In re Milacron India Private Limited (CAAR Mumbai)
CAAR held that Subject goods, e.g., rough/semi-finished castings merit classification under Heading 8477; more specifically under sub-heading 8477 90 00 of Schedule-I to Customs Tariff Act, 1975.
FULL TEXT OF ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s Milacron India Private Limited (hereinafter referred to as ‘the applicant’, in short) filed an application for advance ruling before the Customs Authority for Advance Ruling, Mumbai (CAAR, in short). The said application was received in the registry/secretariat of the CAAR, Mumbai on 05.08.2022 along with its enclosures filed by the above-mentioned applicant in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’). The applicant is holding IEC No. 895005441 and stated to be a global leader in the manufacture of highly engineered and customized plastic processing machineries and are one of the multinational companies with a wide range of product portfolio. The applicant is seeking advance ruling on the classification of semi-finished and finished casting parts (hereinafter referred to as the ‘Subject goods’) which they propose to import for manufacturing of injection molding machine.
2. The applicant indicated that they propose to import Rough/semi-finished casting parts (hereinafter referred to as the ‘Subject goods’) for manufacturing of injection molding machine and seeking departments view for correct classification. The applicant has declared that they would be importing the subject goods through the port of Nhava-Sheva. Accordingly, comments from the jurisdictional Principal Commissioner/Commissioner of Customs, NS-V Zone II Mumbai, were invited in respect of the application for advance ruling in respect of the subject goods.
3. The applicant has submitted that they import spheroidal graphite iron castings of complex shapes that would be otherwise difficult or uneconomical to make by other methods. The size, shape, and function of the casting parts vary based on model & size of the injection molding machines. The casting parts arc produced specifically in accordance with the design of the injection moulding machine as per Milacron drawings and patterns. These castings cannot be used for any other purpose and these are parts of the injection moulding machine suitable for use solely with a particular kind of machine manufactured by them. After importing, the surface and holes of casting parts are cleaned, finished & tapped before they are used in the injection moulding machine. Every casting part has its own specific function/role in the injection molding manufacturing process. In this respect the applicant also submitted images of the rough/semi-finished casting parts and images of the injection molding machine where the casting parts would be used.
3.1 The applicant has contended that the explanatory note of heading 7325 does not cover castings which are products falling in other headings of the Nomenclature (e.g., recognizable parts of machinery or mechanical appliances) or unfinished castings which require further working but have the essential character of such finished product. In view of the above grounds, the applicant has opined that the rough and semi-finished casting imported by them should be classified under CTH 84779000.
4. Personal hearing in the matter was held on dtd. 22.09.2022 wherein Mr. Rajesh Soni, (DGM-EXIM) along with Mr. Rajendra Sharma- Technical officer, represented the applicant. However, no one was present for the jurisdictional authority. Above stated representatives presented their case covered under CAAR-1 application. They presented D.O.R. (MOF) Notification 42/2017 — Customs (ADD) dtd. 30.08.2017 in which castings are classified under CTH 8483. They also invited attention to the HSN explanatory notes by virtue of which their proposed imports will not get covered under Chapter 73. Further they explained the scope of CTH 8477 9000 in support of their classification claim.
5. I have gone through the application, the submission of applicant along with records of personal hearing and other relevant information. I have perused the contents of notification no. 42/2017 — Cus (ADD) dtd. 30.081017. After comparing the description of the subject products including CTH, in CAAR-1 application vis-à-vis sub-heading or tariff item and description of goods in column 2 & 3 respectively of the notification 42/2017 — Cus (ADD) I observe that the proposed imports are not covered under any of the serial numbers of this notification. I have gone through the design/drawings of castings of injection molding machine parts submitted by the applicant along with CAAR-1 and compared descriptions of proposed imports of these parts/castings vis-à-vis product description of notification no. 42/2017- Cus (ADD) dtd. 30.08.2017 which specifically states casting for wind operated electricity generators falling under 8483 4000, 8503 0010 or 8503 0090. Castings of injection molding machines and castings of wind operated electricity generators have completely independent and separate tariff headings in the Schedule-I to the Customs Tariff Act, 1975 and hence unless the product description of the imported products matches with the description of goods along with related sub-heading/tariff entry in the notification 42/2017 — Cus (ADD) dtd. 30.08.2017, this notification has no bearing on deciding present classification matter. In view of the above and different tariff entries being mentioned for the classification of subject goods, it is necessary to examine the alternate classifications for the subject goods.
5.1 Chapter 73 covers articles of iron or steel and the notes to chapter provide as follows:
