It is not equipped with a display, therefore, it has to be connected to another device to view the information (acquired data points) on the paired device. The measured information from the ring can be checked directly through 'Samsung Health', an app on a paired device (such as smartphone, tablet etc.) that can be been paired via Bluetooth and connected through the Galaxy wearable app. Smart find for tracking location of the ring - The paired device can also receive location information from the Ring through the "Map" app. Gesture control - The ring also possesses a gesture control feature for dismissing the alarm or taking photo / video from the smartphone / tablet. However, the 'Samsung Galaxy Ring' is not able to actively receive notifications or other data from the paired device. 1.3 Further, the outer structure of the 'Samsung Galaxy Ring' is made up of titanium and the inner moulding is made up of epoxy. The battery consists of 15-22mAh capacity varying by ring size. The shape of the battery is ....
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....The product specifications & image of 'Sizing Kit are tabulated as under: KEY INGRIDIENTS i. Plastic ii.Aluminium Details of the Proposed Transaction The Applicant intends to import 'Samsung Galaxy Ring' and 'Sizing Kit' in India for further sale to domestic customers. Eligibility to file Application for Advance Ruling 1.8 Based on the criteria specified under Chapter VB, Customs Act, 1962 the following checklist has been prepared in order to prove that Applicant is eligible to file this Application, inter alia; I. Whether the Applicant holds a valid IEC Number at the date of filing this Application .? Yes II. Whether the present Application has been filed in respect of goods prior to importation in India? Yes III. Whether the present Application is barred under Sec. 28-I (2), Customs Act? No IV. Whether the subject-matter of the present Application is eligible to seek Advance Ruling, in terms of Sec. 28- H (2), Customs Act? Yes V. Whether prescribed Court-fees has been paid at the time of filing the present Application? Yes Further, the Applicant wishes to seek an Advance Ruling for determination....
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....hold a high persuasive value as observed by the Hon'ble Supreme Court in Wood Craft Products Limited [1995 (77) ELT 23 (SC)]. Basis the above, let us now procced to analyse the various relevant HSN codes with respect to the subject 'Samsung Galaxy Ring'. Whether 'Samsung Galaxy Ring' may get classified as Imitation Jewellery under Tariff entry 7117 1.11 Chapter 71 of the First Schedule to CTA, pertains to "Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal, and articles thereof; imitation jewellery; coin". Further, Tariff entry 7117 pertains to 'Imitation Jewellery' which is re- produced below for ready reference: Tariff Entry Description 7117 Imitation Jewellery - Of base metal, whether or not plated with precious metal: 71171100 -- Cuff-links and studs 711719 -- Other: 71171910 Bangles 71171920 -- German Silver Jewellery 71171990 -- Other 711790 - Other 71179010 --- Jewellery studded with imitation pearls or imitation or synthetic stones 71179090 -....
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.... precious metal (except as plating or as minor constituents as defined in Note 2 (A) to this Chapter, e.g., monograms, ferrules and rims) nor natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed). The heading also covers unfinished or incomplete articles of imitation jewellery (ear-rings, bracelets, necklaces, etc.), such as: (a) Semi-finished split rings, consisting of anodised aluminium wire, usually twisted or surface worked, whether or not fitted wig a crude clasp, sometimes used as ear-rings without Mer working; (b) Ornamental motifs of base metal, whether or not polished, assembled by small links into strips of indefinite length. It is to be noted that articles of personal use of a kind normally carried in the pocket, in the handbag or on the person, such as those listed in paragraph of the Explanatory Note to heading 71.13 (cigarette cases, powder boxes, etc.) are not regarded as imitation jewellery. The heading also excludes: (a) Articles specified in Note 3 to this Chapter. (b) Articles of heading 83.08 (buckles, buckle-clasps, clasps, hooks, eyelets, etc.)" 1.14 ....
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....ry" of heading 7113, HTSUS. In association with Legal Note 9 (a) to Chapter 71, HTSUS, Legal Note 11, HTSUS, defines the term "imitation jewellery" to include any small object of personal adornment (for example, rings, bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cuff links, dress studs, religious or other medals and insignia). Unlike the goods of New York Ruling Letter N256902, dated September 25, 2014, where the bracelet and necklace imported without their "Fitbit trackers" were designed to be worn for personal adornment, the merchandise concerned cannot be considered worn principally for adornment at time of import into the United States, because the bands are devoid of the ornamentation necessary to fall within the class or kind of goods known as jewelry bracelets. Moreover, there is no intent to ornament the bands to be worn as small objects of personal adornment. Consequently, the merchandise concerned is not classifiable within the imitation jewelry provision of heading 7117, HTSUS 1.17 The American Authority, after considering all the essential functions of the fitness accessories, held that fitness accessories would not be c....
