2025(01)LCX0259(AAR)

Clarion India Private Limited

decided on 24-01-2025

CUSTOMS AUTHORITY FOR ADVANCE RULINGS
O/o THE CHIEF COMMISSIONER OF CUSTOMS
NEW CUSTOM HOUSE, NEAR IGI AIRPORT, NEW DELHI-110037

[Email:cus-advrulings.del@gov.in]
DIN-20250174OR0000222D81

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

F. No. VIII/CAAR/Delhi/Clarion/144/2024

The day of 24^th January, 2025

Ruling No. CAAR/Del/Clarion/19/2025/2508 to 2514/24/01/2025

In application No. 127/2024     dated 24.09.2024

Ruling

M/s Clarion India Private Limited ('Applicant') is a private limited company incorporated in the year 2013-2014 under Companies Act, 1956. The Applicant is engaged in the manufacture and supply of audio systems for motor vehicles. The Applicant is proposing to import the LCD Panel (Part No. ETD000C00). Touch Screen (Part No. ETT000H00) and Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900).

Details of the LCD Panel (Part No. ETD000C00)

1.1. LCD is a thin flat display device made up of thin crystals. This product is a display module with a screen, which uses the LCD technology to display the relevant information. The information to be displayed on the LCD Panel includes information regarding navigation, cabin temperature controls, and music or entertainment information etc. It is relevant to note that throughout this Application, the terms "LCD Module" and 1;LCD Panel" are interchangeably used.

1.2. This product is used in the infotainment system of motor vehicles. This product contains a control circuit. This product does not have the IC decoder option to decode the encoded video signal. This product does not have the radio or FM functionality or navigation functionality.

1.3. The LCD panel so imported will be further assembled in India with other components, such as, Plastic front panel, Touch panel & LCD bracket to make sub assembly which then assembled with silver box into a fully finished Car Audio System (The LCD hence assembled can't be removed from the FG part) which will be supplied to original equipment manufacturers for fitting in motor-vehicles. The said Car Audio System (also known as an infotainment system) is classified under Tariff Item 85272900 by the Applicant.

Details of the Touch Screen (Part No. ETT000H00)

1.4. This product is a capacitive touch screen that enables a user to interact directly with what is displayed. A capacitive touch screen consists of two transparent flexible PET films coated with Indium Tin Oxide (ITO) separated by an air gap.

1.5. When the audio system is powered on, an electric field generates on the surface of the top panel. When any conductive object such as human finger touches the surface of the panel, the top layer is pressed down to contact the lower layer. This causes voltage change as the electric field gets disturbed. This information goes to a System-On-Chip ("SOC") on the printed circuit board. Based on the X, Y coordinate that was disturbed, the SOC processes the function already programmed for the X-Y position value and gives appropriate input to the LCD.

1.6. The exploded view of the assembled Car Audio System is shown below, wherein the Touch Panel is situated at Sr. No. 2 of the Exploded View, while the LCD is situated at Sr. No. 4 of the same:

Details of the Printed Circuit Boards (Part Nos. 039555100. 039555000 and 039554900)

1.7. A printed circuit board is a non-conductive material with conductive lines printed or etched. The said boards are used to mount electronic components and the traces or the conductive lines connect the components together to form a working circuit or assembly.

1.8. In the present case, the Printed Circuit Boards (hereinafter referred to as "PCBs") under consideration do not have components mounted on them at the time of import. After import of the said PCBs. the electronic components are mounted on the surface of the PCBs. In other words, the PCBs in question are not populated PCBs. Hence, there is no element on the PCBs which can produce, rectify, modulate or amplify an electrical signal.

1.9. The aforesaid PCBs under consideration act as the copper interconnection between different semi-conductor chips which are ultimately used in the infotainment system of a motor vehicle. While Part No. 039554900 contains six copper layers, Part Nos. 039555100 and 039555000 contain two copper layers.

1.10. Pictures of the PCBs under consideration at the time of import are given below:

Picture of Part No. 039555100:

Picture of Part No. 039555000

Picture of Part No. 039554900

1.11. The PCBs under consideration are imported from China. The country of origin of the said PCBs is China. The supplier for the said PCBs is Jiangxi Kinwong Precision Circuit Co. Ltd.

CLASSIFICATION OF LCD PANEL IN QUESTION IN THE PRESENT APPLICATION.

a. The LCD Panel (Part No. ETDOOOCOO) in question satisfies the criteria under Heading 85.24 to be regarded as a Flat Panel Display Module.

1.12. The present application is inter-alia concerned with the appropriate classification of LCD Panel. Heading 85.24 of the First Schedule to the Tariff covers "Flat panel display modules, whether or not incorporating touch-sensitive screens".

1.13. The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (hereinafter referred to as "HSN") issued by the World Customs Organization (hereinafter referred to as "WCO"). The HSN Explanatory Notes released by the WCO aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. It has been held so by the Hon'ble Supreme Court in the case of CC Vs. Business Forms - 2002 (142) ELT 18 (SC)

1.14. The classification of the goods under the Tariff is governed by the principles as enumerated in the General Rules of Interpretation ('GRI') set out in the Tariff.

1.15. As per Rule 1 of the GRI, classification of the products 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 remaining Rules of the GRI.

The product in question is a Flat Panel Display Module and is specifically covered under the Heading 85.24.

1.16. Heading 85.24, inter alia, covers 'Flat Panel Display Modules, Whether or Not Incorporating
Touch-Sensitive Screens'. The relevant entries of Heading 85.24 are extracted below:

1.17. To qualify as a Flat Panel Display Module, the goods have to satisfy all the conditions mentioned in Note 7 to Chapter 85. The term "flat panel display modules" is defined in Chapter Note 7 to Chapter 85 as follows:

"devices or apparatus for the display of information, equipped at a minimum with a display screen, which are designed to be incorporated into articles of other headings prior to use.... Flat panel display modules may incorporate additional elements, including those necessary for receiving video signals and the allocation of those signals to pixels on the display. However, heading 8524 does not include display modules which are equipped with components for converting video signals (e.g., a scaler IC, decoder IC or application processer) or have otherwise assumed the character of goods of other headings"

1.18. From the aforesaid extract, it can be observed that for a product to be classifiable as a flat panel
display module, the said product should satisfy the following conditions:

i) The product should be equipped with a display screen,

ii) The product should be designed to be incorporated into articles of other headings prior to use,

iii) The products does not include display modules which are equipped with components for converting video signals,

iv) The products should not have otherwise assumed the character of goods of other headings.

