9911796707
TMI Blog2022 (1) TMI 1344X X X X Extracts X X X X X X X X Extracts X X X X ..... hapter 95 of Schedule I to the Customs Tariff Act covers Toys, Games and Sports Requisites; Parts and Accessories thereof; and Heading 9503 covers Tricycles, scooters, pedal cars and similar wheeled toys; dolls carriages; dolls; other toys .. Further, it is observed that Chapter Note 3 of Chapter 95 provides that subject to Note 1 of Chapter 95, parts and accessories which are suitable for use solely or principally with articles of the Chapter are to be classified with those articles. The goods under reference (as depicted by IMAGE A and IMAGE B , above), are parts of electronic toy cars in semi-assembled condition. Though they have not reached the stage of completion to be considered as electronic toy cars, these parts, in the assembled stage that have been presented, have acquired the essential characteristics of electronic toy car. However, at this intermediate stage, the semi-assembled unit, as presented, have acquired a new character distinct of the various parts namely, battery driven motor, on-off switch, small speakers for sound, LED indicator lights with its PCB, garari (pulley i.e., small plastic wheel with grooved rim) and plastic base, which have gone into the making of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Customs as per the provisions of the said Regulations. Thereupon, comments of Principal Commissioner of Customs, Air Cargo Complex (Import), New Customs House, New Delhi were sought vide letter dated 2-11-2020. In the meanwhile, consequent upon the amendment in Chapter V-B of the Customs Act, 1962 and subsequent appointment of Customs Authority for Advance Rulings (CAAR, in short) in New Delhi and Mumbai with effect from 4-1-2021, the said application was transferred to CAAR, New Delhi in terms of Section 28F(3) ibid and Regulation 31 of CAAR Regulations, 2021. 3. On perusal thereof, and in view of the time limit of three months for pronouncing its advance rulings from the date of receipt of this application prescribed under Section 28-I(6) ibid, it was held that the aforesaid application received in the O/o AAR, New Delhi on 6-7-2020 had become time-barred for this Authority. 4. However, on constructive interpretation of the powers vested with this Authority, vide letter dated 11-3-2021 and reminder dated 28-7-2021, the applicant was advised to intimate whether they continued to be interested in obtaining ruling of this Authority, and if so either resubmit the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has also stated that the parts imported constitutes only 40% - 50% of the total components used in the final product "Electronic Toy Car"; in other words, the goods intended to be imported cannot be termed as complete "toy" in itself and cannot be used as such as a toy for sale without carrying out the further processes in the applicant's factory; they are liable to be classified as "parts of toys" in the perspective of its characteristics, features and use; thus, the products imported even though it is in assembled form and in working condition are still incomplete without undergoing further assembling with other manufactured parts and to give it a finished look. Independently, the product imported in assembled form has no market in India for sale as a "Toy" hence; the above product is more appropriately liable to be classified as part of toys; after the manufacturing, import and domestic procurement, the applicant shall undertake processes on the product like assembling all parts and accessories, final packaging, affixing company marks and stickers for the final sale of the product; hence, on the basis of above set of facts, the products intended to be imported in assembled con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Narang, Advocate and Shri Sanjiv Kumar, Consultant attended the personal hearing on 6-10-2021. Shri Dipak Kumar, Appraiser represented the Principal Commissioner of Customs, ACC (Import), New Delhi. During the hearing, Ms. Vibha Narang, Advocate explained the activities presently undertaken by the applicant and the proposed activity of import of parts of battery driven "electronic toy ear". She referred to the application wherein details of the parts of the toy car, segregated under domestic production [Para 4(a) to (d) and 4(k) to (l)] and to be imported [Para 4(e) to (j)] have been provided. She also displayed a sample of the "assembled part of the electronic toy car" submitting that the applicant intends to import the "part of the toy car" in the manner so displayed. Image of the sample shown is as below : IMAGE NOT REPRODUCED 7.1 It was noted that the sample so displayed contained all the parts, namely : Battery driven motor with on-off switch, small speakers for sound, LED indicator lights with its PCB, garari (pulley i.e., small plastic wheel with grooved rim), electric wiring and plastic base put together to comprise a single composite part of electronic toy car. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be considered as one product, "parts of electronic toy car" and liable to be classified under CTH 9503; none of such products shall be imported separately for getting assembled in the factory of the applicant; and if so, they will be classified under their respective heads; it was again reiterated that the products for the classification of which the present advance ruling is sought shall be imported in assembled form, integrated with each other through wires, screwed with nuts upon a plastic base; however the plastic base may vary as per model/shape/size of the electronic toy car but the product shall be imported in the assembled form only. 9. The additional submissions made by the applicant after the personal hearing were forwarded to the concerned Principal Commissioner for their comments. The concerned Principal Commissioner vide letter dated 8-11-2021 commented inter alia that the applicant has now submitted that the products, viz. battery driven motor with on-off switch, speaker for sound and LED light with PCB are intended to be imported in an assembled form on a plastic tray/base duly screwed with nuts or affixed on plastic tray/base; all the parts are said to be inte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tor, on-off switch, small speakers for sound, LED indicator lights with its PCB, garari (pulley i.e., small plastic wheel with grooved rim) and plastic base, and eligibility to claim concessional rate of duty vide S. No. 592 (sic) of Notification No. 50/2017-Cus. (Tariff), dated 30-6-2017 on the said goods. 14. I will first take up the issue of classification of the goods mentioned above. At the outset, placing reliance on the additional submissions of the applicant, I clarify that the ruling is being issued regarding the classification of goods, viz. "parts of electronic toy cars" in assembled form; integrated with each other through wires, and screwed with nuts upon a plastic base; with plastic base varying as per model, shape, size of the electronic toy car, as depicted in Para 7 above. I find that Chapter 95 of Schedule I to the Customs Tariff Act covers Toys, Games and Sports Requisites; Parts and Accessories thereof; and Heading 9503 covers Tricycles, scooters, pedal cars and similar wheeled toys; dolls' carriages; dolls; other toys .. Further, it is observed that Chapter Note 3 of Chapter 95 provides that subject to Note 1 of Chapter 95, parts and accessories which are ..... X X X X Extracts X X X X X X X X Extracts X X X X
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