Case Law Details
In re Gunnebo India Private Limited (CAAR Mumbai)
The Customs Authority for Advance Ruling (CAAR), Mumbai, examined an application filed by Gunnebo India Private Limited seeking a ruling on the classification of “SafeStore Auto” imported in unassembled form, both with and without lockers, under the Customs Tariff Act, 1975. The application was filed under Section 28H(1) of the Customs Act, 1962.
The product in question, SafeStore Auto, is an automated self-service locker system that uses robotic technology to provide customers access to secure lockers. It enables 24/7 access without human intervention and incorporates multi-level authentication mechanisms such as card access, PIN, and biometric verification. The system consists of interconnected components, including robotic units, locker vaults, delivery cubes, and control software, which work together to retrieve and deliver lockers to users.
The applicant proposed importing the system as a complete kit in unassembled form, comprising all components required to assemble the final product in India. In some cases, lockers would be included in the import, while in others, lockers would be procured domestically. The applicant argued that under Rule 2(a) of the General Rules for Interpretation (GRI), goods imported in unassembled form should be classified as the finished article if they possess the essential character of the complete product. Based on this reasoning, the applicant sought classification under Heading 8479 as “machines and mechanical appliances having individual functions,” contending that the system operates as a robotic machine.
The Authority analyzed the legal framework, including the GRI, Section Notes, Chapter Notes, and HSN Explanatory Notes. It observed that classification must primarily be determined under Rule 1 based on tariff headings and relevant notes, and only subsequently by applying other rules. Rule 2(a) was considered relevant for goods imported in unassembled form, allowing classification as a complete article if the essential character is present.
For the scenario where the system is imported with lockers, the Authority found that the product is an automated safe deposit locker system designed primarily for secure storage of valuables such as jewellery, precious metals, and documents. Although the system includes robotic and electronic components, these were considered additional features enhancing usability and accessibility rather than defining the essential character. The Authority emphasized that the primary function of the product is secure storage through lockers. Applying Rule 3(b) of the GRI, it held that classification of composite goods must be based on the component that gives the product its essential character. In this case, the lockers were found to impart the essential character.
The Authority rejected the applicant’s contention that the system should be classified as a robot under Heading 8479. It noted that industrial robots under Heading 8479 are typically used for functions such as handling, processing, or manufacturing tasks, whereas the subject goods are primarily intended for secure storage. The robotic system was considered incidental to the main function of the product and did not alter its essential character as a safe deposit locker system. Therefore, the Authority held that SafeStore Auto, when imported with lockers in unassembled form, is classifiable under Heading 8303, which covers armoured or reinforced safes, strong-boxes, and safe deposit lockers made of base metal.
In the second scenario, where the system is imported without lockers, the Authority determined that the imported components do not constitute a complete system and lack the essential character of the finished product. As such, Rule 2(a) was not applicable. The Authority held that each component must be classified separately under the appropriate tariff headings.
Accordingly, the Authority classified the individual components as follows: robots under CTH 84795000; shelf troughs as parts under CTH 84799090; shelf walls and frames under CTH 7308 as parts of structures; sockets under CTH 7307 as pipe fittings; and delivery cubes under CTH 84798999 as machines with individual functions not specified elsewhere.
Based on these findings, the Authority concluded that SafeStore Auto imported with lockers in unassembled form is classifiable under CTH 8303, while imports without lockers are to be classified component-wise under their respective headings. The ruling was issued accordingly.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
Gunnebo India Private Limited (having IEC No. AAACS7236D) having address at Unit No. 102, SMC Akruti, Khopat, LBS Marg, Thane (West), Mumbai, Maharashtra — 400 601 and hereinafter referred to as ‘the applicant’, in short) filed an application (CAAR-1) for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The said application was received in the secretariat of the CAAR, Mumbai on 08.10.2025 along with enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’ also). The applicant is seeking advance ruling on the issue of classification of SafeStore Auto in unassembled form (with and without locker) under CTH 8479 of the First Schedule of the Customs Tariff Act, 1975 or otherwise.
2. The Applicant vide their application has submitted as follows:
2.1 SafeStore Auto’ is an automated self-service locker system based on robotised solution, which allows 24/7, 365 days access and privacy. It combines next-generation automated technology and advanced customer identification features without compromising top-level security. SafeStore Auto allows the customer to enter into a room, access their personal locker, and exit — all without any external human intervention. Similar to how a person can enter into an ATM and withdraw money, the customers can access their lockers in a safe space which is completely automated. The customers will have access to this locker 24/7, 365 days a year.
2.2 Thus, the product plays a key role in a retail bank’s self-service concept to increase service quality. It is used to store valuable items in a secure location. These items can include gold and other precious metals, jewellery, bonds, contracts and other important documents. Unlike traditional locker rooms, this system eliminates manual intervention, enhances security, and optimizes space utilization through automation. Further, customers can access it 24/7 and not merely during operational hours of the bank.
2.3 The SafeStore Auto provides multi-level security and requires card authentication, pin-code authentication and biometric authentication to access the lockers. The locker which belongs to the user is then presented before the User using a robotic system. The User then has to use a physical key to open the locker and access the belongings. The product is available in 3 different models, as per the requirements of the banks. The following are:
a. SafeStore Auto Mini: Automated safe deposit locker system which comes with locker vaults for a quick installation in small and narrow or temporary self-service areas.
b. SafeStore Auto Midi: Automated safe deposit locker system for medium to large self-service areas, comes with locker vaults and does not require a prebuilt vault, 24/7 self-service locker system without compromising top-level
c. SafeStore Auto Maxi: Highly customisable automated safe deposit locker system for large self-service areas on multiple floors, including basement and cellar.
The images of the different models of the subject product have been reproduced below:
2.4 The product comprises of multiple interconnected components that work in synchronization to enable seamless locker retrieval and deposit for customers. The functioning of the subject product has been discussed in brief below:
a. Entry into a secure area: Customers enter a secure area using a card reader wherein he/she can access his or her locker.
Illustrative image of Secured Area
b. Authentication: The customer inserts his :or her bank card and enters a PIN code (option: biometric identification) to authenticate itself with a card, PIN and biometric scan. The Control Software/Server validates the request against the secure database.
Illustrative image of Locker Retrieval Area with additional security
c. Retrieval Command: Once authenticated, the control system sends a command to the robotic unit to fetch the requested locker box. The robot moves through the locker grid using pre-defined paths.
d. Locker Retrieval: The robotic unit identifies the customer’s locker and automatically delivers the customer’s locker contents. It securely grips and removes the box from its position on the shelf structure, which includes Shelf walls, sockets, and frames for structural integrity and Shelf troughs (electronic) for power and signal support.
Illustrative image of Robot retrieving the customer’s locker
e. Delivery: The robotic arm of the subject product delivers the locker to the Delivery Cube (Exit Unit) where the customer can access it. The customer uses his or her personal key to access the contents.
