2022 (11) TMI 1399 - AAR - Customs

Classification of goods intended to be imported - semi-finished and finished casting parts for manufacturing of injection moulding machine - to be classified under Heading 7325 or under CTH 8477 90 00? - HELD THAT - As per the submission of the applicant, the subject goods are rough/semi-finished casting parts for manufacturing of injection molding machine. Also, as per the drawings the subject goods are shown as parts of the machinery. Injection moulding machine and its parts are specifically covered under this heading as Tariff Items 8477 10 00 and 8477 90 00 respectively. In view of the provision regarding classification of parts, the subject goods also come under the purview of the Tariff Item 8477 90 00. As per the explanatory notes to Heading 73.25 which provides for exclusion of castings which are products falling in other headings of the Nomenclature (e.g., recognizable parts of machinery or mechanical appliances) or unfinished castings which require further working but have attained the essential character of such finished products, the subject goods do not merit classification under Heading 7325. Further, the subject goods merit classification under Heading 8477 as parts of the machinery of the said heading. The subject goods, e.g., rough/semi-finished castings merit classification under Heading 8477; more specifically under Tariff Item 8477 90 00 of the Schedule I to the Customs Tariff Act, 1975.

Summary

Issues: Classification of semi-finished and finished casting parts for injection molding machine.

Analysis:
The applicant, a global leader in manufacturing plastic processing machinery, sought an advance ruling on the classification of rough/semi-finished casting parts for the manufacturing of injection molding machines. The applicant imported spheroidal graphite iron castings specifically designed for their injection molding machines. These casting parts are unique to their machines and undergo cleaning, finishing, and tapping before use. The applicant argued that these castings should be classified under CTH 8477 90 00, not under Heading 7325 as they are recognizable parts of machinery and have the essential character of finished products.

During the personal hearing, the applicant presented their case supported by relevant notifications and explanatory notes. The Authority reviewed the application, submissions, and relevant information, including Notification No. 42/2017-Customs (ADD). The Authority observed that the proposed imports did not match the description in the notification, which specifically mentioned castings for wind operated electricity generators, not injection molding machines. As a result, the Authority concluded that alternate classifications for the subject goods needed to be examined.

The Authority analyzed Chapter 73, which covers articles of iron or steel, and noted that the subject goods did not seem classifiable under Heading 7325 based on the explanatory note excluding recognizable parts of machinery. The Authority then considered an alternate classification under CTH 8477 of Chapter 84, which covers machinery for working rubber or plastics. The subject goods, being rough/semi-finished casting parts for injection molding machines, fell under Tariff Item 8477 90 00 as parts of the machinery. Therefore, the Authority ruled that the subject goods should be classified under Heading 8477, specifically under Tariff Item 8477 90 00 of the Customs Tariff Act, 1975.

In conclusion, the Authority determined that the rough/semi-finished castings for injection molding machines should be classified under Heading 8477, Tariff Item 8477 90 00, based on their unique nature as parts of the machinery, distinct from castings for other purposes like wind operated electricity generators.