2025(03)LCX0141(AAR)

SAMSUNG INDIA ELECTRONICS PVT LTD

decided on 20/03/2025

Customs Authority for Advance Rulings

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

N.B.:

A copy of this order made under sub-section (2) of Section 28-I 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 advance ruling pronounced by the Authority under Section 28 -1 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

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 Samsung India Electronics Private Limited (having IEC No. 0595032818) and hereinafter referred to as ‘the applicant’, in short) filed application (CAAR-1) 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 10.12.2024 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 classification of Heatsink intended for use with the PCBAs (Printed Circuit Board Assemblies) of a washing machine under CTI 85389000, as well as the classification of Heat Sink intended for use with the PCBAs of a refrigerator under CTI 84189900 of the First Schedule of the Customs Tariff Act, 1975.

2. The Applicant vide their application dated 03.12.2024 has submitted as follows:

2.1 M/s. Samsung India Electronics Private Limited (hereinafter referred to as the Applicant”), is a Private Limited company engaged in the production and sales of finished products, including televisions, refrigerators, washers, air conditioners, smartphones, and components such as semiconductors and display panels. It serves customers throughout India.

2.2 The applicant is proposing to import “Heat sinks” (hereinafter referred to as “the heat sinks/ the subject goods”). The Applicant has already been importing goods.

2.3 The heat sink in question is to be used in Printed Circuit Board Assembly (hereinafter referred to as “the PCBA”) of washing machines and Refrigerators. Heatsinks commonly contain two materials,

i. AL1050 powder coated plate (99.5% Aluminium)

ii. Yt-2400K Thermal Tape (Acting as adhesive part paste on PCB)

2.4 The PCBA of the control panel of the washing machines and also the PCBA of the refrigerators, generate heat, which naturally moves from the component to heat sink through the principle of conduction. From there, heat is dissipated over the large surface area of the Heat sink, into the surrounding medium and reduce them for improving the processor performance, reliability and also avoid the premature failure of the components (mainly, power IC’s main BGA controller chipsets).

2.5 The applicant states that Heat sinks in question do not involve any complex manufacturing process. Based on the technical features of the heat sink, it is gathered that:

a. Heat sinks are essential thermal management components of electronic components,

b. They ensure the efficient functioning and longevity of the electronic components on which they are mounted, and,

c. They are specifically designed to suit the thermal, space and design requirements of the electronic component on which they are mounted.

2.6 The complexity or otherwise of the manufacturing process will not detract from the fact that the Heat sinks are designed specifically keeping in mind the thermal, space and design requirements of the electronic component on which they are mounted.

Applicant’s interpretation of Law/Facts

Classification of Heat sinks used in the PCBA of control panel of washing machine

3.1 Chapter 85 of the First Schedule to the Customs Tariff Act, 1975 covers goods, described as “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”.

3.2 The chapter falls under Section XVI, titled “Machinery and Mechanical Appliances, Electrical Equipment; Parts Thereof; Sound Recorders and Reproducers. Television Image and Sound Recorders and Reproducers; and Parts and Accessories of such articles”.

3.3 Chapters 84 and 85 fall under Section XVI of the First Schedule to the Customs Tariff Act.Therefore, in view of GIR 1, it is necessary to refer to the Notes to Section XVI.

3.4 It is relevant to refer Note 2, which is the principal authority for classification of parts of the goods of Section XVI and the first rule is that a part which is covered as goods in any of the headings of Chapter 84 or Chapter 85, should in all cases be classified under that heading, notwithstanding the fact that the said part is identifiable for use with a particular machine.

3.5 If the first rule does not apply for the reason that a part, identifiable for use with a particular machine, is not specifically covered as goods under any of the headings of Chapter 84 or 85, then such parts should be classified under the heading covering the machine for which the said part is identifiable or under the heading specific to identifiable parts of a group of machines such as 8409, 8431, 8448, 8466, 8473, 8503 8522, 8529 or 8538.

3.6 In the case of washing machines, the control panels, are specifically covered under CTH The HSN Explanatory Notes under CTH 8537 states as under:

The goods of this heading vary from small switchboards with only a few switches, fuses, etc. (e.g., for lighting installations) to complex control panels for machine-tools, rolling mills, power stations, radio stations, etc., including assemblies of several of the articles cited in the text of this heading.

