TaxTMI 
TaxTMI 
2026 (7) TMI 595
X X X X Extracts X X X X
X X X X Extracts X X X X
....applicant in respect of aforementioned goods is as under: 1.1.1. M/s Mitsubishi Electric Automotive India Private Limited, having registered office at Plot No. 167-170, Sector 5, IMT Manesar, Gurugram, Haryana - 122050 ('Applicant') is a private limited company registered in India under the Companies Act, 1956 (now Companies Act, 2013). The Applicant is a wholly owned subsidiary of Mitsubishi Electric Corporation, Japan and engaged in business of manufacturing, sale and trading of automotive & electric components. 1.1.2. The Applicant herein has been granted Importer-Exporter Code Number (IEC) as 0498049850 under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. Copy of the IEC issued to the Applicant is enclosed. Copy of Memorandum of Association and Articles of Association are enclosed. Copy of Certificate of Incorporation is enclosed. 1.1.3. The Applicant is engaged in import / intends to continue to import cable from its supplier in Japan. The Applicant supplies cables to various automotive OEMs in India like Maruti Suzuki etc. OEMs use cable to make Driver Monitoring System ('DMS') in its vehicles. DMS is an automotive safety syste....
X X X X Extracts X X X X
X X X X Extracts X X X X
....CONDUCTORS OR FITTED WITH CONNECTORS 8544 42 - Other electric conductors, for a voltage not exceeding 1,000V fitted with connectors: 8544 42 -- Fitted with connectors: 8544 42 10 --- Paper Insulated 8544 42 20 --- Plastic Insulated 1.1.9. The subject goods are insulated PVC cables fitted with connectors at both ends and are specifically designed to transmit electrical signals and power between Unit Assembly and Controller Assembly within DMS. 1.1.10. Heading 8544 covers insulated wires, cables and other insulated electric conductors, whether or not fitted with connectors. Subheading 8544 42 specifically covers insulated electric conductors fitted with connectors. Further CTI 8544 42 20 covers plastic insulated wires and cables fitted with connectors. Hence, cables are specifically covered under CTI 8544 42 20. 1.1.11. HSN Explanatory Notes (Harmonised Commodity Description and Coding System developed by World Customs Organization) provides that this heading also includes wire etc. made up in sets (e.g., multiple cables for connecting motor vehicle sparking plugs to the distributor). 1.1.12. Applicant's Understanding: Cable is part....
X X X X Extracts X X X X
X X X X Extracts X X X X
....prises of following parts (functionality of each part is explained hereunder): 1.2.4. DMS comprises of multiple components that are interconnected to function as a single electronic system. These components are Unit Assembly (which captures visual inputs), Cable (which connects Unit Assembly and Controller Assembly) and Controller Assembly (which processes captured data). DMS Controller Assembly is connected to external BCM (which performs alerting or signalling functions within vehicle) and finally, performs safety action through Buzzer / Indicator Lamp. Each component performs distinct and yet interdependent role. Unit Assembly 1.2.5. Unit Assembly is part of DMS which is mounted inside vehicle compartment. Unit Assembly consists of camera, LED, panel, chassis and harness. The primary function of Unit Assembly is to capture driver's data which is further sent to Controller Assembly in form of digital signals to judge driver's conditions. The image of Unit Assembly is under: 1.2.6. The functionality of each part of Unit Assembly is explained hereunder: * Camera: It captures driver's facial region to ascertain attentiveness / drowsiness (eyes, eyeli....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 8512 40 00 - Windscreen wipers, defrosters and demisters 8512 90 00 - Parts 1.2.10. Heading 8512 covers electrical lighting or signalling equipment of a kind used for motor vehicles. The essential nature of DMS is to generate warning signals directed towards driver of motor vehicle. Such system constitutes signalling equipment and is covered under Heading 8512. 1.2.11. In this regard, relevant extract of HSN Explanatory Notes (Harmonised Commodity Description and Coding System developed by World Customs Organization) to CTH 8512 is reproduced below: "This heading covers electrical apparatus and appliances specialised for use on cycles or motor vehicles for lighting or signalling purposes; The heading includes, inter alia: .... (10) Parking equipment operated by means of external feelers, which, when they touch the curb or other object, cause a light or other signal to warm the driver. (11) Anti-theft alarms which emit visual or audio signals to warn of attempts to break in to a vehicle. (12) Horns, sirens and other electrical sound signalling appliances. (13) Electrical apparatus that emits audio signal....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f changes in vehicle's electrical current. It was held that device functioned as an audible signalling appliance, similar to horns and sirens, and belonged to a class or kind of sound signalling equipment principally used in motor vehicles. Accordingly, it was classified under sub- heading 8512.30.00 as sound signalling equipment for motor vehicles. 