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....esult of Electromagnetic fields created by cell phones, microwave ovens, etc. From the above, it is evident that the item cannot be an artificial jewellery. An imitation jewellery/artificial jewellery as per Note means it should be ornamental and it is to be normally worn as a personal adornment for enhancing beauty. Whereas it is evident that it is not made for regular use as jewellery. Merely the glass is fitted with a metal frame cannot qualify as an imitation jewellery to be classifiable under Chapter 71. Further, we find that the primary function of the imported goods is not as artificial jewellery but sold to only through multi- level marketing on one-to-one basis. From the above facts, it is established that the 'Chi Pendant' is not an artificial jewellery worn by any person of any age. Therefore, the imported goods cannot be classified under Chapter 71 as "Imitation Jewellery/Articles of Jewellery". Therefore, there is no justification for appellants to claim the classification under Chapter Heading 7117 90 90. Having held that the goods are not Articles of Chapter 71, the goods are to be classified under respective Chapter 70 as 'Articles of G....
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....therefore, untenable to assert that the device possesses inherent attributes of personal decoration, as delineated in the HSN 7117. 1.25 Whether 'Samsung Galaxy Ring' may be classifiable as Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters) under Heading 9018 1.25.1 Chapter 90 of First Schedule to CTA, 1975 pertains to "Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof". Further, Tariff entry 9018 pertains to 'Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and Tariff Details Description 9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and sight-testing instruments Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters): 90181100 Electro-cardiographs 901812 Ultrason....
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....pparatus and sight testing instruments. The breast pump does not fall in any of the categories under the chapter heading. They are not used to perform any specialized surgical procedure nor is used by any medical practitioner. They are simple devices for self use to facilitate the lactating mother in discharge of breast milk as per their convenience. The goods do not require any medical supervision and are available in the market without any prescription. The heading covers a very wide range of instruments and appliances which, in the vast majority of cases are used only in professional practice (e.g. by doctors, surgeons, dentist, veterinary surgeons midwives) either to make a diagnosis, to prevent or treat an illness or to operate etc." Basis the above understanding, It was held as under: "15. We, therefore, conclude that the product has nothing to do with any medical or surgical procedures nor is it used by any medical practitioner. It is only a facilitating device for self use by lactating mothers. The impugned order classifying the manual breast pump under CTH 39269090 is upheld." 1.25.5 Upon review of precedential legal interpretations, it is established that p....
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....s for measuring or detecting ionising radiations of heading 90.30. (i) Automatic regulating or controlling instruments and apparatus (heading 90.32)............." 1.26.3 Basis the perusal of the tariff description and explanatory notes to HSN 9031, it is inferred that the said entry covers: □. Measuring or checking instruments, appliances and machines, whether or not optical. 1.26.4 Now, the Oxford Dictionary defines "Measure" as (i) A quantity ascertained or ascertainable by measurement. (ii) A number assigned to a property of an entity according to well defined rules, so as to describe or represent that property objectively. In common parlance, measure means to discover the exact size, amount etc of something. Further, the word "Check" means to examine something to see if its correct, safe or acceptable. 1.26.5 Contrary to mere ornaments of personal adornment or a communication device 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, whic....
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....and sleep data. The relevant extract of the ruling has been reproduced below for ease of reference; "Inasmuch as no one component imparts the essential character to the subject composite item, GRI 3(b) does not apply. It is the opinion of this office that the communication ability in heading 8517, HTSUS, and tracking of the heart rate and steps in heading 9029, HTSUS, merits equal consideration to the accelerometer in heading 9031, HTSUS. Therefore, classification will be determined based on the competing heading that occurs last in numerical order. GRI 3(c) noted. Accordingly, as you suggest in your letter, the applicable subheading for the Samsung Galaxy Smart Ring will be 9031.80.8085, HTSUS, which provides for "Measuring and checking instruments, appliances and machines, not specified or included elsewhere in this chapter, profile projectors; parts and accessories thereof: Other instruments, appliances and machines: Other: Other." The rate of duty will be free." 1.26.8 The American Authority, after considering all the features and functions of the 'Samsung Galaxy Ring', held that 'Samsung Galaxy Ring' would be classified as "Other instruments, applia....