1.19. Additionally, the HSN Explanatory Notes of Customs Tariff Heading (hereinafter referred to as "CTH") 8524 elaborate upon the scope of the said Heading. The said Explanatory Notes state that flat panel display modules designed to be attached to or incorporated in motor vehicles can be classified under CTH 8524. Further, the Explanatory Notes specify that the flat panel display modules that are not integrated into other apparatus and presented separately are classified in this heading rather than the heading in which the finished products with flat panel display modules are classified. The relevant portion of the same is reproduced below:

"This heading covers flat panel display modules, whether or not incorporating touch-sensitive screens, which are defined in Note 7 to this Chapter.

The articles of this heading are equipped at a minimum with a display screen utilising liquid crystal display (LCD),...... or other display technologies....

This heading includes:
(1)Flat panel display modules without drivers or control circuits, which are generally referred to as 'cells'. In the case of LCD cells, liquid crystals are placed between two sheets or plates of glass or platsics such as TFT substrates and colour filter substrates.... Those cells do not contain electrical parts such as drivers or control circuits, whether or not fitted with electrical connections or attached with polarizing plates.

The articles of this heading are designed to be attached to or incorporated in a wide range of apparatus (e.g., refrigerators, automatic data processing machines, mobile phones and devices for transmission or reception of images or data, digital cameras and video camera recorders, monitors and reception apparatus for television and motor vehicles for the transport of persons)
However, flat panel display modules that are not integrated into other apparatus and presented separately are classified in this heading rather than the heading in which the finished products with flat panel display modules are classified."

1.20. From the above, it can be stated that a flat panel display module for motor vehicles (which is not integrated with other apparatus) would be classifiable under CTH 8524, rather than as a part of the finished product.

1.21. In the present case, the LCD Panel satisfies the aforesaid conditions and hence, can be said to be flat panel display module due to the following reasons:

i) The product is equipped with a display screen, and it utilises LCD technology to show the relevant information on the screen.

ii) The product is designed to be incorporated into an infotainment system of motor vehicles prior to its use.

iii) The product does not include any components for converting video signals.

iv) The product is not specifically covered under any other heading.

1.22. In view of the above, it can be stated that the LCD panel comes within the ambit of the definition of 'flat panel display modules'.

1.23. Herein, it is relevant to note that Chapter Note 7 also provides that, "For the classification of flat panel display modules defined in this Note. Heading 8524 shall take precedence over any other heading in the Nomenclature.".

1.24. Therefore, it can be stated that CTH 8524 will have an overriding effect on other headings in the Nomenclature for the classification of flat panel display modules. In the present case, as the LCD screen is a flat panel display module, the same will be appropriately classifiable under CTH 8524.

1.25. Since this product is a flat panel display module made up of liquid crystals with control circuits, it would be appropriately classifiable under CTH 8524 91. At the eight-digit level, the sub-headings under CTH 8524 91 pertain to products used with the goods of CTH 8471 or CTH 8517 or CTH 8528. As this product is not used with the goods of the said Headings, it would be appropriately classifiable under the residuary entry of CTH 8524 91, i.e., Tariff Item 8524 91 90.

b. Without prejudice to the above, the LCD Panel (Part No. ETD000C00) can be classified under CTH 85.29.

1.26. As the touch screen is a type of electronic product, the same would be appropriately classifiable under Chapter 85, which deals with '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'.

1.27. Section Note 2 of Section XVI which specifies the rules to be followed for classification of parts of articles of this Section. In accordance with Section Note 2(a) of Section XVI, parts which are specifically included in any of the headings of Chapter 85 will be classified therein, except for the specified headings. Thereafter, if a part cannot be classified as per Section Note 2(a), then the same would be correctly classifiable as a part of an article of Chapter 85, as per Section Note 2(b). The said Note states as follows:

"2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules :
(a) parts which are goods included in any of the headings of Chapter 84 or 85
(other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503. 8522, 8529, 8538 and
8548) are in all cases to be classified in their respective headings;

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431,8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529;

1.28. Applying Section Note 2(a) to the present case, it can be observed that there is no specific heading for classification of LCD panels under Chapter 85, if the same cannot be classified as a 'Flat Panel Display Module' under CTH 8524. Therefore, the classification of the LCD Panel in question is outside the ambit of Section Note 2(a) and will have to be done in accordance with Section Note 2(b).

1.29. As given above, the LCD Panel in the present case is an identifiable part of the infotainment system, which is classified under CTH 8527 by the Applicant.

1.30. The relevant portion of Section Note 2(b) states that parts of articles of CTH 8524 will be appropriately classifiable under CTH 8529. There is no specific heading for touch screens under CTH 8529. Therefore, touch screens will be correctly classifiable under the residuary entry of CTH 8529, i.e., Tariff Item 85299090. The relevant portion of the said Heading is reproduced hereunder for the sake of ready reference:

1.31. In view of the above discussion, it can be concluded that the Touch Screen (Part No. ETT000H00) is correctly classifiable under Tariff Item 8529 90 90.

c. Without prejudice to the foregoing submissions, the LCD Panel is classifiable under CTH 85.43.

1.32. Without prejudice to the above, the Applicant submits that the LCD Panel can be classified under CTH 85.43 which covers 'Electrical Machines and Apparatus having individual functions', which are not included elsewhere in Chapter 85.

1.33. As given above, the LCD Panel is an identifiable part of the infotainment system. If the infotainment system is correctly classifiable under CTH 8543, then the LCD Panel would be correctly classifiable as a part of the infotainment system.

