In re Gurmat Impex & Shipping Services (CAAR Mumbai)
Customs Authority of Advance Ruling (CAAR), Mumbai, has issued a ruling on the customs classification of a product described as ‘Timber Steel,’ a composite material used in concrete construction formwork. M/s Gurmat Impex & Shipping Services had approached the authority seeking clarity on the appropriate classification for this item under the Customs Tariff Act, 1975.
The applicant, an import-export firm, detailed that ‘Timber Steel’ is composed predominantly of galvanized steel (75-80%), laminated veneered lumber (20-25%), and a small percentage of plastic cover (2-3%). The product is specifically designed and used for shuttering or formwork in concrete construction, serving as a temporary mould to support freshly placed concrete until it gains sufficient strength. The applicant highlighted the critical role of formwork in construction costs and the continuous search for efficient materials.
In their submission, Gurmat Impex & Shipping Services referred to the General Rules of Interpretation (GRI) of the Customs Tariff. They particularly focused on Rule 3(a) and 3(b) which govern the classification of goods consisting of more than one material or component. Rule 3(a) prioritizes the most specific description, while Rule 3(b) addresses composite goods, stipulating classification based on the material or component that imparts the essential character.