The heading also covers :

(1) Numerical control panels with built-in automatic data processing machine, which are generally used to control machine-tools.

(2) Programmed switchboards to control apparatus; these permit variations in the choice ofoperations to be followed. They are normally used in domestic electrical appliances, such as washing machines and dish washers.

3.7 Parts suitable for use solely or principally with the control panels are classified under CTH 8538 in terms of Note 2(b) to Section XVI. The HSN ENs under CTH 8538 state as under:

Subject to the general . provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), this heading covers parts of the goods of the three preceding headings.

The heading includes, for example, boards for switchboards, generally of plastics or metal, without their instruments, provided they are clearly recognizable as parts of switchboards.

3.8 A control panel of washing machine will be classified under CTH 8537 by application of Note2(a) to Section XVI, notwithstanding the fact that the control panel is an identifiable part of a washing machine.

3.9 By application of Note 2(b), the PCBA for the control panel of a washing machine will remain classified under CTH 8538. As the PCBA will not be complete without the Heat sink in question, the same should be regarded as a part of the control panel and therefore will be an identifiable part of the control panel under CTH 8538 9000.

3.10 Reliance is placed on the test for ‘part’ of a given equipment is laid down by the Hon’ble Supreme Court in Commissioner v. Insulation Electrical Private Limited [2008 (224) E.L.T 512 (S.C.)] which held that a ‘part’ is an essential component of the whole without which the whole cannot function. This position has been consistently followed and reiterated in a catena of decisions including the recent Supreme Court decision in CTO, Anti Evasion, Circle III, Jaipur v. Prasoon Enterprises [2019 (23) G.S.TL. 441 (S.C.)] wherein it was held that the test for a product to be a part of the other is to see if the other is incomplete without the product or if the other cannot function without it. The complexity or lack of complexity will not be a detriment to the question of identifiable nature of the part.

3.11 Applied to the present case, the PCBA cannot be regarded as complete without the Heat sink in question. Therefore, classification of the Heat sink as an identifiable part of the PCBA is appropriate. As the PCB itself is classified under CTH 8538, as an identifiable part of the control panel, the Heat sink should also be regarded as an identifiable part of the control panel and should be classified under CTH 8538, by application of Note 2(b) to Section XVI.

3.12 Reliance is also placed upon the American Cross ruling HQ 955950 March 7, 1994, on classification of a heatsink was decided under CTH 854290 as identifiable parts of Integrated Circuit devices, by applying Note 2(b) to Section XVI, holding as under:

“Because the substrates are not goods classifiable under either chapter 84 or 85, HTSUS, section XVI, note 2(a), HTSUS, does not apply. However, under section XVI, note 2(b), HTSUS, because the substrates are suitable for use solely or principally with electronic integrated circuits of heading 8542, HTSUS, they are classifiable under subheading 8542.90.00. HTSUS. “

3.13 Further in India, the classification of a CPU Cooling Fan with Heat Sink meant for use with a mother board of a Computer was accepted to be classified under CTH 847330, as parts of a computed by application of Note 2(b) to Section XVI, by the Hon’ble Tribunal in M/s. Quantum Hitech Merchandising, New Delhi [2004 (171) ELT 0197]. This ruling was also accepted by the Board as seen from the CBEC Circular No 36 /2005-Cus. 2nd September 2005.

3.14 It is significant to note that the classification of the CPU Cooling Fan with Heat Sink wasinitially being classified under CTH 841459 as a fan. But on the basis of the ruling by the Hon’ble Tribunal the classification was changed to CTH 847330 as the heat dissipation function was treated as a providing the assembly its essential character. CBEC Circular No. 17/2004 dated 20 February 2004 refers in this connection.

    Classification of Heat sinks used in the PCBA of Refrigerators

3.15 The same classification principles discussed supra for classification of Heat sinks meant for the PCBAs of control panels of the washing machine will equally apply to the heat sinks used with the PCBAs of the refrigerators.

3.16 As the Refrigerators are classified under CTH 8418, their identifiable parts will be classified under CTH 8418 9900 by application of Note 2(b) to Section XVI. For the reasons discussed above for classification of the Heat sink meant for use with the PCBAs of the control panels of washing machines, the Heat sinks meant for use with the PCBAs of the Refrigerators will also be classified under CTH 84189900 by application of Note 2(b) to Section XVI.

