TaxTMI 
TaxTMI 
2026 (9) TMI 1045
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....GURGAON, Gurugram, Haryana, 122002 and factory located at Plot no. 01 Kasna Ecotech-VII, Greater Noida Industrial Development, Gautam Budha Nagar 201310 (hereinafter referred as 'the applicant') is willing to import back cover assembly with battery of tablet PCs. 1.3. It is submitted that the question arises due to doubt in the correct tariff classification of the product based on its nature and end use, and the applicant seeks clarity under the classification under the custom tariff Act 1975.Since the correct classification of the subject goods is in question, the same is required to be determined by applying the General Rules for Interpretation of the Import Tariff, read with the Customs Tariff Act, 1975. 1.4. It is respectfully submitted at the outset that the classification of the subject goods under India's Customs Tariff should be determined in accordance with the General Rules for the Interpretation of the Import Tariff, along with the relevant Section Notes, Chapter Notes, and Explanatory Notes of the Customs Tariff Act, 1975, which are reproduced below: For this purpose, the Rules of Interpretation have been provided of which Rule 1 reads as foll....
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....shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. 5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein: (a) Camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold therewith. This rule does not, however, apply to containers which give the whole its essential character; (b) Subject to the provisions of (a) above, packing materials and packing containers presented with the goods therein shall be classified with the goods if they are of a kind normally used for packing such goods. However, this provision does not apply when such packing materials or packing containe....
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....cter, its exclusive use as a part of tablet PCs, and the relevant provisions of the Customs Tariff Act, Section Notes, Chapter Notes, and General Rules for Interpretation (GRI). 1.11. Since the correct classification of the subject goods is in question, the same is required to be determined by applying the General Rules for Interpretation of the Import Tariff, read with the Customs Tariff Act, 1975. 1. The titles of Sections, Chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions: 2 (a)Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or ....
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....f separate units (C) Subject to paragraphs (D) and (E), a unit is to be regarded as being part of an automatic data processing system if it meets all of the following conditions : I. it is of a kind solely or principally used in an automatic data processing system. II. it is connectable to the central processing unit either directly or through one or more other units; and III. it can accept or deliver data in a form (codes or signals) which can be used by the system. Separately presented units of an automatic data processing machine are to be classified in heading 8471. However, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of (ii) and (iii) above, are in all cases to be classified as units of heading 8471. (D) Heading 8471 does not cover the following when presented separately, even if they meet all of the conditions set forth in paragraph (C): I. printers, copying machines, facsimile machines, whether or not combined; II. apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless networ....
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....8471 80 00 Other units of automatic data processing machines Free 8471 90 00 Other Free 1.15. Importantly this back cover assembly with battery contains multiple key components (e.g., back cover, middle frame, battery) constituting a substantial part of the tablet PC (The tablet PC is classified under 84713010-Personal computer). This back cover assembly with battery possesses the essential character of a tablet PC part (providing structural support, protection, heat dissipation, power supply, etc.), aligning with the scope of heading 8473. HS Code Description Duty 8473 10 00 Omitted - Parts and accessories of the machines of heading 8470 8473 21 00 Of the electronic calculating machines of sub-heading 8470 10, 8470 21 or 8471 29 Free 8473 29 00 Other Free 8473 30 10 Microprocessors Free 8473 30 20 Motherboards Free 8473 30 30 Other mounted printed circuit boards Free 8473 30 40 Head stack Free 8473 30 91 Network access controllers Free 8473 30 92 Graphic and intelligence based script technology (GIST) cards for multilingual computers Free 8473 30 99 Other ....
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....eries used in tablet PCs. Because there is uncertainty about which tariff category applies given the product's features and purpose, the applicant is requesting clarification under Customs law. 2. Comments of the Port Commissionerate: 2.1. As per the provision of CAAR Regulation, 2021, the complete application of the applicant was provided to the concerned Custom Port, and requested to furnish the requisite comments in the instant matter. The port authority vide letter dated furnished its comments, as follows :- 2.2. Preliminary Observations Upon Perusal Of The Application: 2.2.1. The point-wise preliminary observations on maintainability, on the pattern of Section 28-I(1) of the Customs Act, 1962 read with Regulation 8(7) of the Customs Authority for Advance Rulings Regulations, 2021, are set out below. (i) Eligibility of the applicant, in terms of Section 28-E(c) of the Customs Act, 1962: Yes. M/s OPPO Mobiles India Private Limited is a valid applicant within the meaning of Section 28-E(c) of the Customs Act, 1962, holding IEC No. 0513070605. (ii) Applicability of proviso to Section 28-I(2) of the Customs Act, 1962: As per records available with ....