Illustrative image of Access to the locker presented before the Customer using a key
f. Return: After use, the customer returns the locker. When the customer presses the on-screen “deposit” button the system automatically returns it to its secure location.
2.5 Import in form of Kit
2.5.1 Initial import: Initially, the subject product will be imported in unassembled form from Gunnebo Germany factory in the form of a Kit. The Kit will consist of all the various components of the product such as automatic robot system, lockers, delivery cubes, control software, cargo overhandling point, etc and is hereinafter referred to as “the Kit”. The Kit will then be assembled in India to form the complete product. The image of the finished subject product has been reproduced below:
All the components of the above kit are imported together, and only assembly procedures will be undertaken in India. Thus, no components shall be further worked upon in India, nor shall any components be procured locally. In future, the Kit will be imported with all components mentioned above, except lockers. Lockers will be procured by the Applicant domestically. Such import is hereinafter referred to as “Kit without lockers”.
Applicant’s interpretation of laws/Facts:
CLASSIFICATION OF SAFESTORE AUTO
3.1 The classification of the goods imported into India is to be determined based on the
General Rules of Interpretation (hereinafter referred to as the “GRI”) set out in the Tariff. As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI.
3.2 The Tariff is aligned, up to the 6-digit level, with the Harmonized System of
Nomenclature (`HSN’) issued by the World Customs Organization (`WC0′). It has been held by the Hon’ble Supreme Court in the case of Collector of Customs, Bombay vs. Business Forms — 2002 (142) ELT 18 that the HSN Explanatory Notes aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same.
3.3 The classification of imported goods should be determined on the basis of the condition/state in which the products are presented for clearance before the Customs. This has been held by the Hon’ble Supreme Court in the case of Dunlop India Ltd. v. Union of India, 1983 (13) E.L.T. 1566 (S.C.) and Vareli Weaves vs. UOI, 1996 (83) E.L.T. 255 (S.C.).
3.4 Reference is made to Rule 2(a) of GRI which deals with articles imported in unassembled form:
“Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled”
The second part of Rule 2 (a) deals with complete, finished article imported in unassembled or disassembled form and states that such components will be classified as the finished/assembled article. The Rule further says that even incomplete / unfinished article imported in unassembled form (and having the essential character of the finished article) will be classified as the finished, assembled article at the time of import.
Classification of Wit’
3.5 The product will be imported in the form of a kit, comprising of all the various items included in, automatic robot system, lockers, delivery cubes, control software, cargo overhandling point, even nuts, screws, etc. These items will be then assembled in India to form the entire product. As stated above, the components will not be subject to any further working, and no parts will be procured locally in India. In the present case it is submitted that all the components of SafeStore Auto are imported in unassembled form for the convenience of packing, handling or transport. Further, for assembling the finished product, no component over and above what has been imported, is needed and merely assembly operations shall be undertaken. Thus, the Kit can rightly be considered to be import of the subject product in unassembled form and classification of the product shall be according to Rule 2(a) as the finished article only.
Classification of ‘Kit without locker’
3.6 The product will be imported in the form of a kit. All necessary components will be present in the import, except locker. Locker will be procured domestically. Thus, as presented the Kit in question will not contain lockers. It is important to note that simplicitor lockers are freely available in India. The essential character of “SafeStore Auto” is rendered by its mechanical components which enable remove, electronic retrieval of lockers without human intervention. Thus, in imported form, the Kit without locker does have the essential characteristic of the finished good and thus it must be assessed as incomplete SafeStore Auto in unassembled form.
Classifications beinj considered
3.7 As the product functions as an automated and self-serviced locker for customers to secure their belongings, classification under the following Headings may be examined:
| Sr. No. | Heading/Tariff | Description |
| Items | ||
| 1. | 8303 | ARMOURED OR REINFORCED SAFES, STRONGBOXES AND DOORS AND SAFE DEPOSIT LOCKERS FOR STRONG-ROOMS, CASH OR DEED BOXES AND THE LIKE, OF BASE METAL |
| 2. | 8479 | MACHINES AND MECHANICAL APPLIANCES HAVING INDIVIDUAL FUNCTIONS, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER |
Kit (including locker) is not classifiable under Heading 8303
3.7.1 Heading 8303 covers containers and strong-room doors, safe deposit lockers and the like of base metal designed for securing valuables, jewels, documents, etc., against theft and fire. Thus, it is clear that the Heading only covers lockers and storage spaces made of metal, whereas the product in question is more than just lockers. The product in question contains automated robotic system and control system, which is used to retrieve and deliver these lockers. Thus, in addition to performing the securing function, the product does the delivery and retrieving functions also by itself. The product is a complex machine with multiple components and is not a simplistic locker from which a person can manually go retrieve and deposit contents
3.7.2 The product is also not akin to other products covered under Heading 8303 such as armoured safes or boxes as the key function of these products is to provide physical security to belongings using strong doors, whereas the product in question is a sophisticated device which ensures security by means of pin code, biometrics and key. The products of Heading 8303 primarily provide protection using their physical design and constituent material. Though the products may incorporate key-operated or combination locks, the classification under Heading 8303 and Chapter 83 is due to its constituent material i.e. they are made of metal.
3.7.3 Therefore, it is submitted that the product being in the nature of complex machinery, cannot be classified under Heading 8303.
Kit (without locker) is not classifiable under Heading 8303
3.7.4 As submitted even when imported with locker, the Kit is not classifiable under Heading 8303. Thus, it goes without saying that Kit (without locker) is defmitely not classifiable under Heading 8303. Without locker, the product imported is nothing must a mechanical machinery which can be used for deposit and retrieval of goods. The goods so being retrieved etc need not be a locker and can be a wide variety of things. Thus, there is no basis to consider the imported product to be a locker under Heading 8303.
3.8 The product is classifiable under Heading 8479 as “machines and mechanical appliances having individual functions, not specified or included elsewhere”
3.8.1 SafeStore Auto is an automated locker system which provides self-service access to customers. Thus, the product is essentially a machine that helps customers to safely store and access their belongings with the click of a few buttons, without relying other humans. Heading 8479 under Section XVI, inter-alia, covers machines and mechanical appliances having individual functions. The relevant portion of Heading 8479 from the Tariff is extracted below:
| 8479 | MACHINES AND MECHANICAL APPLIANCES HAVING INDIVIDUAL FUNCTIONS, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER |
| 84791000 | – Machinery for public works, building or the like |
| 847920 | – Machinery for the extraction or preparation of animal or fixed vegetable or microbial fats or oils |
| **** | |
| 84793000 | – Presses for the manufacture of particle board or fibre building board of wood or other ligneous materials and other machinery for treating wood or cork |
| 84794000 | – Rope or cable-making machines |
| 84795000 | – Industrial robots, not elsewhere specified or included |
| 84796000 | – Evaporative air coolers |
| – Passenger boarding bridges ___ ___ | |
| **** | |
| – Other machines and mechanical appliances | |
| **** | |
| 857989 | –Other |
| **** | |
| —Other | |
| 84798992 | —- Briquetting plant and machinery intended for manufacture of briquettes from agricultural and municipal waste |
| 84798999 | —- Other |
| 847990 | -Parts |
| **** |
From a perusal of the above it is clear that Heading 8479 covers machines having individual functions i.e. mechanical devices, with a driving force, whose function can be performed distinctly and independently of any other machine or appliance.
