F.
No. 528/96/2001-Cus.(TU)
Government
of India
Ministry
of Finance
Department
of Revenue
Central
Board of Excise & Customs
159A,
North Block, New Delhi-1.
Dated
10th September, 2007.
To
All
Chief Commissioners of Customs.
All
Chief Commissioners of Customs & Central Excise.
Chief
Departmental Representatives, CESTAT.
All
Commissioners of Customs.
All
Commissioners of Customs & Central Excise.
Subject:
Classification of Digital Still Image Video Camera - Admissibility
of Notification benefits - reg.
***
It has come to the notice of the Board that divergent practices are being
followed by field formations regarding classification of ‘Digital Still Image
Video Camera’ and consequent import duty exemption benefits.
The doubt raised in the field formations was whether ‘digital camera
with still image as well as moving image capability’ would be eligible for
exemption benefit under the entry as ‘Digital Still Image Video camera’.
2.
Prior to 1.1.2007, tariff Item 8525 40 00 of the Customs Tariff Act (CTA)
1975, covered “still image video cameras and other video camera recorders;
digital cameras”. According to Harmonized System (HS) Explanatory Notes (Third
edition, 2002), the apparatus of sub-heading 8525.40 consisted of a combination
of video camera and a video recording or reproducing apparatus; these apparatus
record the images taken by the camera. All types of digital cameras perform
these functions. With effect from 1.1.2007, based on HS 2007 changes, all
digital cameras have been grouped under tariff item 8525 80 20 of the Customs
Tariff Act, 1975 as ‘digital cameras’. However, ‘Video Camera Recorders’
are separately classifiable under Tariff Item 8525 80 30.
3.
Import duty exemption was extended to ‘Digital Still Image Video
camera’ falling under sub-heading 8525.40, vide entry at Serial Number 314 of
Notification No.21/2002-Customs dated 1.3.2002.
This exemption is presently covered under Serial Number 13 of
Notification No. 25/2005-Customs dated 1.3.2005. Since the notification entry at
Sl. No. 314 of Notification No.21/2002-Cus.
dated 1.3.2002 used the words ‘video’ as well as ‘still image’, there
was a doubt in the field formations whether this entry covers such digital
cameras which are capable of both still image photography as well as video film
shooting.
4.
This issue was deliberated at the Conference of Chief Commissioners’ on
Tariff and Allied Matters in 2006, wherein it was decided
that only those digital cameras that record
still images on Video format are covered under the description of the exemption
entry i.e. ‘digital still image video cameras’. However, to ensure
uniformity, it was decided that the Board would issue a circular in this regard.
The minutes of this Conference were circulated to the field formations.
5.
The WCO has clearly outlined the features of the Digital Video camera.
Such cameras have been described as Digital cameras that capture light images,
convert them to digital electronic signals and then record such digital image
data on internal or removable media (built-in memory or diskettes). These images
can be reproduced by connecting the camera to a video monitor (or TV), an ADP
machine, or by inserting the media in the ADP machine. This type of digital
cameras can produce both video signals (e.g., NTSC, PAL, SECAM or other similar
video format) and computer readable image data like MPEG.
6.
The term ‘Video’ relates to recording, reproducing or broadcasting of
visual images. It is a technology of electronically capturing, recording,
processing, storing, transmitting, and reconstructing a sequence of still images
representing scenes in motion. The term “Still image video” camera covers
the types of camera that take still images and stores them as single frame of
video. These single video frames, when reproduced at a specified frame rate
achieve an illusion of a moving image. The minimum frame rate is about fifteen
frames per second. The term ‘digital still image video camera’ covers only
digital cameras that have the capability of taking still images. This would also
include digital cameras that take moving images for limited period of time
although they are primarily still image cameras. Such cameras fall under tariff
item 8525 80 20. However, digital cameras that can take both still images and
moving images like Camcorder or video recorder falling under Tariff item 8525 80
30 shall not be covered under the said entry.
Digital still image video cameras can also be differentiated from the
still cameras of heading 9006 i.e. photographic film cameras. Cameras of this
type are also not eligible for the benefit of these notifications.
7.
It is accordingly clarified that the benefit of entry at Sl. No. 314 of
notification No.21/2002-Cus. as well as Sl.No.13 of Notification 25/2005-Customs
dated 1.3.2005 would be available to ‘digital cameras’ with still image
recording as its principal function. This
would also include those digital cameras that have the capability of recording
moving images for a limited period of time.
8. Field formations may finalise the pending assessments, if any, accordingly.
Yours
faithfully,
(M.M.Partiban)
Director (Customs)
Tel.No.2309 3908