1.34. Parts of products of CTH 8543 are classifiable under Tariff Item 8543 90 00. The relevant portion of the said Heading is reproduced below for the sake of ready reference:

1.35. In view of the above, it is submitted that the LCD Panel being a part of the infotainment system is correctly classifiable under Tariff Item 8543 90 00.

1. CLASSIFICATION OF TOUCH SCREEN (PART NO. ETT000H0O) IN QUESTION IN THE PRESENT APPLICATION.

1.36. The Applicant submits that the Touch Screen in question in the present application are classifiable
under Heading 85.29 of the Tariff as "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528". Without prejudice to the above, this product would be correctly classifiable under Heading 85.37 of the Tariff.

The Touch Screen in question satisfies the criteria under Heading 85.29 to be regarded as "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528".

1.37. The present application is concerned with the classification to be adopted by the Applicant for the
Touch Screen under Heading 85.29 of the First Schedule to the Tariff which covers "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528".

The product in question is specifically covered under the Heading 85.29.

1.38. As given above, the touch screen is to be attached to the LCD panel (which is a flat panel display module) and is to be used in the infotainment system of a motor vehicle. As the touch screen is a type of electronic product, the same would be appropriately classifiable under Chapter 85, which deals with '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'.

1.39. Herein, it is relevant to mention that Heading 8524 states as follows: 'FLAT PANEL DISPLAY MODULES, WHETHER OR NOT INCORPORATING TOUCH-SENSITIVE SCREENS'. From the said Heading, it can be observed that touch sensitive screens are an identifiable part of the flat panel display modules. In this regard, reference can also be made to HSN Explanatory Notes of CTH 8524. The relevant portion of the same is reproduced below:

This heading includes:
(1)...
(2)...
(3) Flat panel display modules with touch-sensitive screens: Touch-sensitive screens are attached to the flat panel display modules or embedded in the cell. They allow input as well as output (display) of information such as images.

1.40. From the above, it can be inferred that touch sensitive screens, which are to be incorporated with flat panel display modules, are an identifiable part of the same. Hence, the same should be classified as a part of articles of CTH 8524. In the present case as well, since the touch screen is to be incorporated with the LCD panel, the same would be classifiable as a part of the LCD panel.

1.41. For classifying parts of articles of CTH 8524, it is relevant to refer to Section Note 2 of Section XVI, which specifies the rules to be followed for classification of parts of articles of this Section. The said Note states as follows

"2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules :
(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings:

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529,"

1.42. From a bare perusal of the above, it can be stated that in accordance with Section Note 2(a), parts which are specifically included in any of the headings of Chapter 85 will be classified therein, except for the specified headings. Thereafter, if a part cannot be classified as per Section note 2(a), then the same would be correctly classifiable as a part of an article of Chapter 85, as per Section Note 2(b). Section Note 2(b) has specified that parts of CTH 8524 would be classified under CTH 8529.

1.43. Applying Section Note 2(a) to the present case, it can be observed that there is no specific heading for classification of touch screens under Chapter 85. Therefore, the classification of the touch screen in question is outside the ambit of Section Note 2(a) and will have to be done in accordance with Section Note 2(b).

1.44. As given above, the touch screen in the present case is an identifiable part of the LCD panel, which is correctly classifiable under CTH 8524. The relevant portion of Section Note 2(b) states that parts of articles of CTH 8524 will be appropriately classifiable under CTH 8529. There is no specific heading for touch screens under CTH 8529. Therefore, touch screens will be correctly classifiable under the residuary entry of CTH 8529. i.e., Tariff Item 85299090. The relevant portion of the said Heading is reproduced hereunder for the sake of ready reference:

1.45. In view of the above discussion, it is submitted that the touch Screen is correctly classifiable under Tariff Item 8529 90 90.

Without prejudice to the above, the Touch Screen is correctly classifiable under CTH 8537

1.46. The Harmonized System Committee (hereinafter referred to as "the Committee") in its 52^nd Session dealt with the classification of a transparent resistive touch screen that can be used with a variety of apparatus incorporating a display, such as automated teller machines (ATMs), KIOSKs, point-of-sale/service (POSs) terminals, monitors and automatic data processing (ADP) machines. The Committee had noted that the said touch screen consists of "two thin transparent indium tin oxide (ITO) conductive layers separated by dot spacers and electric bus bars, which are laminated with a top layer of protective film of plastics and bottom layer of protective glass, and fitted with a flexible connector tail." Further, the Committee had noted the working of the said touch screen in the following words:

When the two ITO conductive layers are connected at the touch point by external force, it causes a voltage change.
Resistive touch controller converts the voltage change to X-Y position value and sends the proper signal to the touch screen's applied device, recognizing the touch location. The touch screen can detect touch events by any object, including a human finger or a stylus, but it has no displaying capabilities itself."

1.47. After considering the aforesaid features of the product, the HS Committee held that classification for the 'transparent resistive touch screen' would be under CTH 8537 10 by virtue of Section Note 2(a) of Section XVI. The relevant portion of the said heading is reproduced hereunder for the sake of ready reference:

1.48. By placing reliance on the aforesaid case, the Applicant submits that the Touch Screen under consideration in the present Application is correctly classifiable under Tariff Item 8537 10 00.

CLASSIFICATION OF PRINTED CIRCUIT BOARDS (PART NOS. 039555100, 039555000 AND 039554900) IN QUESTION IN THE PRESENT APPLICATION.

a. The Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question satisfy the criteria under Heading 85.34 to be regarded as Printed Circuits.

1.49. The present application is concerned with the classification to be adopted by the Applicant for the
PCBs in question. In this regard, it is relevant to refer to Heading 85.34 of the First Schedule to the Tariff which covers "Printed Circuits".

The PCBs in Question are specifically covered under Heading 85.34.

1.50. The PCBs in question are made up of a non-conductive material with conductive lines printed or etched. After being imported into India, the PCBs will be used to mount electronic components. The traces or the conductive lines on the PCBs will be used to connect the components together to form a working circuit or assembly. As the PCB is a type of electronic product, the same would be appropriately classifiable under Chapter 85, which deals with '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'.

