Appendix II — Preferential import tariff

Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts

and accessories of such articles

Notes.

1. This Chapter does not cover:

(a) Electrically heated blankets, bed pads, foot-muffs or similar articles; electrically heated clothing, footwear or ear pads or other electrically heated articles worn or carried on the person;

(b) Glass articles of heading 70.11;

(c) Machines and apparatus of heading 84.86;

(d) Vacuum apparatus for medical, surgical, dental or veterinary sciences (heading 90.18); or

(e) Electrically heated furniture of Chapter 94.

2. Headings 85.01 to 85.04 do not apply to goods described in heading 85.11, 85.12, 85.40, 85.41 or 85.42.

However, metal tank mercury arc rectifiers remain classified in heading 85.04.

3. For the purposes of heading 85.07, the expression "electric accumulators" includes those presented with ancillary components that contribute to the accumulator's function of storing and supplying electric energy or protecting it from damage, such as electrical connectors, temperature control devices (e.g., thermistors) and circuit protection devices. They may also include a part of the protective housing of the article in which they are used.

4. Heading 85.09 covers only the following electromechanical machines of the kind commonly used for domestic purposes:

(a) Floor polishers, food grinders and mixers, and fruit or vegetable juice extractors, of any weight;

(b) Other machines provided the weight of such machines does not exceed 20 kg.

However, this heading does not cover fans or ventilating or recycling hoods incorporating a fan, whether or not fitted with filters (heading 84.14), centrifugal clothes dryers (heading 84.21), dish washing machines (heading 84.22), household washing machines (heading 84.50), roller or other ironing machines (heading 84.20 or 84.51), sewing machines (heading 84.52), electric scissors (heading 84.67) or electrothermic appliances (heading 85.16).

5. For the purposes of heading 85.17, the term "smartphone" means telephones for cellular networks, equipped with a mobile operating system designed to perform the functions of an automatic data processing machine, such as downloading and running multiple applications simultaneously, including third-party applications, whether or not incorporating other features such as digital cameras and navigation aid systems.

6. For the purposes of heading 85.23:

(a) "Solid-state non-volatile storage devices (semiconductor storage products not erased when the power supply is removed)" (for example, "flash memory cards" or "flash electronic storage cards") are storage devices with a connecting socket, incorporating in the same housing one or more flash memories (for example, "FLASH E2PROM") in the form of integrated circuits mounted on a printed circuit board. They may include a controller in the form of an integrated circuit and discrete passive components, such as capacitors and resistors;

(b) The expression "smart cards" means cards which have embedded in them one or more electronic integrated circuits (a microprocessor, random access memory (RAM) or read-only memory (ROM)) in the form of chips. These cards may incorporate contacts, a magnetic stripe or an embedded antenna but contain no other active or passive circuit elements.

7. For the purposes of heading 85.24, "flat panel display modules" refers to devices or apparatus for displaying information, equipped with at least a display screen, and designed for incorporation into articles of other headings before use. Display screens for flat panel display modules include, but are not limited to, flat, curved, flexible, foldable or stretchable forms. Flat panel display modules may incorporate additional elements, including those necessary for receiving a video signal and distributing that signal to the pixels on the display. However, heading 85.24 does not cover display modules equipped with components for converting a video signal (for example, scaler ICs, decoder ICs or application processors) or having the character of goods of other headings.

For the classification of the flat panel display modules defined in this Note, heading 85.24 shall take precedence over any other heading in the Nomenclature.

8. For the purposes of heading 85.34, "printed circuits" are circuits obtained by forming on an insulating base, by any printing process (for example, embossing, plating, etching) or by the "film circuit" technique, conductor elements, contacts or other printed components (for example, inductors, resistors, capacitors), alone or interconnected according to a pre-established pattern, other than elements which can produce, rectify, modulate or amplify an electrical signal (for example, semiconductor elements).

The expression "printed circuits" does not cover circuits combined with elements other than those obtained during the printing process, nor does it cover individual, discrete resistors, capacitors or inductors. Printed circuits may, however, be fitted with non-printed connecting elements.

Thin- or thick-film circuits comprising elements formed during the same technological process together with their active and passive elements are classified in heading 85.42.

