Product classification for trading Item, Central Excise

[hassan imam]

We are manufacturer /traders and exporter of automobile.

Some parts we manufacturer and some of parts we bought out from local market then export to further after repacking and relabeling.

My question is how we can define HS code of product whether on the basis of supplier provided HS code or as per tariff code. For Example: we exporting GASKET under HS Code 87089900 (PARTS AND ACCESSORIES OF THE MOTOR VEHICLES OF HEADINGS 8701 TO 8705 - others parts and accessories ) but actual code of this product is 40169340.

Regards

Md Hassan Imam

Posts / Replies

[KASTURI SETHI]

Sh.Md. Hassan Imam Ji,

In my view, you are to mention HS code 87089900 as you clear as parts and accessories of automobile/motor vehicles.

[hassan imam]

Sir, thanks for your prompt reply , we also mentioned 87089900, but recently our Benapol custom superintendent raised the query and told us Hs code should be mentioned as per product bcz we are exporting the goods after repacking.

[KASTURI SETHI]

Dear Sir,

As per the Third Schedule To Central Excise Act, 1944 (Serial No.100) as amended, the processes of packing,repacking, labelling and re-labelling of parts, components, accessories and assemblies of vehicles (including chassis fitted with engines) falling under Chapter 87 excluding vehicles under headings 8712, 8713, 8715 and 8716, amount to manufacture. Third Schedule pertains to 'Deemed Manufacture' in relation to various specified goods. Since your goods are covered in this schedule and manufacturing has taken place, the Customs authorities are asking to change sub-heading no. to 40169340 from 87089900.

[CS SANJAY MALHOTRA]

Sh. Kasturi ji, nicely explained with facts.

[Ganeshan Kalyani]

Sir, your final product shall attract tariff as per CETA. The classification by your supplier is on his final product which he has sold to you. The product purchased by you is not sold as it is, I hope. Further as mentioned by Sri Kasturi Sir, packing , repackibg etc amounts to manufacture. Thanks.

[YAGAY AND SUN]

Please check chapter/section note 2 of the Chapter 87

2 The expressions “parts” and “parts and accessories” do not apply to the following articles, whether or not they are identifiable as for the goods of this Section:

(a) joints, washers or the like of any material (classified according to their constituent material or in heading 8484) or other articles of vulcanised rubber other than hard rubber (heading 4016)

[CS SANJAY MALHOTRA]

Dear Mr. Hassan,

As all the experts (Mr. Kasturi ji / Mr. Ganeshan ji / M/s Yagay & Sun, have shared their views of applicability of Tariff Code 41069340 to Gaskets, please find below the additional submissions only for knowledge sharing.

Gaskets are specifically covered under Tariff 40169340 and hence is excluded as part, parts and accessories of products of Ch 87. (Note 2(a) of Section XVII is in line with the General Rules of Interpretation)

Issue was represented by Trade to Board for classification of Transmission Shafts whether as parts of Agriculture Machinery under Ch 8432/8433 or as Transmission shafts under Ch 8483 as the same was appearing under 2 different headings.

CBEC has clarified vide Circular No. 02/2014-Customs dated 09.01.2014 after considering General Rules of Interpretation under Customs that "Transmission Shafts" should be classified under Ch 8483 and not as parts of Agriculture Machinery.

http://www.cbec.gov.in/htdocs-cbec/customs/cs-circulars/cs-circulars-2014/circ02-2014-cs

General rules for the interpretation of this Schedule - (Central Excise Tariff)

Rule 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) the heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.

(b) mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

(c) when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.

Rule 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin

[MUKUND THAKKAR]

Very nicely explained by all experts...

All inputs of by expoerts worked like knowldge vitamins..

[KASTURI SETHI]

Sh.Mukund Thakkar Ji,

Sir, a new format of 'Discuss Forum' has motivated the experts to be active on the forum otherwise it was going to be listless. Credit goes to both TMI and experts. Both have become complimentary for each other.

[Ganeshan Kalyani]

Sir, yes the ranking system has been improvised. It encourages the experts to do more to be on the top. I was wondering earlier how would the querist get their problem solved when the active experts were minimal. The team of TMI has really did a smart work rather good work which electrified the environment and now the members are getting active. Or this can be coincidence because in past the financial year closing was there and due date for filing of income tax returns were there and also some assessment were in progress. These valid reason could have held back the experts to visit TMI less.

However the new format of TMI discussion forum is sportive. Thanks.

[CS SANJAY MALHOTRA]

Dear friends,

Apprreciate the

[CS SANJAY MALHOTRA]

Dear Friends,

Appreciate the system put in place by TMI as the same has made some of our expert members to respond to queries which is raised even a year back. But my submission is to be more proactive and to resolve present so that querist should be able to get justice in time.

Hat's off to Sh Kasturi ji / Ganeshan ji / Mukund for being always active.