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2022 (9) TMI 1707
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....ant, in short) filed an application dated 29.04.2022 before the Customs Authority for Advance Rulings, New Delhi (CAAR, New Delhi, in short), seeking advance ruling under section 28-H of the Customs Act, 1962. The application was accordingly registered under serial No. 10/2022 dated 29.04.2022. 2. The applicant, vide the aforesaid application, has sought ruling from CAAR, New Delhi on the question of classification and applicability of notification issued under the Customs Act, 1962, Customs Tariff Act, 1975 and any other notification regarding any duty chargeable under any other law for the time being in force in the same manner as duty of Customs leviable under the Customs Act. The applicant has proposed to import Canon Camera Model No. DS126864 (Regulatory Number mentioned on product label attached to the camera, display box and invoice), mentioning that the commercial name of the product will be different. In connection with the proposed import, it is also stated that camera will be with standard accessories [i.e., lens (optional), battery charger] and these are newer and more advanced version of the earlier Digital Interchangeable Lens cameras imported by the applicant. The....
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....fied in sub-heading Note 1 to this Chapter 20% 8525 82 20 -- Other, radiation-hardened or radiation-tolerant goods as specified in sub-heading Note 2 to this Chapter sub-heading 20% 8525 83 00 -- Other, night vision goods as specified in Note 3 to this Chapter 20% 8525 89 00 -- Other 20% 4.2 The applicant has further stated that on perusal of the foregoing, with the introduction and implementation of HSN 2022, the specific tariff lines incorporating specific headings for 'Television cameras', 'Digital Cameras' and 'Video Camera Recorders' have been deleted; such tariff lines have been substituted for new tariff lines to cover 'High-Speed goods', 'Others, radiation hardened or radiation tolerant goods' and 'Other, night vision goods'; consequently, specific definitions of the aforementioned category of products has been provided in the Sub-heading note to Chapter 85 of Customs Tariff; Sub-heading Note 1 to Chapter 85 defines 'High-speed' television cameras, digital cameras and video camera recorders as the one having one or more of the following characteristics: - writing speed exceedin....
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....exemption from payment of BCD under S. No. 502 of Notification No. 50/2017 for other models of cameras similar to the present camera; however, with the amendment in the Customs Tariff in view of the afore-stated exemption entries have also been amended; Notification No. 50/2017-Cus. provides for exemption from payment of BCD if the imported goods fulfil the conditions mentioned in Column (2) and (3) of the Customs Tariff; in this regard, S. No. 502 of Notification No. 50/2017-Cus. grants exemption to goods classifiable under Sub-heading 8525 89 00 of Customs Tariff which satisfy the condition of 'Digital Still Image Video Cameras other than Camera or Camera Module of cellular mobile phones'; in the present case, the impugned goods proposed to be imported are classifiable under Sub-heading 8525 89 00 of the Customs Tariff and accordingly, the impugned goods satisfies the condition mentioned in Column (2) to S. No. 502 of Notification No. 50/2017; reference is made to Notification No. 12/2012-Cus. whereby amendment Notification No. 28/2015-Cus. was introduced to insert an unconditional exemption for 'Digital Still Image Video Cameras'; reference is made to DOF letter ....
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....imitation subject to storage and device heating; thus, fresh assessment of eligibility to claim exemption benefit based on principal function of impugned goods is necessitated; for this determination. following parameters of the impugned goods become necessary to be understood, as discussed below: Design: The design of impugned goods is small, lightweight, handy in size when compared with video cameras making them more suitable for still photography and movie recording. However, the distinguishing factor in terms of the design remains the fact that video cameras are relatively bulkier and heavier, and more focused on the operation for movie recording in terms of the outer design. This makes the video cameras unsuitable for still image photography. Keeping this in mind, the impugned goods have lighter and less bulky structure when compared to video cameras. Therefore, for this reason the impugned goods will be considered as digital camera with more inclination towards still photography. Sensor Size and Megapixels: The impugned goods are equipped with bigger sensors and higher megapixel of 24 M. This feature allows the impugned goods to capture high quality still images in the ....
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....her stated that on perusal of the key features of the impugned goods and considering the features highlighted, the impugned goods are essentially advanced version of 'Digital Still Image Video Cameras' with the principal function of capturing still images; thus, their belief is further fortified by the specific technical components present in the impugned goods such as the ergonomics, design, amongst others; it is for the afore-stated features and reasons discussed, they are of the considered view that the principal function of the impugned goods are its still photography features. 4.8 The applicant has also stated that the device is not launched commercially in India and requested to ensure that the confidentiality thereof is strictly maintained. 5. Out of the nine concerned Principal Commissioners/ Commissioner, comments have been received from a few concerned Principal Commissioners/ Commissioner. The Principal Commissioner of Customs, Air Cargo, Chennai-VII, has commented, inter-alia that the Canon camera Model No. DS 126864 are cameras which principally perform the function of capturing still images along with advanced level of video recording capabilities, are r....
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....ot classifiable under Sub heading 8525 81 00, 8525 82 00 and 8525 83 00 of the Customs Tariff; therefore, on application of rule 6 read with rule 1 of the GRI, the impugned goods merit classification under the residuary Sub-heading 8525 89 00 of the Customs Tariff, which reads as 'Television cameras, digital cameras and video camera recorders: Other'; hence, according to the applicant, the impugned goods are appropriately classifiable under Sub heading 8525 89 00 of the Customs Tariff. As regards applicability of exemption under the notification, the applicant has stated that the impugned goods are principally used to capture still images and thus by considering the principal use, these goods should be eligible for the benefit of S. No. 502 of Notification no. 50/2017-Cus. dated 30.06.2017. However, CBIC, vide Circular No. 32/2007-Cus. dated 10.09.2007 has given the definition of Digital Still Image Video Camera as follows: "The term 'digital still image video camera' covers only digital cameras that have the capability of taking still images. This would also include digital cameras that take moving images for limited period of time although they are primar....
