2025(01)LCX0258(AAR)

APPLE INDIA (P) LTD

decided on 27-01-2025

Customs Authority for Advance Rulings
New Custom House, Ballard Estate, Mumbai - 400 001
E-MAIL: cus-advrulings.mum@gov.in

F.No. CAAR/CUS/APPL/95/2024 - O/o Commr-CAAR-Mumbai                                                                                                                                    Date :27.01.2025

N.B.:

A copy of this order made under sub-section (2) of Section 281 of the Customs Act, 1962 is granted to the concerned free of charge.

Any officer authorised by the Board, by notification or the applicant may file an appeal before the High Court of concerned jurisdiction against any ruling or order passed by the Authority, within 60 days from the date of the communication of such ruling or order.

The Principal Commissioner or Commissioner shall be authorised to file appeal against the advance ruling in terms of sub-section (1) of section 28KA.

The advance ruling pronounced by the Authority under Section 28 - I shall remain valid for three years or till there is a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier.

Where the Authority finds that the advance ruling was obtained by the applicant by fraud or misrepresentation of facts, the same shall be declared void ab initio.

Advance Ruling

    M/s. Apple India Private Limited (having 1EC No. 0796001839) and hereinafter referred to as 'the applicant', in short) filed application (CAAR-I) for advance ruling before the Customs Authority for Advance Rulings. Mumbai (CAAR in short). The said application was received in the secretariat of the CAAR, Mumbai on 22.07.2024 along with enclosures in terms of Section 28H (1) of the Customs Act] 1962 (hereinafter referred to as the 'Act' also). The applicant is seeking advance ruling on the issue jof classification of the product i.e. Apple Vision Pro along with accessories under CTI 84713090 or otherwise.


2. The Applicant vide their application dated 18.07.2024 has submitted as follows:

2.1 M/s. Apple India Private Limited, India ('Applicant'), is a company having its registered head office located at 13th Floor. Prestige Minsk Square. Municipal No. 6. Cubbon Road. Bengaluru. Karnataka. The Applicant is a company incorporated under the Companies Act. 2013 and is engaged in the business of importing electronic consumer goods under the brand name 'Apple' such as iPhones. iPads. iPods. Mac Book (laptops) and computers for selling the same in India through online sales portal, channel partners and distributors located in India.

2.2 The Applicant in furtherance to its current business is proposing to engage in import of 'Apple Vision Pro' into India.

Overview of Apple Vision Pro

2.3 Apple Vision Pro hereinafter referred to as the 'device', is designed to be worn on the user's head and acts as a spatial portable automatic data processing machine. The devices functions as an independent spatial computing machine but can also be connected to other Apple products such as Apple iPhone ('iPhone'), Apple iPad ('IPad) and Mac Book ("Mac"). For ease of reference an image of the device has been reproduced below:

2.4 The device facilitates the users to execute computer programs, browse the internet, compose e-mails, watch videos etc. and navigates through the eyes, hands, voice or virtual keyboard as input devices with a special feature of added dimensions in the vision as it blends the digital content with the physical space. The device acts as a second screen integrated with the physical space and can control the applications of the iPhone, iPad or Mac book that are specifically designed for collaborative use between the device and iPhone. iPad or Mac. The device has a customized design consisting of cameras and sensors, audio straps, head bands, light seal etc. for proper functioning of the device to enable communication and extend the functionality of the iPhone. iPad and Mac to a user's head.

2.5 In the present case, the device for which the Applicant is seeking the advance ruling will be imported for making sales in India through two supply chain models i.e., AOS and the brick-and-mortar retail stores. The import of Apple Vision Pro along with its accessories will be as a single unit under both the supply chains -

• For Apple Online Store ('AOS') sales, and
   

• For sale through brick-and-mortar retail stores in India

Import for AOS sales:

2.6 For the sales made through the AOS, the device, i.e.. Apple vision pro along with accessories will be imported by the Applicant in a pretty white box as one single kit with a single price and sent to the customers in India. The pretty white box imported under this supply chain model will contain the following accessories including the device, i.e., Apple Vision Pro as mentioned below:

a. Apple Vision Pro (HMD)

b. Light Seal

c. Light Seal Cushions

d. Solo Knit Band

e. Dual Loop Band

f. Battery

g. Cover

h. 30W USB-C power adaptor

i.USB-C Charge Cable

2.7 The Apple vision pro along with the listed accessories will be imported in a consolidated pretty white box under a one single invoice, where a consolidated/single price is charged for the unit, i.e., the device and the accessories.

Import for sale through brick-and-mortar retail stores

2.8 For sales to be made through the brick-and-mortar retails stores in India, the Applicant will
import accessories including the device, i.e., Apple Vision Pro as mentioned below:

a) Apple Vision Pro (HMD)

b) Light Seal Cushions

c) Battery

d) Cover

e) 30W USB-C power adaptor 0 USB-C Charge Cable

2.9 The Apple vision pro along with the listed accessories will be imported in a consolidated pretty white box under a one single invoice, where a consolidated/single price is charged for the unit, i.e., the device and the accessories. Further, the specified accessories, namely, light seal, solo knit band and dual loop band (together referred to as 'kitted accessories') shall be imported by the Applicant on a standalone basis. The Apple Vision Pro and its accessories (imported in the pretty white box) and the kitted accessories (imported on a standalone basis) shall be assembled at the brick-and-mortar retail store and sold to customers as a single unit (i.e.. Apple Vision Pro) for a consolidated/single price.

Applicant's interpretation of Law/Facts

3.1 The Applicant submitted that the Apple Vision Pro (hereinafter referred to as the 'device'), is designed to be worn on the user's head and acts as a spatial portable automatic data processing machine. The device functions as an independent spatial computing machine but can also be connected to other Apple products such as iPhone, iPad and Mac.

3.2 The device facilitates the users to execute computer programs, browse the internet, compose emails, watch videos, play games and perform an array of other tasks. To facilitate the transmission of the information on a larger surface in the physical space, glances are used to quickly and efficiently navigate through the information through their eyes, hands, voice, or virtual keyboard as input devices with a special feature of added dimensions in the vision as it blends the digital content with the physical space. Through the device, the user may also control applications of the iPhone, iPad or Mac that are specifically designed for collaborative use between the device and the iPhone. iPad or Mac.

3.3 The device has a customized design consisting of the following:

3.3.1 Front: It is a singular piece of 3D formed laminated glass flows into an aluminium alloy frame that gently curves to wrap around the face.

3.3.2 Cameras and sensors: An array of advanced cameras and sensors work altogether to facilitate the vision and detect hand input. Sensors such as accelerometers and gyroscopes track facial movements, minimizing discrepancies between the real world and the projected image. The device runs vision OS. a mixed-reality operating system derived from iOS frameworks using a 3D user interface: and supports multitasking via windows that appear to float within the user's surroundings, as seen by cameras built into the headset.

3.3.3 Audio Straps: Speakers are positioned close to the ears, which deliver the rich Spatial Audio that seamlessly blends in accordance with the real-world sounds and can even virtualize surround sound.

