Case Law Details
In re Inalfa Gabriel Sunroof Systems Private Limited (CAAR Mumbai)
In a recent ruling, the Customs Authority for Advance Rulings (CAAR) in Mumbai addressed the classification of “Assy Guide Rails” under the Customs Tariff Act, 1975. The issue arose from an advance ruling request by Inalfa Gabriel Sunroof Systems Private Limited, which sought clarification on whether the Assy Guide Rail, a component used in automobile sunroof assemblies, could be classified as a part of motor vehicles under the Customs Tariff Item (CTI) 87089900.
The applicant contended that the Assy Guide Rails are specifically designed for use in sunroof systems of motor vehicles, providing support and guiding the sunroof panels as they open and close. Additionally, the guide rails play an essential role in ensuring smooth operation and preventing rattling or vibrations. The applicant proposed two potential classifications for the goods: one under CTI 87089900 as parts of motor vehicles and another under CTI 76109020.
Legal Framework and Examination
CAAR’s ruling was based on a thorough review of the submissions made by the applicant, additional materials, and comments from the jurisdictional Commissionerate. Section 28H(2) of the Customs Act, 1962, governs the classification of goods, specifically addressing the application of the Customs Tariff Act, 1975.
In determining the classification, CAAR examined Chapter 87 of the Customs Tariff, which encompasses vehicles other than railway or tramway rolling stock and their parts and accessories. Specifically, heading 8708 is relevant as it covers parts and accessories of motor vehicles under headings 8701 to 8705, including body parts and related components.
The applicant’s submission emphasized that the Assy Guide Rail is used exclusively in the sunroof system of vehicles and does not serve a general purpose. Thus, it aligns with the definition of parts and accessories in Chapter 87, which applies to components designed for motor vehicles.
Section XVII Classification
CAAR explored Section XVII of the Customs Tariff Act, which deals with vehicles and associated transport equipment, including parts and accessories. The ruling referred to Section Notes 2 and 3 to define the scope of “parts” and “accessories” under this section.
Note 2 of Section XVII excludes certain items from being classified as “parts” or “accessories” of motor vehicles. These exclusions include parts of general use, such as basic metal items or tools, and items specifically covered elsewhere in the nomenclature. However, the Assy Guide Rail does not fall under any of these exclusions, as it is not a part of general use or covered by any other category.
Note 3 further clarified that only parts suitable for use solely or principally with vehicles under Chapters 86 to 88 are classified as parts and accessories. The Assy Guide Rail meets this criterion, as it is designed specifically for sunroof systems and is integral to the vehicle’s structure.
HSN Explanatory Notes and Conditions
The Harmonized System of Nomenclature (HSN) explanatory notes to Section XVII further elaborate on the conditions for classifying parts and accessories under Chapter 87. According to these notes, parts and accessories must meet three conditions:
- They must not be excluded by the terms of Note 2 to the section.
- They must be suitable for use solely or principally with vehicles.
- They must not be classified elsewhere in the tariff.
CAAR found that the Assy Guide Rail satisfies all three conditions. It is specifically designed for motor vehicles, it is used principally in sunroof systems, and it is not classified under any other part of the tariff.
Appropriate Classification: CTI 87082900
While the applicant had proposed classification under CTI 87089900, which covers other parts and accessories of motor vehicles, CAAR concluded that the Assy Guide Rail should be classified under CTI 87082900. This classification pertains to parts and accessories of the body of motor vehicles, which includes components related to the vehicle’s structural integrity, such as those for the roof system.
The ruling noted that although CTI 87089900 is a broader category, the Assy Guide Rail is an integral part of the motor vehicle’s body, specifically contributing to the sunroof assembly. Therefore, it should be classified under CTI 87082900, which is a more specific heading for parts related to the body of motor vehicles.
Final Ruling
CAAR Mumbai’s ruling determined that the Assy Guide Rail, used in the sunroof system of motor vehicles, is correctly classified under CTI 87082900 as part of the vehicle’s body. This decision is significant for manufacturers and importers of such components, as it clarifies the proper tariff classification for parts associated with sunroof systems in automobiles.
The ruling highlights the importance of understanding the legal framework and classification criteria under the Customs Tariff Act when determining the correct tariff code for automotive components. It also underscores that the classification of parts depends on their functional utility, use in the vehicle’s assembly, and the specific category of the vehicle under which they fall.