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....toms duty rates. Notifications No. 23 to Notification No. 27/2015-Central Excise and Notifications No. 28 to No. 30/2015- Customs, all dated 30th April, 2015 have been issued to give effect to these announcements. Notifications No. 12 and No. 13/2015-Central Excise (N.T.), dated 30th April, 2015 has also been issued in this regard. As regards Service Tax, notification No. 12/2015-Service Tax, dated 30-4-2015 has been issued. 2.The changes introduced through these notifications are summarised below. In addition, a clarification regarding applicability of customs duty exemption notifications has also been provided. Unless otherwise stated, all changes in rates of duty take effect from the midnight of 29th April/30th April, 2015. CUSTOMS ****** (5) All Digital Still Image Video Cameras (DSC) falling under tariff item 8525 80 20 irrespective of their specification [including the restriction with reference to video recording time] and their parts are being exempted from Basic Customs Duty. S. No. 428A and 429 of notification No. 12/2012-Customs, dated 17-3-2012 as amended by notification No. 28/2015-Customs, dated 30-4-2015 refer."; thus, to examine the eligibility of the applicant for ....
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....ated 10.09.2007 is erroneous to interpret the phrase 'digital still image video camera' for the following reasons: (i) This Circular was issued in the year 2007 and provides guidance for that period for classification of 'digital still image video cameras' and admissibility to notification benefits under Notification No. 25/2005-Cus dated 01.03.2005. (ii) The stated notification under which the applicant is seeking to claim exemption exists parallelly to Notification No. 25/2005-Cus. and the rationale for the introduction of Notification No. 12/2012 (carry forwarded to S. No. 502 of Notification No. 50/2017) is provided in the TRU letter cited supra. Thus, the guidance of Circular No. 32/2007-Cus. should remain limited to Notification No. 25/2005-Cus. and not be ipso facto applied to Notification No. 12/2012 and thereafter, Notification No. 50/2017. (iii) Additionally, the TRU letter cited supra states that the benefit to the exemption should be extended irrespective of the specification and restrictions on video recording time should not be a consideration. (iv) The Hon'ble CESTAT in the decision in Creative Peripherals & Dis....
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.... to 'digital still image video camera' which capture still images in a sequence which give an illusion of video capture. Thus, serial number 502 of notification No. 50/2017-cus is applicable to the digital camera which they intend to import. The Authority invited attention of the representatives of the applicant towards Sub-heading Note 1 of Chapter 85 and advised them to give details of writing speed, time resolution and frame rate vis-a-vis digital cameras, which the applicant intend to import. 8. In view of the clarification sought from the applicant during the personal hearing, the applicant submitted a declaration issued by the Director, M/s Canon Singapore Pte Ltd. stating inter-alia that Canon DS 126864 series of camera being supplied by the company is in the nature of a commercial camera; the subject camera does not satisfy the definition of 'high speed television cameras, digital camera and video recorders' as appearing in Sub-heading Note to Chapter 85 of World Customs Organization's Harmonized System of Nomenclature (HSN); subject cameras have a writing speed of less than 0.5 mm per micro second, time resolution of more than 50 nano seconds and fra....
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..... In the said circular, it is mentioned inter-alia that, "the World Customs Organization (WCO) has clearly outlined that features of the Digital Video camera. Such cameras have been described as Digital cameras that capture light images, convert them to digital electronic signals and then record such digital image data on internal or removable media (built-in memory or diskettes). These images can be reproduced by connecting the camera to a video monitor (or TV), an ADP machine, or by inserting the media in the ADP machine. This type of digital cameras can produce both video signals (e.g., NTSC, PAL, SECAM or other similar video format) and computer readable image data like MPEG.", "the term video relates to recording, reproducing or broadcasting of visual images. It is a technology of electronically capturing, recording, processing, storing, transmitting and reconstructing a sequence of still images representing scenes in motion. The term 'still image video' camera covers the types of camera that take still images and stores them as single frame of video. These single video frames when reproduced at a specified frame rate achieve an illusion of moving image. The minimum fr....
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....anon Digital camera Model No. DS126864 with standard accessories only merit classification under Sub-heading 85258900. 11.2 As regards, applicability of Notification No. 50/2017-Cus. dated 30.06.2017 [SI. No. 502], I notice that exemption from BCD is admissible to Digital Still Image Video Camera other than Camera or Camera module of cellular mobile phone. It is also observed that the said CBIC Circular has clarified that exemption to 'Digital Still Image Video Camera' would be available to 'digital camera' with still image recording as its principal function and this would include those digital cameras that have the capability of recording moving images for a limited period of time. 11.3 I notice that comments of the concerned Principal Commissioner of Customs, ACC (import), New Delhi on applicability of Sl. No. 502 of Notification No. 50/2017-Cus. dated 30.06.2017 primarily based on the reason that the term 'digital still image video camera' covers only digital cameras that have the capability of taking still images; this would also include digital cameras that take moving images for limited period of time although they are primarily still image came....