3.3.4 Head Bands: Two head bands are provided, the solo knit band provides cushioning, breathability. and stretch, and a Fit Dial lets adjust the device to the head while the Dual Loop Band consists of the adjustable upper and lower straps for a precise fit.

3.3.5 Displays: A pair of micro- OLED displays deliver more pixels than a 4K TV to each eye for providing clarity. The eyes are tracked by a system of LEDs and infrared cameras, which forms the basis of the device's iris scanner named Optic ID (used for authentication).

3.3.6 Light Seal: It gently conforms to the face for a precise fit according to the size of the face while blocking out stray light.

3.3.7 Digital Crown: It is a button provided to bring up to the Home view and control the level of immersion while using the Environments feature of the device while it also controls the amount of virtual background occupying the user's field of view, ranging from a mixed-reality view where apps and media appear to float in the user's real-world surroundings, to completely hiding the user's surroundings.

3.3.8 Top Button: The device can even capture spatial videos and spatial photos in the moment.

3.3.9 Power: A very compact external battery is provided which supports up to 2 hours of the general use and up to the 2.5 hours of the video playback. The battery pack connects to the headset using an unremovable 12-pin locking variant of the Lightning connector and can be even used while charging the battery.

3.3.10 Operating System: The operating system uses a 3D user interface navigated via finger tracking, eye tracking, and speech recognition. Users can select elements by looking at it and pinching two fingers together, move the element by moving their pinched lingers, and scroll by flicking their wrist. Apps are displayed in floating windows that can be arranged in 3D space. Vision OS supports a virtual keyboard for text input, the Siri virtual assistant, and external Bluetooth peripherals including Magic Keyboard, Magic Trackpad, and gamepads.

3.4 As demonstrated by the above functions and features, the device is a spatial portable automatic data processing machine. The device is a technological advancement and essentially in the nature of a modern automatic data processing machine.

Classification of Apple Vision Pro and its Accessories imported as a single unit under CTI 84713090

3.5 Chapter heading 8471 pertains to automatic data-processing machines and units thereof. The scope of this heading is defined by several criteria and exclusions, which are detailed in Note 6 to Chapter 84 of the Chapter Notes.

3.6 In accordance with the Note 6(A) to Chapter 84, the device meets the requirements and characteristics of an automatic data processing machine, as discussed below:-

3.6.1 Storing the processing program or programs and at least the data immediately necessary for the execution of the program:

    In order to satisfy this requirement, the device needs to have memory and have access to a Central Processing Unit (CPU). The device relies on this memory to store and process the information. The device comes with a standard 16GB unified memory and a storage capacity of 256GB, 512GB or ITB. This memory is accessible by the CPU to execute the program or programs that the user needs to run, whereby the device has the capacity necessary for the execution of such programs. In addition, the device has an Apple M2 Chip with 8-core CPU (4 performance cores and 4 efficiency cores), 10-core GPU, I6-core Neural Engine and an Apple Rl co-processor.

3.6.2 Being freely programmed in accordance with the requirements of the user:

    The device is a fully programmable device and can be customized as per the requirements of the user. It uses the vision OS operating system and user has the option to customize and download/install applications compatible with Vision Pro as per user requirements and needs from :he Apple App Store.

    The interpretation of the term 'freely programmable' is discussed in the US Ruling in the case of Optrex America, Inc., vs. United States [MANU/USFD/0226/2007 No. 2006-1375] by the Court of Appeals for The Federal Circuit wherein the Hon'ble Judges observed as follows in relation to the requirement of automatic data processing device being 'freely programmable' by in accordance with the requirements of the user-

"Customs believes that a freely programmable ADP machine is one that applications can be written for, does not impose artificial limitations upon such applications, and will accept new applications that allow the user to manipulate the data as deemed necessary by the user.

....

This interpretation is further supported by the World Customs Organization's Explanatory Notes ("Explanatory Notes"), which, although not controlling, may inform our analysis. These notes provide that "machines which operate only on fixed programs, that is programs which cannot be modified by the user, are excluded [from heading 8471/ even though the user may be able to choose between a number of such fixed programs." Explanatory Note 84.7I(1)(A)."

    Further, reference in this regard is also drawn to the decision of the CESTAT, New Delhi in the case of Ingram Micro India Pvt. Ltd. vs. Principal Commissioner of Customs (Import), New Delhi, wherein the Hon'ble CESTAT New Delhi, while deciding the classification of Interactive Display System as an automatic data processing machine under CTH 8471. observed that for complying with the requirement for the goods being 'freely programmable', the goods should be capable of downloading, installing and executing any application/program in accordance with the needs of the user.

    In the present case, the device comes with Apple App Store, which includes and features a wide range of applications designed and built for vision OS. The user has the option to choose to install or un-install any application and access the applications of the iPhone. iPad or Mac which is synced to the device.

3.6.3 Performing arithmetical computations specified by the user:

The device meets the requirement of Note 6(A)(3). It operates on Vision OS with standard instruction sets, which enables it to perform mathematical computations specified by the user. This is evidenced by the software programs it can run at the user's request, such as the iWork spreadsheet program "Numbers" and the Microsoft equivalent "MS Excel". These applications are readily available at Apple App Store for users.

3.6.4 Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run:

Programs, on the device run from start to finish and modify their process routines automatically against the input data. The programs and applications for the device are written in a format that uses logical instructions that are executed without human intervention. One example of such process is using the e-mail application on the device where the user is notified that e-mail has arrived, which demonstrates a programming feature (mail notification) without human intervention.

    The device works on a unique dual-chip design which enables the spatial experiences on Apple Vision Pro. The powerful M2 chip simultaneously runs vision OS, executes advanced computer vision algorithms, and delivers graphics, all with incredible efficiency. The Rl chip is dedicated to process input from the cameras, sensors, and microphones, streaming images to the displays within 12 milliseconds for a virtually lag-free, real-time view of the world without human intervention.

3.7 Given that the device fulfils the requirement for an automatic data processing machine as per Note 6A. chapter notes 6(C). 6(D) and 6(E) are not applicable. Accordingly, the device shall be classified as an automatic data-processing machines under heading 8471. Herein below is the extract of heading 8471 -
 

3.8 In the present case, the device, is designed and marketed as a spatial computing device which executes advanced computer vision algorithms. The device facilitates the users to execute computer programs, browse the internet, compose e-mails, watch videos etc. and navigates through the eyes, hands, voice or virtual keyboard as input devices with a special feature of added dimensions in the vision as it blends the digital content with the physical space. Apple Vision Pro has a customized design and extends the usage and features of an iPhone, iPad and Mac and hence provides same functionality as a desktop computer or laptop. Given the above, tariff subheading 847130 is the most appropriate for Apple Vision Pro as it weighs less than 10 kg, it contains a processing unit, a virtual keyboard and a virtual display.

