2024(12)LCX0291(AAR)

SAMSUNG INDIA ELECTRONICS PVT LTD

decided on 24-12-2024

CUSTOM AUTHORITY FOR ADVANCE RULINGS
O/o THE CHIEF COMMISSIONER OF CUSTOMS
NEW CUSTOM HOUSE, NEAR IGI AIRPORT, NEW DELHI-110037
[Email:cus-advrulings@gov.in
DIN: 20241574OR0000000FBF

Present
Samar Nanda (Customs Authority for Advance Rulings, New Delhi)

F.NO. VIII/CAAR/Delhi/Samsung India/100/2024

The day of 24^th December, 2024

Rulings No. CAAR/Del/Samsung/113/2024/2072402078

In application No. 83/2024 dated 12.09.2024

Ruling

Samsung India Electronics Private Limited (herein after referred to as, "Applicant" / "SIEL") is Company incorporated in India and having its Registered Office at 6th Floor, DLF Centre, Sansad Marg, New Delhi, India - 110001. The Applicant intends to import 'Samsung Galaxy Ring' and 'Sizing Kit' in India for further sale. It is further stated that no processing whatsoever would be carried out on the imported goods, post importation into India. 'Samsung Galaxy Ring' is a small wearable device primarily designed in the shape of a ring that offers health and wellness tracking. The Applicant as well as the product 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:

1.1 The 'Samsung Galaxy Ring' comes with pre-installed sensors for its health and fitness tracking. The Measurement sensors equipped in the ring self-measure and analyse comprehensive biological data during the time the user is wearing the item. The type of sensors installed in the 'Samsung Galaxy Ring' along with its functions are tabulated hereunder:

1.2 In addition to the above, the 'Samsung Galaxy Ring' also has certain connectivity features such as:

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 also banded to match the shape of the ring. The ring supports Cradle Wireless charging (Near Field Communication ('NFC')), Wireless Power Consortium ('WPC') wireless charging and Universal Serial Bus ('USB') wired charging. For ease of reference, the image of 'Samsung Galaxy Ring' and its specifications are reproduced as under:

Description and I sage of the 'Sizing Kit'

1.4 In light of the inherent variability in individual Samsung Galaxy Ring sizes and the unique design of the Samsung Galaxy Ring, which incorporates specialized sensors, it is of paramount importance for customers to ascertain the correct ring size prior to purchase. To facilitate this process, a 'Sizing Kit' has been made available, which is instrumental in determining the most suitable ring size for the customer.

1.5 The 'Sizing Kit' is a comprehensive package that includes a range of sample rings, encompassing all available sizes from Size 5 to Size 13. This range ensures that customers have the opportunity to evaluate each size for an accurate fit that accommodates the internal structure and sensors of the 'Samsung Galaxy Ring'. Further, it is typically advised that customers utilize the 'Sizing Kit' to accurately gauge the ring size that affords a comfortable fit on their finger. The conventional ring size a customer may typically select may not provide the best fit for the Samsung Galaxy Ring due to the aforementioned sensors. Therefore, the 'Sizing Kit' serves as a critical tool in preventing sizing errors and ensuring customer satisfaction with the fit of the product. However, there is no physical or virtual connection of Sizing Kit that can be established with 'Samsung Galaxy Ring'. Furthermore, customers are encouraged to order the 'Sizing Kit' prior to the purchase of the 'Samsung Galaxy Ring'. Upon receipt, customers should wear each sample ring to ascertain which size offers a snug yet comfortable fit, ensuring the ring remains securely in place during use.

1.6 To sum up, the 'Sizing Kit' is designed and recommended to be purchased prior to purchase of Samsung Galaxy Ring to eliminate the uncertainties associated with selecting the correct ring size and to guarantee that the customer receives a product that fits precisely, and functions as intended.

1.7. The product specifications & image of'Sizing Kit are tabulated as under:

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. 28-1 (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 of HSN classification of the 'Samsung Galaxy Ring' and the 'Sizing Kit' proposed to be imported into India. In this regard, the Applicant wishes to disclose that only once, it had previously imported sample 'Samsung Galaxy Ring" and 'Sizing Kit' in the past.

1.9 Questions on which Advance Ruling is sought:

Question 1: Whether the 'Samsung Galaxy Ring' imported into India would merit classification under:

1) HSN: 7117 as Imitation Jewellery: or

2) HSN: 9018 as Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters); or

3) HSN 9031 as Measuring or checking instruments, appliances and machines, not included elsewhere

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; or

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?

1.10 The Applicant intends to import and sell 'Samsung Galaxy Ring' in India. For the purposes of import,
we need to determine the HSN under which the import can be made. The mechanics of determining the
classification of any product is as under:

• World Customs Organisation ('WCO') has enunciated the Harmonized Commodity Description and Coding System or Harmonized System of Tariff Nomenclature (HSN). an internationally standardized system which lays the foundation of classification of goods across the globe.

• WCO has also issued Explanatory Notes to HSN ("Explanatory Notes") which provides an insight into the meaning of expressions employed in the HSN and are used for easy interpretation of different commodity groups created under the HSN.

• In India. HSN classification is provided under the First Schedule to the Customs Tariff Act, 1975 (also referred to as "CTA") which is simply a derivative of the HSN issued by the WCO.

• Further, the Explanatory Notes to the above First Schedule of CTA provide a safe guide for interpretation of the said First Schedule and 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 proceed 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:

1.12 Chapter Note 9 to Chapter 71 provides the definition of 'Articles of Jewellery' and Chapter Note 11 to Chapter 71, provides the definition of 'Imitation Jewellery'. The relevant text is reproduced as under:

"9. For the purpose of heading 7113, the expression "articles of jewellery" means:

(a) Any small objects of personal adornment (for example, rings, bracelets, necklaces, brooches, ear-rings, watch-chains, fobs, pendants, tie-pins, cuff- links, dress-studs, religious or other medals and insignia); and

(b) Articles of personal use of a kind normally carried in the pocket, in the handbag or on the person (for example, cigar or cigarette cases, snuffboxes, cachou or pill boxes, powder boxes, chain purses or prayer beads).

These articles may be combined or set, for example, with natural or cultured pearls, precious or semiprecious stones, synthetic or reconstructed precious or semi-precious stones, tortoise shell, mother-of-pearl, ivory, natural or reconstituted amber, jet or coral.

11. For the purposes of heading 7117, the expression "imitation jewellery" means articles of jewellery within the meaning of paragraph (a) of Note 9 above (hut not including buttons or other articles of heading 9606, or dress- combs, hair-slides or the like, or hairpins, of heading 9615), not incorporating natural or cultured pearls, precious or semi-precious stones (natural, synthetic or reconstructed) nor (except as plating or as minor constituents) precious metal or metal clad with precious metal. "

1.13 Further, attention is drawn towards the Explanatory Notes to HSN 7117 which provide deeper understanding of the inclusions and exclusions within the said tariff head. The explanatory notes to HSN 7117 have been reproduced as under:

"For the purposes of this heading, the expression imitation jewellery, as defined in Note 11 to this Chapter is restricted to small objects of personal adornment, such as those listed in para a (A) of the Explanatory Note to heading 71.13, e.g., rings, bracelets (other than wristwatch (bracelets), necklaces, ear-rings, cuff-links, etc., but not including buttons and other articles of heading 96.06, or dress combs, hair-slides or the like, and hair-pins of heading 96.15, provided they do not incorporate precious metal or metal clad with 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 Pursuant to the guidance provided by Chapter Note 9 and Chapter Note 11 to Chapter 71, in conjunction with the Explanatory Note to the Harmonized System Nomenclature (HSN) 7117, the following can be deduced:

• The term "Imitation Jewellery" encompasses a wide array of diminutive 'adornment'

¹ items intended for personal use, such as,

but not limited to, rings, bracelets, necklaces, brooches, earrings, watch chains, fobs, pendants, tie pins, cufflinks, dress studs, as well as religious or secular medals and insignia.

• The essence of imitation jewellery, also referred to as artificial jewellery, is characterized by its ornamental nature and its primary function as an accessory to be worn on the person, with the express purpose of augmenting or enhancing the wearer's aesthetic appeal.

[1 Cambridge Dictionary defines the term 'adornment' as 'something decorative, or the act of decorating something or someone. Further, Oxford Dictionary defines the term 'adornment 'as 'the action of making something / somebody look more attractive by decorating it or them with something.]

The Primary intent of 'Samsung Galaxy King' is to track and monitor health

1.15 As mentioned above, the primary function of the "Samsung Galaxy Ring' is to track and monitor 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. Further, the Applicant as well as the Product Brochure advertises 'Samsung Galaxy Ring' as a 'Smart Ring' which gives a personalized health experience to its users. Here, it is pertinent to note that the said product is not advertised as an article of 'personal adornment' rather as an article to track and monitor heath, fitness and sleep related information.

