In re Sundaram Industries Private Limited (CAAR Mumbai)
Mumbai’s Customs Authority for Advance Rulings (CAAR) has issued a detailed ruling on the classification of an electrically powered “Tactical Hauler” and its various components, sought by Sundaram Industries Private Limited. The authority classified the main vehicle as a “works truck” under Customs Tariff Heading (CTH) 8709, while assigning different tariff codes to its parts based on their specific nature and function, highlighting the nuanced rules governing vehicle components.
The ruling provides crucial clarity on the customs duties applicable to the specialised military-grade equipment, which is designed to transport heavy loads for soldiers on the battlefield, thereby enhancing their mobility and combat effectiveness.
Classifying the Tactical Hauler
The primary issue was determining the correct classification for the Tactical Hauler itself. The applicant, Sundaram Industries, described the product as a battery-operated, self-propelled vehicle that can be controlled by a wireless remote or operated manually. It is designed for short-distance transport of goods over difficult terrain and is not intended for carrying passengers or for use on public roads.
The CAAR examined the features of the Hauler against the criteria set out in the Harmonized System of Nomenclature (HSN) Explanatory Notes for CTH 8709. This heading covers “Works trucks, self-propelled, not fitted with lifting or handling equipment, of the type used in factories, warehouses, dock areas or airports for short distance transport of goods.”