9. For the purposes of heading 85.36, "connectors for optical fibres, optical fibre bundles or cables" means connectors which simply provide a mechanical butt-to-butt connection between optical fibres in a digital line system. They perform no other function, such as amplifying, regenerating or modifying a signal.

10. Heading 85.37 does not cover infra-red wireless devices for remote control of television receivers or other electrical equipment (heading 85.43).

11. For the purposes of heading 85.39, the expression "light-emitting diode (LED) light sources" comprises:

(a) "Light-emitting diode (LED) modules" are electrical light sources based on light-emitting diodes (LEDs) arranged in electrical circuits and containing further elements such as electrical, mechanical, thermal or optical elements. They also contain discrete active elements, discrete passive elements, or products of heading 85.36 or 85.42 for the purpose of supplying power or controlling the power supply. Light-emitting diode (LED) modules do not have a lamp cap designed to allow easy installation or replacement in a luminaire and to ensure mechanical and electrical contact.

(b) "Light-emitting diode (LED) lamps" are electrical light sources comprising one or more LED modules containing further elements such as electrical, mechanical, thermal or optical elements. The difference between a light-emitting diode (LED) module and a light-emitting diode (LED) lamp is that the lamp has a lamp cap designed to allow easy installation or replacement in a luminaire and to ensure mechanical and electrical contact.

12. For the purposes of headings 85.41 and 85.42:

(a) (i) "Semiconductor devices" are semiconductor devices the operation of which depends on variations in resistivity upon the application of an electric field, or semiconductor-based transducers.

Semiconductor devices may also consist of several assembled elements, whether or not incorporating the ancillary functions of active and passive devices.

For the purposes of this definition, "semiconductor-based transducers" are semiconductor-based sensors, semiconductor-based actuators, semiconductor-based resonators and semiconductor-based oscillators, being discrete semiconductor-based devices which, by nature, perform a function of converting any type of physical or chemical phenomenon or action into an electrical signal, or an electrical signal into any type of physical phenomenon or action.

All the elements of a semiconductor-based transducer are indivisibly combined and may also include necessary materials indivisibly attached, which ensure their structure or function.

The following terms mean:

(1) "Semiconductor-based" means built or manufactured on a semiconductor substrate or from semiconductor material, manufactured using semiconductor technology, in which the semiconductor substrate or material plays an important and irreplaceable role in the function and performance of the transducer, and its operation relies on semiconducting properties, including physical, electrical, chemical and optical properties.

(2) "Physical quantity or chemical quantity" relates to quantities such as pressure, sound waves, acceleration, vibration, movement, orientation, strain, magnetic field strength, electric field strength, light, radioactivity, humidity, flow, chemical concentration, etc.

(3) "Semiconductor-based sensor" is a type of semiconductor device comprising microelectronic or mechanical structures built into or onto a semiconductor and having the function of detecting a physical or chemical quantity and converting it into electrical signals, as a result of a change in electrical properties or the displacement of a mechanical structure.

(4) "Semiconductor-based actuator" is a type of semiconductor device comprising microelectronic or mechanical structures built into or onto a semiconductor and having the function of converting an electrical signal into physical motion.

(5) "Semiconductor-based resonator" is a type of semiconductor device comprising microelectronic or mechanical structures built into or onto a semiconductor and having the function of generating an electrical or mechanical oscillation of a predetermined frequency that depends on the physical dimensions of such structures in response to an external input.

(6) "Semiconductor-based oscillator" is a type of semiconductor device comprising microelectronic or mechanical structures built into or onto a semiconductor and having the function of generating an electrical or mechanical oscillation of a predetermined frequency that depends on the physical dimensions of such structures.

(ii) "Light-emitting diodes (LEDs)" are semiconductor devices based on semiconductor materials that convert electrical energy into visible, infra-red or ultra-violet rays, whether or not electrically connected to one another and whether or not combined with protective diodes. Light-emitting diodes (LEDs) of heading 85.41 do not incorporate elements for the purpose of supplying power or controlling the power supply;

(b) "Electronic integrated circuits" are:

(i) Monolithic integrated circuits in which the circuit elements (diodes, transistors, resistors, capacitors, inductors, etc.) are created (essentially) in the mass and on the surface of a semiconductor material or a compound semiconductor material (for example, doped silicon, gallium arsenide, silicon-germanium, indium phosphide) and are inseparably associated;

(ii) Hybrid integrated circuits comprising passive elements (resistors, capacitors, inductors, etc.), obtained by thin- or thick-film technology, and active elements (diodes, transistors, monolithic integrated circuits, etc.), obtained by semiconductor technology, which elements are indivisibly combined, by interconnections or interconnecting wires, on a single insulating substrate (glass, ceramic, etc.). These circuits may also include discrete components;

(iii) Multichip integrated circuits consisting of two or more monolithic integrated circuits combined indivisibly, whether or not on one or more insulating substrates, whether or not with lead frames, but without any other active or passive circuit elements.