    Classification as an article of Aluminium under Chapter 76

3.17 As already noted above, the classification of the Heat sink under CTH 8538 9900 and CTH 8418 9900 could be justified in terms of Note 2(b) to Section XVI. The only possibility for ruling out the classification by application of Note 2(b) ibid is that the Heat sinks are excluded by either Note 1 to Section XVI or Note I to Chapter 85.

3.18 Out of all the exclusions specified in Note 1 to Section XVI, the possibility of excluding the Heat sinks in question will arise, only if these are in the nature of parts of general use as defined in Note 2 to Section XV which is extracted hereunder:

“2. Throughout this Schedule, the expression “parts of general use” means: (a) articles of heading 7307, 7312, 7315, 7317 or 7318 and similar articles of other base metal, other than articles specially designed for use exclusively in implants in medical, surgical, dental or veterinary sciences (heading 9021);”

b. springs and leaves for springs, of base metal, other than clock or watch springs

(heading 9114); and

c. articles of headings 8301, 8302, 8308, 8310 and frames and mirrors, of base metal, of heading 8306.”

3.19 It cannot be anybody’s case the Heat sinks in question would fall within the definition of `parts of general use’ such as nuts, screws, bolts, or springs as specified in Note 2 to Section XV.

3.20 Note 1 to Chapter 85 should also be considered for ruling out the application of Note 2 to Section XVI. The said Note 1 to Chapter 85 reads as under:

NOTES:

1. This Chapter does not cover:

a. electrically warmed blankets, bed pads, foot-muffs, or the like; electrically warmed clothing, footwear or ear pads or other electrically warmed articles worn on or about the person;

b. articles of glass of heading 7011;

c. machines and apparatus of heading 8486;

d. vacuum apparatus of a kind used in medical, surgical, dental, or veterinary sciences (heading 9018); or

e. electrically heated furniture of Chapter 94. .

3.21 Therefore, no specific exclusion can apply to the Heat sink in question. And Note 1 to Chapter 85 also does not place any fetters on application of Note 2 to Section XVI.

3.22 Further, Note 9(d) to Section XV defining the terms Plates, sheets, strip, and foil provide that these could remain under Section XV only when these do not assume the character of articles or products of other headings, as shown below:

(d) Plates, sheets, strip, and foil

Flat-surfaced products (other than the unwrought products) coiled or not, of solid rectangular (other than square) cross-section with or without rounded comers (including “modified rectangles of which opposite sides. are convex. arcs, the other two sides being straight, of equal length and parallel) of a uniform thickness, which are:

- of rectangular (including square) shape with a thickness not exceeding one-tenth of the width.

- of a shape other than rectangular or square, of any size, provided that they do not assume the character of articles or products of other headings.

Headings for plates, sheets, strip, and foil apply, inter alia, to plates, sheets, strip, and foil with patterns (for example, grooves, ribs, chequer, tears, buttons, lozenges) and to such products which have been perforated, corrugated, polished or coated, provided that they do not thereby assume the character of articles or products of other headings. (emphasis supplied)

3.23 The HSN General ENs support this position as could be seen from the ENs extracted below:

(C) PARTS OF ARTICLES

In general, identifiable parts of articles are classified as such parts in their appropriate headings in the Nomenclature.

However, parts of general use (as defined in Note 2 to this Section) presented separately are not considered as parts of articles, but are classified in the headings of this Section appropriate to them. This would apply, for example, in the case of bolts specialised for central heating radiators or springs specialised for motor cars_ The bolts would be classified in heading 73.18 (as bolts) and not in heading 73.22 (as parts of central heating radiators). The springs would be classified in heading 73.20 (as springs) and not in heading 87.08 (as parts of motor vehicles).

3.24 Section XV can be justified only if the Heat sinks in questions are parts of general use. As already The HSN ENs under the heading 7616, which covers other articles of Aluminium, which could be the only heading under which the Heat sinks in question could be classified, excludes articles specified or included more specifically elsewhere in the Nomenclature as shown below:

This heading₍ covers all articles of aluminium other than those covered by the preceding headings of this Chapter, or by Note I to Section XV, or articles specified or included in Chapter 82 or 83, or more specifically covered elsewhere in the Nomenclature.

