The Department classified the products under 3307.90. The HS codes are of 6 digits. When goods are declared to customs in the European Union, they must be classified according to the Combined Nomenclature or any other nomenclature which is wholly or partly based on the Combined Nomenclature. As per the existing law (i.e. 25/2005-Cus, dated 01.03.2005, Circulars & Clarifications on Income Declaration Scheme, Abatement, Composition, Specified Valuation, Tariff / Basic Rate of Duty / Classification, Import Tariff / Basic Rate of Duty / Classification, CST (Registration And Turnover) Rules, 1957, Income Computation & Disclosure Standard (ICDS), Indian Accounting Standards (Ind AS) - 2015, Provisions of Companies Act, 1956 applicable to LLP, Limited Liability Partnership Rules, 2009, LLP (Winding up and Dissolution) Rules, 2012, Income computation & disclosure standards. Importing Motor Vehicles Granted Duty Exemption and Boats Granted GST Relief. See Customs Headquarters Rulings 967882, dated December 5, 2005, and 087363, dated August 14, 1990. World map. The Harmonised Commodity Description and Coding System, or simply the HS, is an international nomenclature (at 6-digit level) developed by the World Customs Organisation (WCO) for the classification of goods. Every product has a specific classification code, otherwise known as a commodity code. The Revenue contended that as per HSN the product is specifically covered under the Heading 3307.90. The Revenue classified the goods under Heading 8472 90 30 denying the exemption. Therefore, it is imperative that in order to identify the correct tariff classification, the entries given in the different headings of the relevant chapters has to be read along with the connection section notes and chapter notes and it is quite possible that what is perhaps given in one of the headings of a particular may be excluded in the Section or chapter notes. By no stretch of imagination the Air freshener can fall under 3307.90. Text - ghost Preferential Duty Rates. Such medals are marketed as items of numismatic interest, higher price per gram of gold/silver was to be charged from buyers as compared to other coins/medals of same purity. Privacy Policy || The Supreme Court was, during the course of arguments, shown two other Chapter Headings 87, 97 and 94. In ‘Patwa Photo Studio V. Commissioner of Customs (Import),  Mumbai – I’ – 2014 (2) TMI 170 - CESTAT MUMBAI the Tribunal found that as per the catalogue the machine in question is capable of developing the films and thereafter printing the photographs as per the catalogue. Classifying My Products. 147 of 1995), as amended or proposed to be altered from time to time, and the Australian Harmonized Statistical Classification. The Tribunal remanded the matter to the original authority. By: Mr. M. GOVINDARAJAN - January 9, 2016, || The appellant before the Adjudicating Authority also claims the classification under Heading 9010 of the Tariff which covers the apparatus and equipment for photographic films. In ‘ICICI Bank Limited V. Commissioner of Customs (Airport – Cargo), Chennai’ – 2013 (11) TMI 494 - CESTAT CHENNAI the appellants imported 98 consignments of gold or silver medals during the period from 01.04.2003 to 30.07.2007. The correlation tables 2019 - 2020allow you to see if the classification codes you use ha… Samples of the imported cargo were drawn for chemical analysis. These sections notes and chapter notes required to be carefully read before arriving at the classification. Customs Basic Rate of duty Classification. However, on some commodities, you may find that there is more than one type of duty to pay. It is also used to identify duty suspension, preferential rates, licencing requirements and additional duty due such as Anti-Dumping Duty amongst others. The Supreme Court allowed the appeal filed by the Revenue. It is also used to apply non-tariff measures. No enquiry was made with the supplier of the goods. The Supreme Court held that the imported goods ‘virginiamycin’ is well defined chemical of 100% purity with anti-bacterial properties included specifically under Chapter 29 by issue of Chapter Note 1(a). Companies can overlook the importance of classifying their goods, but this has an impact on customs and excise duties, import VAT and preferential duties, which if declared incorrectly can result in additional duties and fines being charged later by HMRC. Customs Classification of Goods entails classifying products into correct tariff codes to determine the amount of duty payable. Whether  at all the classification has been done correctly accordingly to the proper rules of classification; Whether the benefit of any exemption from duty partial or complete, is available appropriate to the relevant classification. About us || Tariff (Duty Rates) System for Commercial Goods The harmonized classification schedule annexed in the Customs Tariff Law sets out both the classification and the corresponding Customs duty rate (called the General Rate) of particular products. Structure of the Harmonised System (HS) The HS comprises 21 Sections covering 97 Chapters. Rule 1 to Rule 4. Such being the case the item cannot be taken to Heading 8443 for Printing Machinery used by printing by means of the printing type, blocks, plates, cylinders and other printing components of Heading 8442. The Tribunal held that medals were minted to order, to be marketed as collectors’ pieces, having images of gods, goddesses, saints, temples, historical