3.9 Further, reliance in this regard is also be placed on the Binding Tariff Information (B11) from the Office of Irish Revenue Commissioners wherein Apple Distribution International Ltd. has obtained a ruling for classification of the device, i.e., Apple Vision Pro under CTH 8471.30.0000 classifying the same as an automatic data processing machine in accordance with the Genera! Rules of Interpretation and Note 6(A) to Chapter 84.

3.10 Therefore, in view of the above and considering features of the device, the Apple Vision Pro is rightly classifiable under CTH 84713090, as an "automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included — Other".

Classification of accessories to be imported along with Apple Vision Pro as a single unit under CTH 84713090

3.11 Apple Vision Pro will be imported in a single pretty box which will contain the following accessories for exclusive use with the device under the following two supply chain models as below i.e.

3.12 The Black Law Dictionary defines the term "Accessory' as the "goods used in the operation process, marketing, or administration. They are not part of the final product." Taking this definition into consideration we can say that the above-mentioned goods are nothing but an accessory to the device as it helps in the operation of the device.

3.13 Classification of goods covered under the Customs Tariff is done as per the General Rules of Interpretation ('GRI'). Rule 1 and 2 of the GRI gives precedence to section notes/chapter notes while classifying a product and provides that classification shall be determined according to the terms of the headings and any relative section or chapter notes. Further. Rule 3 provides the principles for classification of products that are, prima facie, classifiable under two or more different CTH.

3.14 Accordingly, reference is drawn to Rule 3(b) of the GRI which reads as follows:

"3(b) Mixtures, composite goods consisting of different materials or made-up different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a). shall be classified as if they consisted of the material or component which gives them their essential character, in so far as the criterion is applicable".

Thus, as per GRI 3(b), accessories imported along with the principal product shall be classified under the same CTH as that of the principal product.

3.15 Taking note of GRI 3(b). and as discussed hereinabove it can be said that as the device is put up in a set along with its accessories as a single unit for retail sale, the whole unit as such including the accessories will be classified under the same head as that of the device which holds the essential character.

3.16 In the present case, the accessories imported by the Applicant along with the device in the pretty white box. namely the light seal, light seal cushions, dual loop band, solo knit band, battery, cover, 30W USB-C power adaptor and USB-C charge cable, are specifically designed for use with Apple Vision Pro. These products are used to enhance the user experience. The invoice for import of Apple Vision Pro along with the accessories in a single box will be under a single line of description for procurement of the device i.e., Apple Vision Pro with the complete list of contents of the box.

3.17 Thus, in the present case, the essential character of the product is that of the device i.e. Vision Pro and not the accessories. Given this and the GRI 3(b), the classification of the accessories imported along with the device shall be as per the classification of the essential/principal product, i.e.. Apple Vision Pro. Accordingly, the accessories shall also be classified under CTH 84713090.

3.18 In furtherance to the above provision, reference is also drawn to the Accessories (Condition) Rules. 1963 under Customs Act. 1962 which provides the relevant conditions of applicability of proviso (a) to Section 19 of the Customs Act, 1962 and states as below:

"Accessories of and spare parts and maintenance or repairing implements for, any article, when imported along with that article shall he chargeable at the same rate of duty as that article, if the proper officer is satisfied that in the ordinary course of trade:—

(i) such accessories, parts and implements are compulsorily supplied along with that
article; and

(ii) no separate charge is made for such supply, their price being in-cluded in the price of
the article."

3.19 In view of the above, it becomes evident that the classification of the accessories imported along with the device in a single kit, with single description will also be chargeable to the same rate of duty as that of the device because these accessories qualify the requirements of the rule which are stated herein below:

• such accessories, parts and implements are compulsorily supplied along with that article: As iterated hereinabove, the accessories listed above such as the charger, cover, seal cushion etc. will be imported along with the device in a single box.
   

• no separate charge is made for such supply, their price being in-cluded in the price of the article: To reiterate, a single price shall be charged for import of the complete unit, i.e., Apple Vision Pro along with the accessories. Thus, the price of the pretty white box imported shall be inclusive of the price of all the accessories.

    In this regard, the Applicant also submits that the price of the product imported for brick-and-mortar retail stores shall be lower than the price for the product imported for AOS sales. Reason being that few of the accessories (such as light seal, solo knit band and dual loop band) are not included in the pretty white box imported for sales through the brick- and-mortar retail store.

3.20 The applicant has also placed reliance on the judgement of Hon'ble Allahabad High Court in case of Samsung (India) Electronics Pvt. Ltd. Vs. Commissioner of Commercial Taxes U.P. l.ucknow [2018 (2) ADJ 562].

3.21 Basis the above, it is thus evident that where the accessories are imported in a single composite package along with the device for a single price (inclusive of the price of the accessories), the accessories thus imported shall be classified under the same head as that of the principal device. In the present case, the pretty white box is imported with the primary intent of the transaction being procurement of Apple Vision Pro and the accessories (as listed above) are incidental to the procurement and for exclusive use with the device. Thus. Apple Vision Pro along with accessories shall also be classified under the same CTI 84713090 as applicable to the device, i.e.. Apple Vision Pro.

Port of Import and reply from concerned jurisdictional Commissionerate

4.1 The applicant in their CAAR-I indicated that they intend to import the subject goods i.e. Apple Vision Pro along with its accessories at the jurisdiction of Office of the Commissioner of Customs, Air Cargo. Bengaluru. The application was forwarded to the Office of the Commissioner of Customs. Air Cargo, Bengaluru for their comments on 31.07.2024, 07.10.2024, 23.10.2024. 05.12.2024 & 24.12.2024.

    No response/comments has been received in this matter till now.

Details of Hearing

5.1 A hearing was held on 21.10.2024 at 03.00 PM. Shri. Gautam Khattar. Shri Anurag Sehgal and Shri J im it Gandhi, authorized representative on behalf of the applicant appeared for the hearing and reiterated the contention submitted with the application. They submitted that the subject goods i.e. Apple Vision Pro along with accessories namely dual loop band, solo knit band and light seal etc., will merit classification under CTI 84713090. In support of their claim they relied upon chapter Note 6(A) to Chapter 84 and submitted that the product Apple Vision Pro qualifies all four parameters of being an ADP machine. They submitted the index of compilation of legal provisions, case laws and US cross rulings.

    Nobody appeared on behalf of the Department for hearing.

Discussion and findings

6.1 I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework.

6.2 At the outset. I find that the issue raised in the question in the Form CAAR-I is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act.

6.3 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act. 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI. 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.
machines under

6.3.1 The Applicant submitted that Apple Vision Pro is designed to be worn on the user's head and acts as a spatial portable automatic data processing machine. The device functions as an independent spatial computing machine but can also be connected to other Apple products such as iPhone. iPad and Mac. Accordingly, the device shall be classified as an automatic data-processing
heading 8471.