1.51. As submitted above, it is reiterated that Section Note 2(a) of Section XVI, parts which are specifically included in any of the headings of Chapter 85 will be classified therein, except for the specified headings.

1.52. Heading 85.34, inter alia, covers "Printed Circuits". The relevant entry of the said Heading is reproduced below:

1.53. To qualify as a Printed Circuit, the goods have to satisfy all the conditions mentioned in Note 8 to Chapter 85. The term "printed circuits" is defined in the said Chapter Note as follows:

8. For the purposes of headings 8534, "printed circuit" are circuits obtained by forming on an insulating base, by any printing process (for example, embossing, plating-up, etching) or by the "film circuit" technique, conductor elements, contacts or other printed components (for example, inductances, resistors, capacitors) alone or interconnected according to a pre- established pattern, other than elements which can produce, rectify, modulate or amplify an electrical signal (for example, semi-conductor elements).

The expression "printed circuits" does not cover circuits combined with elements other than those obtained during the printing process, nor does it cover individual, discreet resistors, capacitors or inductances. Printed circuits may, however, be fitted with non-printed connecting elements.

Thin-or thick-film circuits comprising passive and active elements obtained during the same technological process are to be classified in heading 8542.

1.54. Additionally, the HSN Explanatory Notes of CTH 8534 elaborate upon the scope of the said Heading. The relevant portion of the said Explanatory Notes is extracted below: '

'85.34 - Printed Circuits

In accordance with the Note 8 to this Chapter this heading covers the circuits which are made by forming on an insulating base, by any printing process (conventional printing or embossing, plating-up, etching, etc), conductor elements (wiring), contacts or the other printed components such as inductances, resistors and capacitors ('passive" elements), other than elements which can produce, rectify , detect, modulate or amplify electric signals , such as diodes, triodes or other "active" elements. Some basic or "blank" circuits may comprise only printed conductor elements and generally consisting of thin uniform strips or wafers with, if appropriate, connectors or contact devices. Others combine several of the above elements according to a pre-established pattern

Printed circuits may be provided with holes or fitted with non-printed connecting elements either for mounting mechanical elements or for the connection of electrical components not obtained during the printing process....

Individual passive components such as inductances, capacitors and resistors obtained by any printing process are not regarded as printed circuits of this heading but are classifiable in their own appropriate headings (e.g., heading 85.04, 85.16, 85.32 or 85.33).

Circuits on which mechanical elements or electrical components have been mounted or connected are not regarded as printed circuits withing the meaning of this heading. They generally fall to be classified in accordance with Note 2 to Section XVI or Note 2 to Chapter 90, as the case maybe."

1.55. On a conjoint reading of the aforesaid HSN Explanatory Notes and Chapter Note 8 of Chapter 85, it can be observed that for a product to be classifiable as a printed circuit, the said product should satisfy the following conditions:

i) The circuits should be obtained by forming conductor elements, contacts or other printed components according to a pre- established pattern on an insulating base by any printing process;

ii) There should not be any element on the circuit which can produce, rectify, modulate or amplify an electrical signal (for example, semi-conductor elements).

iii) The circuit board should not be populated (i.e., there should not be circuits combined with elements other than those obtained during the printing process).

iv) Mere individual, discreet resistors, capacitors or inductances cannot be considered as a "Printed Circuit".

1.56. In the present case, the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question satisfy the aforesaid conditions and hence, can be said to be "Printed Circuits" in terms of CTH 8534 due to the following reasons:

i) The PCBs in question are obtained by forming printed components according to a pre-established pattern on an insulating base (i.e.. FR4 which is used a laminate) by a printing process:

ii) There is no mounting in the as is imported PCBs, There is no semi-conductor elements or any element on the PCBs in question which can produce, rectify, modulate or amplify an electrical signal.

iii) The PCBs in question are not populated (i.e., the PCBs do not have any elements other than those obtained during the printing process).

iv) The PCBs in question are not resistors, capacitors or inductances. Hence, they are not excluded from the ambit of CTH 8534.

1.57. In view of the above, it can be stated that the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question come within the ambit of "Printed Circuits" and hence, are correctly classifiable under tariff entry 8534 00 00.

APPLICABILITY OF ANTI-DUMPING DUTY ON PRINTED CIRCUIT BOARDS (PART NOS. 039555100, 039555000 AND 039554900) IN QUESTION IN THE PRESENT APPLICATION.

1.58. Anti-dumping duty on Printed Circuit Boards (PCB) imported from China PR and Hong Kong has been levied vide Notification No. 03/2024-Customs (ADD) dated 14.03.2024 (hereinafter referred to as 'ADD Notification") pursuant to the final findings of the Directorate General of Trade Remedies (hereinafter referred to as "DGTR") (published vide Notification No. 6/16/2022-DGTR dated29.12.2023). The said ADD Notification is applicable for a period of five years from the date of publication of this notification in the Official Gazette, i.e., from 14.03.2024 till 14.03.2029.

1.59. In the present case, the PCBs under consideration are imported from Jiangxi Kinwong Precision Circuit Co. Ltd., who is the producer of the said goods. Sr. No. 5 of the Table of the aforesaid ADD Notification has prescribed that anti-dumping duty of 14.78% would be leviable on goods which are produced by Jiangxi Kinwong Precision Circuit Co. Ltd. The relevant portion of the said Notification is reproduced hereunder:

"Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9 A of the Customs Tariff Act read with rules 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Antidumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under sub heading or tariff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entries in column (2), originating in the countries as specified in the corresponding entries in column (4), exported from the countries as specified in the corresponding entries in column (5), produced by the producers as specified in the corresponding entries in column (6), and imported into India, an anti-dumping duty as a percentage of the CIF value of the subject goods as specified in the corresponding entries in column (7), of the said Table, namely.-

TABLE

SI. No.	Sub -Heading ; or Tariff Item	Description of Goods	Country of Origin	Country of Export	Producer	Duty as % of
1	85340000	Printed : Circuit Boards (PCBs)*	China PR	Any country including China PR	Ji'an Shengyi Electronics Co.. Ltd.	Nil
					Shengyi Electronics Co., Ltd.
5	-do-	-do-	China PR	Any country including China PR	Shenzhen Kinwong Electronic Co.. Ltd.	14.78%
					Jiangxi Kinwong Precision Circuit Co., Ltd.
					Kinwong Electronic Technology (Longchuan)Co.. Ltd.
					Kinwong Electronic Technology (Zhuhai) Co., Ltd.