sites and well known historical persons. Further as statute provides mechanism for adjudication of disputes and as petitioner neither contended nor established any inherent lack of jurisdiction or gross violation of principles of Natural Justice on part of Adjudicating Authority. In contrast, the description in Heading 8529 ‘as parts suitable for use solely or principally with apparatus of Headings 8525 to 8528 is general in nature. The rate of custom duty varies from product to product. The following case laws would discuss various issues involved on classification of goods: In ‘Commissioner of Central Excise, Chennai V. Toyota Tsusho Private Limited’ – 2015 (12) TMI 480 - SUPREME COURT the respondent imported ‘beef leather cut pieces set TFC 235 set’ which was classified under Customs Tariff Heading 4115 20 90 for which the exemption was claimed under Notification No. These rules for interpretation of tariff are applicable only when classification of a product cannot be determined in accordance with Headings for Section/ Chapter Notes are very clear about the classification. Whether the assessee can claim certain special benefits of concession / duty exemption under a Notification. On some goods, customs duties are also charged on the act of exportation. Notification no. Marketing gimmick adopted therefore would not make it an item of numismatic interest and so, the goods could not be classified under Heading 970t. ‘Commissioner of Central Excise, Mumbai V. Pfizer Limited’ – 2015 (12) TMI 1150 - SUPREME COURT, ‘ICICI Bank Limited V. Commissioner of Customs (Airport – Cargo), Chennai’ – 2013 (11) TMI 494 - CESTAT CHENNAI, ‘Binani Cements Limited V. Union of India’ – 2013 (7) TMI 798 - GUJARAT HIGH COURT, ‘Patwa Photo Studio V. Commissioner of Customs (Import),  Mumbai – I’ – 2014 (2) TMI 170 - CESTAT MUMBAI, ‘Commissioner of Customs, New Delhi V. Capital business systems Limited’ – 2011 (3) TMI 1570 - CESTAT NEW DELHI, ‘Pennzoil Quaker State (I) Limited V. Commissioner of Customs (Import), Nhava Sheva’ – 2013 (5) TMI 741 - CESTAT MUMBAI, ‘AGS Transact Technologies Limited V. Commissioner of Customs (Import), Nhava Sehva’ – 2013 (5) TMI 808 - CESTAT MUMBAI, Notification No. Rates based on value vary from zero to 33% in the 2011 schedule. LCDs is specifically mentioned in Head 9013 by name and Tariff item 9013 80 10 exclusively covers only LCDs. Classification of goods has an important bearing on a number of other connected questions of both substantive and procedural consequences. Home || The Tribunal held that the goods are rightly classifiable under Heading 2709. Further Tariff item 84716026 specifically covers Laser Jet Printer. It is settled proposition of law that chemical examiner can give opinion 9on chemical nature of goods tested and not on classification of goods. If it does not cover your specific item in detail you can search for it in the Trade Tariff Tool. Soap, organic surface-active agents, washing preparations, lubricating preparations, artificial waxes, prepared waxes, polishing or scouring preparations, candles and similar articles, modelling pastes, “dental waxes” and dental preparations with a basis of plaster The IGST that applies to all imports and exports is charged on the value of the good along with the primary customs duty on the good. Classification is not just used to determine the customs duty rate for a specific subheading. This guidance will help you classify electric lamps. This guide will: 1. provide some or all of the commodity codes for particular items and types 2. explain the differences between codes or headings affecting these items 3. detail any exceptions or rules You will still need to look up the full commodity code to use on your declaration using the Trade Tariff Tool. The relevant chapter notes do not decide the issue based on the size of printer satisfies the condition laid down in Chapter Note 5 (B) of Chapter 84. The Department, after examining the goods, took the view that the aforesaid goods were classifiable under Chapter 42 viz., 4205 00 90 which attracted duty @ 15% + CVD 16% + EC 2% and levied a duty of ₹ 22,86,812/-. Please note our classification rulings are only applicable for use within Singapore. In these circumstances the Tribunal found no reason to interfere with the concurrent findings of the lower authorities. The Revenue contended that machines with facility to receive or accept cash is not ATM. These are classified under heading 6101, 6102, 6201 or 6202. In ‘AGS Transact Technologies Limited V. Commissioner of Customs (Import), Nhava Sehva’ – 2013 (5) TMI 808 - CESTAT MUMBAI the appellants imported cash dispenser declaring it as ATM and availed the benefit of exemption under Notification No. Feedback || Customs follows Harmonized System of Nomenclature (HSN) systems of classification of goods. 21/2002. Contact information for advice on tariff classification of goods, rates of duty, the interpretation or application of the Customs Tariff, permits which may be required for certain goods or information on other CBSA programs. The combined nomenclature is updated annually. The Supreme Court felt that it would have been more appropriate for the Tribunal to look into the aforesaid Chapter entries as a whole and then come to a definite conclusion, in the light of the definition of the goods involved as to which the most appropriate entry under which they fall. Customs duty rates may be expressed as a percentage of value or dollars and cents per unit. Terms of Use || Site Map || The Goods that enter international trade are not charged to a single rate of customs duty by the importing / exporting country. These relate to the legal terms of the headings and subheadings and their relevant section and chapter notes. ... Harmonised System (HS) Classification of Goods. 