6.3.2 From the submissions of the applicant, and the information available on the webpage of M/s. Apple, it appears that the subject goods, namely Apple Vision Pro, have the following features, i.e., a pair of micro- OLED displays deliver more pixels than a 4K TV, VisionOS Operating System. 8-core CPU with 4 performance cores and 4 efficiency cores. M2 Chip, Rl Processor for real-time sensor input processing, Wi-Fi connectivity. Bluetooth connectivity, 3D camera, 256 GB, 512 GB & I TB internal storage, real time sensor, among others. These devices weigh 600 to 650 grams and runs on rechargeable batteries having a battery life of 2 hours for general use. These devices can process data, execute programmes, and connect to internet via a wireless network, send/receive e-mails, upload/download files, download software applications, conduct video/VoIP {voice over Internet Protocol) communication, support game controller, among others. The device also supports the following input accessories, i.e., Keyboards, Trackpad, Game Controller and Bluetooth Mouse support for VisionOS 2. The input method for the device is hands, eyes and voice commands instead of a traditional keyboard.

6.3.3 In order to merit classification under heading 84.71, it is clear, that these devices need to satisfy the requirements of the Note 6(A) to Chapter 84. For the sake of clarity, the Chapter Note 6 to Chapter 84 is reproduced below:

"(A) For the purposes of heading 8471, the expression 'automatic data- processing machines' means machines, capable of

(J) Storing the processing program or programs and at least the data immediately necessary for the execution of the program;

(2) Being freely programmed in accordance with the requirements of the user;

(3) Performing arithmetical computations specified by the user; and

(4) Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.

(B) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units.

(C) Subject to paragraphs (D) and (E), a unit is to be regarded as being part of an automatic data processing system if it meets all of the following conditions :

(i) it is of a kind solely or principally used in an automatic data processing system;

(ii) it is connectable to the central processing unit either directly or through one or more other units; and

(iii) it is able to accept or deliver data in a form (codes or signals) which can be used by the system.

Separately presented units of an automatic data processing machine are to be classified in heading 8471.

However, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of (ii) and (iii) above, are in all cases to be classified as units of heading 8471.

(D) Heading 8471 does not cover the following when presented separately, even if they meet all of the conditions set forth in paragraph (C) :

(i) printers, copying machines, facsimile machines, whether or not combined;

(ii) apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network);

(iii) loudspeakers and microphones:

(iv) television cameras, digital cameras and video camera recorders;

(v) monitors and projectors, not incorporating television reception apparatus.

(E) Machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or. failing that, in residual headings. "

6.3.4 Therefore, there is a need to examine whether the features and specifications of the device under consideration meet the criteria as laid down in the relevant Chapter Note reproduced above. For any device to be held as an ADP and classifiable under sub-heading 847130. four essential conditions as mentioned above in Note 6(A). are required to be satisfied. Let's break down and explain each of the four conditions one by one. with clarity and detail in the context of this device:

a). Storing the processing program or programs and at least the data immediately necessary for the execution of the program: The Apple Vision Pro which integrates augmented reality (AR) and virtual reality (VR) technologies, is designed to store and execute complex processing programs for its AR and VR applications. The device comes with a storage capacity of 256 GB. 512 GB or 1 TB. an Apple M2 Chip with 8-core CPU. 10-core GPU. 16-core Neural Engine and an Apple Rl co-processor. It runs VisonOS. a sophisticated operating system that facilitates the storage and execution of programs. The programs stored within the device include those that process AR/VR content, spatial data, user interaction, etc. The device also stores data necessary for its functions, such as user preferences, environmental mapping data, sensor data, and spatial mapping data, which is essential for real-time AR experiences. This device has storage capability and can store programs which can be changed from job to job. They process data in coded form. The Apple Vision Pro meets this criterion because it stores both the processing programs and the necessary data for their execution.

b). Being freely programmed in accordance with the requirements of the user: This device is highly customizable and can be programmed to meet a wide range of user needs. The Apple Vision Pro supports the installation and execution of applications (such as YouTube. Prime. Google Chorme,etc), allowing users to tailor the device's functionality according to their specific requirements.

    The term "freely programmable' is not explicitly defined under the Customs Tariff but the reliance is placed on the decision of Ingram Micro India Private Limited Vs. Principal Commissioner of Customs (Import), New Delhi /Final Order Nos. 50076-50077 of 2022 in Appeal Nos. C/5070H-50709/202I, decided on 2-2-2022] wherein the Hon'ble CESTAT while deciding the classification of Interactive Display System as an automatic data processing machine under CTH 8471. observed that for complying with the requirement for the goods being 'freely programmable', the goods should be capable of downloading and installing new programmes in accordance with their needs and usage. The relevant para of the judgement is reproduced as under:

''19. The goods come with a pre-installed operating system, namely Android 7.0. The said Android version is a customized operating system for these IFP. Further the goods also have an OPS slot. With the use of the OPS Slot, additional hardware can he connected to the goods and the OPS Slot can also he used for installing other operating software such as Windows, etc. on the goods. Thus, the goods are machines on which the user is able to load and execute a program. In other words, the goods are capable of executing any application/program which is stored on Us memory. A user can, with the use of either Android or other operating systems, download and install new programmes in accordance with their needs and usage. Thus, goods are machines which can be freely programmed in accordance with the need of the user and hence, satisfy condition (it) of Chapter Note 5(A) to Chapter 84. "

    I also draw attention to Note 5 to Chapter 85 which stipulates that ''For the purposes of heading 85.17, the term "smartphones" means telephones for cellular networks, equipped with a mobile operating system designed to perform the functions of an automatic data processing machine such as downloading and running multiple applications simultaneously, including third-party applications, and whether or not integrating other features such as digital cameras and navigational aid systems". From the aforesaid Note, it is clear that for a device to qualify as an automatic data processing machine, it should be capable of installing and running applications based on the user's requirements.

    In the case of the Apple Vision Pro, the user, through the use of VisionOS. can download and install new programs according to their specific needs and usage. This demonstrates that the device functions as a machine that can be freely programmed in accordance with the user's requirements. Therefore, the Apple Vision Pro satisfies this condition, as it supports free programming for a wide range of uses and functions.

c). Performing arithmetical computations specified by the user: The device performs significant arithmetical computations as part of its operation. These computations include tasks such as spatial data processing. 3D rendering, tracking user movement, image recognition, and real-time environmental mapping. It processes complex visual and spatial data to create immersive AR and VR experiences. In its usage scenarios, the device needs to perform tasks such as calculating distances, angles, and other spatial and geometric computations to deliver a responsive and interactive AR/VR environment. The Apple Vision Pro certainly qualifies for this condition as it performs complex arithmetical computations as part of its core functionalities.

d). Executing, without human intervention, a processing program which requires them to modify their execution by logical decision during the processing run: This device is designed to execute programs that adapt dynamically to the user's actions and the environment. It processes input from a variety pf sensors (e.g., eye-tracking, hand gestures, spatial sensors) and uses that input to adjust its operations in real time. For example, it can change the AR content based on the user's gaze or adjust the virtual environment based on the user's location and movement. A user can give a command and the same would be executed without any further intervention of the user. The CPU along with the operating system executes the command so given by the user by taking logical decisions during the processing run. This condition is fulfilled because the device doesn't require human intervention during its operation but makes logical decisions and adjustments to the program's execution in real time, based on its sensors and the environment.

