Customs Circular No- 12/2012 dated 01.5.2012
Classification of Micro / Mini SD Cards - regarding.
Doubts have been raised as regards the classification of Micro / Mini SD Cards
in the Sub-heading 852351, which covers Semiconductor media, Solid – state
non-volatile storage devices or the Sub-heading 852352, which applies to
Semiconductor media, Smart cards. The matter was also deliberated upon in the
Bangalore 2011 Conference of Chief Commissioners of Customs.
2. The correct classification of Micro / Mini SD Cards was examined in the Board
and also deliberated in the 49th meeting of WCO’s Harmonized Systems Committee (HSC).
The technical inputs received revealed that the product structure of Micro /Mini
SD Cards can be divided into two broad categories: Category 1: where there is
PCB in the same housing, and Category 2: where there is no PCB instead there is
substrates like alumina substrate with IC mounted in the substrate and
interconnects printed on substrate.
3. Reportedly, at the time when Note 4(a) to Chapter 85 was adopted the
solid-state non-volatile storage cards included a traditional printed circuit
board. SD card technology has since evolved and now uses “Chip on Board”
substrate packaging (also known as System-in-Package or SIP) instead of
traditional printed circuit board assembly packaging to provide the exact same
SD functionality. The Current SD cards contain a substrate or support on which
the components (flash memory, controller, passive elements) are mounted.
Moreover, Note 5 to Chapter 85 defines printed circuits for the purposes of
heading 8534 and the Explanatory Note thereto provides further insight that
confirms that circuits are made by forming on an insulating base, by any
printing process (conventional printing or embossing, plating-up, etching,
etc.), conductor elements (wiring), contacts or other printed components such as
inductances, resistors and capacitors (“passive” Elements), other than elements
which can produce, rectify, detect, modulate or amplify electric signals, such
as diodes, triodes or other “active” elements. In this regard the WCO’s HSC is
of the opinion that a very broad definition of printed circuits was intended.
4. Micro / Mini SD Cards are manufactured using an etching process. The etching
process is one of the processes specifically identified in the definition of
“printed circuit” in Note 5 to Chapter 85. Thus, the substrates used fully
comply with the definitions of printed circuits found in the Harmonized System
and therefore, the substrate of Micro / Mini SD Cards qualifies as a printed
circuit board for purposes of Note 4(a) to Chapter 85.
5. The issue of classification of Micro / Mini SD cards was also referred to the
Department of Information Technology (DIT), Ministry of Communications &
Information Technology. Technical inputs from this Ministry revealed that
connecting pins can be treated as connecting sockets and the product covered in
the aforesaid two broad categories remain solid-state non-volatile storage
devices even when substrate is of alumina. This Ministry has also suggested
classification of Micro / Mini SD Cards in Sub-heading 8523.51
6. In view of the aforesaid, Board is of the considered view that in case of
Micro / Mini SD Cards wherein the PCB is substituted by substrates, then such
substrates fully comply with the definitions of printed circuits found in the
Harmonized System and the qualifies as a printed circuit board and connecting
pins qualifies as connecting sockets for purposes of Note 4(a) to Chapter 85. As
such, Micro / Mini SD Cards are correctly classified in Sub-heading 8523.51 as
Semiconductor media, solid-state, non-volatile data storage devices by
application of General Rules for Interpretation of Import Tariff (GRIs) 1 (Note
4(a) to Chapter 85) and 6.
7. The Board desires that the pending provisional assessment cases of Micro/
Mini SD Card imports may be finalised on the basis of above instructions.
Difficulties, if any, in implementation, may be brought to the notice of the
Board.
F. No. 528/27/2010-CUS (TU)
Yours faithfully,
(Subodh Singh),
OSD (Customs), Tariff Unit,