21/2002-Cus, dated 01.03.2002. The subject goods include: Item 1, AM002, is a type KN95 disposable (non-medical use) face mask. However, where the section and chapter notes do not offer much help or when evening accordance with the common parlance test the description of the products is incapable of being identified with a particular heading in the Tariff, these rules can be pressed into service as statutory aids in arriving at proper classification. Therefore the goods are classifiable under Heading of 9010 of Customs Tariff. © Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. The High Court further held that when several questions of fact as well as law would arise i.e., classification between steam and bituminous coal, properties of coal imposed by petitioner etc., which cannot be judged without adjudication by departmental authorities. In ‘Pennzoil Quaker State (I) Limited V. Commissioner of Customs (Import), Nhava Sheva’ – 2013 (5) TMI 741 - CESTAT MUMBAI the appellants imported Air fresheners (Paper type and spray type) and classified them under 3307.49. Customs Valuation and Classification ... Customs duty: Customs duty is a kind of indirect tax which is realized on goods of international trade. The classification of imported / exported manufactured goods serves the purpose of determining the rate of duty / tax imposed on the goods as enforced in the Customs Duty Order. In ‘Commissioner of Customs, New Delhi V. Capital business systems Limited’ – 2011 (3) TMI 1570 - CESTAT NEW DELHI the matter involved in this case is the classification of a printer imported by the respondent. Further it specifically satisfies conditions laid down in Notes 5(B)(b) and 5(B) (c) of Chapter 84 and therefore in view of Note 5(D), it is classifiable under Heading 8471 only. You can find out more about: 1. using the trade tariff toolto find … Most goods are classified based on the nature of the goods, though some classifications are based on use. The Chemical Engineer, in his report, indicated that the goods cannot be covered under CTG 2709 but are covered under CTH 2710. XVI of Customs Tariff Schedule, relied on by Revenue covered only goods under Chapters 84 and 85 and not applicable to Chapter 90 as per Note (1)(m) of Sec. 62/2004-Cus was intended for coins and medals of gold and silver, with the understanding that the same would fall under Chapter 71, though there is a lack of clarity as to exactly under which the heading of Chapter 71 these goods. In ‘Bharat Bijlee Limited V. Commissioner of Customs (Import), Mumbai’ – 2014 (3) TMI 798 - CESTAT MUMBAI (LB) the classification of goods under Heading 98.01 of Customs Tariff Act, 1975 facilitates assessment, false clearance of goods by customs and is used at times to boost industrialization of a particular sector, when the classification of goods under 98.01 of Customs Tariff when based upon false declaration, goods are liable to confiscation and importer is liable to fine and penalty. You may: Appoint a declaring agent to apply for Customs export permits on your behalf; or; Apply for Customs permits on your own or on behalf of your clients. Enquirers are, therefore, advised to contact the Customs administration of the country concerned, or to consult one of the following web sites with respect to duty rates: INTRODUCTION. Step 3: Apply for Customs Export Permit. A show cause notice was issued to the appellant and the same was confirmed. It means determining the subheadings or further subdivisions of the Combined Nomenclature (CN) under which the goods will be classified. The Tribunal accepted the appeal of the assessee and classified the goods under Chapter Heading 4115 20 90 as ‘beef leather cut pieces set TCF 235 set’. Normally, imported goods have to be classified ‘on merits’ under the Customs and Excise Tariffs for levy of duty. Therefore the product does not merit classification as toilet preparation. This implies that each individual article has to be classified separately and assessed to appropriate duty not only for the purposes of customs duty but also for the purposes of Countervailing Duty (CVD). The term ‘ tariff classification of goods ’ is defined in Article 57 of the Union Customs Code (UCC). Site Map - Recent || The superiority and distinctiveness in the customs Tariff consist in the detailed section notes and chapter notes which facilities the proper classification of goods. This classification code determines the amount of Customs Duty you will pay on imported goods. Appeal was filed before the Tribunal. In ‘Essar Oil Limited V. Commissioner of  Customs (Preventive), Jamnagar’ – 2015 (1) TMI 262 - CESTAT AHMEDABAD the appellant is operating a Petroleum Oil Refinery at Vadinar, Gujarat. These headings exclude garments made from fabrics such as felt or other non-wovens which are classified under heading 6210. They also relate to the nature of the packaging for the goods involved. The Customs Tariff is based on the World Customs Organization's (WCO) Harmonized Commodity Description and Coding System (HS). Further the exemption in Notification No. The Department rejected the demand of the appellants and confirmed the demand. The Tribunal held that