1.16 In this regard, attention is invite to the issue of classification of 'fitness tracker accessories' which came into consideration before American Custom Ruling, in the case of Fossil Partners LP, Case No. N279113, ruling dated 3-10-2016. Per the said Ruling, it was held that "Legal Note 9, parts (a) and (b), to Chapter 71 of the Harmonized Tariff Schedule of the United Stales (HTSUS) provides meaning to the term "articles of jewelry" of heading 7113, HTSUS. In association with Legal Note 9 (a) to Chapter 71, HTSUS, Legal Note 11, HTSUS, defines the term "imitation jewelry" 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 classified under heading 7117 as there is no intent to ornament the bands to be worn as small objects of'personal adornment'. The American authority classified the fitness accessories under heading 9031 as Parts and accessories used for Measuring or checking instruments, appliances and machines, not specified or included elsewhere; profile projectors. Basis, the above ruling, it is inferred that the primary use and intent of the product is a crucial factor to determine the classification of the product. The Applicant respectfully submits that the subject article, i.e. 'Samsung Galaxy Ring', being an intricate assembly equipped with PPG sensors, accelerometers, temperature sensors, processing units and storage capabilities, is engineered for the sophisticated task of monitoring physiological parameters. Consequently, it shall be a mischaracterization to classify the item as a mere ornament of'personal adornment'. The design and functionality of the article in question surpasses that of conventional imitation jewellery in as much as the primary function of the said 'Samsung Galaxy Ring is to track and monitor health and fitness and sleep related information.

1.18 To sum up, the primary function of the 'Samsung Galaxy Ring' is to measure and monitor health and fitness related aspects of the user and not to be used as a ring for enhancing beauty aspects.

1.19 Further, the scope of Tariff entry 7117 'Imitation Jewellery', has been briefly discussed in Transview Enterprises India P. Ltd. Versus C.C. (Seaport-Import), Chennai, 2016 (338) E.L.T. 123 (Tri. - Chennai) wherein it has been held as under:

"As seen from the above definition, as per Note 11, the definition of 'Imitation jewellery' means Articles of Jewellery as defined in Note 9(a), but it does not include 'buttons, or other articles of Heading 9606, or dress- combs, hair slides, hair pins, etc. As already discussed in the brief facts, the imported goods is a circular glass piece fitted with stainless steel bezel. From the literature and the original catalogue produced, we find, it is an advanced mineral-based round glass made from high temperature "Nano-Engineered Glass " and it has positive energy field. By wearing this, it makes it a person balanced and harmonized and it neutralizes the negative effects of Electrosmog which is the result 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 Glass'. The Chapter Note 70 excludes Articles of Chapter 71 (imitation jewellery). Since we have already explained in the preceding paragraph regarding classification, that the goods are not imitation jewellery, therefore, it is not hit by Chapter 1(b) of Chapter 70. Therefore, we find that the goods are covered under appropriate Heading 7018 as other articles of glass other than prosthetic articles. Accordingly, we hold that the goods are rightly classifiable under 7018 90 90 of CTH and chargeable to appropriate duty and the adjudicating authority classifying the goods viz. "Amezcua Chi Pendant" under Chapter Heading 7018 90 90 is upheld. "

1.20 Basis the above Ruling, it is evident that the primary purpose of the product is of utmost importance and cannot be ignored for the purposes of classification. Since, in the above case, the intent of the product was not meant to be used as Imitation Jewellery (i.e an article of personal adornment to enhance personal aesthetics), the said Chi Pendant was not classified as imitation jewellery.

1.21 Thus, basis the judgement in Transview Enterprises India P. Ltd (supra) and Fossil Partners LP (supra), it can be concluded that an imitation jewellery/artificial jewellery means that the same should be ornamental and it is to be normally worn as a personal adornment for enhancing beauty. Whereas it is evident that the 'Samsung Galaxy Ring' is not made for regular use as jewellery. Merely because it is in the shape of a ring cannot qualify the 'Samsung Galaxy Ring' as an imitation jewellery to be classifiable under Chapter 71.

1.22 As mentioned earlier, the primary function / usage of 'Samsung Galaxy Ring' is not meant to be used as an 'article of jewellery' rather to track and monitor health / fitness of the user.

1.23 Therefore, the 'Samsung Galaxy Ring' would not be classifiable as an imitation jewellery, under the HSN - 7117.

1.24 In the instant case, the ring form of the 'Samsung Galaxy Ring' offers the advantage of prolonged wearability, facilitating meticulous analysis of vital signs, including cardiac rhythms, menstrual cycles, respiratory patterns during sleep etc. It is pertinent to Note that the configuration of the device, although ring-like in appearance, is expressly tailored for health monitoring purposes rather than ornamental utility. It is, 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

sight-testing instruments'. The said Tariff entry is reproduced below for ready reference:

1.25.2 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 either to make a diagnosis, to prevent or treat an illness or to operate, etc. The subject device i.e. 'Samsung Galaxy Ring', which employs a PPG sensor to detect the electrical signals of the human body and to measure the flow of pulse waves, thereby ascertaining heart rate and oxygen saturation levels, may prima facie be perceived as an instrument intended for medical application but it is actually not used in medical practice by practitioners for diagnosis. The explanation to Tariff Item No. 9018 elucidates that the category in question encompasses an extensive array of apparatuses utilized by medical professionals, including but not limited to physicians, surgeons, dentists, veterinarians, and midwives, irrespective of the devices' application in diagnosis, prevention, treatment, or surgical procedures. This classification implies that medical professionals categorize the instruments pertinent to their respective practices.

1.25.3 Consequently, while the sensors in 'Samsung Galaxy Ring' possesses capabilities that contribute to the prevention of cardiovascular diseases when used by individuals, such utilization does not constitute a medical practice. Given its role in pre-diagnostic assessment, the device cannot be adjudged as a medical device within the meaning ascribed by the relevant tariff classification.

1.25.4 Further, reliance is placed on the decision in the case of Mehar Healthcare Corporation Versus Commissioner Of Customs (Import), New Delhi (2024) 16 Centax 452 (Tri.-Del), wherein it was observed that "10. The heading of chapter 9018 provides instruments and appliances used in medical, surgical, dental or veterinary sciences including scientigraphic apparatus, other electro medical apparatus 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 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.

1.26 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

1.26.1 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 its sub-headings are reproduced below for ready reference;

1.26.2 As per the explanatory notes the HSN entry 9031, "In addition to profile projectors, this heading covers measuring or checking instruments, appliances and machines, whether or not optical. It should, however, be noted that this group does not include any instruments, apparatus, etc., falling in headings 90.01 to 90.12 or 90.15 to 90.30; in particular, the following are therefore excluded:

(a) Astronomical instruments of heading 90.05.

(b) Microscopes (heading 90.11 or 90.12).

(c) Surveying, etc.. instruments and 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 (heading90.24).

(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).................... "

1.26.3 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, which includes a photoplethysmogram (PPG) sensor, an accelerometer and a temperature sensor. These sensors are complemented by a battery that powers them and a memory module that temporarily stores the measured data. Additionally, a Bluetooth module is incorporated as an ancillary device for the transmission and reception of data to other devices such as tablet / smartphones. Consequently, it may be inferred that the essential character of the application items is embodied in the sensors responsible for the acquisition of physical information. Regarding the utility and functionality of the 'Samsung Galaxy Ring', it is designed to be worn on the finger—a site rich in blood vessels—to optimize the efficiency of the PPG sensor. The sensor measures the blood flow from the capillaries, thereby calculating heart rate and oxygen saturation levels with a degree of accuracy superior to that of other devices. As a result, the application items not only aid in the prevention of cardiovascular diseases but also provide a comprehensive monitoring of health conditions, including body temperature and physical activity. The purpose of the subject 'Samsun Galaxy Ring' is to measure and verify health-related metrics. Therefore, it is asserted that the component conferring the essential character upon the application product is the sensor, by virtue of its pivotal role. The sensor is tasked with measuring the user's blood flow, oxygen saturation, body temperature, among other health indicators, while the remaining components serve to facilitate the measurement of healthcare information.

126.6 Given the above, the 'Samsung Galaxy Ring' may be classified under Tariff head 9031 which pertains to measuring or checking instruments in as much as the said product measures heart rate, oxygen saturation, step count etc.