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.... 1 8 Plastic Sleeve For Power Key PC'S 1 9 Self-Adhesive Foam Sheet PCS 4 10 Lithium-Ion Battery PCS 1 11 Back Cover PCS 1 Functions: A. Provide functions of structural accommodation and fixation for components such as PCBs, speakers, display screen, battery, and cameras, etc. of the tablet PC's; B. Protect components from external impacts and dust contamination. C. Power supply function. D. Heat dissipation function. Exhibit 1: Photograph of the back cover assembly with battery, as annexed by the Applicant to its Statement of Facts (Form CAAR- 1, Annexure). The lithium-ion cell ('SUPERVOOC' branded) is seen occupying the substantial majority of the internal surface area of the assembly. 2.3.2. The Applicant states the assembly performs four functions: (A) structural accommodation and fixation for the PCB, speaker, display screen, battery and camera of the tablet; (B) protection of internal components from impact and dust; (C) power supply; and (D) heat dissipation. The Applicant further submits that the assembly is not capa....
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....umulators, including lithium-ion) is not among the excluded headings, and a lithium-ion battery is a specifically named good of that heading. (c) Note 2(b) to Section XVI: applies only "where Note 2(a) does not apply" - i.e., sequentially, as a fallback. (d) Note 3 to Section XVI: composite machines/multi-function machines are classified as if consisting only of the component, or as being the machine, performing the principal function. (e) Chapter 84 Note 6(A): defines "automatic data processing machine" for heading 8471 purposes. (A) For the purposes of heading 8471, the expression "automatic data processing machine" means machine capable of : (i) storing the processing programme or programmes and at least the data immediately necessary for the execution of the programme; (ii) being freely programmed in accordance with the requirements of the user; (iii) performing arithmetical computations specified by the user; and (iv) executing, without human intervention, a processing programme which requires them to modify their execution, by logical decision during the processing run. (B) Automatic data process....
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....mples. Item (10) on that list reads: "(10) Electric accumulators assembled into battery packs (heading 85.07)." (g) Explanatory Note to heading 84.73: in addition to the exclusion in the heading text itself, the Explanatory Note states in terms: "the heading excludes covers, carrying cases and felt pads; these are classified in their appropriate headings." (h) Explanatory Note to heading 85.07: the Note states: "Accumulators containing one or more cells and the circuitry to interconnect the cells amongst themselves, often referred to as 'battery packs', are covered by this heading, whether or not they include any ancillary components which contribute to the accumulator's function of storing and supplying energy, or protect it from damage, such as electrical connectors, temperature control devices (e.g., thermistors), circuit protection devices, and protective housings. They are classified in this heading even if they are designed for use with a specific device." The same Note further records, under 'Parts,' that the heading "also covers parts of accumulators, e.g., containers and covers." 2.4.3. CBIC Circular No....
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...."in all cases" language would be reduced to a dead letter, since any OEM could bundle a separately-headed component (a battery, a motor, a populated PCB) with brackets/covers and claim essential character to redirect it into a general parts heading of its choosing. This precise methodology - sequential, mandatory application of Note 2(a) ahead of Note 2(b)/(c) or GRI 3 - has also been affirmed by the Customs Authority for Advance Rulings in its ruling on classification of lithium-ion cell inputs (cathode-coated foil, anode-coated foil, separator film and LC breaker), where the Authority held that Note 2(a) is to be examined first, and Note 2(b) is reached "only in cases where such parts cannot be classified as per Section Note 2(a)." 2.5.1.3. Second, the Explanatory Note to heading 85.07 itself, correctly read, supports classification of the assembly (or at least its battery-proximate portion) under 8507 rather than assisting the Applicant's case. The Note expressly states that battery packs are covered by heading 8507 "whether or not they include any ancillary components ... such as electrical connectors, temperature control devices ..., circuit protection devices, and prot....