the said components are also devices in their own right, individually and in combination, and as liquid crystal panel is one of the components, impugned goods are covered under term ‘LCDs’. The appellant imported Qatar Low Sulphur Condensate (QLSC) classifying the same under Chapter Heading 2709 00 00 which was exempted vide Notification No. || WCO does not provide information about tariff classification of goods or duty rates to private parties. The classification of goods would continue to be very relevant and import unless all the goods attract the same rate of duty. ukimports. Classification of goods under Customs Act is essential to decide the rate of duty. The face mask has five layers of … The term ‘tariff classification of goods’ is defined in Article 57 of the Union Customs Code (UCC). The appellant contended that the Air freshener (paper type) is not meant for use on human body or apparels worn by human beings. Disclaimer || So, even if all goods were zero-rated for customs purposes, classifications could still be necessary if you need to: The EU classification system has 2 elements, Case law on customs & tax matters - Court of Justice, Classification Information System (CLASS), determine whether or not a product is liable to. It consists of eight digits system to facilitate precise classification of goods. You should be able to classify most of your goods using rules 1, 5 and 6. Tariff Classification and Duty Minimisation What is tariff code? The same shall be construed as ATM in the absence of clear findings. There is no case that the appellant provided fake or forged documents deliberately giving a wrong description. The Commissioner (Appeals) upheld the classification of the Revenue. Notification No. A wrong classification of goods might not only mean payment of higher duty in some cases by the assessee but also would have further spin-offs in the matter or eligibility for any concessions under any appropriate notification had the product been properly classified. This document may qualify as a "guidance document" as set forth in Executive Order 13891 and interpretations thereof; such guidance documents are not binding and lack the force and effect of law, except as authorized by law or as incorporated into a contract. The entire classification has been compressed into 98 chapters which have in turn been accommodation under 21 Sections. The Tribunal held that it is clear that sub heading 3307.49 covers other goods, other than goods covered under Heading 3307.41. Duty rate. The substantive relate to the following:-. The order of Advance Ruling Authority is applicable to the particular assessee and the concerned Commissionerate and it does not have general applicability. What Every Member of the Trade Community Should Know About: Tariff Classification. The Tribunal analyzed the Heading 3307. The Revenue objected to this classification for the reason that it is huge in size as compared to ordinary printers used along with computer and for the reason that it can print material other than paper. If you import or export goods into or out of the Customs Union, you must classify those goods for customs purposes. ||, Commissioner of Central Excise, Chennai V. Toyota Tsusho Private Limited’ – 2015 (12) TMI 480 - SUPREME COURT, ‘Samsung India Electronics Private Limited V. Commissioner of Customs, Noida’ – 2015 (10) TMI 2258 - CESTAT NEW DELHI, ‘Essar Oil Limited V. Commissioner of  Customs (Preventive), Jamnagar’ – 2015 (1) TMI 262 - CESTAT AHMEDABAD. Each product has a particular eight-digit classification code in the 2020 combined nomenclature. Contact us || Failure to classify products correctly will not only involve substantial duty liability to the business but will also attract customs audit and investigations and subsequent claims by the Customs Department. The goods imported include components comprising driver, circuit, backlight, unit and inverter etc., which according to the Revenue are parts of LCD TVs covered under Heading 8529. The appellants classified the gold medals under the heading 7108 12 00 and silver under 7106 92 90 and claimed the benefit of Notification No. Application for Customs Ruling on Classification of Goods. Classification is not just used to determine the customs duty rate for a specific subheading. Section notes and chapter notes given in each chapter of the Customs Tariff Act contain valuable guides to classification of goods. Japan Customs makes responses to inquiries on tariff classification of imported goods made by importers and other related parties. Duties levied by the government in relation to imported items are referred to as import duty. Revenue was of the view that the medals were classifiable under Heading 9705 00 90. A tariff or commodity code is used to calculate the percentage of import duty and VAT you need to pay on your imports. The combined nomenclature explanatory notescontain useful information for understanding the various tariff headings, but is not legally binding. There is no evidence that goods of refined category fall under Heading 2710. demand of duty for an extended back period of five years on grounds of suppression of facts, willful mis-representation or fraud, envisaged under section of the Act. XVI. The tariff contains a set of interpretative rules, viz. Classification of goods under Customs Act is essential to decide the rate of duty. Narration: The tariff classification number and where the goods originated will determine the rate of duty.