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"4. We have considered the submissions made by both the sides. We have also gone through the contending tariff entries which stand reproduced by us in the preceding paragraphs. There is no dispute on the facts that some of the speakers being imported by the appellant have USB port with USB playback in addition and some of them have the facility of F.M. radio also. As is seen from the above reproduced entries, Heading 8518 22 00 covers "Multiple Loudspeakers, mounted in the same enclosure". The product in question has been shown to us in the Court Room. The loudspeakers are in different sizes and some of them are the typical loudspeaker sizes seen in most of the functions where the sound received from outside sources gets amplified, as per Customs Appeal No. 75486 of 2020 requirement of the user. Of course the Revenue is not disputing the classification of the same.

"3. The competing headings are :

8518 - Loudspeakers, whether or not mounted in their enclosures : headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers: audio-frequency electric amplifiers: electric sound amplifier sets;

8519 - Sound recording or reproducing apparatus;

8527 - Reception apparatus for radio-broadcasting whether or not combined, in the same housing, with sound recording or reproducing apparatus or a clock.

6. During discussions held at the time of Conference, there was general agreement that in case of :

(a) "Speaker with USB port but without USB playback or FM radio", the product would be classified in heading 8518, by application of General Rules 1. Speakers classified under heading 8518 include both passive speakers and active speakers. Active speakers, like many subwoofers, contain a built-in audio amplifier. The sub-heading under which speakers are classified depends on the number of „drive units‟ - the actual loudspeaker cones or ribbons - in each cabinet or enclosure. Speakers with a single drive unit in each cabinet are classified under sub-heading 8518 21. Speakers with more than one drive unit in each cabinet

                    "8518                 Microphones   and    stands   therefor;

                                 Customs Appeal No. 75486 of 2020


                            loudspeakers,     whether      or    not
                            mounted      in    their     enclosures,
                            headphones and earphones, whether
                            or not combined with a microphone,
                            and sets consisting of a microphone
                            and one or more loudspeakers, audio-
                            frequency electric amplifiers; electric
                            sound amplifier set
       8518 10 10           Microphones and stands therefor,
                            Loudspeakers, whether or not
                            mounted in their enclosures
       8518 21 00           Single loudspeaker, mounted in their
                            enclosures
       8518 22 00           Multiple loudspeakers, mounted in the
                            same enclosure
       8518 29 00           Other
       8518 30 00           Headphones and earphones, whether
                            or not combined with a microphone,
                            and sets consisting of a microphone
                            and one or more loudspeakers
       8518 40 00           Audio-frequency electric amplifiers
       8518 50 00           Electric sound amplifier sets
       8518 90 00           Parts"
         "8527              Reception apparatus for radio-
                            broadcasting, whether or not
                            combined, in the same housing with
                            sound recording or reproducing
                            apparatus or a clock
             -              Radio-broadcast receivers capable of
                            operating without an external source
                            of power :
       8527 12 00           Pocket-size radio cassette-players
        85271300            Other apparatus combined with sound
                            recording or reproducing apparatus
       8527 19 00           Other
-                           Radio-broadcast receivers not capable
                            of operating without an external
                            source of power, of a kind used in
                            motor vehicles :
         8527 21 00         Combined with sound recording or
                            reproducing apparatus
         8527 29 00         Other
                            Other
                            Other
         8527 91 00         Combined with sound recording or
                            reproducing apparatus
          8527 92 00        Not combined with sound recording or
                            reproducing apparatus but combined
                            with a clock
          8527 99 00        Other :
                            Radio communication receivers :
          8527 99 11        Radio pagers
          8527 99 12        Demodulators
          8527 99 19        Other
          8527 99 90        Other"