Customs - Classification of Mouse Pads - CBEC Clarifies
What is Automatic Data Processing Mouse?
IS the mouse pad a part of the Mouse or the Computer?
The CBEC observes,
“Mouse Pads fail to qualify as an accessory of a computer or Automatic Data Processing (ADP) mouse of heading 84.71, as they do not serve to adapt the computer mouse for a particular operation, perform a service relative to a computer mouse, and increase the range of operations of a computer mouse.
Mouse Pads are generally flat products of different shapes and consist of different materials or combinations of materials such as plastics, rubber, hard rubber, etc. The characteristics and properties of these materials of which Mouse Pads are made of do not make the product indispensible for the functioning of an ADP mouse. It is also apparent that an ADP mouse does not depend on the presence of a Mouse Pad in order to function or to carry out its specific activity. The ADP mouse could also be used and would also function without being placed on a Mouse Pad".
So, Board is of the view that Mouse Pads are neither parts nor accessories of a computer mouse of heading 84.71 and would therefore be classifiable according to their constituent material .
In the first para above, Board seems to have slipped. What do they mean by Automatic Data Processing (ADP) mouse?. Maybe the sentence should have read as, "Mouse Pads fail to qualify as an accessory of a computer or Mouse of Automatic Data Processing (ADP) machine of heading 84.71, as they do not serve to adapt the computer mouse for a particular operation, perform a service relative to a computer mouse, and increase the range of operations of a computer mouse."
The WCO considered this issue in the Harmonized System Committee (49th Session - March 2012) and the decision was:
No. | Product description | Classification | HS codes considered | Classification Rationale |
1 | Mouse Pads | Classification according to their constituent material | 84.73 |
Maybe it is in pursuance of this decision of the WCO that the Board clarified that Mouse Pads would be classifiable according to their constituent material.
What about the Tribunal Decision? The CESTAT had in Commissioner v. Hi-Tech Computers, held that “Mouse pad” used to increase the range of operation of a computer is classifiable under sub-heading 8473.30 of Central Excise Tariff Act, 1985 and not under sub-heading 3921.13 ibid as pads of polyurethanes. The appeal against this decision was dismissed by the Supreme Court.
CBEC Circular No. 19/2012 - Cus., Dated: July 11, 2012