1.2.17. In view of the above, DMS falls under CTH 8512. Unit Assembly merits classification under CTI 8512 90 00 1.2.18. CTI 8512 90 00 covers parts and preceded by single '-'. As per General Explanatory Notes to Import Tariff, where in column (2), the description of an article under a heading is preceded by '-', the said article or group of articles shall be taken to be a sub-classification of the article covered by said heading. Hence, CTI 8512 90 00 will cover all 'parts' of electrical lighting or signalling equipment. Hence, parts of DMS will be classified under CTI 8512 90 00 as CTI 8512 90 00 is preceded by single '-'. 1.2.19. Rule 1 of GRI provides that titles of Sections, Chapters and Sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....res visual input and transmits it onward to Controller Assembly. Hence, Unit Assembly performs a limited, preparatory role within DMS and therefore, fits description of a part rather than finished signalling device. 1.2.24. The Applicant submits that subject goods are appropriately classifiable under CTI 8512 90 00 which covers parts of electrical equipment of a kind used for cycles or motor vehicles. Unit Assembly is not a finished equipment covered within any specific entry under Heading 8512; instead, it is part of DMS. As such, it falls squarely within ambit of parts designed for use with automotive electrical equipment, therefore, merit classification under CTI 8512 90 00. 1.2.25. Reliance is also placed on Order-in-Original No. MUN-CUSTOM-000-COM-22-25-26 dated 08.09.2025 passed by Principal Commissioner of Customs, Customs House, Gujarat in Valeo India Pvt. Ltd. wherein dispute was classification of ECUs which formed part of ultrasonic reverse parking signalling systems. It was held that that ECU is an essential component of the ultrasonic Reverse Parking Assistance System (RPAS) which detects obstacles and alerts driver through audible signals. ECU receives data from ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... to Controller Assembly from its supplier in Japan. The application submitted by the applicant in respect of aforementioned goods is as under: 1.3.1. The Applicant is engaged in import / intends to continue to import Controller Assembly from its supplier in Japan. Controller Assembly comprises of cover, PCB, case and bracket. The Applicant supplies Controller Assembly to various automotive OEMs in India like Maruti Suzuki etc. OEMs use Controller Assembly to make Driver Monitoring System ('DMS') in its vehicles. DMS is an automotive safety system for capturing driver's facial data and triggers appropriate responses (warning alarm or alert message on information display panel) in vehicle for safety of driver, accompanying passengers & vehicle. In this regard, sample Import invoice and Bill of Entry filed by importer is enclosed. 1.3.2. The Applicant is seeking Advance Ruling on following issues: (i) Whether Controller Assembly is classifiable as 'parts' of 'Electrical Lighting or Signalling Equipment' under Customs Tariff Item ('CTI') 8512 90 00 of the First Schedule of the Customs Tariff Act, 1975? (ii) Whether Controller ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....river captured by Unit Assembly and processes information and runs fail-safe tests. Thereafter, Controller Assembly publishes information to BCM for creating warning signals. 1.3.9. The subject goods function as part of integrated DMS. These components are engineered and collectively serve a supporting role within comprehensive vehicle safety system. 1.3.10. Controller Assembly, therefore, performs intermediate processing and control function by receiving image data from Unit Assembly, analysing inputs and transmitting processed signals to BCM. It does not trigger any alerts or warnings independently. Signalling or alert mechanism becomes operational only after processed data is forwarded from Controller Assembly to BCM which acts as command component within vehicle's safety system and initiates appropriate driver alerts through sound or visual modes. STATEMENT CONTAINING APPLICANT'S INTERPRETATION OF LAW AND/OR FACTS, AS THE CASE MAY BE, IN RESPECT OF THE QUESTION(S) ON WHICH ADVANCE RULING IS REQUIRED 1.3.11. DMS merits classification under CTH 8512 As per the Applicant, DMS is appropriately classifiable under CTH 8512 and Controller Assembly being part of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....planatory Notes to CTH 8512 clearly demonstrates that Heading 8512 covers equipment that provides warnings or signals to drivers through visual or audio modes. DMS performs same function by generating by alerting driver through sound or visual modes (warning alarm or alert message on information display panel) when unsafe driving behaviour is detected and therefore, merits classification under CTH 8512. 1.3.15. In Re: Intel Solutions & Services India Pvt. Ltd., 2023 (385) ELT 788 (AAR - Cus. - Mum.), the Authority for Advance Ruling held that the principal function of 'Advance Driver Assistance System' is to operate as alert system for vehicle driver by visual and sound modes and therefore, classifiable under CTH 8512. 1.3.16. In the case of Commissioner of C. Ex., Mumbai-II v. A.J. Industries, 2005 (188) ELT 428 (Tri .- Bom), the Tribunal held that Horn Button Assembly functioned as part of horn system which was a signalling device used in motor vehicles and treated it as signalling equipment. Accordingly, goods were classified under CTH 8512. 1.3.17. In U.S. Customs ruling HQ 964844, the question was whether Ultrasonic Parking Guide System was classifiable under ....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., 8546 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529;" 1.3.24. Further, the HSN Explanatory Note to CTH 8512 provides as under: " ... PARTS Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading ar....