1.26.7 Further, in this regard, attention is invite to the American Custom Ruling, in the case of Samsung Electronics America, Inc., Case No. N340510, ruling dated 10-06-2024 wherein the issue of classification of 'Samsung Galaxy Ring' came into consideration. Here, it is pertinent to note that the issue in the above Ruling was exactly the same as in the instant case, pertaining to classification of 'Samsung Galaxy Ring', a wearable smart device that lacks a display and uses Bluetooth to track and monitor health, fitness, 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, GR1 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, 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. (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.'

1.26.9 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.

1.26.10 In the aforementioned case, the American Authority classified the LG Electronics 'activity trackers' under the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 9031.80.8085. which pertains to miscellaneous measuring or checking instruments.

1.26.11 Furthermore, American Custom Ruling, in the case of Under Armour, Case no. N240358, dated 29-04-2013, has held that performance management system would be classified under HTSUS 9031.80.8085. The subject item in the aforementioned case consisted of a module that measured the user's accelerations and heart rate and it is secured to the user with a chest strap. The data collected by the module are transmitted via radio to either an Under Armour watch or to an iPad or similar device equipped with the corresponding Under Armour app.

1.26.12 Under the aforementioned case, the Authority held that "The applicable subheading for the module with chest strap sold together and the module as a separate unit will be 9031.80.8085, Harmonized Tariff Schedule of the United States (HTSUS), which provides for "other" Measuring or checking instruments, appliances and machines, not specified or included elsewhere in HTSUS Chapter 90"

1.26.13 In consideration of the foregoing submissions, it is appropriate to classify the 'Samsung Galaxy Ring' as a Measuring and checking instrument, appliance and machine under tariff heading 903 Land 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 I. 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 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 fur skin (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) 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;

(I) 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 9612 if inked or otherwise prepared for giving impressions) or monopods, bipods, tripods and similar articles, of heading 9620. "

1.27.2 Basis the above, it may be inferred that vide Section XVI (m). Articles that fall under 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, 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

1.27.5 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 digital. The networks, which may be interconnected, include telephony, E telegraphy, radio-telephony, radio- telegraphy, local and wide area networks.

1.27.6 Basis the aforesaid, the following may be inferred:

• Tariff heading 8517 is fundamentally characterized by its association with communication.

• This heading specifically covers telephone sets, including those used for cellular networks or other wireless networks (such as smartphones), and other apparatus for the transmission or reception of voice, images, or other data.

• These devices are designed for communication purposes, whether in a wired or wireless network, including local or wide area networks.

• The essential character of the devices classified under this heading is their function as instruments for facilitating communication.

1.27.7 The Harmonized System Compendium of Classification Opinions is published by WCO and consists of a numerical list, set out in the order of headings and subheadings of the Harmonized Commodity Description and Coding System, of the Classification Opinions adopted by WCO. The Compendium Of Classification Opinions includes a list of the most significant / difficult classification decisions taken by the Harmonized System Committee.

1.27.8 Tariff heading 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, does not exhibit communication as its intrinsic characteristic to an extent that would warrant classification under tariff heading 8517.

1.28 Conclusion

The 'Samsung Galaxy Ring' is classifiable under the HSN: 9031 8000 (Other instruments, appliances and machines) under the tariff entry 9031- Measuring and checking instruments, appliances and machines, not specified or included elsewhere in this chapter, profile projectors; parts and accessories thereof.

Question 2: Whether the 'Sizing Kit' imported into India would merit classification under HSN: 9031 as 'Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors'

1.29 Import of 'Sizing Kit' into India and its classification

1.29.1 The Applicant intends to import and sell 'Sizing Kit' in India. For the purpose of import, we need to determine an HSN under which the import can be made.

1.29.2 We have already discussed the mechanics of determining the classification of any product in the head B. 1.1 to B.1.4.

1.29.3 Whether 'Sizing Kit' may get classified as 'Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors' under HSN 9031

1.29.4 As discussed in the preceding paragraphs, 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 its sub-headings are reproduced below for ready reference;

1.29.5 As per the explanatory notes the HSN entry 9031, "In addition to profile projectors, this heading covers measuring or checking instruments, appliances and machines, whether or not optical. It should, however, be noted that this group does not include any instruments, apparatus, etc., falling in headings 90.01 to 90.12 or 90.15 to 90.30; in particular, the following are therefore excluded:

(a) Astronomical instruments of heading 90.05.

(b) Microscopes (heading 90.11 or 90.12).

(c) Surveying, etc., instruments and 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 explanatory notes to HSN 9031, it is inferred that the said entry covers:

• Measuring or checking instruments, appliances and machines, whether or not optical.

1.29.7 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.

1.29.8 In light of the aforesaid, we would like to reiterate that 'Sizing Kit' is a comprehensive package that includes a range of sample rings, encompassing all available sizes from 5 to 13. This range ensures that customers have the opportunity to evaluate each size for an accurate fit that accommodates the internal structure and sensors of the Galaxy Ring. The primary materials used for manufacture of rings in the Sizing Kit are plastic and aluminium. The 'Sizing Kit' serves as a critical tool in preventing sizing errors and ensuring customer satisfaction with the fit of the product. The design and construction of the Sample Rings in the 'Sizing Kit' are exclusively for sizing purposes. The customers are advised to wear each Sample Ring in order to determine the size that provides an agreeable fit. Moreover, it is recommended that customers wear the Sample Ring continuously for a period exceeding 24 hours, and potentially for an extended duration, to ensure an accurate measurement / assessment of the appropriate fit. The Sample Rings in the 'Sizing Kit' are replica of the final product and there is no physical or virtual connection of Sizing Kit that can be established with 'Samsung Galaxy Ring'. The Sample Rings are mere rings made up of plastic and aluminium which are to be worn by the customer to determine a proper size. As such, the 'Sizing Kit' may be classified under tariff entry 9031 as 'Measuring instrument' under Chapter 90 in as much as its purpose is limited to measuring / checking and determining the size / fit for the customer.

1.29.9 This classification is predicated on the fact that the Sample rings are used to measure the ring size of the user and the function of Sample Rings is restricted to the practical application of 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 (i) Eligibility of the applicant, in terms of Section 28-E (c) of the Customs Act, 1962 to seek such advance ruling

Yes, by M/s Samsung India Electronics Pvt. Ltd. appears a valid applicant within the meaning of Section 28E(c) (i) of the Customs Act, 1962, having IEC Code 0595032818.

3 (ii) Applicability of proviso (1) of section 28-1(2) of the Customs Act, 1962 regarding the question raised in the application.

As per available records in this section, questions raised in the application are not pending with any officer of the Customs, other appellate tribunal or any Court as per proviso if Section 28 (I) (2) of the Customs Act, 1962.

3 (iii) Specify whether the claim of the applicant regarding the nature of activity, i.e., it is ongoing/proposed is correct

As per available records, the importer is in the business of importing of Samsung Galaxy Ring and Sizing Kit and imported the items in past also.

3 (iv) Comments on the merits of the Question raised in the application, along with all materials in support thereof

Question 1: Whether the 'Samsung Galaxy Ring' imported into India would merit classification under:

1) HSN: 7117 as Imitation Jewellery; or

2) HSN: 9018 as Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters); or

3) HSN 9031 as Measuring or checking instruments, appliances and machines, not included elsewhere

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.

Comments:

• Classification under Heading 8517 (Telecommunication Devices):

The Samsung Galaxy Ring is classifiable under CTH 8517, which covers "machines for the reception, conversion, and transmission or regeneration of voice, images, or other data."

• Data Transmission: The Galaxy Ring collects health metrics (e.g., heart rate, temperature, sleep patterns) and transmits the data to a connected app via wireless communication, aligning with the functionality covered under CTH 8517.

• Integrated Digital Capabilities: The device combines sensors with Al-powered analysis in the 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:

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 measure the appropriate size of the finger and it does not fall under the specific inclusions of other headings or sub-headings, it may be classified under the subheading of CTH 9031 80 00 "Other instruments, appliances and machines". 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.

3. Personal Hearing

3.1 The personal hearing in this matter was conducted on 16.12.2024 on Virtual/Physical mode. The Authorized Representative reiterated the comments submitted through the application and also rebutted the views taken by the Port Commissionerate and also submitted additional submissions in this regard.

4. Additional Submission

4.1 The case of Department is summarised as under:

(i) The Samsung Galaxy Ring performs the function of data transmission such as the Galaxy Ring collects health metrics (e.g. Heart rate, temperature, sleep patterns) and transmits the data to a connected app via wireless communications, aligning with the functionality covered under CTH 8517

(ii) The Samsung Galaxy Ring has integrated digital capabilities as the device combines sensors with AI-powered analysis in the Samsung Health ecosystem, providing insights that go beyond basic measurement.

