GOVERNMENT OF PAKISTAN
MODEL CUSTOMS COLLECTORATE OF APPRAISEMENT (EAST)
CUSTOM HOUSE, KARACHI
C. No.-64/KAPE/DC-PCT/2017 Dated: 12-06-2018
PUBLIC NOTICE NO. 04/2018-MCC(E)
Sub: TARIFF CLASSIFICATION OF FLIGHT INFORMATION DISPLAY SYSTEM (FIDS)
Model Customs Collectorate, Sialkot made a reference to Classification Centre for classification of the goods titled ‘Flight Information Display System (FIDS)’ imported by M/s. Sialkot International Airport Limited (SIAL) vide GD No. SCSI-HC-413- dated 06.02.2017 claiming classification under PCT Heading 8471.5000. The Collectorate informed that the goods on examination were found to contain “Flight Information Display System (FIDS) with supply of hardware and software in new condition and in SKD condition comprising of:
LED for display with controller CPU size 43”.
LED display with controller CPU size 32”.
LED display with controller CPU size 55”, Brand DATA MODUL CONRAC.
Server computer in new condition, Brand Dell.”
The Collectorate classified the impugned goods under HS Code 8528.5900. The importer, M/s. SIAL, disagreed with the ascertained Classification. The goods were released provisionally under section 81 of the Customs Act, 1969 and the matter was held on 20.10.2017 which was attended by the representative of the importer as well as the Collectorate.
ISSUE:
2. Whether the subject goods ‘Flight Information Display System (FIDS)’ is classifiable under HS Code 8471.5000, as claimed by the importer; or under HS Code 8528.5900 as ascertained by the Collectorate; or under any other HS code of the First Schedule to the Customs Act, 1969 (Pakistan Customs Tariff).
PRODUCT ANALYSIS:
3. The product Flight Information Display System (FIDS) consist of LED Display Monitors, IPCs and Server, Complete specification of FIDS, mutually signed, and provided by the Collectorate and the Improper is reproduced below:
Complete Specification of FIDS
Complete Specifications of 32”/80 cm 6132 BD Protected:
Display
Active Screen Dimensions (h x v): 698 x 393 mm
Screen Resolution (pixels): 1920 x 1080
Viewing Angle: 187 degrees
Contract Ratio: 1300:I
Brightness 450 cd/sq.meter
Color Performance 16.7 Million Colors
Brightness 450 cd/sq meter
Color Performance 16.7 Milliion Colors
Response Time: 25 ms
Backlight Time: E-LED (Edge-LED)
Color Performance 16.7 Million Colors
Response Time: 25 ms
Black light System: E-LED (Edge-LED)
Safety Contrast Enhancement Panel: Anti-glare, 90% Transmission (minimum)
Complete Specifications of 42”/106 cm 6142 BD Protected:
Display:
Active Screen Dimensions (h x v): 930 x 53 mm
Screen Resolution (pixels): 1920 x 1080
Viewing Angle: 178 degrees
Contrast Ratio: 1300: I
Brightness 700 cd/sq meter
Color Performance 16.7 Million Colors
Response Time: 12 ms
Backlight System: E-LED (Edge-LED)
Safely/Contrast Enhancement Panel: Anti-glare, 90% Transmission (minimum)
(iii) Complete Specifications of 55”/139 cm 6155 BD Protected:
Display:
Active Screen Dimensions (h x v): 1210 x 680 mm
Screen Resolution (pixels): 1920 x 1080
Viewing Angle: 178 degrees
Contrast Ratio: 1300: 1
Brightness 700 cd/sq meter
Color Performance 16.7 Million Colors
Response Time: 12 ms
Backlight System: E-LED (Edge-LED)
Safety/Contrast Enhancement Panel: Anti-glare, 90% Transmission (minimum)
iv) Complete Specifications of IPC3 (Integrated Industrial PC):
IPC3:
Processor Intel Atom E3845 Quad Core, 1.91 GHz
HDD (Hard Disk Drive) 32 GB
RAM 2 GB (2 x 1 GB Bual channel)
Graphics Intel HD Graphics
Full Hardware Acceleration for MPEG G2, H.264, DirectX11, OCL 1.2. OGL 3.0, WMVP and VCI
Network Adapter Ethernet 1 x 1000
Sound Intel High definition Audio
RS232 01
USB 02
SD Card Slot 01
DVI-D 01
Display Port (DP) 01
Audio Lineout 01
Hardware Watching
Software (Installed on SSD) --
Linux OS Embedded & CONRAC System Monitor
Control:
User Controls Power button (Internal for Outdoor Display series)
Control for Display Functions Via IR or USB keyboard or via network
Accessories:
Operating Manual (E/D), AC Power Cord (not for Output Series), Infraed Keyboard, Infraed Remote Control.