60. Further, certain types of PCBs are excluded from the ambit of the products under consideration the ADD Notification. The relevant extract of the ADD Notification regarding the same is as follows:

    "* The following PCBs are excluded from the scope of the product under consideration: -

i. PCBs with more than 6 layers.

ii. PCBs for use in mobile phone applications

iii. Populated printed circuit boards of all sizes

iv. PCBs with embedded copper coin...

v. Inlay PCB....

vi. Plated Over Filled Via (POFV) PCB or Via-in-Pad PCS...

vii. High Density Interconnect (HDI) PCB...

viii. Rigid-flex PCBs...

ix. Packaging substrates/IC packaging..."

1.61. In the present case, the PCBs in question are six layered or two layered PCBs. They do not contain more than six layers. The PCBs in question are also not populated and are not for use in mobile phone applications. The said PCBs are not embedded with copper coin, and are not in the nature of Inlay PCB, POFV PCB, HDI PCB, rigid-flex PCB, or packaging substrate/IC packaging. Hence, the PCBs in question are not excluded from the ambit of the ADD Notification.

1.62. In view of the above, it can be stated that the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question come within the ambit of Sr. No. 5 of the Table of the ADD Notification. Hence, anti-dumping duty would be applicable on imports of the said PCBs at the rate of 14.78% in terms of the AA Notification till 14.03.2029.

ISSUES REQUIRING ADVANCE RULING AND APPLICANT'S UNDERSTANDING

1.63. In light of the aforementioned submissions, the Applicant's interpretation of the questions raised
will be as under:

(a) Question 1: What would be the correct classification of the LCD Panel (Part No. ETD000C00) under the First Schedule to the Tariff'?

Applicant's Understanding: The LCD Panel (Part No. ETD000C00) would be correctly classifiable under Tariff Item 8524 91 90. Without prejudice, the LCD Panel (Part No. ETD000C00) would be correctly classifiable under Tariff Item 8529 90 90 or under Tariff Item 8543 90 00.

(b) Question 2: What would be the correct classification of the Touch Screen (Part No.
ETT000H00) under the First Schedule to the Tariff?

Applicant's Understanding: The Touch Screen (Part No. ETT000H00) would be correctly classifiable under Tariff Item 8529 90 90. Without prejudice, the Touch Screen (Part No. ETT000H00) would be correctly classifiable under Tariff Item 8537 10 00.

(c) Question 3: What would be the correct classification of Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) under the First Schedule to the Tariff?

Applicant's Understanding: The Printed Circuit Boards (Part Nos. 039555100. 039555000 and 039554900) would be correctly classifiable under Tariff Item 8534 00 00.

(d) Question 4: Whether any anti-dumping duty would be leviable on the proposed import of Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900)? If applicable, what would be the rate of the said anti-dumping duty?

Applicant's Understanding: Anti-dumping duty at the rate of 14.78% would be leviable on the proposed import of the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in terms of Sr. No. 5 of the Table of the Notification No. 03/2024-Customs (ADD) dated 14.03.2024.
 

Comments of the Port Commissionerate

The concerned port Commissionerate has participated in the hearing and submitted that a written reply will be submitted, however, the Port supports the arguments made by the applicant.

Personal Hearing

3. The personal hearing in the matter was conducted on 23.01 2025 wherein the port authorities and the authorized representative of the applicant attended the same. During the persona! hearing, the authorized representative reaffirmed the points that had already been presented in the applicant's initial submission. Likewise, the port authorities participated in the hearing and supported the arguments put forth by the applicant.

Analysis and Conclusion

5. This product is used in the infotainment system of motor vehicles. This product contains a control circuit. This product does not have the IC decoder option to decode the encoded video signal. This product does not have the radio or FM functionality or navigation functionality. The LCD panel so imported will be further assembled in India with other components, such as. Plastic front panel , Touch panel & LCD bracket to make sub assembly which then assembled with silver box into a fully finished Car Audio System (The LCD hence assembled can't be removed from the FG part) which will be supplied to original equipment manufacturers for fitting in motor-vehicles. The said Car Audio System (also known as an infotainment system) is classified under Tariff Item 85272900 by the Applicant.

CLASSIFICATION OF LCD PANEL IN QUESTION IN THE PRESENT APPLICATION:

5.1 The LCD Panel (Part No. ETD000C00) in question satisfies the criteria under Heading 85.24 to be regarded as a Flat Panel Display Module. The present application is inter-alia concerned with the appropriate classification of LCD Panel. Heading 85.24 of the First Schedule to the Tariff covers "Flat panel display modules, whether or not incorporating touch-sensitive screens".

5.2 The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (hereinafter referred to as "HSN") issued by the World Customs Organization (hereinafter referred to as "WCO"). The HSN Explanatory Notes released by the WCO aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. It has been held so by the Hon'ble Supreme Court in the case of CC Vs. Business Forms - 2002 (142) ELT 18 (SC).

5.3 The classification of the goods under the Tariff is governed by the principles as enumerated in the General Rules of Interpretation ('GRI') set out in the Tariff. As per Rule 1 of the GRI. classification of the products 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 remaining Rules of the GRI. The product in question is a Flat Panel Display Module and is specifically covered under the Heading 85.24.

