In re Godrej & Boyce Manufacturing Company Limited (CAAR Mumbai)
The Customs Authority for Advance Ruling (CAAR), Mumbai, in the matter of In re Godrej & Boyce Manufacturing Company Limited, has ruled on the customs classification of imported “Forklift Drive Train (Parts of Forklift)”. The applicant, Godrej & Boyce Manufacturing Company Limited, sought an advance ruling on the correct classification for the subject goods, which they intend to import for use in manufacturing their forklifts in India.
Applicant’s Submission and Goods Description
Godrej & Boyce Manufacturing Company Limited, an established entity engaged in trading and manufacturing, intended to import the ‘Forklift Drive Train’. They contended that the subject goods should be classified under Customs Tariff Item (CTI) 8431 20 10.
A forklift drive train is described as a system that transmits power from the engine or motor to the wheels, enabling the forklift to move and lift loads. The assembly includes:
- Axle End Hub
- Drive Axle Shaft
- Differential Assembly
- Reduction gear box
- Braking system (Service & Parking brake)
- Drive motor mounting Interface end (MS)
- Chassis Mounting Adaptor Flange (MS fabricated)
The applicant emphasized that the drive train is a custom-designed industrial component, not a generic automotive part, specifically engineered for integration into their forklifts (Class I, Class IV, and Class V). Its unique characteristics include a two-wheel front-drive system, an integrated forklift upright mounting, and a customized internal design to provide a cushioning effect, distinguishing it from conventional automotive systems. Crucially, the drive train is an integral and specific part of the forklift, without which the forklift could not function. The end use is exclusively in the manufacture of forklifts for material handling applications.
