Classification of the machines commercially referred to as 'Tablet Computers'
THE Board informs that doubts have been raised regarding classification of products commercially referred to as Tablet Computers under the Customs Tariff, whether under heading 8517 and 8471.
Heading 8517 covers -
Telephone sets, including telephones for cellular networks or for other wireless networks; other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528
And heading 8471 covers -
Automatic data processing machines and units thereof; magnetic or optical readers, machines for transcribing data on to data media in coded form and machines for processing such data, not elsewhere specified or included
The Board has examined the issue and observes -
"A Tablet Computer is designed to be primarily operated by using its touch screen. It can process data, execute programs, and connect to the Internet via a wireless network in order to, for example, exchange and manage e-mails, exchange or download files, download software applications, conduct video or VoIP ("Voice over Internet Protocol") communications, etc. In addition, it can also be connected to a cellular network to make voice calls."
Therefore, Board has decided that machines commercially referred to as "Tablet Computers" are more appropriately classifiable in heading 8471, subheading 847130, by application of General Rules for Interpretation (GRI) of Import Tariff, 1 (Note 3 to Section XVI and Note 5 (A) to Chapter 84) and 6. This decision is consistent with WCOHSC decision to classify certain machines commercially referred to as "Tablet Computers" in heading 8471, subheading 847130.
Technology has advanced at a rate faster than the minds of tariff makers. Some years ago nobody could have thought of a telephone that can take pictures, send messages in text/picture/audio/video.., surf the internet, be a TV/music player guide you through traffic and blast your ear with radiation. Do you classify such a monster as a telephone? And what do you call a machine that can print, scan, copy, fax and be a telephone?
Now, where will a Phablet be classified? (phablet is a combination of a smartphone and a tablet)
Circular dated 14th May, 2013