Customs AAR Declines Samsung’s 5% Preferential Duty Claim On Split AC Imported Without PCBA & Refrigerant

The Customs Authority for Advance Rulings (AAR) rejected Samsung’s claim for a 5% preferential duty rate on imported split AC units that were brought in without a key component — the PCBA — and without refrigerant. The AAR held that the product could not be classified as a complete air-conditioner under the applicable tariff headings for concessional duty. The decision was also influenced by the pendency of an appeal on a related classification question. The ruling underscores the strict interpretation of customs rules for availing preferential rates and reiterates that partial or incomplete components cannot be treated as finished goods for concessional duty benefits.