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....s appropriate to classify the 'Samsung Galaxy Ring' as a Measuring and checking instrument, appliance and machine under tariff heading 9031, and more specifically under HSN 9031 80 00 as "Other instruments, appliances and machines." 1.27 Whether 'Samsung Galaxy Ring' may get classified as apparatus for transmission of 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 under Heading 8517. 1.27.1 Chapter 85 of First Schedule to CTA pertains to "Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers and parts and accessories of such articles", The Section Note 1(m) to Section XVI (which covers Chapter 85 of CTA) excludes the articles of Chapter 90 (which is not covered by Section XVI) . The relevant extract of the Section notes has been extracted below for ease of reference: "SECTION XVI MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND S....
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....er Chapter 90 are specifically excluded from Section XVI, which covers Chapter 85. In other words, any article that gets covered under Chapter 90 shall not be covered under any Chapter falling under Section XVI (which includes Chapter 85). 1.27.3 Since 'Samsung Galaxy Ring' falls under Tariff heading 9031 8000 as concluded above in Paragraph C.4.18 above, therefore, the same cannot be construed to fall under any of the Chapter of Section XVI of CTA, which includes Chapter 85 as well. 1.27.4 Without prejudice to the above, we would also like to highlight that Tariff entry 8517 pertains to 'Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the 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), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528.)'. The Tariff head 8517 along with the sub-headings are reproduced below for ready reference: Tariff Entry Description 8517 Telephone sets, incl....
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....ng 8517 delineates 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 their intrinsic characteristic. Consequently, such devices have been duly classified under tariff heading 8517. 1.27.9 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. 1.27.10 Therefore, it is submitted that the 'Samsung Galaxy Ring', although capable of ancillary functions such as transmitting measured physical information to smartphones and providing location services, d....
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....n 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 appliances of heading 90.15. (d) Instruments for measuring length, for use in the hand (heading 90.17). (e) Medical, surgical, etc., instruments and appliances of heading 90.18. (f) Machines or appliances for testing the mechanical properties of materials (heading 90.24). (g) Flowmeters, etc., of heading 90.26. (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) 1.29.6 We would like to reiterate that, basis the perusal of the tariff description and e....
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....size determination and it is therefore designed as imitation of the Original Ring, which aligns with the characteristics of 'Measuring instrument' as defined within the aforementioned tariff entry. Given that the Sample Ring is used as a sizing tool and is used to measure the appropriate size of the finger and it does not fall under the specific inclusions of other headings or sub-headings, it is appropriate to classify the same under the subheading of CTH 9031 80 00 "Other instruments, appliances and machines". 1.29.10 Conclusion: The 'Sizing Kit' is classifiable under the HSN: 9031 8000 (Other instruments, appliances and machines) under the tariff entry 9031- Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors. It is thus humbly prayed that an adjudication may be pronounced in respect of all of the aforesaid Questions submitted to the Customs Authority for Advance Rulings, in terms of Chapter VB, Customs Act. 2. Comments of the Port Commissionerate 2.1 The point wise comments to para (i) to (v) of the aforementioned letter issued by the CAAR, New Delhi are as under: 3....
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.... Samsung Health ecosystem, providing insights that go beyond basic measurement. * Consumer Electronics Classification: Similar to smartwatches and other smart wearable devices, the Galaxy Ring fits within the scope of CTH 8517. Further, Notification 57/2017-Customs, amended via Notification 17/2024-Customs dated 14.03.2024, explicitly includes "smart wearable devices such as smart rings, shoulder bands, neck bands, or ankle bands" under CTH 8517. SI. No. 20(a) of the notification specifies: SI. NO.CTH Description of Goods Std rate 20 85176290 or 85176990 All goods other than the following goods, namely: - (a) Wrist wearable devices (Commonly known as smart watches) and other smart wearable devices including smart rings, shoulder bands neck bands or ankle bands 10% Thus, it is clear that the Samsung Galaxy Ring is correctly classifiable under CTH 8517 as per the above notification. Question 2: Whether the 'Sizing kit' imported into India would merit classification under HSN: 9031 as Measuring or checking instruments, appliances and machines, not included elsewhere? Comments: Sample Ring is used as a sizing tool and is used to m....