Classification of complete Kit
3.8.2 The subject product is essentially a machine that functions as a robotic vault by automating the process of storing and retrieving valuables in safe deposit boxes. It is a technologically advanced electro-mechanical machine with mechanical components that function on electronic channels to secure valuable items like jewellery, etc., as tabulated below:
| Automatic Robot System/Robot Floors |
The robotic arm or automated retrieval unit moves within the locker system to pick and deliver the customer’s locker box from its storage position to the delivery point. It ensures quick, secure, and precise handling without manual intervention. |
| Shelf walls and Cargo wall splitting (sub-component of shelf walls) |
These structural components form the storage grid where boxes are placed. |
| Sockets, and frames | Sockets and frames provide mechanical support and precise alignment for smooth robotic operations. |
| Cargo Active Overhanding Point |
It is a mechanized transfer or handover module used in Safe Store Auto. Acts as the interface point where the robotic retrieval unit hands over the selected locker box to the delivery mechanism (such as an exit unit or customer access point). Also, ensures secure and precise positioning of locker cassettes during transfer between different levels or conveyors in multi-tier storage systems. |
Thus, it is submitted that the product in question is a machine. Further, it fulfils the definition of “individual function” as it is capable of performing its function distinctly from and independently of any other machine.
3.8.3 In fact, the product is akin to a robot as it functions on the basis of programmed instructions and inputs, and it does not require any human assistance or intervention (other than the user’s inputs who is using the robot for accessing their belongings). Various types of robots are covered under Chapter 84 and those robots which are not classifiable elsewhere are classifiable under Heading 8479. The relevant portion of the HSN Explanatory Notes to Heading 8479 regarding robots is extracted below:
(7) Industrial robots for multiple uses. Industrial robots are automatic machines which can be programmed to carry out repeatedly a cycle of movements. By the use of sensors, industrial robots are able to acquire information about the field in which they operate and to analyse the information thus obtained to be able to adapt their pattern of activity to variations in their field of operation.
Industrial robots may consist of an articulated structure comparable to that of the human arm, mounted on a base in a horizontal or vertical position, and having at its extremity a mobile holder for the toolholder (so-called vertical robots). They may also consist of a rectilinear structure often moving on a vertical axis of which the holder forms the terminal part of the operating mechanism often moving on a horizontal axis (horizontal robots). These robots could equally be placed on a beam (beam robots).
The different parts of the structure are activated by electric motors or by means of a hydraulic or pneumatic system.
Industrial robots have many uses; welding, painting, handling, loading and unloading, cutting, assembling, metal trimming, etc. They are replacing humans in tasks performed in a hostile environment (with toxic products, dust, etc.) or with laborious tasks (moving of heavy loads, repetitive tasks of a boring nature). For these varied applications, robots are equipped with a tool holder and tools specifically designed for the accomplishment of the task (pincers, grippers, welding heads, for example).
The heading covers only industrial robots capable of performing a variety of functions simply by using different tools. However, the heading excludes those industrial robots specifically designed to perform a specific function; these industrial robots are classified in the heading covering their function (e.g., heading 84.24, 84.28, 84.86 or 85.15).
From a perusal of the above extract, it is clear that the product satisfies the requirements of a robot as it is used to carry out a repeated cycle of movement basis the information fed to it. Further the product is used to replace humans in performing laborious tasks, and by eliminating the requirement of a human, it is able to provide service 24/7 to the users. Further, it is not in the nature of other robots which are covered under different Headings of Chapter 84, thus classification under Heading 8479 is appropriate for the product. There is no other Heading in the Chapter which can be suitable for this product.
3.8.4 Further, Section Note 3 of Section XVI is concerned with classification of multifunction machines. The relevant portion is extracted below:
3,- Unless the. context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting only of that component or as being that machine which performs the principal function.
The same states that, when a machine is capable of performing multiple functions, it will be classified as performing the principal function. The reason any person will use SafeStore Auto is for its automated retrieval mechanism. That is the key feature of the imported product. Thus, when the whole emphasis of the product is on its automatic nature it shows that the principal function of the product is its automated functioning. Thus, the product is rightly classifiable under Heading 8479.
Classification of Kit (without locker)
3.8.5 The Kit (without locker) is nothing but a mechanical machine for fetching and depositing goods. Such mechanical machines are rightly classifiable under Chapter 84. As there is no specific Heading within Chapter 84 for fetching and depositing, then the product is rightly classifiable under Heading 8479 which includes machines having individual functions not specified anywhere else. The imported product (without locker) is exactly meant to replace a human in perfoiming a function of fetching lockers and depositing lockers. Thus, it is identical to an industrial robot covered under Heading 8479. Though it is not for use in an industry, the location of its usage should not change the classification of the product.
3.8.6 Rulings from other Countries for similar products
Classification of similar automated machinery has been determined under Heading 8479 by various foreign rulings. The Rulings are as follows:
| Sl. No. |
Country of Ruling |
Ruling No. | Particulars |
| 1. | United States of America |
HQ H315458 dated 15.12.2021 |
Cleveron Packrobot & Locker Combo for automated parcel pickup and storage system. |
| 2. | United States of America |
N167776 dated 22.06.2011 |
A3 SmaRTStoreTM is a small to medium size self-contained automated storage and retrieval system. |
| 3. | United States of America |
N341812 dated 20.08.2024 |
MYTower Automated Storage Towers for storing and retrieving surface-mount device reels. |
In view of the above, automated machinery consisting of various mechanical components have been classified under Heading 8479. Accordingly, the present product should also be classifiable under Heading 8479, specifically under Tariff Item 84798999.
Port of Import and reply from concerned jurisdictional Commissionerate
4. The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. SafeStore Auto in unassembled form at the jurisdiction of Office of the Commissioner of Customs, NS-V, JNCH. The application was forwarded to the Office of the Commissioner of Customs, NS-V, JNCH for their comments vide letter dated 15.10.2025, 07.11.2025, 27.11.2025 and 22.12.2025. However, no comments were received till date.