5.4 Heading 85.24, inter alia, covers Flat Panel Display Modules, Whether or Not Incorporating Touch-Sensitive Screen'. The relevant entries of Heading 85.24 are extracted below:

5.5 To qualify as a Flat Panel Display Module, the goods have to satisfy all the conditions mentioned in Note 7 to Chapter 85. The term "flat panel display modules" is defined in Chapter Note 7 to Chapter 85 as follows:

"devices or apparatus for the display of information, equipped at a minimum with a display screen, which are designed to be incorporated into articles of other headings prior to use... Flat panel display modules may incorporate additional elements, including
those necessary for receiving video signals and the allocation of those signals to pixels on the display However, heading 8524 does not include display modules which are equipped with components for converting video signals (e.g., a scaler IC, decoder IC or application processer) or have otherwise assumed the character of goods of other headings"

5.6 From the aforesaid extract, it can be observed that for a product to be classifiable as a flat panel display module, the said product should satisfy the following conditions: i) The product should be equipped with a display screen; ii) The product should be designed to be incorporated into articles of other headings prior to use; iii) The products does not include display modules which are equipped with components for converting video signals; iv) The products should not have otherwise assumed the character of goods of other headings.

5.7 Additionally, the HSN Explanatory Notes of Customs Tariff Heading (hereinafter referred to as "CTH") 8524 elaborate upon the scope of the said Heading. The said Explanatory Notes state that flat panel display modules designed to be attached to or incorporated in motor vehicles can be classified under CTH 8524. Further, the Explanatory Notes specify that the flat panel display modules that are not integrated into other apparatus and presented separately are classified in this heading rather than the heading in which the finished products with flat panel display modules are classified. The relevant portion of the same is reproduced below:

"This heading covers flat panel display modules, whether or not incorporating touch-sensitive screens, which are defined in Note 7 to this Chapter.

The articles of this heading are equipped at a minimum with a display screen utilising liquid crystal display (LCD),.... or other display technologies....

This heading includes:
(1)Flat panel display modules without drivers or control circuits, which are generally referred to as 'cells'. In the case of LCD cells, liquid crystals are placed between two sheets or plates of glass or platsics such as TFT substrates and colour filter substrates.... Those cells do not contain electrical parts such as drivers or control circuits, whether or not fitted with electrical connections or attached with polarizing plates.

The articles of this heading are designed to be attached to or incorporated in a wide range of apparatus (e.g., refrigerators, automatic data processing machines, mobile phones and devices for transmission or reception of images or data, digital cameras and video camera recorders, monitors and reception apparatus for television and motor vehicles for the transport of persons)

However, flat panel display modules that are not integrated into other apparatus and presented separately are classified in this heading rather than the heading in which the finished products with flat panel display modules are classified."

5.8 From the above, it can be stated that a flat panel display module for motor vehicles (which is not integrated with other apparatus) would be classifiable under CTH 8524. rather than as a part of the finished product. In the present case, the LCD Panel satisfies the aforesaid conditions and hence, can be said to be flat panel display module due to the following reasons: i) The product is equipped with a display screen, and it utilises LCD technology to show the relevant information on the screen; ii) The product is designed to be incorporated into an infotainment system of motor vehicles prior to its use; iii) The product does not include any components for converting video signals; iv) The product is not specifically covered under any other heading.

5 9 In view of the above, it can be stated that the LCD panel comes within the ambit of the definition of "flat panel display modules'. Herein, it is relevant to note that Chapter Note 7 also provides that, "For the classification of flat panel display modules defined in this Note, Heading 8524 shall take precedence over any other heading in the Nomenclature.". Therefore, it can be stated that CTH 8524 will have an overriding effect on other headings in the Nomenclature for the classification of flat panel display modules. In the present case, as the LCD screen is a flat panel display module, the same will be appropriately classifiable under CTH 8524.

5.10 Since this product is a flat panel display module made up of liquid crystals with control circuits,
it would be appropriately classifiable under CTH 8524 91. At the eight-digit level, the sub-headings
under CTH 8524 91 pertain to products used with the goods of CTH 8471 or CTH 8517 or CTH 8528.As this product is not used with the goods of the said Headings, it would be appropriately classifiableunder the residuary entry of CTH 8524 91, i.e., Tariff Item 8524 91 90.

CLASSIFICATION OF TOUCH SCREEN (PART NO. ETT000H00) IN QUESTION IN THE PRESENT APPLICATION.

5.11 The Applicant submits that the Touch Screen in question in the present application are classifiable under Heading 85.29 of the Tariff as "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528". Without prejudice to the above, this product would be correctly classifiable under Heading 85.37 of the Tariff. The Touch Screen in question satisfies the criteria under Heading 85.29 to be regarded as "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528".

5.12 The present application is concerned with the classification to be adopted by the Applicant for the Touch Screen under Heading 85.29 of the First Schedule to the Tariff which covers "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528". The product in question is specifically covered under the Heading 85.29.

5.13 As given above, the touch screen is to be attached to the LCD panel (which is a flat pane! display module) and is to be used in the infotainment system of a motor vehicle. As the touch screen is a type of electronic product, the same would be appropriately classifiable under Chapter 85, which deals with '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'.

5.14 Herein, it is relevant to mention that Heading 8524 states as follows: 'FLAT PANEL DISPLAY MODULES, WHETHER OR NOT INCORPORATING TOUCH-SENSITIVE SCREENS'. From the said Heading, it can be observed that touch sensitive screens are an identifiable part of the flat panel display modules. In this regard, reference can also be made to HSN Explanatory Notes of CTH 8524. The relevant portion of the same is reproduced below:

This heading includes:
(1)..
(2)...
(3) Flat panel display modules with touch-sensitive screens: Touch-sensitive screens are attached to the flat panel display modules or embedded in the cell. They allow input as well as output (display) of information such as images."

5.15 From the above, it can be inferred that touch sensitive screens, which are to be incorporated with flat panel display modules, are an identifiable part of the same. Hence, the same should be classified as a part of articles of CTH 8524. In the present case as well, since the touch screen is to be incorporated with the LCD panel, the same would be classifiable as a part of the LCD panel.