(iii) Further, the Samsung Galaxy Ring is similar to smartwatches and other smart wearable devices making it fit within scope of CTH 8517.

(iv) Notification 57/2017-Customs explicitly includes "smart wearable devices such as smart rings, shoulder bands, neck bands, or ankle bands" under CTH 8517.

Thus, the Samsung Galaxy Ring, when imported into India, would merit classification under tariff head 8517.

4.2 The Applicant respectfully disagrees with the comments filed by the Department.

A. Response to Comments filed for Question no.1

'Whether the 'Samsung Galaxy Ring' imported into India would merit classification under:

1) HSN: 7117 as Imitation Jewellery; or

2) HSN: 9018 as Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters); or

3) HSN 9031 as Measuring or checking instruments, appliances and machines, 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 capabilities as the device combines sensors with Al-powered analysis in the Samsung Health ecosystem, providing insights that go beyond basic measurement. Furthermore, the Samsung Galaxy Ring shares similarities with smartwatches and wristbands in terms of its consumer electronics classification making it fit within scope of CTH 8517.

4.3.2 Additionally, the Department has placed reliance on Notification 57/2017-Customs that explicitly includes "smart wearable devices such as smart rings, shoulder bands, neck bands, or ankle bands" under CTH 8517. The relevant extract of the said notification has been reproduced below for ease of reference:

4.3.3 Thus, basis the aforesaid comments, the Department has concluded that the Samsung Galaxy Ring has all functions of a machines for the reception conversion and transmission or regeneration of voice images or other data and therefore classifiable under CTH 8517. In response, the Applicant argues that 'Samsung Galaxy Ring' is not a machine for the reception, conversion, and transmission or regeneration of voice, images or other data. The Applicant submits that 'Samsung Galaxy Ring' would be classified as 'Measuring or checking instruments, appliances and machines' under CTH 9031.

4.3.4 CTH 8517 fundamentally covers communication devices

4.3.5 Chapter 85 of First Schedule to Customs Tariff Act, 1975 ('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 ". Further. 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

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 digital. The networks, which may be interconnected, include telephony, E telegraphy, radio-telephony, radio-telegraphy, local and wide area networks.

4.3.6 Basis the aforesaid, the following may be inferred:

✓ Tariff heading 8517 is fundamentally characterized by its association with communication.

✓ This heading specifically covers telephone sets, including those used for cellular networks or other wireless networks (such as smartphones). and other apparatus for the transmission or reception of voice, images, or other data.

✓ These devices are designed for communication purposes, whether in a wired or wireless network, including local or wide area networks.

✓ The essential character of the devices classified under this heading is their function as instruments for facilitating communication.

4.3.7 In the present context, it is essential to emphasize that the 'Samsung Galaxy Ring' comes with certain communication features, including Near Field Communication (NFC) and Bluetooth Low Energy (BLE). However, it is crucial to understand that the device lacks the fundamental communication capabilities that are typically found in smartphones. For instance, the 'Samsung Galaxy Ring' does not have the functionality to initiate voice calls, manage SMS inboxes, or send text messages. Additionally, the device is not designed to process or use data directly from the smartphone itself. 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, does not exhibit communication as its intrinsic characteristic to an extent that would warrant classification under tariff heading 8517.

Categorisation of Data transmission as Principal Function is based on incorrect appreciation of functions performed by Samsung Galaxy Ring

4.3.8 It has been stated in the letter that the Samsung Galaxy Ring performs data transmission wherein health related data captured by the Samsung Galaxy Ring is transmitted to other connected applications through wireless communication. In this regard, it is crucial to reference the Explanatory Notes to Heading 8517. According to these notes, Heading 8517 encompasses devices designed for the transmission or reception of speech, sounds, 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 essence of Heading 8517 is to cover devices whose main function is to facilitate communication or data transmission as an end in itself, such as telephones, fax machines, modems, and routers. These devices are built with the primary intent of enabling communication or the transfer of data across networks. Further, the 'Samsung Galaxy Ring' is also incapable of utilizing data from the smartphone. In contrast, the 'Samsung Galaxy Ring' uses its data transmission capability as a supportive feature to its health monitoring functions, not as its core purpose. It is argued that the 'Samsung Galaxy Ring', while it does have the ability to perform supplementary functions such as sending collected health data to smartphones and offering location-based services, should not be considered as primarily a transmission device. Its data transmission features are secondary and do not define the core function of the device. As such, it would be inaccurate to classify the 'Samsung Galaxy Ring' under the tariff heading 8517, which is reserved for devices with transmission / communication as their principal feature. The 'Samsung Galaxy Ring' should instead be classified based on its primary function, which does not revolve around communication to the extent required by the said tariff heading. The 'Samsung Galaxy Ring' should be viewed as a health and wellness measuring / checking device that offers additional features to enhance the user experience. These features, although they involve some level of data transmission, do not align with the principal characteristics of transmission/ communication devices that Heading 8517 intends to cover. The device's capabilities are ancillary and supportive, rather than being central to the device's purpose.

4.3.10 Respectfully, reference is made to the esteemed judgment of this Honourable Court in the case concerning Qualcomm India Private Limited [CAAR/Del/Qualcomm/23/2023/520 to 524 dated 01^st November 2023], where this court meticulously examined 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 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 mobile device. Therefore, the smart glasses should not be classified as transmission or reception apparatus under heading 851762.Considering the contentions of both the parties, the Instant Court observed that the subject goods in question are multifunctional, and it is difficult to determine a principal function for classification under the General Rules for Interpretation (GRI) rules 1, 2. 3(a), and 3(b). The court acknowledged that the components of the goods are integrated and do not have a single essential feature. The Court opined that the Explanatory notes of heading 9031. which includes measuring and checking instruments, were relevant for the subject goods that perform functions like functions of measuring, checking, image generation using light diffraction technique etc., and devices performing such functions merit classification under heading 9031. Further, if rules 3(a) and 3(b) of GRI are inapplicable, rule 3(c) is used, leading to classification under the heading that appears last in numerical order, which in this case would be 90318000. Accordingly, it was held that the smart glasses merit classification under CTH 9031.The relevant extract of the judgment is produced below for your easy reference:

"11.2 The Heading 8517 of the Import Tariff, which has been suggested by the concerned Commissionerate for classification of the goods in question, covers telephone sets, smartphones and other Telephone 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. However, it is the contention of the applicant that the subject goods do not have transmission or reception capability on its own; it obtains the transmission and reception capability, when connected with the mobile device/companion device; while reception, conversion and transmission of voice, images or other data is one of the functions performed by the said device, it also has multiple other primary functions."

"11.3 I also note that the augmented reality technology relies on several advanced technologies including specialized hardware and software. It is also gathered as to how an augmented reality application 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 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 description. It is also gathered that the applicant is of the view that the relevant tariff headings for classification of the subject goods are 8471 or 8517 or 8518 or 8525 or 8528 or 8543 or 9004. however, I have also noted that the applicant has rightfully abseiled that in the subject goods different components performing different function are not presented separately but form an integral part of the subject goods, presented in conjunction with each other and none of them present to be the essential feature; the subject goods have features which are specified under various Chapter headings. The Explanatory notes of heading 9031 inter-alia provides that the heading includes measuring or checking instruments, appliances and machines, also covering optical type measuring and checking appliances and instruments. Thus, it is beyond doubt that the subject goods are performing functions of measuring, checking, image generation using light diffraction technique etc., and devices performing such functions merit classification under heading 9031. Thus, heading 9031 is also one of the relevant heading for classification of such goods. In the event of inapplicability of rule 3(a) and 3(b) of GRI for classification of the subject goods, thus taking recourse to rule 3(c) of GRI, goods merit classification under the heading which occurs last in the numerical order.

12. Keeping in view the foregoing, I am of the view that classification of the proposed items of import. Augmented Reality (AR) Device namely, Qualcomm X-Reality (QXR) version 1 (QXR v1) and version 2 (QXR v2) will be under Sub-heading 90318000 of the first schedule to the Customs Tariff Act, 1975. ";

4.3.12 We respectfully submit for your consideration 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, 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.

4.3.13 It is further submitted that not all smart wearable devices warrant classification under CTH 8517. The classification of such devices must be determined based on their specific characteristics and functions. In the aforementioned case involving smart glasses, the classification under CTH 9031 was predicated on the device's multifunctional capabilities and in accordance with the GRI of the Harmonized System, the relevant Section and Chapter Notes of the Customs Tariff. Smart wearable devices may generally be classified under CTH 8517 because their principal functions align with the provisions of that heading, which encompasses apparatus for the transmission or reception of voice, images, or other data. Nevertheless, this should not set a blanket precedent for all smart wearable devices, as each device may have different principal functions that could lead to classification under different headings. Therefore. I respectfully urge the Court to consider the unique features and principal functions of each smart wearable device on a case-by-case basis for accurate classification, rather than applying a broad classification under CTH 8517 solely based on consumer electronics classification.

