The Customs Authority for Advance Rulings, Mumbai has ruled that that Amazon wireless speaker device model no. P5B83L merits classification under heading 8518 and more specifically under subheading 85182100 of the first schedule to the Customs Tariff Act.
The applicant M/s Amazon Seller Services Pvt. Ltd. filed an application Customs Authority for Advance Rulings for the classification of wireless speaker device model no: P5B83L in sub heading 85182100.
Sri Lakshmikumaran, advocate, appearing on behalf of the applicant has stated that, the product is a sub-woofer that is compatible with Echo devices (via Wi-Fi or Bluetooth). It does not have a microphone. It has Wi-Fi connectivity and Bluetooth feature. It is not capable of voice interaction. It can be paired with Echo devices via the Vox application. The product does not support cellular services. It requires an internet connection to perform its functions. It can be used in a residential environment or small offices. Once connected to the internet, and paired with compatible Echo speakers, the users can listen to music on this speaker. It has an MTK 8516 processor, 1GB RAM and 4GB of storage space. The wireless sub-woofer works on the frequency of approximately 80 Hz. which varies on the basis of the device it is paired with. It is designed to produce better quality sound and is compatible with various Echo devices. It is a single speaker single drive unit mounted in an enclosure. A speaker and a woofer perform a similar function. However, a woofer is normally the largest driver in a speaker cabinet and it is designed to produce the low frequencies, like those associated with bass or drum for music or thunder and explosions in a home theatre. As per Circular No. 27/2013-Cus.of the CBEC (now, CBIC) speakers, both active and passive speakers, are classifiable under heading 8518 of the first schedule of the Customs Tariff Act, 1975. Depending upon the number of drive units, the eight-digit classification is determined. The applicant has stated that the wireless speaker is appropriately classifiable under sub-heading 85182100 as it comprises of a single drive unit in its enclosure.
It was held by the authority that “though the device contains Bluetooth and Wi-Fi features for transmission or reception of data by electromagnetic waves in a wireless network, this functionality, however, is just an additional feature, which makes it compatible with separate Echo devices. This device is only a speaker and its principal function is to reproduce sound by converting electrical variations or oscillations from an amplifier into mechanical vibrations which are communicated to the air, which is correctly classifiable under heading 8518. Note 3 to Section XVI stipulates that “unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function”. Accordingly, heading 8518 appears to be the appropriate for the classification of the impugned device”.
It was further held that “Speakers classified under heading 8518 include both passive speakers and active speakers. Active speakers, like many subwoofers, contain a built-in audio amplifier. The subheading under which speakers are classified depends on the number of ‘drive units’ – the actual loudspeaker cones or ribbons – in each cabinet or enclosure. Speakers with a single drive unit in each cabinet are classified under subheading 85182100. The impugned device has a single driver”.
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