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.... Issue Applicant's Position Commissionerate's Comments Recommendation 1 Classification of the Back Cover Assembly with Battery (as a composite article) CTH 8473 (parts of ADP machine of heading 8471), by treating the assembly as a composite good under GRI 3(b), essential character being the structural/housing function Section XVI Note 2(a), as illustrated by item (10) of the General Explanatory Note to Section XVI ("electric accumulators assembled into battery packs"), mandates that the lithium-ion battery be classified under CTH 8507 "in all cases," in priority to any essential-character exercise under GRI 3(b); independently, no component-wise value/weight break-up has been furnished to support the Applicant's essential- character claim; additionally, heading 8473, both by its own text and by its Explanatory Note, excludes "covers, carrying cases and the like/felt pads" Not agreed as proposed. Entire assembly classified under CTH 8507 - see Part V, para 14.4 2.5.5. PART V: REPLY OF THE JURISDICTIONAL COMMISSIONERATE 2.5.5.1. Maintainability: The application is maintainable. The Applicant holds a valid IEC, the proposed import is to take....
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....-supply function - with the remaining components (back cover, middle frame, lens fitments, bracket, foam sheets, conductive cloth/pads, etc.) serving only as the ancillary structural housing that protects and retains the battery in position. This is squarely consistent with the Explanatory Note to heading 85.07, which confirms that battery packs remain classifiable under 8507 "whether or not they include any ancillary components ... such as ... protective housings," and that they are so classified "even if they are designed for use with a specific device." CTH 8507 is accordingly the final classification recommended by this Commissionerate for the assembly as a whole. 3. Record of Personal hearing: The Authorized Representative of the applicant appeared for the personal hearing conducted in virtual mode on 15.07.2026 and reiterated the submissions previously furnished in the application. No Authorized Representative appeared on behalf of the Department at the time of the personal hearing. 4. Additional Submission made by the applicant: 4.1. The comments received from the jurisdictional port Commissionerate in r/o the instant application was forwarded to the applicant. I....
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....e determination of the correct HS Code necessitates a holistic consideration of all constituent parts, requiring a comprehensive examination and evaluation of the entire assembly. Secondly, the 'complete article' into which the subject goods are to be incorporated is a complete tablet computer. Under General Rule 2(a) of Class XVI, the governing logic is that 'parts are to be classified separately only if they themselves constitute a complete article falling within a specific heading of this class.' The core prerequisite for this is that the independent item must be capable of performing its intended function autonomously and be capable of being marketed independently. The lithium-ion cells in question are incapable of standalone use. Once detached from the back cover assembly, middle frame, fixation structures, and thermal management accessories, they cannot be assembled into a tablet computer. Consequently, they do not qualify as a 'complete article' under General Note 2(a). 4.5. Furthermore, the Commissionerate has observed under part II para 7(f) General Explanatory Note to Section XVI, Part (II) - "Parts" [commentary on Section Note 2], HSN Explanato....
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.... slots for cameras, heat dissipation structures and dedicated battery compartments, whose core function is to accommodate and fix all electronic components of the tablet PC. Dust/impact protection is only a secondary incidental function, which places the goods outside the scope of excluded simple protective covers. 4.9. Further, the Commissionerate has observed under part II para 7(h) Explanatory Note to heading 85.07: the Note states: "Accumulators containing one or more cells and the circuitry to interconnect the cells amongst themselves, often referred to as 'battery packs', are covered by this heading, whether or not they include any ancillary components which contribute to the accumulator's function of storing and supplying energy, or protect it from damage, such as electrical connectors, temperature control devices (e.g., thermistors), circuit protection devices, and protective housings. They are classified in this heading even if they are designed for use with a specific device." The same Note further records, under 'Parts,' that the heading "also covers parts of accumulators, e.g., containers and covers." 4.10. Accordingly, the Applicant respectful....
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....Section Note 2(a)." 4.12. In response to the aforesaid observation of the Commissionerate, the Applicant respectfully submit that firstly, the lithium-ion battery constitutes merely one component of the goods under review in this case. The determination of the correct HS Code necessitates a holistic consideration of all constituent parts, requiring a comprehensive examination and evaluation of the entire assembly. Secondly, the 'complete article' into which the subject goods are to be incorporated is a complete tablet computer. Under General Rule 2(a) of Class XVI, the governing logic is that 'parts are to be classified separately only if they themselves constitute a complete article falling within a specific heading of this class.' The core prerequisite for this is that the independent item must be capable of performing its intended function autonomously and be capable of being marketed independently. The lithium-ion cells in question are incapable of standalone use. Once detached from the back cover assembly, middle frame, fixation structures, and thermal management accessories, they cannot be assembled into a tablet computer. Consequently, they do not qualify ....