5.16 For classifying parts of articles of CTH 8524, it is relevant to refer to Section Note 2 of Section XVI, which specifies the rules to be followed for classification of parts of articles of this Section. The said Note states as follows:

"2. Subject to Note 1 to this Section. Note 1 to Chapter 84 and to Note 1 to Chapter 85. parts of machines (not being parts of the articles of heading 8484, 8544. 8545, 8546 or 8547) are to be classified according to the following rules :
(a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8485, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings:

(b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number, of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529:''

5.17 From a bare perusal of the above, it can be stated that in accordance with Section Note 2(a), parts which are specifically included in any of the headings of Chapter 85 will be classified therein, except for the specified headings. Thereafter, if a part cannot be classified as per Section note 2(a), then the same would be correctly classifiable as a part of an article of Chapter 85. as per Section Note 2(b). Section Note 2(b) has specified that parts of CTH 8524 would be classified under CTH 8529. Applying Section Note 2(a) to the present case, it can be observed that there is no specific heading for classification of touch screens under Chapter 85. Therefore, the classification of the touch screen in question is outside the ambit of Section Note 2(a) and will have to be done in accordance with Section Note 2(b).

5.18 As given above, the touch screen in the present case is an identifiable part of the LCD panel, which is correctly classifiable under CTH 8524. The relevant portion of Section Note2(b) states that parts of articles of CTH 8524 will be appropriately classifiable under CTH 8529. There is no specific heading for touch screens under CTH 8529. Therefore, touch screens will be correctly classifiable under the residuary entry of CTH 8529, i.e., Tariff Item 85299090. The relevant portion of the said Heading is reproduced hereunder for the sake of ready reference:

In view of the above discussion, the touch Screen is correctly classifiable under Tariff Item 8529 90 90.

CLASSIFICATION OF PRINTED CIRCUIT BOARDS (PART NOS. 039555100. 039555000 AND 039554900) IN QUESTION IN THE PRESENT APPLICATION.

5.19 The Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question satisfy the criteria under Heading 85.34 to be regarded as Printed Circuits. The present application is concerned with the classification to be adopted by the Applicant for the PCBs in question. In this regard, it is relevant to refer to Heading 85.34 of the First Schedule to the Tariff which covers "Printed Circuits". The PCBs in question are made up of a non-conductive material with conductive lines printed or etched. After being imported into India, the PCBs will be used to mount electronic components. The traces or the conductive lines on the PCBs will be used to connect the components together to form a working circuit or assembly. As the PCB is a type of electronic product, the same would be appropriately classifiable under Chapter 85, which deals with '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'.

5.20 Section Note 2(a) of Section XVI, parts which are specifically included in any of the headings of Chapter 85 will be classified therein, except for the specified headings. Heading 85.34, inter alia. covers "Printed Circuits". The relevant entry of the said Heading is reproduced below:

5.21 To qualify as a Printed Circuit, the goods have to satisfy all the conditions mentioned in Note 8 to Chapter 85. The term "printed circuits" is defined in the said Chapter Note as follows:

8. For the purposes of headings 8534, "printed circuit" are circuits obtained by forming on an insulating base, by any printing process (for example, embossing, plating- up, etching) or by the "film circuit" technique, conductor elements, contacts or other printed components (for example, inductances, resistors, capacitors) alone or interconnected according to a pre- established pattern, other than elements which can produce, rectify, modulate or amplify an electrical signal (for example, semi-conductor elements).

The expression "printed circuits" does not cover circuits combined with elements other than those obtained during the printing process, nor does it cover individual, discreet resistors, capacitors or inductances. Printed circuits may, however, be fitted with non-printed connecting elements.

Thin-or thick-film circuits comprising passive and active elements obtained during the same technological process are to be classified in heading 8542.

5.22 Additionally, the HSN Explanatory Notes of CTH 8534 elaborate upon the scope of the said Heading. The relevant portion of the said Explanatory Notes is extracted below:

"85.34 - Printed Circuits:

In accordance with the Note 8 to this Chapter, this heading covers the circuits which are made by forming on an insulating base, by any printing process (conventional printing or embossing, plating-up, etching, etc), conductor elements (wiring), contacts or the other printed components such as inductances, resistors and capacitors ("passive" elements), other than elements which can produce, rectify , detect, modulate or amplify electric signals , such as diodes, triodes or other "active" elements. Some basic or "blank" circuits may comprise only printed conductor elements and generally consisting of thin uniform strips or wafers with, if appropriate, connectors or contact devices. Others combine several of the above elements according to a pre-established pattern......

Printed circuits may be provided with holes or fitted with non-printed connecting elements either for mounting mechanical elements or for the connection of electrical components not obtained during the printing process....

Individual passive components such as inductances, capacitors and resistors obtained by any printing process are not regarded as printed circuits of this heading but are classifiable in their own appropriate headings (e.g.. heading 85.04. 85.16. 85.32 or 85.33).

Circuits on which mechanical elements or electrical components have been mounted or connected are not regarded as printed circuits withing the meaning of this heading. They generally fall to be classified in accordance with Note 2 to Section XVI or Note 2 to Chapter 90, as the case maybe."

5.23 On a conjoint reading of the aforesaid HSN Explanatory Notes and Chapter Note 8 of Chapter 85, it can be observed that for a product to be classifiable as a printed circuit, the said product should satisfy the following conditions: i) The circuits should be obtained by forming conductor elements, contacts or other printed components according to a pre- established pattern on an insulating base by any printing process; ii) There should not be any element on the circuit which can produce, rectify, modulate or amplify an electrical signal (for example, semi-conductor elements); iii) The circuit board should not be populated (i.e., there should not be circuits combined with elements other than those obtained during the printing process); iv) Mere individual, discreet resistors, capacitors or inductances cannot be considered as a "Printed Circuit".

5.24 In the present case, the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question satisfy the aforesaid conditions and hence, can be said to be "Printed Circuits" in terms of CTH 8534 due to the following reasons: i) The PCBs in question are obtained by forming printed components according to a pre-established pattern on an insulating base (i.e., FR4 which is used a laminate) by a printing process; ii)There is no mounting in the as is imported PCBs, There is no semi-conductor elements or any element on the PCBs in question which can produce, rectify, modulate or amplify an electrical signal; iii) The PCBs in question are not populated (i.e., the PCBs do not have any elements other than those obtained during the printing process); iv) The PCBs in question are not resistors, capacitors or inductances. Hence, they are not excluded from the ambit of CTH 8534.

