In re BMW India Pvt. Ltd. (CAAR Delhi)
In the case of BMW India Pvt. Ltd. (CAAR Delhi), it was determined that the importation of certain automotive components, such as engines, exhaust systems, cooling modules, HVAC units, and door panels, will not be categorized under ‘Motor Vehicles’ (Tariff Item 8703) or as CKD kits (Entry No. 526 of Notification No. 50/2017-Cus., dated 30.06.2017). Instead, these components are to be locally manufactured in India by BMW Group-approved vendors. Consequently, the imports will be classified under their respective headings and sub-headings of the Customs Tariff Act, 1975, rather than under Tariff Heading 87.08. This classification aligns the components with the detailed descriptions provided in the Customs Tariff Act rather than broad vehicle or kit categories.
FULL TEXT OF THE ORDER OF CUSTOMS AU-THORITY OF ADVANCE RULING, MUMBAI
BMW India Pvt. Ltd (`Applicant’ / ‘BMW India’) is a company incorporated in 2006 under the Companies Act, 1956 and is, inter-alia, engaged in the assembling/ manufacturing at its Plant in Chennai and sale of BMW passenger cars in India. BMW India is part of the German multinational manufacturer of luxury vehicles i.e. Bayerische Motoren Werke AG. For the above activity of manufacture, based on the approval by the Foreign Investment Promo-tion Board (PIPIT), Government of India, on August 23, 2005, the Applicant commenced import of motor cars in Completely Knocked Down (`CKD’) kit form and its assembly at its Chennai Plant.
