In re Balkrishna Industries Limited (CAAR Mumbai)
In the case In re Balkrishna Industries Limited (CAAR Mumbai), the Customs Authority for Advance Rulings (CAAR) examined the classification of the product “Compound Rubber Unvulcanised” intended to be imported by the applicant. The applicant sought a ruling on whether the said goods were classifiable under Heading 4005, specifically under Tariff Item (TI) 4005 1000 of the First Schedule to the Customs Tariff Act, 1975.
The Authority noted that the issue pertained to classification under the Customs Act, 1962 and thus was covered under Section 28H(2) of the Act. Before deciding the issue, the Authority referred to the General Rules for Interpretation, the Chapter Notes and Section Notes under the Customs Tariff Act, 1975, and the Harmonized System of Nomenclature (HSN) Explanatory Notes. As per Rule 1 of the General Rules for Interpretation, classification is to be determined according to the terms of headings and any relevant Section or Chapter Notes.
The applicant described the subject goods as dry, raw natural rubber compounded with Carbon Black (N330) and Stearic Acid (rubber chemical) in the form of blocks or sheets. The composition of the product was stated to be Natural Rubber (97%), Carbon Black (2%), and Stearic Acid (1%).
The relevant tariff heading under consideration was:
