In re Nikoarc Industries Private Limited (CAAR Mumbai)
The Customs Authority for Advance Ruling (CAAR), Mumbai examined whether Anti-Dumping Duty (ADD) under Notification No. 15/2023-Customs (ADD) dated 22 December 2023 was applicable to Laser Engraving Machines imported by the applicant and classified under Tariff Sub-heading 84561100. The applicant contended that the imported products were compact DIY laser engraving machines intended for artistic, decorative, personalization, jewellery, signage, educational, hobby and small commercial applications, and not industrial laser machines used for cutting, marking or welding operations covered by the notification. The applicant also relied on the DGTR Final Findings, which recorded that laser engraving machines were not included within the scope of the Product Under Consideration (PUC).
The Authority first observed that there is no separate tariff entry specifically covering standalone laser engraving machines and that the classification and applicability of anti-dumping duty must be determined according to the nature and function of the imported goods. It found that the imported laser engraving machines work by laser beam technology and remove or alter material by laser process. Accordingly, they are classifiable under Customs Tariff Heading 84561100, which covers machine-tools operated by laser for working any material by removal of material.
The Authority, however, distinguished tariff classification from the levy of anti-dumping duty. It held that classification under Customs Tariff Heading 84561100 does not automatically attract Anti-Dumping Duty because the levy depends on whether the imported goods fall within the Product Under Consideration defined in the DGTR Final Findings and Notification No. 15/2023-Customs (ADD). The DGTR had clarified that tariff classification is only indicative and not determinative of the scope of the Product Under Consideration.