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....assified in their appropriate headings." 4.16. In response to the aforesaid observation of the Commissionerate, the Applicant respectfully submit that the exclusion clause of Heading 8473 targets discrete protective sleeves, silicone cases and portable storage pouches imported separately, whose sole function is superficial protection without structural mounting capacity. The subject "back cover assembly" is not a simple protective casing. It is an integrated chassis framework equipped with mounting slots for cameras, heat dissipation structures and dedicated battery compartments, whose core function is to accommodate and fix all electronic components of the tablet PC. Dust/impact protection is only a secondary incidental function, which places the goods outside the scope of excluded simple protective covers. 4.17. Further, the Commissionerate has observed under part III para 14.3 On the proposed classification (CTH 8473): This Commissionerate does not concur with the Applicant's proposed classification of the entire back cover assembly with battery under CTH 8473. For the reasons at Part III above - namely, (a) the mandatory, sequentially-prior operation of Secti....
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....over assembly with embedded battery for tablet PCs is that of a dedicated structural component for automatic data processing (ADP) machines (tablet computers), and the goods shall be classified under Customs Tariff Heading 8473 30 99. 5. Discussion, Findings & Conclusion: 5.1. Having examined the CAAR-1 application, the comments received from the jurisdictional Customs Commissionerate, rebuttal filed by the applicant, the record of personal hearing held on 15.07.2026, and the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I, therefore, allow the application and proceed to determine the classification of the proposed goods on the basis of the information on record. Product Description: 5.2. The applicant describes the goods as a "back cover assembly with battery", and in the covering letter as a "Battery Integrated Rear Cover" of a tablet PC. The product, per the technical data sheet mentioned in the application, comprises eleven (11) distinct components, namely: (i) middle frame; (ii) camera lens - 2 pcs; (iii) flash lens; (iv) conductive cloth - 3 pcs; ....
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....peting headings: 5.5. The applicant, in its application, has submitted that the subject goods are described as "Back Cover assembly with Battery of the Tablet PCs". The Board, vide Circular No. 20/2013-Customs dated 14.05.2013, examined the classification of products commercially known as "Tablet Computers" under the competing headings 8517 and 8471. The Board accordingly decided that machines commercially referred to as "Tablet Computers" are more appropriately classifiable in heading 8471, sub-heading 8471 30, by application of Rule 1 of the General Rules for Interpretation read with Note 3 to Section XVI and the Chapter 84 definition, and Rule 6, and recorded that this decision is consistent with the decision of the Harmonized System Committee of the World Customs Organization. 5.6. The competing headings in the present matter are heading 8471 (automatic data processing machines), heading 8473 (parts and accessories of the machines of headings 8470 to 8472) and heading 8507 (electric accumulators). The goods, as presented, do not constitute a complete or substantially complete automatic data processing machine - they possess neither a central processing unit, nor a display....
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....ctive 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 84.79 or 85.43) are to be classified with the machines of that kind or in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate. ... (c) All other parts are to be classified in heading 84.09, 84.31, 84.48, 84.66, 84.73, 85.03, 85.22, 85.29 or 85.38 as appropriate or, failing that, in heading 84.87 or 85.48." 5.8.3. Note 2 to Section XVI provides the manner in which parts of machines are to be classified. Under Note 2(a), parts which are themselves goods covered under a heading of Chapter 84 or 85 are to be classified under their respective headings. Under Note 2(b), other parts which are suitable for use solely or principally with a particular machine are to be classified with that machine or under the specified parts headings. 5.8.4. It is therefore necessary to first examine Note 2(a). Only when the goods are not covered by Note 2(a) can Note 2(b) be considered. Heading 8473 is one of the headings specifically mentioned in Note 2(a) as ....
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....e back cover and middle frame. The photograph of back cover assembly produced by the applicant has been reproduced below: 5.9.2. On perusal of the application and the photograph, it can be made out that the function of power supply is performed by the lithium-ion battery incorporated in the assembly and not by the back cover or middle frame. Once the battery is considered separately, the back cover and middle frame only provide support, protection and housing. The function of storing and supplying electrical energy is performed entirely by the lithium-ion battery. This indicates that the structural portion of the assembly performs the function of housing and protecting the battery along with the other components of the tablet PC. 5.9.3. The thermal conductive pads and conductive cloth are provided around the battery. Therefore, the heat-management arrangement is also associated with the battery and its operation. This function, by itself, does not give the back cover assembly an independent electrical character. 5.9.4. Further, the photograph (Figure 2) of the assembly furnished by the applicant shows that the lithium-ion battery occupies a substantial portion of the inter....