X X X X Extracts X X X X
X X X X Extracts X X X X
....1.3.28. In U.S. Cross Ruling NY M86527, the question was classification of snap ring (intended to securely snap into place around visual signalling light), mounting bracket for emergency vehicle lights and aluminium base plate (strobe power supply circuit board is attached to this plate). The above products were part of signalling equipment. It was held that products merit classification under CTI 8512.90.2000. 1.3.29. In U.S. Cross Ruling N217605, the question was classification of Seat Sensor Assemblies, namely Seat Belt Reminder (SBR) and Child Seat Presence and Orientation Detection (CPOD) systems used in motor vehicles. SBR consisted of a sensor mat inserted into seat to detect occupant presence through resistance thresholds while CPOD sensor mat detected presence and orientation of a passenger incorporating both seat-belt reminder and passenger presence detection functions along with antennas and an electronic control unit. It was held that both items were parts of motor-vehicle signalling equipment and accordingly classified them under sub-heading 8512.90.2000, HTSUS, as parts of electrical signalling equipment of a kind used for motor vehicles. 1.3.30. Applicant's....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a finished product, instead it is a part of 'Driver Monitoring System' which comprises of panel, camera, LED, chassis and harness. It captures drivers' data and transmits them to controller assembly for further processing and onward submission to BCM. Therefore, in view of its' specific use within DMS and its' limited functionality, the commodity 'Unit Assembly' may be treated as a part of signalling equipment and the same may be classified under CTI 8512 9000. 2.7.1. Yes, Unit Assembly imported from country 'Japan' and classified under CTI 85129000 is eligible for exen1ption under SI. No. 656 to Notification 69/2011 dated 29.07.2011. 2.8. With the technical literature, it appears that Controller Assembly consists of cover, PCB, case and bracket, its main function is to process and analyze the input received from Unit Assembly. It estimates head pose, blinks, yawn and other reaction of driver as captured by unit assembly. Since, it does not trigger any alert or warning in warning independently and it becomes operational only after processed data is forwarded to BCM, which acts as a command component within vehicle safety system and initiate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rmation on record. Product under consideration: 4.4 Before examining the classification of individual components, it is necessary to understand the nature and function of DMS as a whole. As described in the Applications, DMS is an in-cabin automotive safety system which captures the driver's attentiveness, drowsiness, distraction, impairment or unresponsiveness and triggers appropriate responses by alerting the driver through sound or visual modes viz. "a warning alarm or alert message on the information display panel", for the safety of the driver, accompanying passengers and the vehicle. 4.5 The DMS comprises three principal components: the Unit Assembly (which captures visual inputs of the driver), the Cable (which connects the Unit Assembly and Controller Assembly), and the Controller Assembly (which processes the captured data). The Controller Assembly is connected to the vehicle's Body Control Module ('BCM'), which then actuates alerts through the Buzzer or Indicator Lamp. Each component performs a distinct yet interdependent role, and none of the components is capable of independent operation as a signalling or safety apparatus. Classification of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....bber insulated, of a kind used in telecommunication 8544 49 99 ---- Other 8544 60 - Other electric conductors, for a voltage exceeding 1000 V: 8544 60 10 --- Paper insulated 8544 60 20 --- Plastic insulated 8544 60 30 --- Rubber insulated 8544 60 90 --- Other 8544 70 - Optical fibre cables: 8544 70 10 --- Lead alloy sheathed cables for lighting purposes 8544 70 90 --- Other 4.8 On perusal of the tariff heading 8544, it is evident that the same covers "insulated wires, cables and other insulated electric conductors, whether or not fitted with connectors". Within this, the sub- heading 8544 42 specifically covers "conductors for a voltage not exceeding 1,000V, fitted with connectors". CTI 8544 42 20 further narrows this to plastic insulated cables fitted with connectors. The subject Cable, being PVC (plastic) insulated and fitted with connectors at both ends, squarely falls within the description of CTI 8544 42 20. 4.9 I also note that the HSN Explanatory Notes to Heading 8544 additionally provide that the heading covers wire sets made up in sets such as multiple cables for connecting mot....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nd demisters 8512 90 00 - Parts 8708 PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 8708 10 - Bumpers and parts thereof : 8708 10 10 --- For tractors 8708 10 90 --- Other - Other parts and accessories of bodies (including cabs) : 8708 21 00 -- Safety seat belts 8708 22 00 -- Front windscreens (windshields), rear windows and other windows specified in Subheading Note 1 to this Chapter 8708 29 00 -- Other 8708 30 00 - Brakes and servo-brakes; parts thereof 8708 40 00 - Gear boxes and parts thereof 8708 50 00 - Drive-axles with differential, whether or not provided with other transmission components, non-driving axles; parts thereof 8708 70 00 - Road wheels and parts and accessories thereof 8708 80 00 - Suspension systems and parts thereof (including shock-absorbers) - Other parts and accessories : 8708 91 00 -- Radiators and parts thereof 8708 92 00 -- Silencers (mufflers) and exhaust pipes; parts thereof 8708 93 00 -- Clutches and parts thereof 8708 94 00 -....