3.25 As already discussed above, the Heat sinks in question are specifically designed in terms of its size, dimensions, and technical features, etc. for being fitted on a PCBA of a control panel of washing machines and the PCBA of a Refrigerator, and without the Heat sinks in question the respective PCBAs cannot be regarded as complete.

3.26 Further, Note 1 to Section XVI or Note 1 to Chapter 85 also do not exclude the Heat sinks from Section XVI or Chapter 85. For all these reasons, the Heat sink could be regarded only as an identifiable part of a PCBA s of the control panel of a washing machine and the refrigerator. These being the facts, the classification of a Heat Sink under CTH 8538 9900 and CTH 84189900 will be more specific in terms of Note 2(b) to Section XVI.

3.27 Therefore, classification under CTH 7616 as an article of Aluminium can be legally ruled out. There will no change in the conclusion, even granting that the manufacturing operation of Heat sinks do not involve any complexity. The complexity or the lack of it in the manufacturing process of the Heat sinks will not detract from the fact that the Heat sinks are designed and manufactured specifically keeping in mind the thermal, space and design requirements of the electronic component on which they are mounted. Therefore, these Heat sinks have to be regarded as identifiable for use solely or principally with respective PCBAs on which these Heat sinks are mounted.

Port of Import and reply from concerned jurisdictional Commissionerate

4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. Heatsink for PCBAs of a washing machine and a refrigerator at the jurisdiction of Office of the Commissioner of Customs, Air Cargo Complex, Chennai. The application was forwarded to the Office of the Commissioner of Customs, Air Cargo Complex, Chennai for their comments on 20.12.2024.

4.2 The concerned Commissionerate vide their letter dated 14.02.25 submitted as follows:

• The applicant has proposed to classify the item as under:

i. For use with Washing Machines: under CTI 8538 9000

ii. For use with Refrigerators: under CTI 8418 9900

• Taking into consideration the constituent material, its intended purpose upon importation and its functions, this office’ comments are furnished below:

Heat Sink for use with Washing Machines:

• It is seen from the submissions of the applicant that the item under consideration is mounted on a PCBA, which is part of a control apparatus/panel for washing machine or refrigerator. The Control Panel is classifiable under CTH 8537 as per HSN Explanatory Notes, according to which the heading 8537 covers:

“Programmed switchboards to control apparatus; these permit variations in the choice of operations to be followed. They are normally used in domestic electrical appliances, such as washing machines and dish washers.”

• Based on the above, the importer has claimed that the item ‘Heat sink’ should be classified under CT18538 9000 as part of the Control panel.
   

• However, the importer’s argument does not appear to be in conformity with provisions of Note 2 of section XVI, which determines the classification of parts.
   

• The item Heat sink is not included in any of the headings either in chapter 84 or in chapter 85 and hence, it will stand excluded from the purview of Note 2(a) of Section XVI. Consequently, its classification will have to be decided in accordance with the subsequent paras of the Section Note.
   

• Admittedly, the item is imported for use with Washing Machine and therefore, its classification will be decided in terms of Note 2(b) of Section XVI, which provides for classification of parts with the machine, for which it is solely or principally suitable. Accordingly, in the instant case, since the item is imported for use specifically with the washing machine, it will be classifiable under CTI 8450 9090.
   

• It is pertinent to mention that the importer in this application itself, has taken a similar stand for classification of the subject item as part of the Heat sink for use with Refrigerators:
  
  Heat Sink meant for use with refrigerator.
   

• As discussed above in case of washing machines, the item Heat sink, when imported and declared to be used with refrigerator, will be classifiable under CTI 8418 9900 as part of the Refrigerator. The importer also has taken the same stand in respect of this item and claimed classification under 8418 9900. Thus, this office is in agreement with the classification claimed by the importer in respect of the Heat Sink meant for use with refrigerator.

Details of Hearing

5.1 A hearing was held on 11.02.2025 at 12.00 PM. Shri. P. Sridharan, authorized representative on behalf of the applicant appeared for the hearing and reiterated the contention submitted with the application. He submitted that the subject goods i.e. Heatsink to be used in PCBA of washing machine and refrigerator of different models are to be correctly classifiable under CTI 85389000 & 84189900 respectively. He argued that entire control in the washing machine is done by PCBA and Heatsink is a critical component in the PCB. He submitted that PCB Heatsink work through the principal of conduction. Because Heatsinks are made of aluminium, it has excellent thermal conductivity and low thermal resistance, thus heat is naturally move from component to the heatsink. The heatsink can increase the lifespan of the PCB by up to 50%. It improves the overall performance of the final product and economical solution to thermal issues.