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....ines, not included elsewhere; or 4) HSN: 8517 as apparatus for transmission of 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" 4.3 Analysis of Department's Comments classifying the 'Samsung Galaxy Ring" under Heading 8517 4.3.1 In the Comments dated 05 December 2024, the Department has alleged that Samsung Galaxy Ring be classified under the CTH 8517, as the functions performed by Samsung Galaxy Ring align under the scope of CTH 8517. In this regard, the Department has stated that the Samsung Galaxy Ring is classifiable under CTH which covers "machines for the reception conversion and transmission or regeneration of voice images or other data". The Department contended that the Samsung Galaxy Ring collects health metrics such as Heart rate, temperature, sleep patterns and transmits the data to a connected app via wireless communications. Therefore, the Samsung Galaxy Ring performs data transmission function. It has further been contented that the Samsung Galaxy Ring has integrated digital capabiliti....
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....roduced below for ready reference: Tariff Entry Description 8517 Telephone sets, including smart phones and other telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as local or wide area network) - 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 851762 -- Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus 85176210 to 85176270 --- ************* 85176290 --- Other 4.3.5 As per Explanatory Notes to Heading 8517, 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 signal may be analogue or digit....
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....s, images, or other data. These devices operate by altering an electric current or optical wave in a wired network or by using electromagnetic waves in a wireless network, with the signals being either analogue or digital. The networks mentioned in the heading include various forms of communication such as telephony, telegraphy, radio-telephony, radio-telegraphy, as well as local and wide area networks. It is our contention that the 'Samsung Galaxy Ring', while equipped with certain transmission features for transferring captured data to the connected device, does not primarily serve as a transmission device in the context of Heading 8517. It is evident that the 'Samsung Galaxy Ring' does not fall within the primary scope of Heading 8517. While the device is capable of transmitting data to a connected smartphone or other devices, this function is secondary to its main purpose. The 'Samsung Galaxy Ring' is fundamentally a health and wellness device that monitors and analyzes various health metrics of the wearer. The transmission of data is merely a means to convey the health information collected by the device to other platforms for further use. 4.3.9 The ....
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....iew pictures or video recordings, play sounds/music through speakers, make or receive a telephone call, sense movement or speed, provide navigational assistance, follow voice commands, measure scale/size, send or view received information, send or view received emails. The comments from the relevant Commissionerate indicated that the goods in question performed functions through data services and applications installed on the product. The department stated that since the product is a composite machine, its classification should be based on its principal function, in accordance with Note 3 of Section XVI. The device operates similarly to machines covered under CTH 851762, as it both receives and transmits data. Additionally, when the device plays video and audio, it regenerates voice, image, and other data. Therefore, it seems that the item is suitably classifiable under 851762, and even more specifically under 85176290. 4.3.11 In the case cited above, the applicant disputed the Commissionerate's comments, arguing that the smart glasses do not inherently possess the capability to transmit or receive signals; this function is only enabled when the glasses are connected to a mo....
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....n works, depends on the sensory modality used for the computer-generated input and visual input is the most common augmented reality modality. From the literature available in the public domain on the Internet, it is also gathered that, sensors collect data about the environment, a software algorithm creates a virtual map of the environment, digital content is placed within the virtual map. In today's environment when convergence of technology is the norm, every other device is multifunctional, and characteristics of these devices are such that they do not in the scope of a particular tariff heading. Moreover, a number of functions performed by these device appears to be important and essential; the subject goods are also multifunctional devices however nature of goods and functions performed by various, components of the subject goods is such that it may not be feasible to say that any function is principal or essential. In such a situation, the subject goods may not be classifiable in terms of rule 1, rule 3(a) and rule 3(b) of GRI. In general, multi-function machines are classified according to the principal function of the machine, while they can carry out different operati....
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....deration that the factual circumstances of the present case bear a striking resemblance to those in the matter of Qualcomm India Private Limited (cited above). Comparable to the Smart glasses, the Samsung Galaxy Ring possesses a multitude of functionalities, including but not limited to health and fitness tracking, photographic capabilities, alarm management, and connectivity with additional devices. It is further submitted that the Samsung Galaxy Ring, in isolation, lacks inherent transmission capabilities. The transmission capabilities are manifested only upon establishing a connection with a mobile device or a companion device. Moreover, it is beyond any doubt that the Samsung Galaxy Ring performs the function of measurement and checking of various health-related metrics. Given these attributes and placing reliance on the judgment quoted above, it is our contention that the Samsung Galaxy Ring justifiably merits classification under heading 9031, which encompasses "Measuring and checking instruments, appliances and machines, not specified or included elsewhere in this chapter." This classification is substantiated by the device's primary function as a health metric monitor, ....