6.3.5 From the above, it can be concluded that the Apple Vision Pro is equipped with the necessary hardware, including sufficient RAM and storage, to support the storage and execution of its operating system and software programs, enabling effective data processing. The software loaded onto the device is freely programmable, allowing users to customize the functionality according to their specific requirements. The device is capable of performing the arithmetical computations as specified by the user, and its processing program enables it to modify its execution dynamically based on logical decisions during the processing run without human intervention. In light of these capabilities, the Annie Vision Pro meets all the criteria outlined in Note 6(A) of Chapter 84, thereby qualifying it as a device covered bv the definition of automatic data processing machine (ADPM).

6.3.6 Further. HSN Explanatory Notes to CTH 8471 further elucidates on what constitutes an Automatic Data Processing Machine (ADPM). The relevant portion of the Explanatory Notes are extracted below:

"(1) AUTOMATIC DATA PROCESSING MACHINES AND UNITS THEREOF

Data processing is the handling of information of all kinds, in pre-established logical sequences and for a specific purpose or purposes.

Automatic data processing machines are machines which, by logically interrelated operations performed in accordance with pre-established instructions (program), furnish data which can be used as such or. in some cases, serve in turn as data for other data processing operations.

This heading covers data processing machines in which the logical sequences of the operations can be changed from one job to another, and in -which the operation can be automatic, that is to say with no manual intervention for the duration of the task. These machines mostly use electronic signals but may also use other technologies. They may be self-contained, all the elements required for data processing being combined in the same housing, or they may be in the form of systems consisting of a variable number of separate units.

This heading also covers separately presented constituent units of automatic data processing .systems described above.

However, the heading excludes machines, instruments or apparatus incorporating or working in conjunction with: an automatic data processing machine and performing a specific function. Such machines, instruments or apparatus are classified in the headings appropriate to their respective functions or, failing that, in residual headings (See Part (E) of the General Explanatory Note to this Chapter)

(A) AUTOMATIC DATA PROCESSING MACHINES

The automatic data processing machines of this heading must be capable of fulfilling simultaneously the conditions laid down in Note 6 (A) to this Chapter. That is to say, they must be capable of:

(1) Storing the processing program or programs and at least the data immediately necessary for the execution of the program;

(2) Being freely programmed in accordance with the requirements of the user.

(3) Performing arithmetical computations specified by the user; and

(4) Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run.

Thus, machines which operate only on fixed programs, i.e.. programs which cannot be modified by the user, are excluded even user may be choose a number of such fixed programs.

These machines have storage capability and also stored programs which can be changed from job to job.

Automatic data processing machines process data in coded form. A code consists of a finite set of characters (binary code, standard six bit ISO code, etc.).
The data input is usually automatic, by the use of data media such as magnetic tapes, or by direct reading of original documents, etc. There may also be arrangements for manual input by means of keyboards or the input may be furnished directly by certain instruments (e.g., measuring instruments). The input data are converted by the input units into signals which can be used by the machine, and stored in the storage units.

Part of the data and program or programs may be temporarily stored in auxiliary storage units such as those using magnetic discs, magnetic tapes, etc. But these automatic data processing machines must have a main storage capability which is directly accessible for the execution of a particular program and which has a capacity at least sufficient to store those parts of the processing and translating programs and the data immediately necessary for the current processing run.

Automatic data processing machines may comprise in the same housing, the central processing unit, an input unit (e.g., a keyboard or a scanner) and an output unit (e.g., a visual display unit), or may consist of a number of interconnected separate units. In the latter case, the units form a "system" when it comprises at least the central processing unit, an input unit and an output unit (see Subheading Note 2 to this Chapter). The interconnections may be made by wired or wireless means. A complete automatic data processing system must comprise, at least:

(1) A central processing unit which generally incorporates the main storage, the arithmetical and logical elements and the control elements; in some cases, however, these elements may be in the form of separate units.

(2) An input unit which receives input data and converts them into signals which can be processed by the machine.

(3) An output unit which converts the signals provided by the machine into an intelligible for  (printed text, graphs, displays, etc.) or into coded data for further use (processing, control, etc.).

Two of these units (input and output units, for example) may be combined in one single unit. "
 

6.3.7 The features and specification of the aforesaid goods, also clearly show that the Apple Vision Pro consist of a powerful processor for processing the data and programs, a LED Screen, which serves as the output source, and a virtual keyboard, which acts as the source of input. Therefore, in light of the above Chapter Note and Explanatory Notes, the aforesaid goods satisfy all the conditions stipulated in Chapter Note 6(A) to Chapter 84 and Explanatory Notes to qualify as an automatic data processing machine (ADPM) covered under CTH 8471.

6.3.8 The aforementioned goods meet all the conditions outlined in Chapter Note 6(A) to Chapter 84 and the Explanatory Notes, however, the subject goods being an Automatic Data Processing Machine, alone would not entitle it being classifiable under CTH 8471, rather for it to fall under the said CTH 8471. it must not be specified elsewhere or included in the Customs Tariff. Thus, the marketing of the goods by the applicant as "Spatial Computer' in itself is not sufficient to conclusive hold the classification of the impugned goods under CTH 8471. To conclusive arrive at a decision regarding the eligibility or otherwise of the claimed classification, it is of paramount importance to ascertain whether the subject goods is a machine performing any principal function other than data processing.

6.3.9 Thus, irrespective of the fact that the impugned goods marketed by the applicant as Spatial Computer, would merit classification under Heading 8471 only if the conditions as stipulated and discussed supra are adhered to. The rules of interpretation for classification. Section Notes and Chapter Notes as specified under Customs Tariff Act 1975 are applicable for classification of the impugned goods. It would not be out of place to mention here that Chapter Note 6 (E) of Chapter 84 stipulates that machine performing a specific function other than data processing merits classification in appropriate headings /residual headings.

    Thus, any primary functionality other than data processing would disentitle the impugned goods from getting classified under heading 8471 ibid.

6.3.10 From the submissions of the applicant, and the information available on the webpage of M/s. Apple, it appears that the subject goods, namely Apple Vision Pro can process data, execute programmes, and connect to internet via a wireless network, send/receive e-mails, upload/download tiles, download software applications, browse the internet, watch videos, conduct video/VoIP {voice over Internet Protocol) communication, allow to execute programs and tasks based on voice commands through Siri. Apple's voice assistant, play games in an innovative and interactive way and others.

6.3.11 The Apple Vision Pro can perform a wide range of tasks and functions across various domains, seamlessly integrating multiple technologies into one platform. It combines elements of augmented reality (AR). virtual reality (VR). and mixed reality (MR), enabling users to interact with digital content in immersive ways. It also has the ability to transmit and receive data, whether for real-time communication, content sharing, or interaction with other smart devices in the ecosystem, communication (via voice or video calls). With its versatile capabilities, the Apple Vision Pro acts as a multifunctional device that combines entertainment, communication, immersive experience, computing, transmission of the data, gaming and productivity. Thus, this device is capable of performing multiple functions, including automatic data processing.

