Customs - Where do you classify a Smartwatch?
THE Customs Tariff is constantly under challenge with technological progress. Fifteen years ago nobody could have imagined that a telephone could also be an audio/video player, a camera, a video recorder, a diary, a road map and so on... For Customs tariff, do you classify it as a phone? And some products become obsolete. Is there any need for a heading for video cassette player now?
The HSN is the ultimate in tariff classification and it is supposed to contain a heading for every item in the world. But technology and ingenuity of the human mind do not wait for Customs officers gathered in Brussels to decide classification. Mind boggling and unimaginable products beyond the comprehension of the Tariff makers are hitting the market everyday. The HS has to be kept up to date in the light of changes in technology or in patterns of international trade. The Harmonized System Committee (HSC), at its 55th session in March 2015, examined the Harmonized System classification of a wide range of products. The classification decisions taken at the Session have now been published. These decisions comprise Classification Rulings, as well as the Amendments to the Explanatory Notes and to the Compendium of Classification Opinions.
Smartwatches are effectively wearable computers. The new HSN classification and description for this is:
8517.62: Wrist wearable device ("smart watch"): a battery-operated device in the form of a wrist-watch, incorporating a touch-sensitive, active-matrix organic light-emitting diode (AMOLED) display, a central processing unit (CPU), random-access memory, a flash memory, a radio transceiver, an electronic watch module, a motion sensor (accelerometer), agyro-sensor, a digital camera module with auto focus, a speaker and two microphones. The radio transceiver utilizes an open wireless technology standard (Bluetooth®), which enables the device to communicate wirelessly with certain mobile devices, such as mobile telephones for cellular networks or tablet computers. The device performs the following functions independently of any other device: recording and reproducing sound; taking and recording photos and videos; displaying time and information embedded in the watch module; measuring and displaying step counts and heart rates.
When “paired” with a host device, additional features are available to the wearer, including: making and receiving calls over the paired device; using voice commands to control the paired device (e.g., to send messages, take photos, set an alarm and check a weather forecast or schedules); displaying notifications from the paired device; playing music stored in the host device; performing functions of timekeeping instruments; measuring and displaying certain data, e.g., step counts, heart rates and calorie consumption; downloading (over the paired device) and running applications suitable to be used on the device.
Where does the drone fly?
A "drone" is a remote-controlled four-rotor helicopter, also called “quadcopter”, with an integrated digital camera (dimensions: 29 cm x 29cm x 18 cm; weight : 1,160 grams),
- a 5.8 GHz remote controller,
- a 2.4 GHz Wi-Fi range extender and
- a "smartphone" mount.
The helicopter is controlled via levers on the supplied remote control. The remote control comes equipped with a mount for a "smartphone" so the operator can use the phone screen to view "streaming" video images via Wi-Fi signal. The operator can take both videos (1080p HD) and still images (14 MP). The operator uses a separate program ("app") from the manufacturer to control the camera via the smartphone. The range of the supplied Wi-Fi range extender is approximately 300 meters and flying time is approximately 25 minutes before the battery must be recharged.
This is to be classified in 8525.80.
Some of the other classifications decisions are on motor vehicles, infant seat cum rocking chair, Stainless steel vacuum flask, two-seat car, etc.