CAAR Delhi rules that components of IPTV set-top boxes must be classified individually under the Customs Tariff. Integrated classification not permitted if separately imported.
IPTV Set-Top Box Components Must Be Classified Individually
CAAR, Delhi, has held that components of IPTV set-top boxes—such as motherboards, power supplies, and casings—must be classified under separate tariff headings when imported individually. The tribunal rejected the argument that they should be treated as parts of a composite machine under CTH 8528.
The decision rests on the actual form and function at the time of import. Since the components were not assembled or presented as a unit, they do not qualify for classification as a single article. Rule 2(b) of the Interpretation Rules was applied to determine classification based on the state in which goods are imported.
This ruling has implications for importers adopting a modular supply chain. Practitioners must ensure correct HS coding at the component level. Duty planning strategies based on integrated classification may need revision for unassembled imports.
Citations
- Customs Tariff Act, 1975, Rule 2(b)