Details of Hearing
5. A hearing was held on 01.12.2025 at 12:00 PM. Shri Srinidhi Ganeshan, Advocate has appeared online for the hearing and reiterated the contention submitted with the application that the subject goods are “Automatic Safe Deposit and Retrieval System. It is based on robotized solution and allows 27X7, 365 days service with easy access and privacy. It combines next generation automation technology, advanced customer identification features without compromising security. The system allows the customers to enter the room to access their personal locker and operate it with multi-level security comprising card-authentication, biometric authentication, PIN based authentication and manual key. The such locker or safe is attached with robotic system with facilitate to deliver the locker at designated exit/delivery unit. Sher submitted that the applicant intends to import the whole system (with or without safe) in CKD condition and the said automatic safe deposit and retrieval system merit classification under CTH 8479, in terms of Rule 2(a) and Section note 3 to the Section XVI. The principal function of the device system is to provide automate safe deposit and retrieval. She relied upon some US ruling which is placed with the application.
5.2 Nobody appeared on behalf of the Department for hearing.
Discussion and findings
6. I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal provisions.
6.1 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H (2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act.
6.2 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes.
6.3 Rule 1 of the General Rules for Interpretation provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes and thus, gives precedence to this while classifying a product. Rules 2 to 6 provide the general guidelines for classification of goods under the appropriate subheading. In the event the goods cannot be classified solely on the basis of Rule 1, and if the headings and section or chapter notes do not otherwise require, the remaining Rules 2 to 6 may then be applied in sequential order.
6.4 The Section Notes or Chapter Notes and Sub-Heading Notes give detailed explanation as to the scope and ambit of the respective Sections and Chapters. These notes have been given statutory backing and have been incorporated at the beginning of each Chapter.
6.5 First, I will discuss first scenario that is import of the subject goods i.e. SafeStore Auto (with lockers):
Safe deposit box systems are installations of deposit lockers that are securely stored in a locked, certified strong room or vault. The process of accessing a safe deposit box is secured by a crypto memory card, a pin code, and a biometric scan. This solution offers the highest level of security for the storage of valuable items such as gold and precious metals, jewellery, bonds, contracts, and other important documents. Safe deposit box systems come in two categories: conventional, mechanical lockers; and fully automated lockers based on robot technology. While the fully automated system enables customers to access their safety deposit box at any time and without the need of staff assistance, the conventional solution is usually only accessible during bank opening hours. However, the integration of high-security electronic locks and automated user authentication can enable 24/7 self-service access also to conventional locker facilities.
From the website of the manufacturer https://www.gunnebosafestorage.com/products/safestore-auto-midi/ it is observed that the subject goods are Automated safe deposit locker system. Customers have access to a secure room with a terminal where a robotised system delivers the customer’s deposit box from the vault. Both the secure room and terminal use one or more identification methods (cards, camera, biometrics etc.) to verify the customer. When the customer is finished, the deposit box is returned to the vault by the robot. Combined with CCTV monitoring and access control tracking of the secure room, a high level of security is maintained. The vaults used for self-service safe deposit lockers only need minimal extra space for the robot to access the boxes and can also be placed out of the way, e.g. on a cheaper floor/basement under/next to the bank/facility. Safe deposit boxes or lockers are used to store valuable items in a secure location. These items can include gold and other precious metals, jewellery, bonds, contracts and other important documents. Photographs of the subject goods are reproduced here:
The product will be imported in the form of a kit, comprising of all various items including, automatic robot system, lockers, delivery cubes, control software, cargo overhandling point, even nuts, screws, etc. These items will be then assembled in India to form the entire product. The components will not be subject to any further working, and no parts will be procured locally in India. Rule 2(a) of GRI which deals with articles imported in unassembled form:
“Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled”
The relevant portion of the HSN Explanatory Notes to Rule 2(a) of GRI is extracted below:
Rule 2(a)
(Incomplete or unfinished articles)
(I) The first part of Rule 2 (a) extends the scope of any heading which refers to a particular article to cover not only the complete article but also that article incomplete or unfinished, provided that, as presented, it has the essential character of the complete or finished article.
(II) The provisions of this Rule also apply to blanks unless these are specified in a particular heading. The term “blank” means an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part (eg bottle preforms of plastics being intermediate products having tubular shape, with one closed end and one open end threaded to secure. a screw type closure, the portion below the threaded end being intended to be expanded to a desired size and shape).
Semi manufacturers not yet having the essential shape of the finished articles (such as is generally the case with bars, discs, tubes, etc.) are not regarded as “blanks”.
(III) In view of the scope of the headings of Sections Ito VI, this part of the Rules does not normally apply to goods of these Sections.
(IV) Several cases covered by the Rule are cited in the General Explanatory Notes to Sections or Chapters (e.g., Section XVI, and Chapters 61, 62, 86, 87 ana 90).
RULE 2 (a)
(Articles presented unassembled or disassembled)
(V) The second part of Rule 2 (a) provides that complete or finished articles presented unassembled or disassembled are to be classified in the same heading as the assembled article. When goods are so presented, it is usually for reasons such as requirements or convenience of packing, handling or transport.
(VI) This Rule also applies to incomplete or unfinished articles presented unassembled or disassembled provided that they arc to be treated as complete or finished articles by virtue of the first part of this Rule.
(VII) For the purposes of this Rule, “articles presented unassembled or disassembled” means articles the components of which are to be assembled either by means of fixing devices (screws, nuts, bolts, ) or by riveting or welding, for example, provided only assembly operations are involved.
No account is to be taken in that regard of the complexity of the assembly method. However, the components shall not be subjected to any further working operation for completion into the finished state.
Unassembled components of an article which are in excess of the number required fbr that article when complete are to be classified separately.
(VIII) Cases covered by this Rule are cited in the General Explanatory Notes to Sections or Chapters (e.g., Section XVI, and Chapters 44, 86, 87 and 89).
(IX) In view of the scope of the headings of Sections 1 to VI, this part of the Rule does not normally apply to goods of these Sections.
From a perusal of the HSN Explanatory Notes and the submissions made by the applicant, the subject goods SafeStore Auto (with lockers) are imported in unassembled form for the convenience of packing, handling or transport. Further, for assembling the finished product, no component over and above what has been imported, is needed and merely assembly operations shall be undertaken. Thus, it can be implied that the Kit is complete or finished article presented in unassembled condition of the subject product and classification of the product shall be according to Rule 2(a) as the finished article only.
6.5.1 The applicant submitted that the subject goods are to be classified under CTH 8479 as the subject product is essentially a machine that functions as a robotic vault by automating the process of storing and retrieving valuables in safe deposit boxes. The product is akin to a robot as it functions on the basis of programmed instructions and inputs, and it does not require any human assistance or intervention (other than the user’s inputs who is using the robot for accessing their belongings). Various types of robots are covered under Chapter 84 and those robots which are not classifiable elsewhere are classifiable under Heading 8479. Further, Note 3 of Section XVI is concerned with classification of multi-function machines merit classification on principal function. The reason any person will use SafeStore Auto is for its automated retrieval mechanism. That is the key feature of the imported product. Thus, when the whole emphasis of the product is on its automatic nature it shows that the principal function of the product is its automated functioning. Thus, the product is rightly classifiable under Heading 8479.
