AC‑DC & DC‑DC Power Modules Qualify as Static Converters: CAAR Grants Nil BCD Benefit for Telecom Equipment in Favour of Sanmina SCI [Read Order]

The Customs Authority for Advance Rulings (CAAR), Mumbai, has held that various AC‑DC and DC‑DC power modules imported by Sanmina SCI India qualify as static converters under Heading 8504 of the

The ruling was issued in response to Sanmina’s application seeking classification clarity and eligibility for nil Basic Customs Duty (BCD) when used in the manufacture of Wi‑Fi receivers, Wi‑Fi transmitters and othe equipment.

Sanmina SCI India Pvt. Ltd., a manufacturer of high‑technology electronic and telecommunication equipment operating through both SEZ and DTA units, approached the Customs Authority for Advance Rulings (CAAR), Mumbai, seeking clarity on the classification and duty benefits applicable to a range of AC‑DC and DC‑DC power modules imported for use in telecom manufacturing.

The company had received orders for the production of Wi‑Fi receivers, Wi‑Fi transmitters and other telecom devices, and proposed to use the imported power modules directly in the printed circuit board assemblies (PCBAs) of these products.

The application covered six categories of power modules, including the DPS‑500AB‑40A AC‑DC Power Module, PKU4913D Series DC‑DC Converters, EBDW025A0B Barracuda Series Modules, ARTESYN ADH700‑48S28 Half‑Brick Converters, Q48SK12050 Quarter‑Brick Modules and 6A Digital PicoDLynx non‑isolated converters.

Read More: Disproportionate Assets in Husband’s Name and Joint Holdings Raise Abetment Charge: Madras HC Dismisses Wife’s Plea for Discharge

Sanmina submitted detailed technical specifications demonstrating that the imported items convert electrical energy from one form to another, either from AC to DC or from one DC voltage level to another, while incorporating essential components such as transformers, rectifiers, inductors, capacitors, switching regulators and voltage‑stabilising circuitry.

The applicant argued that these features align squarely with the functional description of static converters under Heading 8504 of the Customs Tariff. The company further contended that the modules are used as such, without further processing, in the manufacture of telecom equipment, and therefore should be eligible for the nil BCD benefit available to static converters used in telecom applications.

Prablrat K. Rameshwaram examined each product in detail, noting that the DPS‑500AB‑40A module performs AC‑DC conversion through a transformer, diode bridge rectifier, filter circuits and voltage regulation mechanisms.

Its ability to convert alternating current into stable, regulated DC output for telecom PCBAs was found to be consistent with the essential character of static converters.

Similarly, the PKU4913D DC‑DC converters were observed to convert DC input to a different DC output voltage using switching technology, inductors, capacitors and isolation mechanisms. Their role in providing stable, regulated DC power to sensitive telecom components reinforced their classification under Heading 8504.

The EBDW025A0B Barracuda Series modules, equipped with digital control, synchronous rectification, PMBus programmability and multiple protection features, were also found to be advanced forms of DC‑DC converters designed for distributed power architectures in telecom systems.

CAAR noted that despite their sophistication, their core function remained voltage conversion, which is the defining attribute of static converters.

The ARTESYN ADH700‑48S28 half‑brick converter and Q48SK12050 quarter‑brick module were similarly recognised as isolated DC‑DC converters used in telecom power systems, operating within standard 48‑volt telecom input ranges and delivering regulated outputs for remote radio heads and other telecom subsystems.

Support our journalism by subscribing to Taxscanpremium. Follow us on Telegram for quick updates