Exemption for defibrillators of external use under CN. 21/2002 (Sl. No. 363A) - Customs - 111/03

Circular No. 111/2003-CusDec 23, 2003 Subject: Exemption for defibrillators of external use under CN. 21/2002 (Sl. No. 363A). I am directed to say that divergence of practice regarding the defibrillators of external use has been brought to the notice of the Board. The dispute is whether DC defibrillators for external use, imported with internal paddles would be treated as 'defibrillator for external use' and attract duty @ 15% BCD + 8% CVD + 4% SAD or whether, it would be covered under Customs Notification No. 21/2002, dated 1-3-2002 (Sl. No. 363A) attracting concessional rate of duty @ 5% as 'DC Defibrillators for Internal Use' (Sl. No. 7 of List 37) 2. Defibrillators generally correct arrhythmia (irregular heart rate) and in specific terms 'tachy arrhythmia' (fast heart rate). External defibrillators are used in more critical and emergency situations while internal defibrillators are used when the patient is already prepared for surgery. The issue to be decided was whether the external defibrillators when imported with internal paddles for internal use can be considered for exemption at par with defibrillators for internal use. 3. This matter was discussed in the Tariff Conference of Chief Commissioners of Customs held at Visakhapatnam on 25th and 26th September, 2003. 4. The conference discussed the technical nature of the defibrillators for external as well as for internal use. It was observed that internal defibrillator in an implantable device. The item normally imported has a defibrillating device with external as well as internal paddles. The internal paddles are for giving shocks directly to the heart during open heart surgery and were, therefore, basically for external use only. 5. The Conference, therefore, decided that DC defibrillators for external use, imported with internal paddles would be treated as 'defibrillator for external use' and therefore attract duty @ 15% BCD + CVD + 4% SAD. 6. The Board has accepted the recommendation of the Conference and it is accordingly clarified that DC defibrillators for external use, imported with internal paddles would be treated as 'defibrillator for external use' and therefore attract duty @ 15% BCD + 8% CVD + 4% SAD. 7. Field formations may finalise the pending assessments, it any accordingly.