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....racking and monitoring various health, fitness, and sleep-related metrics. It is equipped with a Photoplethysmography (PPG) Sensor that measures vital biological data, including heart rate and oxygen saturation levels. Additionally, it utilizes a temperature sensor to track menstrual cycles and skin temperature, and an accelerometer to detect vibrations, inclinations, and movements for step counting and sleep monitoring. As, the Samsung Galaxy Ring lacks an integrated display, the data it collects can only be accessed through the Samsung Health application on a connected device, such as a smartphone or tablet. While the said device can relay location information to the connected device, it does not have the capability to actively receive notifications or other data from the paired device. 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. Additio....
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.... the multifaceted capabilities of the Samsung Galaxy Ring, which includes monitoring of health metrics such as heart rate, steps taken and oxygen saturation levels including transmission of data etc. it may be argued that the said device cannot be narrowly categorized as a simple measuring instrument or merely a transmission device. The Samsung Galaxy Ring may be construed to embody a complex integration of functions that surpass the singular activities associated with measuring devices or traditional transmission. Without admitting and without prejudice to any of the above submissions, even if the Samsung Galaxy Ring is construed to possess data transmission capability, it is essential to apply a systematic method to accurately determine the classification of any product that possesses a combination of features, as is the case with the Samsung Galaxy Ring. This approach ensures that the classification reflects the full scope of the device's capabilities and aligns with the appropriate customs provisions. 4.5 The mechanics of determining the classification of any product is as under: i. World Customs Organisation ('WCO') has enunciated the Harmonized Commodi....
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....on shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 4.6.1 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 'Samsung Galaxy Ring' is not merely a small wearable device in the shape of a ring. Rather, the functions of the ring include tracking and monitoring health, fitness and sleep-related information such as Heart rate measurement, oxygen saturation, menstrual cycle, skin temperature, sleep monitoring, step count, automatic exercise recognition (walking, running) etc. Basis various features and functions performed, the 'Samsung Galaxy Ring' may fall under different Tariff heads and Chapter Notes and Section Notes basis application of GRI 1. For instance, the following may be the relevant Tariff heads basis the features and functions of the 'Samsung Galaxy Ring' as elucidated in the advance ruling application dated 12 September 2024 i. Tariff entry 7117 as Imitation Jew....
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....he instant case, the Applicant is importing goods in completely assembled and finished form, GRI 2 shall not apply, and we must resort to GRI 3 for classification. GRI 3 has been reproduced below for ease of reference: "3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential characte....
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....cter will vary between different kinds of goods. It may for example, be determined by the nature of materials or components, its bulk, quantity, weight or value, or by the role of a constituent material in relation to the use of the goods. ✓ In the instant case, since none of the components can be said to impart the essential character over the other components, to the subject 'Samsung Galaxy Ring', therefore, GRI 3(b), may not apply in the instant case. Accordingly, applicability of GRI 3(c) may need to be explored. ✓ 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. 4.6.6 In the matter of classifying the 'Samsung Galaxy Ring', we find ourselves addressing a product that embodies a composite of functions, none of which singularly imparts an essential character to the device. The 'Samsung Galaxy Ring' integrates various components that collectively contribute to its multifunctionality, without any one component dominating in terms of defining the product'....
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....his chapter, profile projectors; parts and accessories thereof: Other instruments, appliances and machines: Other: Other." The rate of duty will be free." 4.8 The American Authority, after considering all the features and functions of the 'Samsung Galaxy Ring', opined that all functions merit equal consideration and held that 'Samsung Galaxy Ring' would be classified as "Other instruments, appliances and machines under the Sub-Heading 9031.80" 4.9 In the instant matter, the query presented pertains to the classification of the 'Samsung Galaxy Ring,' as delineated in the case of Samsung Electronics America, Inc. (cited above). Therefore, it is contended that the classification as established in the precedent of Samsung Electronics America, Inc. (cited above) may be invoked as a reliable basis for the classification of the 'Samsung Galaxy Ring.' 4.10 Reliance is further placed on the judgment of this Court in the case of Qualcomm India Private Limited (supra), wherein the court concluded that due to the composite nature of these devices, it was not possible to identify a single predominant function. The smart glasses do not function independen....