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....rmined with reference to their constituent components and the specific exclusions under heading 84.73. 5.10.3. Accordingly, I find that the subject goods, to the extent they constitute the back cover/middle frame and associated housing components, are covered by the exclusion of "covers, carrying cases and the like" under heading 8473 and cannot be classified thereunder merely on the ground that they are designed for use with a tablet PC falling under heading 8471. The lithium-ion battery incorporated therein is required to be examined separately in accordance with the applicable tariff provisions governing such batteries. Therefore, the subject "Back Cover Assembly with Battery of Tablet PCs" is not classifiable as a whole under heading 8473. 5.11. From the foregoing discussion, it is observed that the Back Cover Assembly with Battery of Tablet PCs is not classifiable under heading 8473 of the First Schedule to the Customs Tariff Act, 1975. Accordingly, it is necessary to examine the other competing tariff heading which may potentially cover the subject goods. Therefore, the relevant tariff headings, Section Notes, Chapter Notes and the Explanatory Notes are required to be e....
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....gives several examples of such separately classifiable articles, including electric transformers of heading 8504, and, importantly for the present case, "electric accumulators assembled into battery packs (heading 8507)". Thus, an electric accumulator does not lose its classification under heading 8507 merely because it is assembled into a battery pack or is specially designed for use in a particular machine. 5.11.2. The above principle is relevant to the present case. The lithium-ion battery incorporated in the subject back cover assembly is an electric accumulator specifically covered by heading 8507. The fact that it is assembled with the back cover, middle frame and other components and is specially designed for use in a tablet PC does not, by itself, make it a part classifiable under heading 8473. 5.11.3. Therefore, the General Explanatory Note to Section XVI supports the view that where a component is itself an article specifically covered by a heading of Section XVI, its classification is to be made under that specific heading, even if it is designed for use as a component of another machine. In the present case, the specific coverage of the lithium-ion accumulator und....
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....accumulator itself. Therefore, classification under heading 8507 is not confined to a bare battery or to a battery physically isolated from the equipment in which it is intended to be used. The Note specifically recognises that an accumulator may be presented with ancillary components having a functional relationship with the accumulator and may also include a portion of the protective housing of the host goods. 5.13.3. In the present case, the lithium-ion battery constitutes the electric accumulator. The other components of the assembly have to be examined in the light of the two categories expressly recognised in Note 3, namely, (i) ancillary components which protect the accumulator from damage or contribute to its functioning, and (ii) a portion of the protective housing of the goods in which the accumulator is to be used. 5.13.4. The thermal conductive pads, conductive cloth, self-adhesive foam sheets, plastic bracket and waterproof label are not unrelated articles merely assembled with the battery. Their placement and incorporation into the rear-cover assembly are connected with the securing, insulation, thermal management and protection of the battery.....
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....n battery constitutes the accumulator; the thermal pads, conductive cloth, foam sheets, plastic bracket and waterproofing components constitute ancillary components contributing to the protection and safe functioning of the accumulator; and the middle frame, back cover and associated fittings constitute portions of the protective housing of the tablet PC which also protect the accumulator. The components therefore have the requisite functional nexus contemplated by Note 3. 5.13.9. Having arrived at the above finding, the application of Note 2 to Section XVI becomes relevant. Note 2(a) provides that parts which are goods included in any of the headings of Chapter 84 or 85, subject to the specified exclusions, are "in all cases" to be classified in their respective headings. Since the subject goods, as presented, are covered by heading 8507 read with Note 3 to Chapter 85, they are required to be classified in their respective heading under Note 2(a). 5.13.10. Further, the fact that the imported assembly is intended for incorporation into a tablet PC does not, by itself, override the specific treatment prescribed under Note 3 to Chapter 85. The relevant consideration is not mere....
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....nents such as the back cover, middle frame, brackets, foam sheets and conductive materials primarily serve structural, protective and retaining purposes. Reliance has also been placed on the Explanatory Notes to heading 85.07, which provide for classification of battery packs under that heading even when they incorporate ancillary components such as protective housings or are designed for use with a specific device. 5.15. In view of the foregoing discussion, I find that the subject "Back Cover Assembly with Battery" cannot be classified under CTH 8473 merely on the ground that it is designed for use with a tablet PC classifiable under heading 8471. Heading 8473 is a general parts and accessories heading and expressly excludes "covers, carrying cases and the like". More importantly, the lithium-ion battery incorporated in the assembly is itself an electric accumulator specifically covered by heading 8507, and Note 3 to Chapter 85 expressly permits an accumulator to be presented with ancillary components contributing to its function or protecting it from damage, as well as with a portion of the protective housing of the goods in which it is used. In the present case, the battery p....