Customs Circular No: 02/2014 (09-Jan-14) Regarding classification of “Transmission shafts / Power takeoff (PTO) shafts” in the HS Harmonised Customs Tariff

To

All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE,

All Directors General of CBEC,

All Commissioners of Customs / Customs (Prev.) / C&CE

All Commissioners of Customs & Central Excise (Appeals).

Sir / Madam,

Doubts have been raised on whether "Transmission shafts / Power takeoff shafts" would be classifiable under 8433 or 8432 as parts of agricultural machinery. This issue was also discussed in the Conference of Chief Commissioners of Customs and Directors General on Customs Tariff and Allied Matters, held on 05-06 June 2013, at Vishakhapatnam and subsequently examined by the Board. The competing headings, subheadings and Tariff Items are as follows:

8432 Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sports- ground rollers

84329010, parts of agricultural machinery falling within subheadings 843210 (Ploughs), 843221(Disc harrows), 843229 (Other), 843230 (Seeders, planters and transplanters), 843240 (Manure spreaders and fertiliser distributors), and 843290 (Others)

8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 8437"; parts of goods of heading 8433 is covered in subheading 843390.

8483 Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)

848310 Transmission shafts (including cam shafts and crank shafts) and cranks;

84839000 Toothed wheels, chain sprockets and other -transmission elements presented separately; parts.

2. Classification of goods is to be determined by application of the General Rules of Interpretation (GRI's) of the First Schedule to the Customs Tariff Act, 1975. GRI 1 requires that in classifying articles, for legal purposes, it "shall be determined according to the terms of the headings and any relative section or chapter notes,..". Hence, all relevant legal texts must be considered. In this regard, Note 2 (a) to Section XVI of Customs Tariff and HS Explanatory Notes to Section XVI reads as, "parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409,...

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