Samsung Galaxy Ring is a measuring device beyond its transmission capabilities hence, to be classified under 9031 i.e., measuring or checking instruments

4.4 The Samsung Galaxy Ring is a wearable smart device designed in the form of a ring. This device is Bluetooth-enabled and is specifically crafted for the purpose of tracking 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. 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.

4.4.1 Regarding the utility and functionality of the 'Samsung Galaxy Ring', it is designed to be worn on the finger—a site rich in blood vessels—to optimize the efficiency of the PPG sensor. The sensor measures the blood flow from the capillaries, thereby calculating heart rate and oxygen saturation levels with a degree of accuracy superior to that of other devices. As a result, the application items not only aid in the prevention of cardiovascular diseases but also provide a comprehensive monitoring of health conditions, including body temperature and physical activity. The purpose of the subject 'Samsung Galaxy Ring' is to measure and verify health-related metrics. Therefore, it is asserted that the component conferring the essential character upon the application product is the sensor, by virtue of its pivotal role. The sensor is tasked with measuring the user's blood flow, oxygen saturation, body temperature, among other health indicators, while the remaining components serve to facilitate the measurement of healthcare information. Further, reliance is placed on the ruling in the case of Qualcomm India Private Limited (supra), wherein it was observed that: the smart glasses perform various functions, making it challenging to designate any one function as principal or essential. However, it is evident that the subject goods are performing functions of measuring, checking, image generation using light diffraction technique etc., and devices performing such functions
merit classification under heading 9031. Therefore, it is clear that the subject goods are apt for classification under heading 9031. Given the above, the 'Samsung Galaxy Ring' may be classified under Tariff head 9031 which pertains to measuring or checking instruments in as much as the said product measures heart rate, oxygen saturation, step count etc.

Classification is based on the heading that occurs last in numerical order among those which equal merit consideration

4.4.2 Without prejudice to any of the above submissions, considering 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 Commodity Description and Coding System or Harmonized System of Tariff Nomenclature ('HSN'), an internationally standardized system which lays the foundation of classification of goods across the globe.

ii. WCO has also issued Explanatory Notes to HSN ('Explanatory Notes') which provides an insight into the meaning of expressions employed in the HSN and are used for easy interpretation of different commodity groups created under the HSN.

iii. In India, classification under the First Schedule to the CTA is governed by the GRI prescribed therein. The First Schedule and GRI are simply a derivative of the HSN issued by the WCO.

iv. In order to determine the rate of customs duty applicable to a particular Products which are imported into India, it is important to identify the classification of such Products under the Schedules to the CTA

v. The First Schedule to CTA has 21 sections and 98 Chapters. A section is a group consisting of several Chapters which codify a particular class of goods. The section notes explain the scope of various Chapters/ Headings contained in such sections. The Chapters consist of Chapter Notes, brief description of the Products arranged in 4-digit, 6-digit and 8-digit levels. 4-digit code is referred as 'Heading' followed by 6-digit code referred as 'Sub-Heading' and 8-digit code referred as 'Tariff Item'.

vi. Rate of duty for a particular Products is specified at 8-digit or Tariff Item level. Thus, to determine the rate of duty on any imported Products, classification at 8-digit or Tariff Item level needs to be identified and the classification has to be determined sequentially i.e., first classification at 4-digit level (Heading) then at 6-digit level (Sub-heading) and finally at 8-digit level (Tariff Item).

4.6 In view of the above, it becomes important to analyse the GRI to determine the proper classification under the CTA. Rule I of GRI provides that the classification shall be determined in line with the following which needs to be followed in sequential order. The classification shall be determined according to the terms of headings and any relative Section or Chapter Notes. The relevant text is reproduced as under:

"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:

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 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.

4.6.2 Given the above background, it may be argued that the 'Samsung Galaxy Ring' cannot be classified, by operation of GRI 1 since, the features and functions performed, by 'Samsung Galaxy Ring' fall under different Tariff heads. In the event the articles cannot be classified solely on the basis of GRI 1, GRI's 2 through 6 may be applied in order, as appropriate. Accordingly, we shall now refer the GRI 2 for classification. GRI 2 have been reproduced below for ready reference:

"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 disassembled.

(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. "

4.6.3 Basis the reading of GRI 2, it may be inferred that Rule 2(a) is applied if incomplete or unfinished goods are imported or an article is imported in unassembled or disassembled form. Further, Rule 2(b) is applied in case of import of mixtures and combinations of materials or substances or goods consisting of two or more materials or substances. Since, in the 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 he 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 ofthe 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 heading which occurs last in numerical order among those which equally merit consideration. "

4.6.4 The first sentence to GRI 3 (a) provides that goods should be classified in the heading that provides the most specific description. In general, under this criterion, (1) a description by name is more specific than a description by class and (2) a description that more clearly identifies a product is more specific than one which is less complete. The second sentence to GRI 3 (a) further provides that when two or more headings each refer to only one of the materials or substances in mixed or composite goods, or to only some of the articles included 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. If this situation exists, then resort must be made to GRI 3 (b). GRI 3 (b) deals with mixed goods, composite goods, and goods put up in sets for retail sale as described above in the second sentence to GRI 3 (a). By application of this criterion, such goods are classified according to the ingredient, material, component or article that gives the mixtures, composite goods, or sets their "essential character.". GRI 3 (c) states that goods should be classified under the heading that occurs last in numerical order from among those that equally merit consideration if the goods cannot be classified by reference to GRIs 3 (a) or 3 (b).

4.6.5 Basis a conjoint reading of GRI 3. the following inferences can be drawn;

✓ The Ring may be construed as a composite good within the meaning of GRI 3 since, the same appears to be classifiable under 2 or more Tariff headings

✓ Since, there isn't any Tariff heading which provides the specific description to cover 'Samsung Galaxy Ring', the classification may not be possible in terms of GRI 3 (a) and therefore, GRI 3(b) may need to be explored.

✓ Goods classifiable under GRI 3(b) shall be classified as if they consisted of material or component  which gives them their essential character

✓ Further, Explanatory Note to GRI 3 (b) (VIII) states that the factors which determine essential character 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'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 in numerical order among those headings that are equally valid for consideration. In the case of the 'Samsung Galaxy Ring', the relevant headings under discussion are CTH 8517, which covers transmission devices, and CTH 9031, which pertains to measuring and checking instruments, appliances, and machines not specified elsewhere.

4.6.7 Assuming without admitting that both headings are equally applicable to the 'Samsung Galaxy Ring', it is in accordance with GRI 3(c) that the 'Samsung Galaxy Ring' should be classified under heading 9031 since heading 9031 follows heading 8517 in numerical order. This classification aligns with the rules of customs tariff interpretation and accurately reflects the composite nature of the 'Samsung Galaxy Ring', without unduly prioritizing one function over another.

4.7 Further, in this regard, attention is invited to the American Custom Ruling, in the case of Samsung Electronics America, Inc., Case No. N340510, ruling dated 10-06-2024 wherein the issue of classification of 'Samsung Galaxy Ring' came into consideration. Here, it is pertinent to note that the issue in the above Ruling was exactly the same as in the instant case, pertaining to classification of 'Samsung Galaxy Ring', a wearable smart device that lacks a display and uses Bluetooth to track and monitor health, fitness, 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."

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 independently and require connection to an external device, such as a mobile phone, to operate. As a result, by invoking Rule 3(c) of the GRI of the Customs Tariff Act, 1975, the court determined that the appropriate classification for these devices was under Tariff Heading 90318000, which covers "Other instruments, appliances, and machines for measuring or checking."

4.11 In light of the foregoing submissions, it is safe to conclude that the Samsung Galaxy Ring merits classification under CTH 9031 as "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"

Goods classifiable under chapter 90 are excluded from chapter 85

4.12 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".

4.13 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 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) 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; (I) 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 9612 if inked or otherwise prepared for giving impressions) or monopods, bipods, tripods and similar articles, of heading 9620. "

4.14 Basis the above, it may be inferred that vide Section XVI (m), Articles that fall under 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).

4.15 Since 'Samsung Galaxy Ring' falls under Tariff heading 9031 as concluded above in paragraphs, therefore, the same cannot be construed to fall under any of the Chapter of Section XVI of CTA, which includes Chapter 85 as well.

