Classification of Soft Ferrite Articles Whether under Heading 3818 or 3823 or 8505 - Central Excise - 20/90-CX.4

Classification of Soft Ferrite Articles Whether under Heading 3818 or 3823 or 8505 Circular No. 20/90-CX.4 Dated 9-7-1990 [From F. No. 140/2/90-CX.4] Government of India Central Board of Excise Customs New Delhi Subject : Classification of Soft Ferrite Articles Whether under Heading 3818 or 3823 or 8505. Doubts have been raised regarding the classification of Soft Ferrite Articles whether under Heading 3818 or 3823 or 8505. 2. Soft Ferrite articles are manufactured from homogenous chymetric composition with pre-determined iron content and micro structure of uniform grains with the smallest possible pores. First powder is prepared, then it is made into a compact material by pressing and then, by subjecting, it to firing or sintering, finished product is obtained in the form of rod if it is intended for use as pot cores and PM cores in losding coils, filters, input, output Transformers or in form of U-cores when used in line output transform DC converter, Pulse transformers and driver transformers. While pot cores and RM cores are used in telecommunication industry, U E - cores are used in TV industry. 3. The matter has been discussed in the second south zone Tariff-cum-General Conference at Bangalore on 24th and 25th May, 1990. The view that Soft Ferrite articles were classifiable under Heading 3893 in view of HSN Explanatory Notes at page 1341 which state that magnetic Ferrite, with a binder in the form of powder or pellets is classifiable under Heading 3823 and not under Heading 8505 was not found acceptable. The Conference observed that the Board had clarified that magnetic Ferrites with a binder in the powder or pellets form would not be classifiable under Heading 8505, but under Heading 3823. In the instant case, the articles are not in powder or pellets form. Though they are not intended to become permanent magnets after magnetization, these can be appropriately regarded as parts of Electro-magnets falling under Heading 8505 in view of : (a) Note 2a to Section XVI on the classification of parts of machines; (b) Electro-magnets are described in HSN Explanatory Notes under Heading 8505 as consisting essential of a coil or wire wound around a core of a soft ferrite, the passing of current in the coil confers magnetic property in the coil which can be used for attraction or repulsion. (c) HSN Explanatory Notes under Heading 8505, pages 1340 and 1341 which provide for classification of parts under Heading 8505 and only exclude magnetic ferrite with a binder in the form of powder or pellets from the scope of the heading. 4. The conference, therefore, concluded that, notwithstanding their use solely or principally with TV set, such Soft Ferrite articles would be appropriately classifiable under Heading 8505 as parts of electro magnets. The Board has accepted the recommendation of the Conference and accordingly, it is clarified that Soft Ferrite articles intended for electro magnets would be appropriately classifiable under Heading 8505. (All pending assessments may be finalised accordingly). 5. Field Formations and Trade may be informed suitably.