The relevant portion of Heading 8479 from the Tariff is extracted below:
| 8479 | MACHINES AND MECHANICAL APPLIANCES HAVING INDIVIDUAL FUNCTIONS, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER |
| 84791000 | – Machinery for public works, building or the like |
| 847920 | – Machinery for the extraction or preparation of animal or fixed vegetable or microbial fats or oils |
| **** | |
| 84793000 | – Presses for the manufacture of particle board or fibre building board of wood or other ligneous materials and other machinery for treating wood or cork |
| 84794000 | – Rope or cable-making machines |
| 84795000 | – Industrial robots, not elsewhere specified or included |
| 84796000 | – Evaporative air coolers |
| – Passenger boarding bridges | |
| **** | |
| – Other machines and mechanical appliances | |
| **** | |
| 857989 | –Other |
| **** | |
| —Other | |
| 84798992 | —- Briquetting plant and machinery intended for manufacture of briquettes from agricultural and munici sal waste |
| 84798999 | —- Other |
| 847990 | -Parts |
| **** |
Relevant portion of the HSN Explanatory Notes to Heading 8479 is extracted below:
This heading is restricted to machinery having individual functions, which :
(a) Is not excluded from this Chapter by the operation of any Section or Chapter Note.
and (b) Is not covered more specifically by a heading in any other Chapter of the Nomenclature.
and (c) Cannot be classified in any other particular heading of this Chapter since :
(i) No other heading covers it by reference to its method of functioning, description or type.
and (ii) No other heading covers it by reference to its use or to the industry in which it is employed.
or (iii) It could fall equally well into two (or more) other such headings (general purpose machines).
The machinery of this heading is distinguished from the parts of machinery, etc., that fall to be classified in accordance with the general provisions concerning parts, by the fact that it has individual functions.
For this purpose the following are to be regarded as having “individual functions” :
(A) Mechanical devices, with or without motors or other driving force, whose function can be performed distinctly from and independently of any other machine or appliance.
Example : Air humidification and dehumidification are individual functions because they can be performed by appliances operating independently of any other machine or appliance.
A separately presented air dehumidifier, even if designed to be mounted on an ozone generator falls, therefore, to be classified in this heading as having an individual function.
(B) Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function :
(i) is distinct from that which is performed by the machine or appliance whereon they are to be mounted, or by the entity wherein they are to be incorporated, and
(ii) does not play an integral and inseparable part in the operation of such machine, appliance or entity.
The relevant portion of the HSN Explanatory Notes to Heading 8479 regarding robots is extracted below:
(7) Industrial robots for multiple uses. Industrial robots are automatic machines which can be programmed to carry out repeatedly a cycle of movements. By the use of sensors, industrial robots are able to acquire information about the field in which they operate and to analyse the information thus obtained to be able to adapt their pattern of activity to variations in their field of operation.
Industrial robots may consist of an articulated structure comparable to that of the human arm, mounted on a base in a horizontal or vertical position, and having at its extremity a mobile holder for the toolholder (so-called vertical robots). They may also consist of a rectilinear structure often moving on a vertical axis of which the holder forms the terminal part of the operating mechanism often moving on a horizontal axis (horizontal robots). These robots could equally be placed on a beam (beam robots).
The different parts of the structure are activated by electric motors or by means of a hydraulic or pneumatic system.
Industrial robots have many uses; welding, painting, handling, loading and unloading, cutting, assembling, metal trimming, etc. They are replacing humans in tasks performed in a hostile environment (with toxic products, dust, etc.) or with laborious tasks (moving of heavy loads, repetitive tasks of a boring nature). For these varied applications, robots are equipped with a tool holder and tools specifically designed for the accomplishment of the task (pincers, grippers, welding heads, for example).
The heading covers only industrial robots capable of performing a variety of functions simply by using different tools. However, the heading excludes those industrial robots specifically designed to perform a specific function; these industrial robots are classified in the heading covering their function (e.g., heading 84.24, 84.28, 84.86 or 85.15).
From the above facts and submission, it is evident that the subject goods are safe deposit locker system that is used for the secure storage of valuable items such as gold and precious metals, jewellery, bonds, contracts, and other important documents. As per the HSN explanatory notes of heading 8479 it is clear that heading covers only those goods which have individual functions and neither excluded by chapter notes or section notes from chapter 84 nor covered more specifically by a heading nor can be classified by reference to its use, functioning, description, type or to the industry in which it is employed. Now the main issue is that whether the subject goods can be classified in any heading or not.
6.5.2 Chapter 83 which covers miscellaneous articles of base metals. The relevant portion of Chapter 83 is extracted below:
Chapter 83
Miscellaneous articles of base metal
Notes.
1. For the purposes of this Chapter, parts of base metal are to be classified with their parent articles. However, articles of iron or steel of heading 73.12, 73.15, 73.17, 73.18 or 73.20, or similar articles of other base metal (Chapters 74 to 76 and 78 to 81) are not to be taken as parts of articles of this Chapter.
2. For the purposes of heading 83.02, the word “castors” means those having a diameter (including, where appropriate, tyres) not exceeding 75 mm, or those having a diameter (including, where appropriate, tyres) exceeding 75 mm provided that the width of the wheel or tyre fitted thereto is less than 30 mm.
GENERAL
Whereas in Chapters 73 to 76 and 78 to 81 articles are classified according to a specific metal, this Chapter, like Chapter 82, covers certain particular classes of goods irrespective of the base metal of–which they are composed.
In general, parts of base metal are to be classified with their parent articles (see Chapter Note 1). However, the Chapter does not cover springs (even if specialised for locks, etc.), chains, cables, nuts, bolts, screws or nails; these goods are classified in the appropriate headings of Chapters 73 to 76 and 78 to 81 (see Note 2 to Section XV and Note 1 to this Chapter).
Heading 8303 covers safety deposit lockers. Relevant portion of the HSN Explanatory Notes to Heading 8303 is extracted below:
83.03 – Armoured or reinforced safes, strong-boxes and doors and safe deposit lockers for strong-rooms, cash or deed boxes and the like, of base metal.
This heading covers containers and strong-room doors designed for securing valuables, jewels, documents, etc., against theft and fire.
Safes and strong-boxes of this heading are steel containers of which the walls are armoured (i.e., made of high-strength alloy steel) or of sheet steel reinforced with, for example, reinforced concrete. They are used m banks, offices, hotels, etc. They are fitted with very secure locks and often with air-tight doors and double walls, the intervening space usually being filled with heat-resistant materials. The heading includes strong-room doors (whether or not with door frames) and safe deposit lockers for strong-rooms as used in banks, safe deposits, factories, etc., where larger storage space is required.