5.25 In view of the above, it can be stated that the Printed Circuit Boards (Part Nos. 039555100. 039555000 and 039554900) in question come within the ambit of "Printed Circuits" and hence, are correctly classifiable under tariff entry 8534 00 00.

APPLICABILITY OF ANTI-DUMPING DUTY ON PRINTED CIRCUIT BOARDS (PART NOS. 039555100, 039555000 AND 039554900) IN QUESTION IN THE PRESENT APPLICATION.

5.26 Anti-dumping duty on Printed Circuit Boards (PCB) imported from China PR and Hong Kong has been levied vide Notification No. 03/2024-Customs (ADD) dated 14.03.2024 (hereinafter referred to as 'ADD Notification") pursuant to the final findings of the Directorate General of Trade Remedies (hereinafter referred to as "DGTR") (published vide Notification No. 6/16/2022-DGTR dated29.12.2023). The said ADD Notification is applicable for a period of five years from the date of publication of this notification in the Official Gazette, i.e., from 14.03.2024 till 14.03.2029.

5.27 In the present case, the PCBs under consideration are imported from Jiangxi Kinwong Precision Circuit Co. Ltd.. who is the producer of the said goods. Sr. No. 5 of the Table of the aforesaid ADD Notification has prescribed that anti-dumping duty of 14.78% would be leviable on goods which are produced by Jiangxi Kinwong Precision Circuit Co. Ltd. The relevant portion of the said Notification is reproduced hereunder:

"Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9 A of the Customs Tariff Act read with rules 18 and 20 of the Customs Tariff (Identification. Assessment and Collection of Antidumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995. the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under sub heading or tariff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entries in column (2). originating in the countries as specified in the corresponding entries in column (4). exported from the countries as specified in the corresponding entries in column (5), produced by the producers as specified in the corresponding entries in column (6), and imported into India, an anti-dumping duty as a percentage of the CIF value of the subject goods as specified in the corresponding entries in column (7), of the said Table, namely:-

TABLE

SI. No.	Sub -Heading ; or Tariff Item	Description of Goods	Country of Origin	Country of Export	Producer	Duty as % of
1	85340000	Printed : Circuit Boards (PCBs)*	China PR	Any country including China PR	Ji'an Shengyi Electronics Co.. Ltd.	Nil
					Shengyi Electronics Co., Ltd.
5	-do-	-do-	China PR	Any country including China PR	Shenzhen Kinwong Electronic Co.. Ltd.	14.78%
					Jiangxi Kinwong Precision Circuit Co., Ltd.
					Kinwong Electronic Technology (Longchuan) Co.. Ltd.
					Kinwong Electronic Technology (Zhuhai) Co., Ltd.

5.28 Further, certain types of PCBs are excluded from the ambit of the products under consideration in the ADD Notification. The relevant extract of the ADD Notification regarding the same is as follows:

"* The following PCBs are excluded from the scope of the product under consideration: - i. PCBs with more than 6 layers: ii. PCBs for use in mobile phone applications; Hi. Populated printed circuit boards of all sizes; iv. PCBs with embedded copper coin..; v. Inlay PCB...; vi. Plated Over Filled Via (POFV) PCB or Via-in-Pad PCB; vii. High Density Interconnect (HDI) PCB; viii. Rigid-flex PCBs; ix. Packaging substrates/IC packaging..."

5.29 In the present case, the PCBs in question are six layered or two layered PCBs. They do not contain more than six layers. The PCBs in question are also not populated and are not for use in mobile phone applications. The said PCBs are not embedded with copper coin, and are not in the nature of Inlay PCB, POFV PCB, HDI PCB, rigid-flex PCB, or packaging substrate/IC packaging. Hence, the PCBs in question are not excluded from the ambit of the ADD Notification. In view of the above, it can be stated that the Printed Circuit Boards (Part Nos. 039555100. 039555000 and 039554900) in question come within the ambit of Sr. No. 5 of the Table of the ADD Notification. Hence, anti-dumping duty would be applicable on imports of the said PCBs at the rate of 14.78% in terms of the AA Notification till 14.03.2029.

5.30 During the personal hearing, the port authorities participated in the hearing and supported the arguments put forth by the applicant.

6. In light of the aforementioned submissions, the answers to the questions raised will be as under:

(a) Question 1: What would be the correct classification of the LCD Panel (Part No. ETD000C00) under the First Schedule to the Tariff'?

Answer: The LCD Panel (Part No. ETD000C00) would be correctly classifiable under Tariff Item 8524 91 90.

(b) Question 2: What would be the correct classification of the Touch Screen (Part No. ETT000H00) under the First Schedule to the Tariff?

Answer: The Touch Screen (Part No. ETT000H00) would be correctly classifiable under Tariff Item 8529 90 90.

(c) Question 3: What would be the correct classification of Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) under the First Schedule to the Tariff?

Answer: The Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) would be correctly classifiable under Tariff Item 8534 00 00.

(d) Question 4: Whether any anti-dumping duty would be leviable on the proposed import of Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900)? If applicable, what would be the rate of the said anti-dumping duty?

Answer: Anti-dumping duty at the rate of 14.78% would be leviable on the proposed import of the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in terms of Sr. No. 5 of the Table of the Notification No. 03/2024-Customs (ADD) dated 14.03.2024.
Customs Authority for Advance Rulings

7. I, rule accordingly.

(Samar Nanda)
Customs Authority for Advance Ruling

F. No. VIII/CAAR/Delhi/Clarion/144/2024                                                    Dated:24.01.2025

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

1. M/s Clarion India Private Limited, Plot 2. Sector-7. IMT Manesar, Sector-7. IMT Manesar, Gurugram, Haryana-122050.

2. The Pr. Commissioner/ Commissioner of Customs, ICD (PPG) & Other ICDs, Patparganj. New Delhi-110096.

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. A

7 Webmaster.
 

(Bharti Sharma)
Additional Commissioner & Secretary.
Customs Authority for Advance Rulings, Delhi