(iv) Multi-component integrated circuits (MCOs): a combination of one or more monolithic, hybrid or multichip integrated circuits with at least one of the following components: silicon-based sensors, actuators, oscillators, resonators or a combination thereof, or components performing the functions of articles of heading 85.32, 85.33, 85.41, or inductors of heading 85.04, formed to all intents and purposes into an inseparable whole, resembling an integrated circuit, comprising components assembled on a printed circuit board (PCB) or on another carrier, by means of pins, leads, balls, lands, bumps or pads.

For the purposes of this definition:

1. A "component" may be discrete, manufactured independently and then assembled onto the multi-component integrated circuit (MCO), or integrated into other components.

2. "Silicon-based" means placed on a silicon substrate, or made of silicon material, or built on an integrated circuit die.

3. (a) A "silicon-based sensor" comprises microelectronic or mechanical structures built into or onto a semiconductor and having the function of detecting a physical or chemical quantity and converting it into electrical signals as a result of a change in electrical properties or the displacement of a mechanical structure. A "physical or chemical quantity" relates to quantities such as pressure, sound waves, acceleration, vibration, movement, orientation, strain, magnetic field strength, electric field strength, light, radioactivity, humidity, flow, chemical concentration, etc.

(b) A "silicon-based actuator" comprises microelectronic and mechanical structures built into or onto a semiconductor and having the function of converting an electrical signal into physical motion.

(c) A "silicon-based resonator" is a component comprising microelectronic or mechanical structures built into or onto a semiconductor and having the function of generating an electrical or mechanical oscillation of a predetermined frequency that depends on the physical dimensions of such structures in response to an external input.

(d) A "silicon-based oscillator" is an active component comprising microelectronic or mechanical structures built into or onto a semiconductor and having the function of generating an electrical or mechanical oscillation of a predetermined frequency that depends on the physical dimensions of such structures.

For the classification of the articles defined in this Note, headings 85.41 and 85.42 shall take precedence over any other heading in the Nomenclature, except in respect of goods of heading 85.23.

Subheading Notes.

1. Subheading 8525.81 covers only television cameras, digital cameras and video camera recorders which are high-speed cameras having one or more of the following characteristics:

- a recording speed exceeding 0.5 mm per microsecond;

- a time resolution of 50 nanoseconds or less;

- a frame rate exceeding 225,000 frames per second.

2. For subheading 8525.82, radiation-hardened or radiation-tolerant television cameras, digital cameras and video camera recorders are designed or shielded to enable operation in a high-radiation environment. Such cameras are designed to withstand a total radiation dose of at least 50 x 10^3 Gy(silicon) (5 x 10^6 RAD (silicon)) without operational degradation.

3. Subheading 8525.83 covers night vision television cameras, digital cameras and video camera recorders that use a photocathode to convert available light into electrons, which may be amplified and converted to provide a visible image. This subheading excludes thermal imaging cameras (usually classified in subheading 8525.89).

4. Subheading 8527.12 covers only cassette players with built-in amplifier, without built-in loudspeaker, capable of operating without an external source of power and with dimensions not exceeding 170 mm x 100 mm x 45 mm.

5. For the purposes of subheadings 8549.11 to 8549.19, "spent primary cells, primary batteries and electric accumulators" are primary cells, primary batteries and electric accumulators which are unusable owing to breakage, cutting-up, wear or other reasons, and which are also incapable of being recharged.

(*): Proximity cards and HMTL tags fall under this code when they do not meet the conditions of Note 6(b) to this Chapter.

(*): Other electric conductors (for example, plaited wire, strip, bar) used as conductors in machinery, apparatus or electrical installations