Classification cannot be decided basis Exemption Notification

4.16 The Department in the impugned letter, for classification of the imported goods under CTH 8517, had relied upon the exemption entry in serial No.20 of the notification No.57/2017-Customs dated 30.06.2017 as amended by notification No. 17/2024-Customs dated 14.03.2024, and concluded that such entry covers in its ambit the 'smart rings' being a part of or belonging to the category of smart wearable devices. In order to examine the legality of the above conclusion, it is pertinent to the exemption entries in the said notification. The relevant entry in the above mentioned notification which cover 'smart rings' are extracted below:

"GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
Notification No. 50/2017 -Customs

New Delhi, the 30^th June, 2017

G.S.R. 798 (E). - In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description as specified in column (3) of the Table below, as the case may be, and falling within the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as are specified in the corresponding entry in column (2) of the said Table, when imported into India, from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the standard rate as specified in the corresponding entry in column (4) of the said Table subject to any of the conditions, 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

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, except for certain excluded products specified therein. These include smart wearable devices. The applicant respectfully submits 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.

4.18 It is a well-established principle that exemption notifications must be construed strictly. The language of the notification should be interpreted without adding or subtracting words, and its scope should not be expanded beyond what is explicitly stated. In the present case, the notification provides for exemptions under specific conditions but does not explicitly dictate the classification of goods. Therefore, while the exemption notification may indirectly influence the classification process by providing context or by highlighting certain characteristics of goods that could be relevant for classification, it is not a determinative instrument for classification per se. The classification should be based on the legal texts of the tariff, including the Section and Chapter Notes, and the GRI of the Harmonized System, rather than on the provisions of an exemption notification.

Cases Relied:

4.19 Reliance is placed on ruling of the Tribunal in the case of Collector of C Ex. Vs. Roha Dye Chem Pvt. Ltd., as documented in 1989 (41) E.L.T. 667 (Tribunal), wherein it was has held that it is a 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. This decision was further affirmed by the Honourable Supreme Court in Civil Appeal No. 2927 of 1989 alongside C.A. No. 4992 of 1995. The Supreme Court concluded that the judgement of the Customs. Excise and Gold (Control) Appellate Tribunal, which was under challenge by the Revenue, should not be disturbed, and consequently dismissed the Revenue's appeal. The relevant extract of the ruling has been reproduced below for ease of reference:

"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 case of Collector of C. Ex. Vs. Roha Dye 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. Hence, we are not in agreement with the conclusion arrived at by the learned Commissioner (Appeals) in the impugned order for excluding the classification of the imported goods under CTH 8517 7010 and for deciding the classification under CTH 8517 6290 on the basis of entries under exemption notification.

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 Appeal No. 2927 of 1989 with C.A. No. 4992 of 1995, holding that no interference is called for in the judgement of the Customs, Excise and Gold (Control) Appellate Tribunal under appeal by the Revenue, by dismissing the appeal filed by the Revenue. "

4.21 Further, in this regard, attention is invited to the Custom Authority of Advance Ruling Delhi, in the case of M/S Samsung India Electronics Pvt. Ltd. Versus Principal Commissioner of Customs, Air Cargo Complex (Import) , New Delhi 2023 (12) TMI 1155 - CESTAT New Delhi wherein the issue of classification of 'various parts and sub-parts or accessories of cellular mobile phones' came into consideration. The Tribunal held that classification cannot be decided by the Ministry of Electronics and Information Technology, firstly because MelTY does not have power to assess under Section 17 of the 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 MelTY 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 logic cannot be accepted because the issue of exemption notification is a quasi-legislative function of the Government (and is not appealable) and is not a quasi-judicial function of assessment, including classification, which is appealable. A plain reading of the exemption notification also does not show that it intends to decide the classification of the goods under any heading. It only says that if the goods which match the description also fall under the tariff heading they will be exempt"

4.23 The same view is also taken by CESTAT Principal Bench, New Delhi in the case of VIVO MOBILE INDIA PVT. LTD. Versus PRINCIPAL COMMISSIONER OF CUSTOMS, NEW DELHI (2024) 20 Centax393 (Tri.-Del).

In light of the aforesaid submissions, it is urged that the exemption notification cannot be used as a primary tool for the classification of goods and that the classification should be determined based on the appropriate legal framework and interpretative rules governing customs tariffs. Consequently, it is argued that the department's reliance on the exemption notification as a means to ascertain the classification is without merit and should be disregarded.

Analysis and Conclusion:

5.1 The Applicant intends to import and sell 'Samsung Galaxy Ring' in India. For the purposes of import, we need to determine the HSN under which the import can be made. The mechanics of determining the classification of any product is as under:

- World Customs Organisation ('WCO') has enunciated the Harmonized Commodity Description and Coding System or Harmonized System of Tariff Nomenclature (HSN), an internationally standardized system which lays the foundation of classification of goods across the globe. WCO has also issued Explanatory Notes to HSN ("Explanatory Notes") which provides an insight into the meaning of expressions employed in the HSN and are used for easy interpretation of different commodity groups created under the HSN. In India, HSN classification is provided under the First Schedule to the Customs Tariff Act, 1975 (also referred to as "CTA") which is simply a derivative of the HSN issued by the WCO. Further, the Explanatory Notes to the above First Schedule of CTA provide a safe guide for interpretation of the said First Schedule and hold a high persuasive value as observed by the Hon'ble Supreme Court in Wood Craft Products Limited [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 12"' 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 imitation Jewellery'. Pursuant to the guidance provided by Chapter Note 9 and Chapter Note 11 to Chapter 71, in conjunction with the Explanatory Note to the Harmonized System Nomenclature (HSN) 7117, the essence of imitation jewellery, also referred to as artificial jewellery, is characterized by its ornamental nature and its primary function as an accessory to be worn on the person, with the express purpose of augmenting or enhancing the wearer's aesthetic appeal. However, the primary intent of 'Samsung Galaxy Ring' is to track and monitor 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. As there is no intent to ornament the bands to be worn as small objects of personal adornment, the merchandise concerned may not be classifiable within the imitation jewelry provision of heading 7117. The Applicant has correctly submitted that the subject article, i.e. 'Samsung Galaxy Ring', being an intricate assembly equipped with PPG sensors, accelerometers. temperature sensors, processing units and storage capabilities, is engineered for the sophisticated task of monitoring physiological parameters. The design and functionality of the article in question surpasses that of conventional imitation jewellery in as much as the primary function of the said 'Samsung Galaxy Ring is to track and monitor health and fitness and sleep related information.

5.2.2 Finally, coining to the next classification head of 8517,-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, it is observed 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 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 belling of textile material (heading 5910) or other articles of textile 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 Reading 7304);

(ij) Endless belts of metal wire or strip (Section XV); (k) Articles of Chapter 82 or 83; (I) 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 9612 if inked or otherwise prepared for giving impressions) or monopods, bipods, tripods and similar articles, of heading 9620."

Basis the above, it may be inferred that vide Section XVI (m). Articles that fall under 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).

5.2.2.1 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:

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 fundamentally characterized by its association with communication;

ii. This heading specifically covers telephone sets, including those used for cellular networks or other wireless networks (such as smartphones), and other apparatus for the transmission or reception of voice, images, or other data;

iii. These devices are designed for communication purposes, whether in a wired or wireless network, including local or wide area networks.

iv. The essential character of the devices classified under this heading is their function as instruments for facilitating communication.

5.2.2.3 Tariff heading 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 (heir intrinsic characteristic. Consequently, such devices have been duly classified under tariff heading 8517.

5.2.2.4 In the instant case, it is imperative to note that while the 'Samsung Galaxy Ring' is equipped with communication functionalities such as Near Field Communication (NFC) and Bluetooth Low Energy (BLE), it does not possess the capability to perform integral communication functions associated with smartphones, such as placing calls, managing message counts, or sending messages. Further, the 'Samsung Galaxy Ring' is also incapable of utilizing data from the smartphone. Therefore, it can safely be deducted that the 'Samsung Galaxy Ring', although capable of ancillary functions such as transmitting measured physical information to smartphones and providing location services, does not exhibit communication as its intrinsic characteristic to an extent that would warrant classification under tariff heading 8517.

5.2.3 The next competing heading is 9018- Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters). 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 sight-testing instruments'.

The said Tariff entry is reproduced below for ready reference

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 either to make a diagnosis, to prevent or treat an illness or to operate, etc.