Analysis of alternate classification under CTH 8517

6.3.12 It is also observed that the communication is function of the subject goods i.e. Apple Vision Pro as the device is able to do voice or video calls on wireless network. The communication devices are classifiable under CTH 8517. Therefore, in respect of possible alternate heading 8517, there is a need to examine the features of these devices in the context of Chapter Note 6 (E) of Chapter 84. Heading 8517 covers "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 84.43, 85.25, 85.27 or 85.28". As the devices also have communication capabilities, including voice or video calls on wireless network, classification under heading 8517 needs to be examined.

    Chapter Note 6 (E) of Chapter 84 stipulates that machine performing a specific function other than data processing merits classification in appropriate headings /residual headings.

    In the instant case, these devices have computing and communication capabilities. However, for the product under consideration, automatic data processing appears to be the main function, while other functionalities of said machine are not different from auxiliary functions that could be seen on any computer, such as desktop or laptop computers.

    In Circular No. 20/2013- Cus, dated 14.05.2013, clarification has been given by the Board regarding the classification of "tablet computers** under heading 8471 stating that, "... The mobile phone calling function could be provided by the products only as a supplementary function because it could not be activated without running an operating system of the devices.... These devices are not intended to be a substitute for a mobile phone to make voice calls, but, according to its main technical features is designed as a substitute for laptops. The difference between a "smartphone" and "tablet computer", is not based on whether the product has a voice calling function or not, hut on the principal features that a producer has intended for the device when designing and developing it". Thus, as per the said circular, tablet computers are classifiable under heading 8471 and not under heading 8517 despite the fact that the product is having cellular connection functionality, considering its principal function as automatic data processing.

    Similarly, in this case, the principal function of the impugned device is automatic data processing and not communication. Therefore, the device does not appear to merit classification under heading 8517. as this heading primarily covers communication devices:

Analysis of alternate classification under CTH 9504

6.3.13 As per submission of the applicant and information available on the website of Apple, it is observed that the Apple Vision Pro can be used to play games. The Heading 9504 covers "Video game consoles and machines, articles for funfair, table or parlour games, including pint able, billiards, special tables for casino games and automatic bowling alley equipment''. Therefore, in respect of possible alternate heading 9504, there is a need to examine the features of this device in the context of Chapter Note 6 (E) of Chapter 84. As the device also has gaming functionality, classification under heading 9504 needs to be examined.

    HSN Explanatory Note 2 to Chapter Heading 9504 stipulates that, "video games and machines whose objective, characteristic and principal function are such that they are intended for entertainment purposes (game-playing) remain classified in this heading, whether or not they fulfil the conditions of Note 6(A) to Chapter 84 regarding automatic data processing machines."

    Further, it is necessary to examine the words "video game consoles and machines" in the proper perspective ie., in terms of Subheading Note 1 to Chapter 95 of the Customs Tariff Act, wherein the terms ''Video game consoles" and "Video game machines" have been categorically explained as under: L

"(a) Video game consoles from which the image is reproduced on a television receiver, a monitor or other external screen or surface; or

(b) Video game machines having a self-contained video screen, whether or not portable."

    From the above, it is amply clear that such 'video game consoles' and 'video game machines' alone fall under the purview of HSN Explanatory Note (2). whether or not they satisfy the conditions of Note 6(A) to Chapter 84. Thus, primarily, to fall within the ambit of the above Note, the goods necessarily have to be such video game consoles/machines as defined above. Further. Chapter Heading 9504 includes machines besides video game consoles, which can be automatic data processing machines.

    However, as per technical specification of the product, the impugned goods are neither 'video game consoles' nor 'video game machines', but are an entirely different product which, though have gaming capabilities, are also having a wide array of functionalities such as internet surfing, multimedia playing, watching videos, computing, voice calling etc.. and can be put to multiple uses.

    Considering the above information and details, the impugned goods satisfy the condition of Note 6(A) to Chapter 84 but does not fall under the purview of the Explanatory Note 2 to Chapter Heading 9504 as game consoles/game machine as they are not principally designed for entertainment purposes including playing games.

    Further. I also relied upon on the case of M/s. Asm India Private Limited vs. Commissioner of Customs, ACC, Chennai/ (2023) 11 Centax 85 (Tri.-Mad), wherein the Hon'ble CESTAT, Chennai held that the goods described as 'Computer System Desktop" has all the characteristics of personal desktop computer, though have gaming capabilities, also have computing capabilities, internet suffering, multimedia playing, editing, word processing, etc. and satisfy all the condition set forth in Note 6(A) to Chapter 84. is classifiable under CTH 8471 as an automatic data processing machine.

    Applying the above rules and rationale of the above said judgements, the impugned goods does not appear to classifiable under CTH 9504 as their objective, character and principal feature is not playing games only,

6.3.14 The Applicant submitted that the device facilitates the users to execute computer programs, browse the internet, compose emails, watch videos, play games and perform an array of other tasks. To facilitate the transmission of the information on a larger surface in the physical space, glances are used to quickly and efficiently navigate through the information through their eyes, hands, voice, or virtual keyboard as input devices with a special feature of added dimensions in the vision as it blends the digital content with the physical space.

    As per technical features and specification, the subject goods contain an operating system and same can perform logically operations with the pre-established set of instructions without human intervention. The specifications, i.e.. powerful processor and operating system for processing the data and programs and sufficient storage space for storing of programs and data also prove that these devices have all the features and functions of an automatic data processing. The subject device contains input unit, processing unit and output unit

    On careful consideration of all parameters of the case. I find that the subject goods are capable of performing plethora of functions. It can be seen from the technical features of the subject goods that it is used predominantly as an automatic data processing (AI)P) machine. In fact, communication and gaming are only auxiliary functions of the goods but same cannot construed to be its principal function.

    Thus, the subject goods haying specific function of automatic data processing, falls within the ambit of Chapter Heading 8471 as per Chapter Note 6(A) to Chapter 84 and Explanatory Notes.

6.3.15 The CBEC vide Circular No. 20/2013-Customs dated 14.05.2013 has clarified that the tablet computer has same functionality as a laptop as the same can process data, execute programs and connect to the Internet via a wireless network in order to. for example, exchange and manage e-maiIs, exchange or download files, download software applications, conduct video or VoIP communication, apart from being connected to a cellular network to make calls. In other words, automatic data processing is the main functionality, while other features are auxiliary in nature. Therefore, the tablet computer shall be classifiable under HSN 8471 30. which is the same classification used for laptops.

    In the present case, the primary functionality of the Apple Vision Pro is similar to that of a tablet or laptop, as it performs automatic data processing. Although it offers additional features like immersive AR/VR experiences, these are auxiliary features that do not change the device's core purpose as a computing device. Based on this reasoning, and in line with the CBEC Circular, the Apple Vision Pro can be considered similar to tablet computers and laptops for classification purposes.