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....tile material for technical use (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 83; (l) Articles of Section XVII; (m) Articles of Chapter 90; (n) Clocks, watches or other articles of Chapter 91; (o) Interchangeable tools of heading 8207 or brushes of a kind used as parts of machines (heading 9603); similar interchangeable tools are to be classified according to the constituent material of their working part (for example, in Chapter 40, 42, 43, 45 or 59 or heading 6804 or 6909); (p) Articles of Chapter 95; or (q) Typewriter or similar ribbons, whether or not on spools or in cartridges (classified according to their constituent material, or in heading 9....
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....s, as specified in the Annexure to this notification, the condition number of which is mentioned in the corresponding entry in column (5) of the said Table. TABLE SI. No. CTH Description of goods Std Rate 20 85176290 or 85176990 All goods other than following goods, namely :- (b) Wrist wearable devices (commonly known as smart watches) and other smart wearable devices including smart rings, shoulder bands, neck bands or ankle bands; (c) Optical transport equipment; (d) Combination of one or more of Packet Optical Transport Product or Switch (POTP or POTS); (e) Optical Transport Network (OTN) products; (f) IP Radios; (g) Soft switches and Voice over Internet Protocol (VOIP) equipment, namely, VoIP phones, media gateways, gateway controllers and session border controllers; (h) Carrier Ethernet Switch, Packet Transport Node (PTN) products, Multiprotocol Label Switching Transport Profile (MPLS-TP) products; 10% 4.17 On careful perusal of the above exemption entry, it is inferred that the government had provided concessional rate of basic customs duty of 10% on all products covered under the scope of tariff item 8517 6290 or 8517 6990, ....
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....rence: "14. In the grounds of appeal, it has been urged that since Notification No. 392/86 dated 22.8.86, as amended, refers to 'food colours' and 'food colour preparations' as falling under Heading 3204.90, that would be the proper classification for the present goods. We are unable to agree with this contention. 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" 4.20 Further, reliance in place on the judgment of CESTAT, Mumbai in the case of M/s Huawei Telecommunication (India) Company Private Limited versus Commissioner of Customs (Appeals), Mumbai-III, wherein the department placed reliance on the stipulations provided in the exemption notification to determine that the classification of the imported goods should not fall under CTH 8517 7010. Instead, the appropriate classification should be under CTH 8517 6290. The Tribunal, placing reliance on the judgment in the....
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.... Customs Act, 1962 or to modify assessment, and secondly because their orders, letters, notifications, etc., are executive actions and not quasi-judicial or appealable orders. The Tribunal, thus, held that any HSN Code indicated against any goods in the policy of MeITY or any other Ministry cannot determine classification of goods under the Customs Tariff. 4.22 Similarly, the Tribunal also held that exemption notifications issued under Section 25 of the Customs Act are not meant to determine classification of goods. The relevant extract of the ruling has been reproduced below for ease of reference; "27. During assessment, the goods must be first classified and thereafter it must be examined if the notification applies or not and not the other way round. Issue or withdrawal or modification of a notification cannot determine the classification. The proposal in the SCN to re-classify the goods relying on a notification is not correct. The reasoning in the SCN is that since the front cover, middle cover and back cover will be exempted under the notification if they fall under CTH 39209999, it means all front cover, back cover and middle covers fall under 39209999. This logi....
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....d [1995 (77) ELT 23 (SC)]. 5.2 As far as the competing heads for classification of 'galaxy ring' is concerned, the following may be the relevant Tariff heads basis the features and functions of the 'Samsung Galaxy Ring' as elucidated in the advance ruling application dated 12th September 2024 and comments of the Port Commissionerate: i. Tariff entry 7117 as Imitation Jewellery ii. Tariff entry 8517 as apparatus for transmission of 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 iii. Tariff entry 9018 as Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters; or iv. Tariff entry 9031 as Measuring or checking instruments, appliances and machines, not included elsewhere. 5.2.1 Starting with the first CTH 7117- 'Imitation Jewellery', the Chapter Note 9 to Chapter 71 provides the definition of 'Articles of Jewellery' and Chapter Note 11 to Chapter 71, provides the definition of &#....
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....rence: "SECTION XVI- MACHINERY AND MECHANICAL APPLIANCES; ELECTRICAL EQUIPMENT; PARTS THEREOF; SOUND RECORDERS AND REPRODUCERS, TELEVISION IMAGE AND SOUND RECORDERS AND REPRODUCERS; AND PARTS AND ACCESSORIES OF SUCH ARTICLES NOTES: 1. This Section does not cover: (a) Transmission or conveyor belts or belting, of plastics of Chapter 39, or of vulcanized rubber (heading 4010), or other articles of a kind used in machinery or mechanical or electrical appliances or for other technical uses, of vulcanized 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 use (heading 5911); (f) Pre....