5.2.3.1 The subject device i.e. 'Samsung Galaxy Ring', which employs a PPG sensor to detect the electrical signals of the human body and to measure the flow of pulse waves, thereby ascertaining heart rate and oxygen saturation levels, may prima facie be perceived as an instrument intended for medical application but it is actually not used in medical practice by practitioners for diagnosis. The explanation to Tariff Item No. 9018 elucidates that the category in question encompasses an extensive array of apparatuses utilized by medical professionals, including but not limited to physicians, surgeons, dentists, veterinarians, and midwives, irrespective of the devices' application in diagnosis, prevention, treatment, or surgical procedures. This classification implies that medical professionals categorize the instruments pertinent to their respective practices. Consequently, while the sensors in 'Samsung Galaxy Ring' possesses capabilities that contribute to the prevention of cardiovascular diseases when used by individuals, such utilization does not constitute a medical practice. Given its role in pre-diagnostic assessment, the device cannot be adjudged as a medical device within the meaning ascribed by the relevant tariff classification.

5.2.3.2 Further, reliance is placed on the decision in the case of Mehar Healthcare Corporation Versus Commissioner Of Customs (Import), New Delhi (2024) 16 Centax 452 (Tri.-Del), wherein it was observed that "10. The heading of chapter 9018 provides instruments and appliances used in medical, surgical, dental or veterinary sciences including scientigraphic apparatus, other electro medical apparatus 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. "

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 its sub-headings are reproduced below for ready reference:

5.2.4.1 As per the explanatory notes the HSN entry 9031, "In addition to profile projectors, this heading covers measuring or checking instruments, appliances and machines, whether or not optical. It should, however, be noted that this group does not include any instruments, apparatus, etc., Jailing 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 Qieading90.24).

(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)............... "

5.2.4.2 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. 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. 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 photoplethysmogram (PPG) sensor, an accelerometer and a temperature sensor. These sensors are complemented by a battery that powers them and a memory module that temporarily stores the measured data. Additionally, a Bluetooth module is incorporated as an ancillary device for the transmission and reception of data to other devices such as tablet / smartphones. Consequently, it may be inferred that the essential character of the application items is embodied in the sensors responsible for the acquisition of physical information. Regarding the utility and functionality of the "Samsung Galaxy Ring', it is designed to be worn on the finger—a site rich in blood vessels—to optimize the efficiency of the PPG sensor. The sensor measures the blood flow from the capillaries, thereby calculating heart rate and oxygen saturation levels with a degree of accuracy superior to that of other devices. As a result, the application items not only aid in the prevention of cardiovascular diseases but also provide a comprehensive monitoring of health conditions, including body temperature and physical activity. The purpose of the subject 'Samsun Galaxy Ring' is to measure and verify health-related metrics. Therefore, it is asserted that the component conferring the essential character upon the application product is the sensor, by virtue of its pivotal role. The sensor is tasked with measuring the user's blood flow, oxygen saturation, body temperature, among other health indicators, while the remaining components serve to facilitate the measurement of healthcare information.

5.2.4.3 Further, in this regard, attention is invited to the American Custom Ruling, in the case of Samsung Electronics America, Inc., Case No. N3405I0, ruling dated 10-06-2024 wherein the issue of classification of 'Samsung Galaxy Ring' came into consideration. Here, it is pertinent to note that the issue in the above Ruling was exactly the same as in the instant case, pertaining to classification of 'Samsung Galaxy Ring', a wearable smart device that lacks a display and uses Bluetooth to track and monitor health, fitness, 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 die 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 t/ie 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. 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 aforementioned case, the American Authority had classified the LG Electronics 'activity trackers' under the Harmonized Tariff Schedule of the United States (HTSUS) under subheading 903 1.80.8085. which pertains to miscellaneous measuring or checking instruments.

5.2.4.5 Furthermore, American Custom Ruling, in the case of Under Armour, Case no. N240358, dated 29-04-2013, has held that performance management system would be classified under HTSUS 9031.80.8085. The subject item in the aforementioned case consisted of a module that measured the user's accelerations and heart rate and it is secured to the user with a chest strap. The data collected by the module are transmitted via radio to either an Under Armour watch or to an iPad or similar device equipped with the corresponding Under Armour app. Under the aforementioned case, the Authority held that "The applicable subheading for the module with chest strap sold together and the module as a separate unit will be 9031.80.8085. Harmonized Tariff Schedule of the United States CHTSUS). which provides for "other" Measuring or checking instruments, appliances and machines, not specified or included elsewhere in HTSUS Chapter 90. "

5.3 Coming to whether 'Sizing Kit' may get classified as 'Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors' under HSN 9031, the tariff entry 9031 pertains to "Measuring or checking instruments, appliances and machines, not specified or included elsewhere in this chapter; profile projectors ". As per the explanatory notes the HSN entry 9031, "In addition to profile projectors, this heading covers measuring or checking instruments, appliances and machines, whether or not optical. It should, however, be noted that this group does not include any instruments, apparatus, etc., falling in headings 90.01 to 90.12 or 90.15 to 90.30; in particular, the following are therefore excluded:

(a) Astronomical instruments of heading 90.05.; (b) Microscopes (heading 90.11 or 90.12).; (c) Surveying, etc., instruments and 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).......................... "

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 sizes from 5 to 13. This range ensures that customers have the opportunity to evaluate each size for an accurate fit that accommodates the internal structure and sensors of the Galaxy Ring. The primary materials used for manufacture of rings in the Sizing Kit are plastic and aluminium. The 'Sizing Kit' serves as a critical tool in preventing sizing errors and ensuring customer satisfaction with the fit of the product. The design and construction of the Sample Rings in the "Sizing Kit' are exclusively for sizing purposes. The customers are advised to wear each Sample Ring in order to determine the size that provides an agreeable fit. Moreover, it is recommended that customers wear the Sample Ring continuously for a period exceeding 24 hours, and potentially for an extended duration, to ensure an accurate measurement / assessment of the appropriate fit. The Sample Rings in the 'Sizing Kit' are replica of the final product and there is no physical or virtual connection of Sizing Kit that can be established with 'Samsung Galaxy Ring'. The Sample Rings are mere rings made up of plastic and aluminium which are to be worn by the customer to determine a proper size. As such, the 'Sizing Kit' may be classified under tariff entry 9031 as 'Measuring instrument' under Chapter 90 in as much as its purpose is limited to measuring / checking and determining the size / fit for the customer.

5.4 The case of the Port Commissionerate is summarised as under:

(i) The Samsung Galaxy Ring performs the function of data transmission such as the Galaxy Ring collects health metrics (e.g. Heart rate, temperature, sleep patterns) and transmits the data to a connected app via wireless communications, aligning with the functionality covered under CTH 8517

(ii) The Samsung Galaxy Ring has integrated digital capabilities as the device combines sensors with AI- powered analysis in the Samsung Health ecosystem, providing insights that go beyond basic measurement.

(iii) Further, the Samsung Galaxy Ring is similar to smartwatches and other smart wearable devices making it fit within scope of CTH 8517.

(iv) Notification 57/2017-Customs explicitly includes "smart wearable devices such as smart rings, shoulder bands, neck bands, or ankle bands" under CTH 8517.

5.5 Reference is made to the earlier judgment of this Authority in the case concerning Qualcomm India Private Limited [CAAR/Del/Qualcomm/23/2023/520 to 524 dated 01^st 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 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.

5.5.1 .......Considering the contentions of both the parties, this Authority had observed that the subject goods in question are multifunctional, and it is difficult to determine a principal function for classification under the General Rules for Interpretation (GRI) rules 1. 2, 3(a), and 3(b). Further, the Authority also acknowledged that the components of the goods are integrated and do not have a single essential feature. The Explanatory notes of heading 9031, which includes measuring and checking instruments, were relevant for the subject goods that perform functions like functions of measuring, checking, image generation using light diffraction technique etc., and devices performing such functions merit classification under heading 9031. Further, if rules 3(a) and 3(b) of GRI are inapplicable, rule 3(c) is used, leading to classification under the heading that appears last in numerical order, which in this case would be 90318000. Accordingly, it was held that the smart glasses merit classification under CTH 9031.The relevant extract of the CAAR Ruling is produced below:

"11.2 The Heading 8517 of the Import Tariff, which has been suggested by the concerned Commissionerate for classification of the goods in question, covers telephone sets, smartphones and other Telephone 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. However, it is the contention of the applicant that the subject goods do not have transmission or reception capability on its own; it obtains the transmission and reception capability, when connected with the mobile device/companion device; while reception, conversion and transmission of voice, images or other data is one of the functions performed by the said device, it also has multiple other primary functions."