6.3.16 I have also relied on the Advance Tariff Ruling dated 15.08.2024 (Ruling reference no. 600010679) issued to M/s. Apple Distribution International Limited, wherein the same product i.e. Apple Vision Pro. was classified under CTH 8471.30.000 as an ADPM, by the Irish Revenue Commissioners based on the General Rules of Interpretation (GIR) and Note 6(A) of Chapter 84.

    The classification of the Apple Vision Pro is further supported by the Binding Tariff Information (BTI) decision dated 11th June 2024 (reference no. IEBTIIENEN004-2024-BTI201) issued by the Classification Unit (BTI) of the Revenue Commissioners, Ireland, confirming the classification of the device under CTH 8471.30.0000 for Apple Distribution International Ltd.

    It is important to note that these rulings were issued by authorities outside India, however, it serves as a useful reference point for aligning with international classification practices and I am referring to them as a guide for determining a consistent and uniform classification globally.

6.3.17 Apple Vision Pro uses advanced 3D cameras and sensors that work in perfect sync to offer the best Spatial Computing experience. The laminated glasses in the front work as the optimal surface through which these cameras and sensors see the world around the user. This Apple headset works on visionOS - a specially designed operating system that control the entire virtual ecosystem using eye expressions, hand gestures, and voice commands. The user can view the available apps through the glasses, lay over wall or the surroundings that user are in. and operate the apps using voice commands and movements of hands and eyes.

6.3.18 As per information available on the website of LTIMindtree Limited, an Indian multinational information technology services and consulting company and subsidiary of Larsen & Toubro^ hups:/AvwuJtimindlrce.comA-window-into-the-iuturc-of-interaclions.|^ Spatial computing describes the seamless integration of digital content and the physical world, creating an immersive and interactive environment. This technology uses a combination of Augmented Reality (AR). Virtual Reality (VR). Mixed Reality (MR), and other technologies to create a spatial computing platform. Spatial computing enables the users to interact with digital content more naturally and intuitively, using gestures, voice commands, and other input forms. Spatial computing uses a 3D environment as the primary computing platform rather than the traditional 2D Graphical User Interface (GUI). This environment can be a virtual or augmented reality, where the user can interact with digital objects and information in a 3D space. It allows for natural and intuitive interaction, such as gestures, body language, and spatial awareness. These interfaces are designed to be human-like and can naturally interact with the world around them instead of using a mouse and a keyboard.

As per the research paper on "Spatial Computing: Concept, Applications. Challenges and Future Directions'* cited as arXiv:2402.07912 [cs.HC] and submitted on 30.01.2024. it is submitted that over the years. User Interfaces (UIs) have seen constant development and improvement. Command line interfaces, which have been around since the 1960s, require users to type in commands in order to interact with computers. In the 1980s. graphical user interfaces were developed to make computers more user-friendly. These interfaces used windows and icons to represent commands and data. In the 1990s. as the internet grew in popularity, web-based interfaces replaced traditional methods. Then, in the middle of the 2000s. smartphones and tablets appeared, leading to the era of touch-based interfaces and radically changing the ways in which we engage with electronic gadgets. The road map of UIs development over the years is depicted as below:

    The advancement of modern technology like AI. Internet of Things (IoT). Augmented Reality (AR). Virtual Reality (VR), and Mixed Reality (MR) is now leading us to a new generation of UIs. These modern technologies are blurring the distinetion between real and  virtual environments. This seamless and highly efficient blending of the physical environment with the digital realm creates endless possibilities for highly immersive, interactive experiences. Spatial computing is one such technology that encompasses many enabling technologies, including the loT, ambient computing. AR, VR, and AI. The term spatial computing was first coined by Simon Green wold, an MIT researcher in 2003, whereby it refers to the interaction between humans and machines, in which a machine has the ability to retain and manipulate referents to real-world objects and surroundings.

From the above, it can be safely deduced that the Apple Vision Pro. as a Spatial Computer, can indeed be considered a highly advanced technology computer because it represents a significant leap beyond traditional computing systems. Unlike traditional computers that rely on a 2D graphical user interface (GUI), the Apple Vision Pro operates within a 3D environment, immersing users in augmented or virtual reality. This allows for intuitive and natural interactions, where gestures, body movements, and eye tracking become key forms of input, eliminating the need for a mouse or keyboard. By blending the digital world with the physical, the Apple Vision Pro creates a seamless, immersive experience that adapts to the user's surroundings, offering a more human-like interface that facilitates effortless engagement with digital objects and information.

6.3.19 It is submitted that the Apple Vision Pro utilizes a 3D user interface, which can be controlled through eye movements, hand gestures, or voice commands. This differs from traditional computers, which typically use a 2D graphical interface (GUI) that relies on mouse and keyboard input. While touch screens are available on some devices, such as laptops and tablets, the interaction remains largely confined to 2D displays. However, despite these technological differences, the Apple Vision Pro should still be classified as a portable computer (automatic data processing machine), as it performs the principal function of computing and data processing.

It is observed that with advancement in the technology, the efficiency and performance of the products are bound to go up and the law requires that the tariff entries are to be interpreted in line with the technological advancement. The Hon'ble Supreme Court in the case of Collector of Customs & Central Excise v. Lekhraj Jessumal & Sons[1996 (82) E.L.T. 162 (SC)]as held that words in the traffic schedule need to be interpreted by considering the rapid development of technology as the industry cannot be static. The Hon'ble Supreme Court held as follows:

"3. The High Court in the impugned order noted that the stand of the Customs authorities was that the words "switches, miniaturised" as component parts of hearing aids should be understood to mean only those types of switches which were generally used in the manufacture of hearing aids at the lime of publication of the Import Policy for the relevant year, namely 1977, and that these words could not be said to include any other type of switch, even if such other type of switch could be used in the manufacture of hearing aids. The Division Bench observed, in our view, very rightly, that such an interpretation overlooked that industry was not static and that there was continuous technical progress therein. New processes and new methods developed from time to time and new material and components or types of components superseded others. It was unreasonable to give a static interpretation to words used in a tariff schedule ignoring the rapid march of technology. Having regard to the technical opinion that reed switches would improve the performance of hearing aids, the High Court held that reed switches were covered by the tariff entry. The High Court also noted that it was not the case of the Customs authorities that the respondent was t tying to divert the imported reed switches from the manufacture of hearing aids to another purpose.