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cles or other objects behind the vehicle when reversing. These apparatus usually comprise ultrasonic sensors, an electronic control unit, a buzzer or beeper and associated wiring. (14) Electrical apparatus of a kind used in a motor vehicle to warn the driver, by visual or audio signals, that a speed detection device, such as a radar gun or a laser gun, is operating in the vicinity. " .... The examples enumerated in items (10) through (14) of the Explanatory Notes viz. "parking sensors, anti- theft alarms, horns, sirens, reversing sensors, and radar detectors", are all apparatus that directly generate or transmit a warning signal or sound as their essential output. The common thread in these examples is that the apparatus directly produces the signal or alarm, or actively transmits it to the driver. 4.15 The DMS, however, operates on a fundamentally different principle. The DMS does not itself emit any warning or signal. The Unit Assembly merely captures image data of the driver; the Controller Assembly merely processes that data and transmits processed information to the vehicle's BCM. It is the BCM, an entirely separate and external system within the ve....
X X X X Extracts X X X X
X X X X Extracts X X X X
....cannot be directly applied to the present facts. 4.19 Similarly, the rulings in Commissioner of C. Ex., Mumbai-II v. A.J. Industries [2005 (188) ELT 428 (Tri .- Bom)], U.S. Customs Ruling HQ 964844, and U.S. Customs Ruling HQ 964660, all concerned equipment that directly functioned as sound or visual signalling apparatus viz. horns, parking guides, and alarm systems, which are self-contained in their signalling function. None of these rulings support classifying a data-capture and data-processing sub-system, which relies on external modules to complete the alert chain, as signalling equipment under CTH 8512. 4.20 For the foregoing reasons, this Authority holds that DMS, as a whole, does not constitute 'Electrical Signalling Equipment' within the scope of CTH 8512, and consequently, the Unit Assembly and Controller Assembly cannot be classified under CTI 8512 90 00 as parts of goods of Heading 8512. 4.21 The Applicant has argued that the Unit Assembly and Controller Assembly, being parts of the DMS (which is installed in motor vehicles), should be classified under Chapter 85. Before proceeding, it is necessary to first examine Note 2 to Section XVII of the Customs T....
X X X X Extracts X X X X
X X X X Extracts X X X X
....85, the Controller Assembly, comprising the PCB in its assembled enclosure with bracket for vehicle mounting, does not fall specifically within any enumerated heading of Chapter 84 or 85 to the exclusion of other headings. 4.28 Significantly, Section Note 2(a) of Section XVI provides that parts which are goods included in any of the headings of Chapter 84 or 85 (other than certain excluded headings) are in all cases to be classified in their respective headings. This rule mandates classification in a specific Chapter 84 or 85 heading only where the part is specifically covered by such a heading. In the present case, neither the Unit Assembly nor the Controller Assembly is specifically and exclusively classifiable under any heading of Chapter 84 or Chapter 85. No heading in Chapter 85 specifically enumerates driver monitoring sub-units, image-capture assemblies for automotive safety systems, or purpose-built automotive data- processing modules of the kind in question. 4.29 In the absence of specific classification of either the Unit Assembly or the Controller Assembly under any heading of Chapter 85, Note 2(f) of Section XVII which excludes from Chapter 87 only those articles ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rpretation, classification is determined by the terms of the headings and any relevant Section or Chapter Notes. Tariff Heading 8708, read with Section XVII Notes, covers parts and accessories of motor vehicles. The Unit Assembly and Controller Assembly are parts of a system permanently integrated into motor vehicles for the purpose of monitoring driver safety, a function that is automotive in character and without analogue outside the motor vehicle context. 4.35 Within Tariff Heading 8708, the Unit Assembly and Controller Assembly do not fall within any of the specifically enumerated sub-headings (such as bumpers, brakes, gear boxes, drive axles, etc.). They are accordingly classifiable under the residual entry CTI 8708 99 00 which covers 'Other' parts and accessories of motor vehicles of headings 8701 to 8705. This conclusion is consistent with the principle that where a part is purpose-built and designed exclusively for use as a component of an automotive system, having no general or independent application outside that context, and is not specifically covered by any more specific heading in Chapter 84 or 85, it falls to be classified under Chapter 87 as a part of the....