    He submitted that the Chapter Heading 8537 covers control panel and other bases, the parts suitable for use solely or principally with the apparatus of heading 8537, merit classification under CTH 8538, more particularly under CTI 85389000 (Other) as far as Heatsink to be used in the PCB of washing machine is concerned.

As far as heatsink to be used with PCBA of refrigerator are concerned, he submitted that there is no specific heading is available for these component/parts. Therefore, in terms of Note 2(b) of Section XVI of CTA, such parts which are to be classified with the CTH 8418 pertaining to the said machine, more particularly under CTI 84189900.

5.2 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 and comments received from the concerned Commissionerate. 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-1 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 I4SN 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.

6.4 The Applicant stated that the heat sink in question is intended for use in the Printed Circuit Board Assembly (PCBA) of washing machines and refrigerators. During operation, the PCBA in both appliances generates heat, which is transferred from the components to the heat sink through conduction. The heat sink then dissipates the heat over its large surface area into the surrounding environment. This process helps to regulate temperature, enhance processor performance, improve reliability, and prevent premature failure of critical components, particularly power ICs and main BGA controller chipsets.

Classification of heat sink used in PCBA of washing machine

6.5 The applicant submitted that the heat sink will be used in washing machine’s -Printed Circuit Board Assembly (PCBA). Thus, it is seen that the heat sink is a part of the washing machine. The Chapter Tariff Heading 8450 covers “Household or laundry-type washing machines, including machines which both wash and dry”. The relevant portion of CTH 8450 is reproduced below for ease of reference:

6.5.2 It could be seen from above that the Heading 8450 primarily deals with Household or laundry-type washing machines, including machines which both wash and thy and parts thereof. The heading is divided into three major sub-headings namely (a) Machine each of a dry linen capacity not exceeding 10 kg, (b) Machines, each of a dry linen capacity exceeding 10 kg and (c) Parts. Thus, it is pertinent to mentioned that Chapter Heading 8450 also covers ‘part of the house hold or laundry washing machines”. There could be no dispute in the present case that the items in question is directly usable and identifiable as parts of washing machine.

6.5.3 It is seen that HS Explanatory Notes to Chapter Headings 8450 as regards parts falling thereon, stipulates that classification of parts of machines of heading 8450 are: “Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), the heading also covers parts if the machines of this heading”.

    Further, it would also be useful to refer to Note 2 of Section XVI of the Customs Tariff Act, 1975 which provides for rules to be followed while classifying ‘parts of machines’ falling under Chapters 84 and 85. The relevant part of the Section Note 2 is reproduced below:

    “2.- Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) 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 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) 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];

c. all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473,8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8485 or 8548.

Note 2 deals with three categories of parts (i) parts which are goods included in any of the headings of Chapter 84 or 85 (ii) other parts suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading and (iii) all other parts.

6.5.4 It is seen that parts which are goods included in any of the Heading of Chapters 84 or 85, other than certain specified Chapter Heading, are in all cases to be classified in their respective headings as per Note 2(a) of the Customs Tariff Act, 1975. Thus, there is a condition to classify any part in its respective heading that it should be goods which is included in any heading of Chapter 84 or 85 which means it should be clearly listed in Chapter 84 or 85. However, the impugned goods, namely “heat sink”, are not included in any of the headings of Chapter 84 or 85 and hence could not be classified as per above Note 2(a).

6.5.5 I observe that the heat sink in a washing machine plays a crucial role in dissipating heat generated by the Printed Circuit Board Assembly (PCBA) and other electronic components. These heat sinks are intended to be used as integral parts of the washing machine. Furthermore, Section Note 2(b) of the Customs Tariff Act, 1975, applies only in cases where such parts cannot be classified as per Section Note 2 (a). In this case, the heat sinks are solely or principally used with washing machines. As per Note 2(b) to Section XVI of the Customs Tariff Act, 1975, parts that are specifically designed for use with a particular machine should be classified along with that machine. Since the impugned goods, namely, “heat sinks”, serve the purpose of dissipating heat within the washing machine and function as its components, and since washing machines are classified under Chapter Heading 8450, it is appropriate to classify the heat sink under the same heading, in accordance with the provisions of Note 2(b) of Section XVI.

