Why Gaming PCs are classifiable under automatic data processing machines, thus saving importers big on import duty?

If you're importing 'Computer System Desktops' marketed for gaming, then please pay sharp attention to their classification under the Customs Tariff Act to save you big on import duty.

You should classify your gaming PCs under CTH 8471 3090 and not under CTH 9504 5000.

And if your computers get stuck with customs department challenging your classification, then tell them about CESTAT Chennai's this holding in Asus India's case.

Considering the differences that exist between video game console, video game machine and the imported product, we hold that the imported ‘Computer System Desktops’ are classifiable under CTH 8471 as ‘automatic data processing machines.

Now here're the case background and details:

Background:

-> Asus India Private Limited imported goods declared as "Computer System Desktop" under CTH 84713090.

-> Upon examination, the Revenue found these goods to be personal computers with accessories like a mouse, power adapter, and gaming console.

-> Based on the supplier's website, the Revenue found out that these goods were specially designed for gaming purposes.

-> So the Revenue re-classified these goods under CTH 9504 5000, considering that these systems, with their gaming enhancements, were primarily for gaming.

-> The lower appellate authority held that the impugned goods merited classification under CTH 9504 as their objective, character and principal feature is playing games only.

-> However CESTAT summarised the difference between "Gaming Desktop Computer" and "Video Game Console".

> Finally, CESTAT ruled

The imported 'Computer System Desktops' are classifiable under CTH 8471 as 'automatic data processing machines'. The previous order was set aside.