"11.3 .............. 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 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 description. It is also gathered that the applicant is of the view that the relevant tariff headings for classification of the subject goods are 8471 or 8517 or 8518 or 8525 or 8528 or 8543 or 9004. however, I have also noted that the applicant has rightfully observed that in the subject goods different components performing different function are not presented separately but form an integral part of the subject goods, presented in conjunction with each other and none of them present to be the essential feature; the subject goods have features which are specified under various Chapter headings. The Explanatory notes of heading 9031 inter-alia provides that the heading includes measuring or checking instruments, appliances and machines, also covering optical type measuring and checking appliances and instruments. Thus, it is beyond doubt that the subject goods are performing functions of measuring, checking, image generation using light diffraction technique etc., and devices performing such functions merit classification under heading 9031. Thus, heading 9031 is also one of the relevant heading for classification of such goods. In the event of inapplicability of rule 3(a) and 3(b) of GRI for classification of the subject goods, thus taking recourse to rule 3(c) of GRI, goods merit classification under the heading which occurs last in the numerical order."

5.5.2 It may be pertinent to mention 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 noted 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 can be deducted 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, 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 the CTA. Rule 1 of GRI provides that the classification shall be determined in line with the following which needs to be followed in sequential order. The classification shall be determined according to the terms of headings and any relative Section or Chapter Notes. The relevant text is reproduced as under:

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:

5.6.1 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.

(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3. "

5.6.2 Basis the reading of GRI 2, it may be inferred that Rule 2(a) is applied if incomplete or unfinished goods are imported or an article is imported in unassembled or disassembled form. Further, Rule 2(b) is applied in case of import of mixtures and combinations of materials or substances or goods consisting of two or more materials or substances. Since, in the 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(h) 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 heading which occurs last in numerical order among those which equally merit consideration. "

5.6.3 The first sentence to GRI 3 (a) provides that goods should be classified in the heading that provides the most specific description. In general, under this criterion, (1) a description by name is more specific than a description by class and (2) a description that more clearly identifies a product is more specific than one which is less complete. The second sentence to GRI 3 (a) further provides that when two or more headings each refer to only one of the materials or substances in mixed or composite goods, or to only some of the articles included 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. If this situation exists, then resort must be made to GRI 3 (b). GRI 3 (b) deals with mixed goods, composite goods, and goods put up in sets for retail sale as described above in the second sentence to GRI 3 (a). By application of this criterion, such goods are classified according to the ingredient, material, component or article that gives the mixtures, composite goods, or sets their "essential character." GRI 3 (c) states that goods should be classified under the heading that occurs last in numerical order from among those that equally merit consideration if the goods cannot be classified by reference to GRIs 3 (a) or 3 (b).

5.6.4 As per a comprehensive reading of GRI 3, the following inferences can be drawn;

a) The Ring may be construed as a composite good within the meaning of GRI 3 since, the same appears to be classifiable under 2 or more Tariff headings

b) Since, there isn't any Tariff heading which provides the specific description to cover 'Samsung Galaxy Ring', the classification may not be possible in terms of GRI 3 (a) and therefore, GRI 3(b) may need to be explored.

c) Goods classifiable under GRI 3(b) shall be classified as if they consisted of material or component which gives them their essential character

d) Further. Explanatory Note to GRI 3 (b) (VIII) states that the factors which determine essential character 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.

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 in numerical order among those headings that are equally valid for consideration. Assuming that both headings are equally applicable to the 'Samsung Galaxy Ring', it is in accordance with GRI 3(c) that the 'Samsung Galaxy Ring' should be classified under heading 9031 since heading 9031 follows heading 8517 in numerical order. This classification aligns with the rules of customs tariff interpretation and accurately reflects the composite nature of the 'Samsung Galaxy Ring', without recognising one function over another.

5.7 Now coming to the applicability of exemption notification, analysing the Port's Comments classifying the 'Samsung Galaxy Ring" under Heading 8517. in the Comments dated 05 December 2024. the Port Commissionerate has opined that Samsung Galaxy Ring is classified under the CTH 8517, as the functions performed by Samsung Galaxy Ring align under the scope of CTH 8517. Additionally, the Port has placed reliance on Notification 57/2017-Customs that explicitly includes "smart wearable devices such as smart rings, shoulder bands, neck bands, or ankle bands" under CTH 8517. The relevant extract of the said notification has been reproduced below for ease of reference:

It is provided that classification cannot be decided on the basis of Exemption Notification. The Port Commissionerate had relied upon the aforesaid exemption entry in serial No.20 of the notification No.57/2017-Customs dated 30.06.2017 as amended by notification No. 17/2024-Customs dated 14.03.2024, and concluded that such entry covers in its ambit the 'smart rings' being a part of or belonging to the category of smart wearable devices. The Port has concluded that the Samsung Galaxy Ring has all functions of a machines for the reception conversion and transmission or regeneration of voice images or other data and therefore classifiable under CTH 8517. In response, the Applicant has argued that 'Samsung Galaxy Ring' is not a machine for the reception, conversion, and transmission or regeneration of voice, images or other data, but would 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 goods. Therefore, while the exemption notification may indirectly influence the classification process by providing context or by highlighting certain characteristics of goods that could be relevant for classification, it is not a determinative instrument for classification per se. The classification should be based on the legal texts of the tariff, including the Section and Chapter Notes, and the GRI of the Harmonized System, rather than on the provisions of an exemption notification.

5.7.2 Reliance is placed on ruling of the Tribunal in the case of Collector of C. Ex. Vs. Roha Dye Chem Pvt. Ltd., as documented in 1989 (41) E.L.T. 667 (Tribunal), wherein it was has held that it is a 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. This decision was further affirmed by the Honourable Supreme Court in Civil Appeal No. 2927 of 1989 alongside C.A. No. 4992 of 1995. The Supreme Court concluded that the judgement of the Customs, Excise and Gold (Control) Appellate Tribunal, which was under challenge by the Revenue, should not be disturbed, and consequently dismissed the Revenue's appeal. The relevant extract of the ruling has been reproduced below for ease of reference:

"14........... 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 "

5.7.3 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 case of Collector of C. Ex. Vs. Roha Dye Client 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. 66" (Tribunal/ and which is also upheld by the Hon'ble Supreme Court in Civil Appeal No. 2927 of 1989 with CA. No. 4992 of1995, holding that no interference is called for in the judgement of the Customs, Excise and Gold (Control) Appellate Tribunal under appeal by the Revenue, by dismissing the appeal filed by the Revenue. "

5.7.4 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.............This logic cannot be accepted because the issue of exemption notification is a quasi-legislative function of the Government (and is not appealable) and is not a quasi-judicial function of assessment, including classification, which is appealable. A plain reading of the exemption notification also does not show that it intends to decide the classification of the goods under any heading. It only says that if the goods which match the description also fall under the tariff heading they will be exempt"

5.7.5 The same view is also taken by CESTAT Principal Bench, New Delhi in the case of VIVO MOBILE INDIA PVT. LTD. Versus PRINCIPAL COMMISSIONER OF CUSTOMS, NEW DELHI (2024) 20 Centax393 (Tri.-Del).

5.8 In light of the aforesaid submissions, it is can be summed up that the exemption notification cannot be used as a primary tool for the classification of goods and that the classification should be determined based on the appropriate legal framework and interpretative rules governing customs tariffs.

6. The answers to the questions raised are as follows:

Question 1: Whether the 'Samsung Galaxy Ring' imported into India would merit classification under:

1) HSN: 7117 as Imitation Jewellery; or
Answer: No.

2) HSN: 9018 as Electro-diagnostic apparatus (including apparatus for functional exploratory examinations or for checking physiological parameters); or
Answer: No

3) HSN 9031 as Measuring or checking instruments, appliances and machines, not included elsewhere;

Answer: Yes, precisely under CTH 90318000 - "Other instruments, appliances and machines." under Customs Tariff Act, 1975.

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.
Answer: No

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?

Answer: Yes, precisely under CTH 90318000 under Customs Tariff Act, 1975.

7. I, rule accordingly.

(SAMAR NANDA)
Customs Authority for Advance Rulings New Delhi

F. No. VIII/CAAR/Delhi/Samsung/100/2024

Dated: 24.12.2024

This copy is certified to be true copy of the ruling and is sent to: -

1. M/s Samsung India Electronics Private Limited, 6^th Floor, DLF Centre. Sansad Marg. New Delhi-110001

2. The Principal Commissioner of Customs, (Import), Air Cargo Complex, New Custom House, Near IGI Airport, New Delhi-110037

3. The Customs Authority for Advance Rulings, Mumbai, New Custom House, Ballard Estate, Mumbai-400001.

4. The Chief Commissioner (AR), Customs Excise & Service Tax Appellate Tribunal (CESTAT), West Block-2, Wing-2, R.K. Puram, New Delhi-110066.

5. The Principal Chief Commissioner of Customs, Delhi Customs Zone, New Custom House. IGI Airport Complex, New Delhi-110037.

6. Guard file.

7. Webmaster.

Secretary,
Customs Authority for Advance Rulings. New Delhi