6.5.6 I note that Customs Tariff Subheading (CTSH) 8450 90 covers parts of household or laundry-type washing machines. Specifically, Customs Tariff Item (CTI) 84509010 pertains to “Parts of household type machines,” while CTI 84509090 covers “Parts — Other.” The applicant has not explicitly specified the type of washing machine in their application for which the heat sink will be used. Consequently, an e-mail dated 19.02.25 was sent to the applicant for clarifying the type of washing machine for which the heat sink will be used. In response, the applicant vide their e-mail dated 26.02.25 has confirmed that the heat sinks are exclusively meant for household type washing machines. Thus, for the purpose of classification, I consider that heat sink is a part of the household type washing machine. Accordingly, I find that the subject goods, namely the heat sink for the PCBA of a household type washing machine, are classifiable under CTI 84509010 (Parts of household type machines) of the First Schedule of the Customs Tariff Act, 1975, in accordance with Note 2(b) to Section XVI and the Explanatory Note to Chapter Heading 8450.

6.5.7 The applicant contended that the control panel of a washing machine is specifically classified under Customs Tariff Heading (CTH) 8537. Accordingly, the Printed Circuit Board Assembly (PCBA) used in the control panel of a washing machine falls under CTH 8538, in accordance with Note 2(b) to Section XVI. Furthermore, the applicant argued that the PCBA cannot be considered complete without the heat sink. Therefore, classifying the heat sink as an identifiable part of the PCBA is appropriate. Further, the applicant submitted that since the PCBA itself is classified under CTH 8538 as an identifiable part of the control panel, the heat sink should also be regarded as an identifiable part of the control panel and, consequently, be classified under CTH 8538 by application of Note 2(b) to Section XVI.

    In this regard, I note that the Chapter Heading 8537 covers “Boards, Panels, Consoles, Desks, Cabinets and other bases, equipped with two or more apparatus of heading 8535 or 8536, for electric control or the distribution of electricity, including those incorporating instruments or apparatus of chapter 90, and numerical control apparatus, other than switching apparatus of heading 8517″. The relevant Explanatory Note to CTH 8537 provides that,

“8537.10 -For a voltage not exceeding 1,000 V

8537.20 -For a voltage exceeding 1,000 V

These consists of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams.

The goods of this heading vary from small switchboards with only a few fuses, etc. (e.g., for lighting installations) to complex control panels for tools, rolling mills, power stations, radio stations, etc., including assemblies of several of the articles cited in the text of this heading.

The heading also covers:

(1) Numerical control panels with built-in automatic data processing machine, which are generally used to control machine-tools.

(2) Programmed switchboards to control apparatus; these permit variations in the choice of operations to be followed. They are normally used in domestic electrical appliances, such as washing machines and dish washers.

(3) “Programmable controllers” which are digital apparatus using a programmable memory for the storage of instructions for implementing .specific functions such as logic, sequencing, timing, counting and arithmetic, to control, through digital or analog input/output modules, various types of machines.

The heading does not cover automatic controlling apparatus of heading 90.32.

PARTS

Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading are classified in heading 85.38″.

On plain reading of the above Explanatory Note, it is apparent that the heading 8537 covers individual apparatus/instrument when it is used solely or on standalone basis for control and/or distribution of electricity. However, the control panel of a washing machine is the user interface that allows individuals to operate and customize the machine’s functions. It typically consists of buttons, knobs, or a digital touch screen, enabling users to select different wash programs, adjust water temperature, set spin speed, and control other essential washing parameters. The control panel plays a crucial role in managing the washing process by regulating the wash cycle, monitoring load size, and providing indicators for water levels, time remaining, and error alerts. Overall, the control panel serves as the central command system of the washing machine, ensuring optimal performance, ease of use, and effective washing results.

    Unlike an apparatus for electric control or the distribution of electricity, which primarily functions to regulate, distribute, and control electrical power in various systems, the control panel of a washing machine is specifically designed to manage washing operations rather than control electrical distribution. Apparatus for electric control, such as board and distribution panels, are used in electrical networks to manage power flow, prevent overloads, and ensure electrical safety. In contrast, the washing machine’s control panel is application-specific, designed to control mechanical and electronic washing functions rather than to regulate, distribute, control, or manage the flow and distribution of electricity.