The heading also includes metal cash or deed boxes (with or without internal compartments). These are portable boxes (incorporating a key-operated or a combination lock), sometimes with double walls, which by virtue of their design, constituent material, etc., offer reasonable protection against theft and fire. Collecting-boxes, money-boxes, etc., also fall in the heading, provided they have similar provisions for security; otherwise they are classified according to the constituent metal or as toys.
The heading does not cover :
(a) Security doors of steel, for all types of dwellings (heading 73.08).
(b) Containers specially designed to resist fire, impact and crushing and whose walls in particular do not offer any serious resistance to attempts at breaking them open by drilling or cutting (heading 94.03).
As per the website of the manufacturer, the subject goods are Automated safe deposit locker system in which safe deposit boxes or lockers (made from steel) are securely stored in a locked, certified strongroom or vault that are used for secure storage of valuable items such as gold and precious metals, jewellery, bonds, contracts, and other important documents. The product in question contains safe deposit lockers, automated robotic system and control system, which is used to retrieve and deliver these lockers. The subject goods ensure security by means of pin code, biometrics and key. However, the principal function of the subject good is still remains as “secure storage of valuable items”. Automated robotic system and advance customer authentications are additional features to make is more user friendly and outweigh the disadvantage of traditional deposit lockers. Presence of these new automated system does not make the whole product “robot” as claimed by the applicant. The applicant’s interpretation has been misplaced. It is the safe deposit boxes/lockers that give the essential character to the subject goods. If not so, then the whole point of security by means of biometric, PIN and memory card will be worthless. The automated robotic system is a part of subject goods and if imported as standalone then only merit classification under CTH 84795000 as industrial robot not elsewhere specified or included. The automatic retrieval and advance customer identification are mere technical upgrade only for 24/7 access like ATM with which customers deposit, draw and transfer money and see the balances of their accounts without direct contact with bank personnel but the essential function is safe storage of valuable goods in safe deposit boxes/lockers. The subject goods as a whole mainly consists of shelf walls, cargo wall splitting, sockets and frames, cargo active overheating point and automatic robot system etc. The subject goods can be considered as composite machine and as per GRI Rule 3(b) which is read as:
“(b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable”.
The essential character of composite goods is dependent upon various factors such as the nature and role of the constituent material or component, value, weight, volume, mass, functionality, size, melting point, cost and combustibility. There is no standard test for essential character, however, the Explanatory Notes to Rule 3(b) indicate that the material or component that determines essential character will vary between different kinds of goods. The Explanatory Notes further state that essential character may “be determined by the nature of the material or component, its bulk, quantity, weight, or value, or by the role of a constituent material in relation to the use of the goods”.
The essential character may be determined by the nature of the material or component, its bulk, quantity, weight or value, or by the role of the constituent material in relation to the use of the said article. The Hon’ble Calcutta High Court in Naffar Chandra Jute Mills Ltd v. Assistant Collector of C. Ex. [1 993 (66) E.L.T. 574 (Cal.)] has held that Rule 3(b) enacts what may be termed as the predominant principle of classification. That is to say an excisable item must be understood with reference to the predominant element in its make-up. The Hon’ble Supreme Court, in Kemrock Industries & Exports Ltd. v. Commissioner of C. Ex. [2007 (3) TMI 260 — SUPREME COURT], expounded on the test of essentiality and held as under:
“This test of essentiality refers to “essential character”. The test states that, if the manufactured goods have the essential character, mainly of stiffness, required for the manufacture of roofs, partitions etc. then one has to treat the item in question as an article of plastic’ in the present case, Rule 3(b) of the Rules for the Interpretation of Tariff Entries would apply. The said rule require that composite goods, mixtures and goods put up in sets have to be classified on the classification of that material or component which gives to the product their essential character. In the present case, if we keep in mind the manufacture of roofs, partitions etc., then the stiffness is the main attribute of such a product. The glass fiber mat when impregnated gives stiffness which helps in the manufactures of roofs, partitions etc, in the context of an insulation paper which is a composite of plastic and paper, the item will fall under Heading 39.01/06 of the previous Customs Tariff Act since plastic gives higher degree of insulation quality. Rule 3(b) requires classification based on the material which gives it the essential characteristics. This is the test of essentiality; The effect of the tariff schedule is to classify the products under different heads according to the character of the product. In interpreting a tariff entry. Rules for the Interpretation are helpful, particularly in cases of composite goods.”
Another important aspect of essential character is linked to the primary function of the goods. The Hon’ble Delhi Tribunal while determining the classification of a portfolio [containing a watch and a calculator] in Gift and Time Products v. Commissioner of Central Excise [1999 (107) E.L.T. 707], observed that even though certain components like the watch and calculator have their own use and utility, when combined with the portfolio, they add to the utility of the portfolio but cannot be considered as the essential items for the purposes of classification, as the customer purchasing the goods, is purchasing the portfolio which is the primary functional item.
In view of the above and HSN explanatory notes of chapter heading 8303, the heading covers containers and strong-room doors, safe deposit lockers and the like of base metal designed for securing valuables, jewels, documents, etc., against theft and fire. The essential character of the subject goods is safe storage of valuable items in safe deposit boxes/lockers. It is safe deposit boxes/lockers that carries the essential function not the automated system. The automation system and access control system are secondary in nature and only adds additional feature to the primary function. Therefore, the subject goods are covered under CTH 8303. It can be understood that as per HSN explanatory notes two essential conditions are required to be fulfilled for classifying the goods under this CTH 8303-
(i) First that the subject goods should be containers, doors, safe deposit lockers and the like of base metal, and
(ii) designed for securing the valuables etc against theft, fire etc..
I observe here that in the traditional locker system; the arrangement of the lockers/vaults/selves are static and fixed to which access is made by physically reaching to the particular locker. In this instant case, this security is made electronic. The provision of safety card, security PIN and use of biometric are such safety features. The technology robotics is made in such a way that particular locker/vault/chest is brought through a defined path where the mechanism does not change the essential character of the locker. Whether one approaches to the locker for operation or the locks is brought to oneself through mechanical system for the same, the essential Character and identity or uses of the locker remain Unchanged. Robotic hand /operation is only an automation of the vault/safe/Locker which moves through a defined path and it returns to its original place. Further the safely features-viz – access Key, security by PIN, biometrics etc are features of safe and secured locker and not of the robot.
The applicant has relied upon the Several cross rulings pertaining to Smart Store or automated Storage of Parcel pickup. The HSN EN to the heading 8479 regarding industrial robot stress upon various Uses like, welding, painting, handling loading and unloading, cutting, assembling, metal trimming etc are such work replacing human task. These all are for meant for material handling, processing and management. The other industrial robots, specifically designed to perform a specific function; are to be classified under other heading other than 8479. But in the instant case as the applicant themselves contended that main function of the subject goods is primarily automated self-service locker system with privacy, safety and security enabled by automated technology.