4. We do not think that we can put it better. Progress cannot be stifled by an over-rigid interpretation of Import Policy or Customs Tariff. Both must he read as they stand on the date of importation and whatever is reasonably covered thereby must be allowed to be imported regardless of the fact that it was not in existence or even contemplated when the policy or tariff was formulated "

6.3.20 The Hon'ble High Court of Delhi in case of Vivo Mobile India Pvt. Ltd vs Customs Authority for Advance Rulings 1(2024) 25 Centax 386 (Del.)] held that function of the product is relevant for classification under Customs Tariff, not technology used in such product. The relevant para of the said judgments is as follows:

"48. We are of the opinion that, it is not the technology which is used in the product that defines the product and decides its classification under the CTH, but it is the product (which may be created using a particular technology) which decides the classification. For this reason, it is the microphone which has the technology of MEMS, which adds value to the microphone, and it is not the microphone which is adding value to the technology of MEMS. The inclusion of MEMS technology' enhances the product's function but does not change its primary identity as a microphone. "

    Applying the rationale of the above said judgements, it can be safely concluded that the Apple Vision Pro in the question is a portable computer, as it performs the essential function of computing and data processing. The product's additional features, such as the 3D User Interface, voice command, eye tracking and gestures movement etc., are nothing but technological advancement due to which the Apple Vision Pro cannot be made fall under any other tariff entry.

6.3.21 As discussed above, it is clear that the aforementioned goods, having the primary function of automatic data processing, fall within the scope of Chapter Heading 8471 (Automatic data-processing machines and units thereof magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included), in accordance with Chapter Note 6(A) to Chapter 84.

It can be observed that the aforesaid goods are automatic data processing machine, which is portable and weighing less than 10 kgs. Thus, the product falls within the scope of first single dash (-) entry 8471.30 which covers "portable automatic data processing machines, weighing not more than 10 kgs. and consisting of a central processing unit, a key board and a display'. Under the first single dash (-) entry 8471.30, there are not triple dash (-) entries available as follows:

 The first triple dash (—) entry under tariff item 84713010 refers to 'personal computers'. It is observed that personal computers, such as desktop computers, are typically designed to be placed on or under a desk. In the present case, however, the product in question is worn on the head and incorporates advanced technology, distinguishing it from a traditional personal computer. Therefore, it does not fall within the scope of CTI 84713010 (personal computer) and should instead be classified under the next triple dash (---) entry. CTI 84713090 (Others).

Thus, by virtue of GIR1, Explanatory Notes, Chapter Note 6(A) to Chapter 84, the subject goods i.e. Apple Vision Pro are classifiable under CTI 84713090 (Portable automatic data-processing machines, weighing not more than 10 kg. consisting of at least a central processing unit, a keyboard and a display-Others) of the First Schedule of Customs Tariff Act, 1975.

6.4 I note that the applicant has proposed to import Apple Vision Pro along with accessories namely battery, cover, power adaptor. USB-C Charge cable, light seal, solo knit band etc., in a single unit/package. In this regard, I note that 'The Accessories (Condition) Rules. 1963 (Notification No. 18-Customs, dated 23rd January. 1963)' provides under rule 2, "Accessories of and spare parts and maintenance or repairing implements for, any article, when imported along with that article shall be chargeable at the same rate of duty as that article, if the proper officer is satisfied that in the ordinary course of trade:

(i) such accessories, parts and implements are compulsorily supplied along with that article,and

(ii) no separate charge is made for such supply; their price being included in the price of the
article.

    Further, reliance is placed on the case of Samsung (India) Electronics Pvt. Ltd. Vs. Commissioner of Commercial Taxes U.P. Lucknow 12018 (II) G.S.T.L. 367 (All.)], wherein the Hon'ble Allahabad High Court stated that:

"37. Admittedly, the mobile phone and charger are sold as part of a composite package. The primary intent of the contract appears to be the sale of the mobile phone and the supply of the charger at best collateral or connected to the sale of the mobile phone. The predominant and paramount intent of the transaction must be recognized to be the sale of the mobile phone. In the case of transactions of the commodity in question, the Court must also bear in mind that a charger can possibly be purchased separately also. However, in case it is placed in a single retail package along with the mobile phone, the primary intent is the purchase of the mobile phone. The supply of the charger is clearly only incidental. In any view of the matter, there does not appear to be any separate or distinct intent to sell the charger. Regard must also be had to the fact that the Court is considering the case of a composite package, which bears a singular MRP. The charger is admittedly neither classified nor priced separately on the package. It is also not invoiced separately. The MRP is of the composite package. The respondents therefore cannot be permitted to split the value of the commodities contained therein and tax them separately. This especially when one bears in mind that entry 28 itself correlates the article to the MRP."

    I note that the applicant has stated that the accessories, including the charger, cover, seal cushion, etc., will be imported together with the device in a single package, and no separate charge will be made for these accessories, as their cost is included in the price of the main article. A single price will be charged for the import of the complete unit, which includes the Apple Vision Pro and its accessories.

    In light of the reasoning provided in the aforementioned judgments and in accordance with the 'Accessories (Condition) Rules. 1963'. I am of the view that there is no doubt that the Apple Vision Pro, along with its standard accessories, when presented together as a single unit, should be classified with the device i.e.. under CTI 84713090 of the First Schedule of Customs Tariff Act. 1975.

7. In view of the above discussions and findings. 1 reach to conclusion that the goods i.e. Apple Vision Pro along with accessories as a single unit merit classification under CTH 8471 (Automatic data-processing machines and units thereof] magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included), more specifically under CTI 84713090 (Portable automatic data-processing machines, weighing not more than 10 kg. consisting of at least a central processing unit, a keyboard and a display-Others) of the First Schedule of Customs Tariff Act. 1975.

8. I rule Accordingly.

(Prabhat K. Rameshwaram)         
Customs Authority for Advance Rulings.
Mumbai.                     

F. No. CAAR/CUS/APPL/95/2024-O/o Commr-CAAR-Mumbai            Dated :27-01-2025

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

1. M/s. Apple India Private Limited
13^th Floor, Prestige Minsk Square,
Municipal No. 6, Cubbon Road,
Bengaluru, Karnataka-560 001.
Emai 1: raghunathl869@apple.com

2. The Principal Commissioner of Customs,
Airport & Air Cargo Complex,
AIR SATS, Air Freight Terminal,
Kempegowda, Bengaluru- 560300
Email- commrapace-cusb1r@nic.in

3. The Customs Authority for Advance Rulings,
Room No. 24. New Customs House,
Near IGI Airport. New Delhi-110037.
Email: cus-advrulings.del@gov.in

4. The Principal Chief Commissioner of Customs, Mumbai Customs Zone-I, Ballard Estate, Mumbai -400001.
Email: ccu-cusmum1@nic.in

5. The Commissioner (Legal), CBIC Offices,
LegaI/CX.8A, Cell, 5th floor, Hudco Vishala Building.
C-Wing, Bhikaji Cama Place, R. K. Puram, New Delhi - 110066.
 Email: commr.1egal-cbee@nic.in

6. The Member (Customs), Central Boards of Indirect Taxes & Customs, North Block, New Delhi-110001 ..Email: mem.cus-cbec@nic.in

7. The Webmaster, Central Boards of Indirect Taxes & Customs. Email: webmaster.cbecc@icegate.gov.in

8.Guard file.

(Vivek Dwivedi)           
Dy. Commissioner & Secretary
Customs Authority for Advance Rulings.
Mumbai