6.5.8 In light of the above, I note that in the control panel of washing machine, as referred to by the applicant, is not stand-alone item/apparatus rather these are goods to be used only as parts of the main apparatus/equipment i.e. washing machine. Thus, the control panel of washing machine would merit classification as parts and not as apparatus falling under its own appropriate heading.

The Explanatory Notes to CTH 8537 also provides that “parts of the goods of this heading are to be classified heading 85.38”. Thus, it is more clear that the heading 85.37 covers only apparatus/equipment for control and distribution of electricity and not the parts of the goods as parts of its heading are also classifiable under heading 85.38. Therefore, it can be concluded that the control panel being a part of the washing machine which will be used to manage washing operations rather than to control electrical distribution inside the washing machine, cannot be classifiable under CTH 8537 as these heading covers only apparatus/equipment for control or distribution of electricity.

6.5.9 The applicant referred to the American Cross Ruling HQ 955950 dated March 7, 1994, which held that a heat sink used in an integrated circuit device is not covered under Chapter 84 or 85. Consequently, it was classified under subheading 8542.90.00 as a part of electronic integrated circuits in accordance with Note 2(b) to Section XVI.

The applicant also relied on the judgment of CESTAT in the case of M/s. Quantum Hi-tech Merchandising, New Delhi 12004 (171) ELT 01971, where a CPU cooling fan with a heat sink, intended for use with a computer motherboard, was classified under CTH 847330 as a part of a computer, by applying Note 2(b) to Section XVI.

Based on the reasoning established in the above-mentioned ruling and judgment, the applicant understands that a heat sink is not specifically covered under any heading and, therefore, should be classified under the heading of the associated goods as per Note 2(b) to Section XVI.

Following the rationale of these rulings and judgments, I have also taken the view that the heat sink for the PCBA of a washing machine is classifiable under CT1 84509010 as a part of a house hold type machine, in accordance with the provisions of Note 2(b) to Section XVI.

Classification of heat sink used in PCBA of Refrigerator

6.6 The applicant submitted that the heat sink will be used in refrigerator’s -Printed Circuit Board Assembly (PCBA). Thus, it is seen that the heat sink is an identifiable part of the refrigerator. The Chapter Tariff Heading 8418 covers “Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8412.5”. The relevant Tariff Entry under CTH 8418 is reproduced below for ease of reference:

It could be seen from above that the Heading 8418 primarily deals with Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8412.5 and parts thereof The heading is divided into seven major subheadings namely (a) Combined refrigerator-freezers, (b) Refrigerators, household type (c) Freezers of the chest type (d) Freezers of the upright type (e ) Other furniture (chests, cabinets, display counters, show-cases and the like) for storage and display, incorporating or freezing equipment (f) Other refrigerating or freezing equipment, heat pumps and (g) parts. Thus, it is pertinent to mentioned that Chapter Heading 8418 also covers “parts of the refrigerator, freezer and other refrigerator or freezer equipment”. There could be no dispute in the present case that the items in question i.e. heat sink is directly usable and identifiable as parts of refrigerator.

6.6.2 It is seen that HS Explanatory Notes to Chapter Headings 8418 as regards parts falling thereon, stipulates that classification of parts of machines of heading 8418 are: “Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVI), parts of the goods of this heading, whether for domestic or industrial use, are also classified here, …”.

Further, it would also be useful to refer to Note 2 of Section XVI of the Customs Tariff Act, 1975 which provides for rules to be followed while classifying ‘parts of machines’ falling under Chapters 84 and 85. The relevant part of the Section Note 2 is reproduced below:

“2.- Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) 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 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) 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] ;

(c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, Jailing that, in heading 8485 or 8548.

Note 2 deals with three categories of parts (i) parts which are goods included in any of the headings of Chapter 84 or 85 (ii) other parts suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading and (iii) all other parts.

