9911796707
TMI Blog2023 (6) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... f) to Section XVII of the Customs Tariff and therefore merits classification under Heading 85.01 as Electric Generators as they are excluded from the provisions of Notes to Section XVII of the Customs Tariff. Therefore, in terms of aforesaid Section Note 2(f) read with the HSN Explanatory Note to Heading 87.08, the fuel cell system cannot be regarded as 'parts' of motor vehicle in terms of Heading 87.08. Section Note 2(a) above categorically states that parts which are goods included in any of the headings of Chapter 85 are in all cases to be classified in their respective headings. Although certain exclusions have been made by way of the Note 2(a) to Section XVI of the Customs Tariff, the CTH 8501 is not excluded by virtue of this note. The Fuel Cell System is specifically covered under CTH 8501 by virtue of section note of the section XVI of schedule I of the Customs Tariff Act, 1975, therefore it cannot be covered under the CTH 87.08. As per the data disclosed in the CAAR-1 Application the output of the Fuel Cell System will be 80 kW (net) and 90 kW (gross). Based on these disclosures the corresponding entry in the Tariff is 8501 33 20. Thus, the Fuel Cell System w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dominantly function using the power generated by the Fuel Cell System using the hydrogen fuel cells. The present application pertains to the classification of the aforesaid Fuel Cell System proposed to be imported by the applicant. 2.4. The Fuel Cell System produces power using hydrogen. It enables the FCEVs to operate on power so generated rather than drawing power from only a Battery. Pictorial Image of Fuel Cell System is as follows: Normally, conventional electric vehicles are powered by electricity and any other alternate source of power. The electricity is supplied through a battery in the vehicle. The battery is charged periodically, and the electricity is stored therein. The battery then distributes the power to the parts of vehicle thereby powering the vehicle. The Fuel Cell System cleanly and efficiently produces electricity using hydrogen fuel cells. The hydrogen fuel cells produce no harmful emissions, eliminating the costs associated with handling and storing toxic materials like battery acid or diesel fuel. They are more efficient than many other energy sources, including many green energy solutions. Further, the FCEVs are more beneficial as compared to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd module Safe and efficient monitoring and control of FCS control via FCS sensors and actuators in all FCS modules. 7 DC DC Converter It Boost the Fuel Cell Module Voltage to match up the HV Junction Box voltage and it may help to charge Battery and/or run the vehicle The Fuel Cell System operates in interaction with the Vehicle Control Unit (VCU). The inputs from the user (driver of the FCEVs) are supplied by the VCU to the Fuel Cell System, on the basis of which the Fuel Cell System generates and distributes the electricity. 2.6. The functioning of the Fuel Control System can be summarised as follows. The Fuel Cell Control Unit (FCU), on receipt of input regarding the required amount of power from the VCU, computes the amount of hydrogen, oxygen and coolants required for the same. Based on the power requirement from the vehicle, FCU calculates the Hydrogen supply pressure required to meet the power demands from FCU and regulates the Hydrogen supply. Based on the input from the FCU, the Fuel Processing System and Air Processing System supply the required amount of hydrogen and oxygen respectiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rawing power from only a Battery. The Fuel cell System is made of seven components viz. Fuel Processing System, Fuel cell stack module, Air Processing System, Thermal Management System, Electric module, FCS monitoring control and module and DC-DC Converter. The present application pertains to the classification of the aforesaid Fuel Cell System proposed to be imported by the applicant. They had submitted that it should be classified under CTH 85.01 of schedule I of the Customs Tariff Act, 1975. They also submitted that the Fuel Cell System is classified by the supplier Hyundai Motor Company also under Heading 85.01. 4.2. The classification of the goods under the Tariff is governed by the principles as enumerated in the General Rules of Interpretation (GRI) set out in the Tariff. As per Rule I of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI.As per Rule 2(b) of the GRI, the classification of goods consisting of more than one material or substance shall be according to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es an example of generators used for supplying electricity in diesel-electric trains to be covered under the Heading 85.01. Applicants have submitted that the function of the Fuel Cell System is akin to the above example and therefore, they qualify as electric generators for this reason also. The Fuel Cell System is made of seven components viz. Fuel Processing System, Fuel cell stack module, Air Processing System, Thermal Management System, Electric module, FCS monitoring control and module and DC-DC Converter. Five of these components contribute in electricity generation and two components contribute to electric power transmission. Hence the question of classification is required to be examined further. 4.5 In terms of Note 3 to Section XVI of the Customs Tariff, composite machines consisting of two or more machines fitted together to form a whole are to be classified as if consisting only of that component which performs the principal function. Relevant Note is extracted below: 3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riff heading, the goods ought to satisfy both the following conditions - (a) They must be identifiable as being suitable for use solely or principally with the vehicles of Chapter 87; and (b) They must not be excluded by the provisions of the Notes to Section XVII. Further in terms of Note 2(f) to Section XVII of the Customs Tariff, the terms 'parts' and 'parts and accessories' used in any chapter of Section XVII do not apply to electrical machinery and equipment of Heading Chapter 85. Relevant Note is extracted below for ready reference 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).. f) electrical machinery or equipment (Chapter 85) As the Fuel Cell System is an electrical power generating equipment as detailed above, it automatically gets excluded by the provisions of Note 2(f) to Section XVII of the Customs Tariff and therefore merits classification under Heading 85.01 as Electric Generators as they are excluded from the provisions of Notes to Section XVII of the Customs Tariff. Therefore, in terms of aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