Industrial robots are mainly used to material management, assembling, welding, painting, packing, inspection, cutting and drilling, working in hazardous environment which may yield higher productivity, better accuracy, cut labour cost, reduce human risk or even work with 24/7 operation capabilities. In the instant case, the nature and uses of the Subject goods are different which is heavily inclined towards privacy, safety, security of personal belongings viz – Valuables gold, other precious metal and jewellery Bonds, Contracts, documents etc. It is important to note that the safe, vault or lockers etc. provides safe and secure “space” in form of “Storage units” and the rent or price is to be paid for that “storage”. The rent or charge / fee is paid according to the size of the Locker/vault Chest, it’s location or type of the locker, hence, it cannot be equated or compared with the robot or a kind of robot for the purpose of article of chapter 84.
The safe deposit lockers are specifically mentioned under CTH 8303 whereas the heading 8479 includes industrial robots capable of performing a variety of functions simply by using different tools. However, the heading excludes those industrial robots specifically designed to perform a specific function; these industrial robots are classified in the heading covering their function (e.g., heading 84.24, 84.28, 84.86 or 85.15).
In view of the foregoing paras and the scope of the HSN explanatory notes to chapter heading 8303 and 8479, the subject goods i.e. Safestore Auto is more specifically covered under CTH 8303 by virtue of their essential character and primary function of securing the valuables through locker.
6.6 Now, I will discuss the second scenario where the subject goods will be imported in unassembled form but without safe deposit lockers. In this case the following items will be imported together in unassembled form:
1. Robot
2. Shelf Walls, Sockets and Frames
3. Shelf Troughs
4. Delivery Cube
First, it is important to decide that the above-mentioned goods can form a complete unit or not. From the catalogue, documents and submission made by the applicant, it is observed that safe deposit lockers alongwith the above mentioned parts are essential components to complete a unit. Therefore, it can be implied that without lockers, the imported goods do not have the essential character of a complete unit as it is the lockers that give the essential character to Safestore Auto which has been discussed in above para 6.5.
As the imported goods without lockers cannot be considered as a complete article and cannot be classified as per Rule 2(a) of GRI, hence, it is pertinent to determine the classification of individual items. Heading 8479 under Section XVI, inter-alia, covers machines and mechanical appliances having individual functions. The relevant portion of Heading 8479 from the Tariff is extracted below:
| 8479 | MACHINES AND MECHANICAL APPLIANCES HAVING INDIVIDUAL FUNCTIONS, NOT SPECIFIED OR INCLUDED ELSEWHERE IN THIS CHAPTER |
| 84791000 | – Machinery for public works, building or the like |
| 847920 | – Machinery for the extraction or preparation of animal or fixed vegetable or microbial fats or oils |
| **** | |
| 84793000 | -Presses for the manufacture of particle board or fibre building board of wood or other ligneous materials and other machinery for treating wood or cork |
| 84794000 | -Rope or cable-making machines |
| 84795000 | -Industrial robots, not elsewhere specified or included |
| 84796000 | – Evaporative air coolers |
| -Passenger boarding bridges | |
| **** | |
| -Other machines and mechanical appliances | |
| **** | |
| 847989 | –Other |
| **** | |
| —Other | |
| 84798992 | —-Briquetting plant and machinery intended for manufacture of briquettes from agricultural and municipal waste |
| 84798999 | —-Other |
| 847990 | -Parts |
| 84799090 | — Other |
Relevant portion of the HSN Explanatory Notes to Heading 8479 is extracted below:
This heading is restricted to machinery having individual functions, which :
(a) Is not excluded from this Chapter by the operation of any Section or Chapter Note.
and (b) Is not covered more specifically by a heading in any other Chapter of the Nomenclature.
and (c) Cannot be classified in any other particular heading of this Chapter since :
(i) No other heading covers it by reference to its method of functioning, description or type.
and (ii) No other heading covers it by reference to its use or to the industry in which it is employed.
or (iii) It could fall equally well into two (or more) other such headings (general purpose machines).
The machinery of this heading is distinguished from the parts of machinery, etc., that fall to be classified in accordance with, the general provisions concerning parts, by the fact that it has individual functions.
For this purpose the following are to be regarded as having “individual functions” :
(A) Mechanical devices, with of without motors or other driving force, whose function can be performed distinctly from and independently of any other machine or appliance.
Example : Air humidification and dehumidification are individual functions because they can be performed by appliances operating independently of any other machine or appliance.
A separately presented air dehumidifier, even if designed to be mounted on an ozone generator falls, therefore, to be classified in this heading as having an individual function.
(B) Mechanical devices which cannot perform their function unless they are mounted on another machine or appliance, or are incorporated in a more complex entity, provided that this function :
(i) is distinct from that which is performed by the machine or appliance whereon they are. to be mounted, or by the entity wherein they are to be incorporated, and
(ii) does not play an integral and inseparable part in the operation of such machine, appliance or entity.
***
From a perusal of the above it is clear that Heading 8479 covers machines having individual functions i.e. mechanical devices, with a driving force, whose function can be performed distinctly and independently of any other machine or appliance. A multitude of machines having individual functions are covered therein as is evident from the HSN Explanatory Notes. Industrial Robots are covered under heading 84795000. Therefore, Robot is classifiable under CTI 84795000.
6.6.2 Shelf Troughs are used to create pathways across the structure to enable the robot to move to different boxes. It is specifically designed for an industrial robot to enable it move • across the structure. Therefore, the shelf troughs are nothing but the parts/accessories of the Robot and the same is classifiable under CTI 84799090 as parts.
6.6.3 Shelf walls, sockets and frames are used to set up the structure on which boxes will be affixed. These shelf; sockets and frames are made of steel. CTH 7307 covers tube or pipe fittings (for example, elbow, couplings, sleeves), of iron or steel. The HSN explanatory notes of CTH 7307 provides that:
This heading covers fittings of iron or steel, mainly used for connecting the bores of two tubes together, or for connecting a tube to some other apparatus, or for closing the tube aperture. This heading does not however cover articles used for installing pipes and tubes but which do not form an integral part of the bore (e.g., hangers, stays and similar supports which merely fix or support the tubes and pipes on walls, clamping or tightening bands or collars (hose clips) used for clamping flexible tubing or hose to rigid piping, taps, connecting pieces, etc.) (heading 73.25 or 73.26).
The connection is obtained :
– by screwing, when using cast iron or steel threaded fittings;
– or by welding, when using butt-welding or socket-welding steel fittings. In the case of butt-welding, the ends of the fittings and of the tubes are square cut or chamfered;
– or by contact, when using removable steel fittings:
Therefore, it can safely be deduced that sockets for making connections are classifiable under CTH 7307.