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....ransmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as local or wide area network) - 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 851762 -- Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus 85176210 to 85176270 --- ************* 85176290 --- Other As per Explanatory Notes to Heading 8517, 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 signal may be analogue or digital. The networks, which may be interconnected, include telephony, E- telegraphy, radiotelephony, radio- telegraphy, local and wide area networks. 5.2.2.2 Basis the aforesaid, the following may be inferred: i. Tariff heading 8517 is fund....
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....nd appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and sight-testing instruments'. The said Tariff entry is reproduced below for ready reference Tariff Details Description 9018 Instruments and appliances used in medical, surgical, dental or veterinary sciences, including scientigraphic apparatus, other electromedical apparatus and sight-testing instruments Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters): 90181100 Electro-cardiographs 901812 Ultrasonic scanning apparatus: 90181210 Linear ultrasound scanner 90181290 Other 90181300 Magnetic resonance imaging apparatus 90181400 Scientigraphic apparatus 901819 Other: 90181910 Electro encephalographs 90181920 Echo cardiograph 90181990 Other As per Explanatory Notes to Heading 9018, this heading covers a very wide range of instruments and appliances which, in the vast majority of cases, are used only in professional practice (e.g., by doctors, surgeons, dentists, veterinary....
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....entist, veterinary surgeons midwives) either to make a diagnosis, to prevent or treat an illness or to operate etc." Basis the above understanding, It was held as under: "15. We, therefore, conclude that the product has nothing to do with any medical or surgical procedures nor is it used by any medical practitioner. It is only a facilitating device for self use by lactating mothers. The impugned order classifying the manual breast pump under CTH 39269090 is upheld." Upon review of precedential legal interpretations, it is established that products fabricated for medical objectives, which are not employed in a professional capacity and are predominantly utilized for domestic purposes, do not fall within the ambit of Tariff Item No. 9018. 5.2.4 The next competing head is to see whether 'Samsung Galaxy Ring' will be classifiable as Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter under Heading 9031. The tariff entry 9031 pertains to "Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors". The relevant Tariff heading and ....
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.... the exact size, amount etc of something. Further, the word "Check" means to examine something to see if its correct, safe or acceptable. Contrary to mere ornaments of personal adornment or a communication device 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 photo-plethysmogram (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. Th....
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....e free. The American Authority, after considering all the features and functions of the 'Samsung Galaxy Ring', held that 'Samsung Galaxy Ring' would be classified as "Other instruments, appliances and machines under the Sub- Heading 9031.80". In the instant matter, the query presented pertains to the classification of the 'Samsung Galaxy Ring,' as delineated in the case of Samsung Electronics America, Inc. could act as a precedent of Samsung Electronics America, Inc.) for the classification of the 'Samsung Galaxy Ring.' 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 aforeme....
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....ing the mechanical properties of materials (heading 90.24) ; (g) Flowmeters, etc., of heading 90.26.; (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)................" 5.3.1 It is reiterated that, basis the perusal of the tariff description and explanatory notes to HSN 9031, it is inferred that the said entry covers: "Measuring or checking instruments, appliances and machines, whether or not optical." As mentioned above, the Oxford Dictionary defines the term "Measure" as (i) A quantity ascertained or ascertainable by measurement. (ii) A number assigned to a property of an entity according to well defined rules, so as to describe or represent that property objectively. In common parlance, "Measure" means to discover the exact size, amount etc of something. 5.3.2 In light of the aforesaid, it is reiterated that 'Sizing Kit' is a comprehensive package that includes a range of sample rings, encompassing all available siz....
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....s Authority in the case concerning Qualcomm India Private Limited [CAAR/Del/Qualcomm/23/2023/520 to 524 dated 01st November 2023], where this Authority had examined in detail the classification of Augmented Reality (AR) devices, specifically the Qualcomm X-Reality (QXR) version 1 (QXRV1) and version 2 (QXRV2). These AR devices, which are generally known as smart glasses, are self-contained automated device that are capable of connecting to wired or wireless networks, display information or imagery, take and view pictures or video recordings. play sounds/music through speakers, make or receive a telephone call, sense movement or speed, provide navigational assistance, follow voice commands, measure scale/size, send or view received information, send or view received emails. The comments from the relevant Commissionerate indicated that the goods in question performed functions through data services and applications installed on the product. The department stated that since the product is a composite machine, its classification should be based on its principal function, in accordance with Note 3 of Section XVI. The device operates similarly to machines covered under CTH 851762, as it ....
