2022 (11) TMI 1424 - AAR - Customs

Classification of goods sought to be imported - specially designed, cut-to-shape size goods said to be mould bases - classifiable under CTH 8480 20 00 as per Customs Tariff Act, 1975 or not - HELD THAT - It is felt that guidance of the Harmonized Commodity Description and Coding System of the World Customs Organization, to which India is a signatory, would be useful. It is seen that Explanatory Notes of heading 8480 prescribe that Mould Bases are plates placed in the bottom of the moulds. As per submissions of the applicant in the application for advance rulings, goods in question do not appear to be ready-to-use goods, rather these appear to be incomplete, specially designed, cut-to-shape and size parts which are required to be further worked upon to become ready-to-use parts of the moulds. Since the applicant has stated categorically that these are cut-to-shape and size, as such these goods can not be termed as parts of general use. Moreover, Section Note 2(b) of Section XVI provides inter alia that other parts, if suitable for use solely or principally with a particular kind of machine are to be classified with the machines of that kind. Accordingly, the goods in question are not mould bases. These goods are parts of moulds which needs to be worked upon to make it suitable for the designated function to be performed - Thus, in light of the Section Note 2(b) of section XVI, the goods in question, merit classification under Sub-heading 8480 79 00.

Summary

Issues: Classification of Mould Base under Chapter heading 8480 20 00 of the Customs Tariff Act, 1975

Analysis:
The applicant, a company engaged in manufacturing crankshafts, sought an advance ruling on the classification of Mould Base of specialized alloy steel to be used for crankshaft production. The applicant intended to import specially designed, cut-to-shape and size mould bases from Japan. The concerned Commissioner of Customs opined that the goods should be classified under CTH 8480 20 00, confirming the applicant's classification.

The Authority conducted a personal hearing where the authorized representative reiterated the submissions. It was confirmed that no dispute had arisen at any Customs Station regarding the classification. The Authority noted that the goods in question were not ready-to-use but incomplete parts needing further work. Referring to the Harmonized Commodity Description and Coding System, the Authority determined that the goods should be classified under Sub-heading 8480 79 00 as parts of moulds, not as mould bases.

In conclusion, the Authority ruled that the goods in question, being incomplete parts of moulds requiring further work, should be classified under Sub-heading 8480 79 00 instead of Chapter heading 8480 20 00 as initially proposed by the applicant.