6.6.4 CTH 7308 provides the following-
7308 STRUCTURES (EXCLUDING PREFABRICATED BUILDINGS OF HEADING 9406) AND PARTS OF STRUCTURES (FOR EXAMPLE, BRIDGES AND BRIDGE-SECTIONS, LOCK-GATES, TOWERS, LATTICE MASTS, ROOFS, ROOFING FRAMEWORKS, DOORS AND WINDOWS AND THEIR FRAMES AND THRESHOLDS FOR DOORS, SHUTTERS, BALUSTRADES, PILLARS AND COLUMNS), OF IRON OR STEEL; PLATES, RODS, ANGLES, SHAPES, SECTIONS, TUBES AND THE LIKE, PREPARED FOR USE IN STRUCTURES OF IRON OR STEEL
| 7308 10 00 | Bridges and bridge-sections |
| 7308 20 | Towers and lattice masts |
| 7308 20 11 | Towers, whether or not assembled – For transmission line |
| 7308 20 19 | Towers, whether or not assembled – Other |
| 7308 20 20 | Lattice masts |
| 7308 30 00 | Doors, windows and their frames and thresholds for doors |
| 7308 40 00 | Equipment for scaffolding, shuttering, propping or pit-propping |
| 7308 90 | Other |
| 7308 90 10 | Beams, channels, pillars and girders prepared for use in structures |
| 7308 90 20 | Drop rods |
| 7308 90 30 | Hatchway, rails and bulkheads for ships or boats and parts of hull |
| 7308 90 40 | Galvanised tension bars |
| 7308 90 50 | Structures and super structures for mining |
| 7308 90 60 | Truss rods |
| 7308 90 70 | Tubular steel poles for electric transmission and distribution lines |
| 7308 90 90 | Other |
Further, HSN explanatory notes to CTH 7308 provides that-
This headily covers complete or incomplete metal structures as well as parts of structures. For the purpose of this headily, these structures are characterised by the fact that once they are put in position, they generally remain in that position. They are usually made up from bars, rods, tubes, angles, shapes, sections, sheets, plates, wide flats including so called universal plates, hoop, strip, forgings or castings, by riveting, bolting, welding, etc. Such structures sometimes incorporate products of other headings such as panels of woven wire or expanded metal of heading 73.14′ Parts of structures include clamps and other devices specially designed for assembling metal structural elements of round cross-section (tubular or other). These devices usually have protuberances with tapped holes in which screws are inserted, at the time of assembly, to fix the clamps to the tubing. Apart from the structures and parts of structures mentioned in the heading, the heading also includes products such as: Pit head frames and superstructures; adjustable or telescopic props, tubular props, extensible coffering beams, tubular scaffolding and similar equipment; sluice gates, piers, jetties and marine moles; lighthouse superstructures: masts. gangways, rails, bulkheads, etc., for ships; balconies and verandahs: shutters, gates, sliding doors; assembled railings andfencing; level crossing gates and similar barriers; frameworks for green houses and forcing frames; lame scale shelving for assembly and permanent installation in shops, workshops, storehouses, etc.,–stalls and racks; certain protective barriers for motorways, made from sheet metal or .from angles, shapes or sections.
Rule 1 of the General Rules for Interpretation provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes and thus, gives precedence to this while classifying a product. The same is reproduced below:
1. The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require.
In view of the above mentioned chapter heading, HSN explanatory notes and GRI Rule 1, it is clear that heading 7308 specifically cover frames, structures and parts of structure, made of iron or steel. In the present case, shelf walls and frames are used to prepare structure, so these can be considered as parts of structure; hence, the same is classifiable under CTH 7308.
6.6.5 Delivery Cube/Exit Unit is a front end device which the customer interacts with. Through this, the boxes are delivered to the customer. The applicant vide email dated 14.04.2026 submitted that the delivery cube consists of following elements:
i. Electronic touch screen display that is used to validate the user credentials to access the locker box.
ii. The cube consists of electronic sensors that detect if anyone is trying to force open the shutter.
iii. It also has an electronic weight system to measure the weight of the contents of the locker box.
iv. The shutter unit has electronic sensors to detect if the shutter operation detects any obstruction the brake in shutter is activated and it does not close until the obstruction is cleared.
v. It has sensor, guides, slide mechanism and motors to dispense the locker box when user is authenticated.
From the above and the website of the manufacturer, it is observed that delivery cube comprises of access control system, sensor, weighing system, slide mechanism and guides. It can be implied that it is not only an access control system but a completely machine that allow users to interact and have weighing mechanism, safety system and sensors. Since, the delivery cube have both mechanical and electronic processing and there is no specific heading provided in the tariff. Therefore, the delivery cube merits classification under CTH 8479, more specifically under CTI 84798999 as other machines and mechanical appliances having individual functions, not specified or included elsewhere in this chapter 84 as the delivery cubes satisfy the conditions of heading 8479 which are as under:
This heading is restricted to machinery having individual functions, which :
(a) Is not excluded from this Chapter by the operation of any Section or Chapter Note.
and (b) Is not covered more specifically by a heading in any other Chapter of the Nomenclature.
and (c) Cannot be classified in any other particular heading of this Chapter since :
(i) No other heading covers it by reference to its method of functioning, description or type.
and (ii) No other heading covers it by reference to its use or to the industry in which it is employed.
or (iii) It could fall equally well into two (or more) other such headings (general purpose machines).
The machinery of this heading is distinguished from the parts of machinery, etc., that fall to be classified in accordance with the general provisions concerning parts, by the fact that it has individual functions.
The delivery cubes are not excluded from chapter 84 as per section note. Also, it is neither covered in any heading more specifically in nomenclature not it can be classified under any other heading by reference of functioning, description, type or use. Therefore, delivery cube is classifiable under CTI 84798999 as others.
6.7 In view of the above, it is concluded that products imported without lockers i.e. Robot, Shelf Troughs, Shelf Walls, Sockets and Frames and Delivery Cubes should be classified under their respective heading in terms of GRI Rules, HSN explanatory notes and Chapter Heading, Sub-headings and chapter notes as mentioned below:
TABLE-I
| Sr. No. | Description of Goods | CTH |
| 1 | Robot | 84795000 |
| 2 | Shelf Troughs | 84799090 |
| 3 | Shelf Walls and Frames | 7308 |
| 4 | Sockets | 7307 |
| 5 | Delivery Cube | 84798999 |
7. In view of the above facts and circumstances of the case, observation and discussions made in the foregoing paras, I reach to the conclusion that:-
The products in question i.e. Safestore Auto (with lockers) in unassembled form as detailed in Para 6.5 above; merit classification under CTH 8303 (ARMOURED OR REINFORCED SAFES, STRONG-BOXES AND DOORS AND SAFE DEPOSIT LOCKERS FOR STRONG-ROOMS, CASH OR DEED BOXES AND THE LIKE, OF BASE METAL) and products in unassembled form without lockers, merit classification under their respective headings, as per Table-I referred to in para 6.7 above; in accordance with the First Schedule of the Customs Tariff Act, 1975.
8. I rule accordingly.
Author Bio