6.6.3 It is seen that parts which are goods included in any of the Heading of Chapters 84 or 85, other than certain specified Chapter Heading, are in all cases to be classified in their respective headings as per Note 2(a) of the Customs Tariff Act, 1975. Thus, there is a condition to classify any part in its respective heading that it should be goods which is included in any heading of Chapter 84 or 85 which means it should be clearly listed in Chapter 84 or 85. However, the impugned goods, namely “heat sink”, are not included in any of the headings of Chapter 84 or 85 and hence could not be classified as per above Note 2(a).

6.6.4 I observe that the heat sink in a refrigerator plays a crucial role in dissipating heat generated by the Printed Circuit Board Assembly (PCBA) and other electronic components. These heat sinks are intended to be used as integral parts of the refrigerator. Furthermore, Note 2(b) to Section XVI, applies only in cases where such parts cannot be classified as per Section Note 2 (a). In this case, the heat sinks are solely or principally used with refrigerator. As per Note 2(b) to Section XVI of the Customs Tariff Act, 1975, parts that are specifically designed for use with a particular machine should be classified along with that machine. Since the impugned goods, namely, “heat sinks”, serve the purpose of dissipating heat within the refrigerator and function as its components, and since refrigerator are classified under Chapter Heading 8418, it is appropriate to classify the heat sink under the same heading, in accordance with the provisions of Note 2(b) of Section XVI.

6.6.5 I note that Customs Tariff Heading (CTH) 8418 covers parts of refrigerators. Specifically, Customs Tariff Item (CTI) 84189100 pertains to “Parts-Furniture designed to receive refrigerating or freezing equipment”, while CTI 84189900 covers “Parts — Other.” Accordingly, I find that the subject goods, namely the heat sink for the PCBA of a refrigerator, are classifiable under CTI 84189900(Parts-Other) of the First Schedule of the Customs Tariff Act, 1975, in accordance with Note 2(b) to Section XVI and the Explanatory Note to Chapter Heading 8418.

Furthermore, the applicant has also proposed that the heat sink for the PCBA of a refrigerator should be classified under CTI 84189900 by applying Note 2(b) to Section XVI.

6.7. The concerned jurisdictional Commissionerate has proposed that the heat sink for a washing machine is not specifically covered under any heading in Chapter 84 or Chapter 85. As a result, it is excluded from the scope of Note 2(a) of Section XVI. Consequently, its classification must be determined in accordance with Note 2(b) to Section XVI, which stipulates that parts should be classified with the machine for which they are solely or principally used. Accordingly, the heat sink for a washing machine is classified under CTI 84509090.

Furthermore, the heat sink for the PCBA of a refrigerator is classifiable under CTI 84189900 as a part of the refrigerator, in accordance with Note 2(b) to Section XVI.

Here, I broadly concur with the view expressed by the concerned jurisdictional Commissionerate, with a slight difference regarding the classification of the heat sink for a washing machine. Since the applicant has clearly stated that these heat sinks are exclusively designed for household-type washing machines, thus, the most appropriate classification would be under CTI 84509010 instead of 84509090.

7. In view of the above discussions and findings, my answers in respect of the two questions asked in the present application are as follows:

a. Heatsink intended for use with the PCBAs (Printed Circuit Board Assemblies) of a household type washing machine is classifiable under CTSH 8450 90 (Parts of household or laundry-type washing machines), more specifically under CTI 84509010 (Parts of household type machines) of the First Schedule of the Customs Tariff Act, 1975.

b. Heat Sink intended for use with the PCBAs of a refrigerator is classifiable under CTH 8418 (Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 8412.5), more specifically under CTI 84189900 (Parts-Others) of the First Schedule of the Customs Tariff Act, 1975.

8. I rule accordingly.

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

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

1.M/s Samsung India Electronics Private Limited,
No. 10, No. 49/50L, EA Chamber,
Tower-2, Whites Road, Royapettah,
Chennai, Tamil Nadu-600 014.
{Email: k.suresh@samsung.com}

2. The Pr. Commissioner of Customs,
(Chennai-VII) (Air Cargo), New Customs House,
Air Cargo Complex, Meenambakkam, Chennai- 600016
Email- pcommr7acc-cuschn@gov.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,
Legal/CX.8A, Cell, 5th floor, Hudco Vishala Building,
C-Wing, Bhikaji Cama Place, R. K. Puram, New Delhi - 110066.
Email: commr.legal-cbec@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.cbec@icegate.gov.in
 

8. Guard file.

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