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....s to be important and essential; the subject goods are also multifunctional devices however nature of goods and functions performed by various, components of the subject goods is such that it may not be feasible to say that any function is principal or essential. In such a situation, the subject goods may not be classifiable in terms of rule 1, rule 3(a) and rule 3(b) of GRI. In general, multi-function machines are classified according to the principal function of the machine, while they can carry out different operations. Where it is not possible to determine the principal function and where, as provided in Note 3 to Section XVI, the context does not otherwise require, it is necessary to apply rule 3(c) of GRI. I take into consideration the observation of the applicant that, while the subject goods are imported with the object of undertaking product development for enhancing its features, functionalities and capabilities, it appears that the multiple functionalities undertaken by the product, may result in classification of the subject goods under different tariff entries, based on specific functionality but no entry encompassing or detailing the item, based on specific descriptio....
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....truments, appliances and machines, not specified or included elsewhere in this chapter." This classification is substantiated by the device's primary function as a health metric monitor, rather than its ancillary communication functions which are dependent on connectivity to another device. In view of the above submissions, we assert that the classification of the 'Samsung Galaxy Ring' under Heading 8517 is not appropriate, as its fundamental nature and principal function is not data transmission in the context of the networks and apparatuses described by the Explanatory Notes. The essential purpose of the 'Smart Galaxy Ring' do not correspond with the devices envisaged by the description and explanatory notes of this heading. We respectfully request that the classification be reviewed and adjusted to reflect the primary health and wellness monitoring and measuring function of the 'Samsung Galaxy Ring' under CTH 9031, recognizing that its data transmission capability is incidental to its main purpose. 5.6 In view of the above, it becomes important to analyse the General Rules of Interpretation 'GRI' to determine the proper classification under....
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....ssification. GRI 3 has been reproduced below for ease of reference: "3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) when goods cannot be classified by reference to (a) or (b), they shall be classified under the....
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....t or value, or by the role of a constituent material in relation to the use of the goods. e) In the instant case, since none of the components can be said to impart the essential character over the other components, to the subject 'Samsung Galaxy Ring', therefore, GRI 3(b), may not apply in the instant case. Accordingly, applicability of GRI 3(c) may need to be explored. f) 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. 5.6.5 In the matter of classifying the 'Samsung Galaxy Ring', addressing a product that embodies a composite of functions, none of which singularly imparts an essential character to the device. The 'Samsung Galaxy Ring' integrates various components that collectively contribute to its multifunctionality, without any one component dominating in terms of defining the product's nature. GRI 3(c) clearly stipulates that when the essential character of a composite good is indeterminable, the classification should be based on the heading that appears last ....
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....d be classified as 'Measuring or checking instruments, appliances and machines' under CTH 9031. 5.7.1 On careful perusal of the above exemption entry, it is inferred that the government had provided concessional rate of basic customs duty of 10% on all products covered under the scope of tariff item 8517 6290 or 8517 6990, except for certain excluded products specified therein. The applicant has submitted that the exemption notification in question does not, in itself, offer direct guidance for the classification of goods. The notification's primary purpose is to outline the conditions under which certain goods may be exempt from duties or taxes, rather than to serve as a definitive source for determining the classification of those goods under the customs tariff headings. It is a well-established principle that exemption notifications must be construed strictly. The language of the notification needs to 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 go....
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.... Chem Pvt. Ltd (supra), opined that the exemption notification does not inherently offer assistance for the classification of goods. The relevant extract of the ruling is reproduced as under: "13.2 On careful perusal of the above exemption entries, we are of the view that it could be concluded that the government had provided concessional rate of basic customs duty of 10% on all products covered under the scope of tariff item 8517 6290 or 8517 6990, except for eight specified products specified therein. These include Optical Transport Network (OTN) products under entry 20(d). The said exemption notification does not perse provide for any aid for classification of goods .... 14. In this regard, we find that it is a settled law that while statutory notifications may be looked at for the purpose of ascertaining the scope of goods covered under the exemption notification, they cannot be used to determine the classification of goods. Our above views is supported by the decision of the Tribunal in the case of Collector of C. Ex. Vs. Roha Dye Chem Pvt. Ltd., reported in 1989 (41) E.L.T. 667 (Tribunal) and which is also upheld by the Hon'ble Supreme Court in Civil App....