Pixels of Monitors:
32”/80 cm 6132 BD Protected 1920 x 1080 (Full HD)
42”/106 cm 6142 BD Protected 1920 x 1080 (Full HD)
55”/139 cm 6155 BD Protected 1920 x 1080 (Full HD)
3) Model of Server and Model of each size Monitor including its Slots/Connectors:
Model Numbers of Monitors:
32” /80 cm 6132 BD Protected
42” 106 cm 6142 BD Protected
55”/139 cm 6155 BD Protected
No. of Slots in each Monitor: 2 Slots (one for data and another one for Electric Power)
Connectors with Integrated PC (IPC3):
Ethernet 01
RS232 01
USB 02
Audio Lineout 01
Display Port 01
DVI-I 01
Model Number for Server: PowerEdge R330 (Manufacturer: DELL Inc.)
Connectors with Server:
Ethernet 01
RS232 01
USB 2.0 02
DVI-D 01
Display Port (DP) 01
Audio Lincout 01
4) Brand of Each Size Monitor:
4. The importer also provided manufacturer’s brochure giving specifications and procedures of the FIDS. The Collectorate was further asked by the Classification Committee vide letter No. C-64/KAPE DC-PCT/2017 dated 12.01.2018 to specifically clarify whether each LED Display is with a CPU as mentioned in the Examination Report or otherwise. The Collectorate vide their reply C.No. V-Cus/SKT/Imp/Misc/44/2017/5160 dated 23.01.2018, clarified that “each LED Display Unit is with an IPC3 in the consignment.”
LAW AND ANALYSIS:
5. The Classification Committee first considered H.S. Code 85.28 – Monitors and projectors not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or vide recording or reproducing apparatus. The Collectorate has classified the subject goods under HS code 8528.5900. It was observed that as per terms of heading of HS code 85.28 covers two broad categories of Monitors:
(A) Monitors capable of directly connecting to and designed for use with an Automatic Data Processing Machine of Heading 84.71 i.e. capable of accepting a signal from the CPU of an automatic data processing machines and :
(B) Monitors other than those capable of directly connecting to and designed for use with an Automatic Data Processing Machine of heading 84.71.
Explanatory Notes further explains that 85.28 includes monitors which are capable of receiving signals when connected directly to the video camera or recorder. There monitors are also used for closed circuit television (Airports, Railways stations, Factories, Hospitals etc.). The representing of the importer contended that in order to apply HS Code 8528.5900 it is important that the goods should be merely Monitors and Projectors where as in the instant case it is a whole system with Server, CPU’s and Monitors.
6. The committee then considered the HS Code 84.71 – Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included.
Relevant Chapter Notes were consulted by the Classification Committee. As per Note 5 (A) of the Chapter Notes to Chapter 84
“5(A) For the purpose of heading 84.71, the expression “automatic data processing machines” means machine capable of:
Storing the processing program or programs and at least the data immediately necessary for the execution of the program:
Being freely programmed in accordance with the requirements of the user;
Performing arithmetical computation specified by the user; and
Executing, without human intervention, a processing program which requires them to modify their execution, by logical decision during the processing run”.
Note 5 (B) further elaborates “Automatic data processing machines may be in the form of systems consisting of variable number of separate units” and
Sub clause (IV) of clause D of Note 5 further explains that “Heading 84.71 does not cover the following when presented separately:
(v) Monitors and projectors, not incorporating television reception apparatus”
7. The Committee also referred to EN to HS code 84.71. As per EN ; Automatic data processing machines may comprise in the same housing, the Central Processing Unit, an input unit (e.g., a keyboard or a scanner) and an output unit (e.g., a visual display unit), or may consist of a number of interconnected separate units. In the letter case, the units form a “system” when it comprises at least the Central Processing Unit, an input unit and an output unit. The interconnections may be made by wired or wireless means.
8. In light of above explanations, the Classification Committee observed that H.S. code 85.28 does not cover the Monitors that are presented with data processing system. Therefore, the item under consideration i.e. Flight Information Display System (FIDS) fall outside the scope of H.S. Code 8528.5900. In view of the above discussion, the Product details and the Law & Analysis, the Classification Committee observed that the appropriate classification of the subject goods i.e. FIDS, comprising of Display Monitors, CPU & Server is under HS code 84.71.
HOLDING:
9. The Committee holds that Flight information Display System comprising of Monitors, CPU and Server through application of Rule 1 of General Rules of Interpretation is appropriately classifiable under HS code 8471.500.
10. This Ruling is based upon the documents and information provided by the Applicant & the Collectorate and shall be treated as annulled, if it is found, at any subsequent stage, that the same was obtained by providing incorrect, false, misleading or incomplete information.
Signed by
(Mona Mehfooz)
Additional Collector-IV
Chairperson Classification Committee
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