As such, the Assy Guide Rail, being integral to the sunroof mechanism and contributing to the structural integrity of the vehicle’s body, is appropriately classified as a part of the motor vehicle’s body and not under the broader category of other motor vehicle parts.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Inalfa Gabriel Sunroof Systems Private Limited (IEC No.: AAHC11011K) (hereinafter referred to as ‘the Applicant’) filed an application (CAAR-1) for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling (CAAR) Mumbai. The said application was received in the secretariat of the CAAR, Murnbai on 05.07.2024 along with its enclosures in terms of Section 281-1(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 the “Assy Guide Rails” under CTI 87089900 as parts of motor vehicles or otherwise.
2. Submission by the Applicant:
2.1 Mis. Inalfa Gabriel Sunroof Systems Private Limited (“the Applicant”), having its office at Unit No. B200 A, Kunnam Village, Sriperumbudur (Taluk) Kanchipuram (Dt), Chennai, Tamil Nadu – 631604, is a Private Limited Company ‘registered in India under Companies Act; 2013.
2.2 The Applicant . is inter alia, engaged in the design, engineering and production of automotive sunroof systems. A sunroof is a movable panel that opens to uncover a window .in’ an automobile roof, allowing light and fresh air Co enter the passenger compartment Sunroofs can be manually operated, or motor driven and are available in many shapes, sizes and styles. For manufacturing the Sunroof systems, the Applicant imports various parts and components.
2.3 The Assy Guide Rails i.e., Aluminium Guide Rails imported by the Applicant for use in the manufacture of Sunroof systems. The specifications of the subject goods are captured below.
About Aluminium Guide Rail:
The subject goods are long, narrow tracks in a sunroof assembly that provide support and guidance for the sunroof panel as it slides open and closed. They are made of aluminium–and are placed along the edges of the sunroof opening in the roof of the vehicle. The subject goods help to keep the sunroof panel in place and prevent it from rattling or vibrating during operation. They ensure safe, controlled movement, prevent damage, and contribute to a pleasant sunroof experience. For this purpose, the sunroof panels have drive cables that pull the glass panel to slide smoothly back and forth through the subject goods.
2.4 The specification of the subject goods are shown below:
| SU21 | Part No. | Specification | Density | Thickness | Dimension | Weight |
| Assy Guide Rail | 50011430 | AA-6063-T5 (EXT. grade) | 2640 Kg/m3 | 1.5+0.1 mm | 1206.9×112.3x.71.2 | 1374.6 g |
3. Applicants interpretation of Law/Facts:
3.1 The Applicant states that the subject goods are used as a parts/accessories of automotive sunroof systems. It is submitted that the classification of ‘parts’ and accessories’ of motor vehicles are governed by Note 2 and 3 to Section XVII.
3.2 Note 2 to Section XVII lays down the terms for classification of parts and accessories
that are classifiable under Section XVII. It states that certain parts and accessories are not classifiable under Section XVII even if they are identified with the goods falling under Section XVII.
3.3 Note 3 to Section XVII states that references to ‘parts and accessories’ in Section XVII
do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those Chapters.
3.4 As per the General HSN to Section XVII, only those parts which are not excluded by’
Note 2 to Section XVII, which are suitable for use solely or principally with the articles of Chapter 86 to 88 and which are not more specifically included elsewhere in the Nomenclature are classifiable under CTII 8708.
3.5 Thus, a product would be classifiable under CTH 8708, ‘only if’ the same is a
part/accessory of a motor vehicle and also cumulatively satisfies the following three conditions namely,
a) The product should not be excluded by Note 2 to Section XVII.
b) The product should be suitable for use solely or principally with the articles of Chapter 86 to 88; and
c) The product should not be more specifically included elsewhere in the Nomenclature.
3.6 In the present case, the subject goods are long, narrow tracks in a sunroof assembly that
provide support and guidance for the sunroof panel as it slides to open and close. They are made of aluminium and are placed along the edges of the sunroof opening in the roof of the vehicle. The subject goods help to keep the sunroof panel in place and prevent it from rattling or vibrating during operation. They ensure safe, controlled movement, prevent damage, and contribute to a pleasant sunroof experience.
3.7 Applying the legal principles enunciated in the Notes to Section XVII and the FISN ENs, the Applicant, firstly, submits that the subject goods are not excluded by any of the entries in Note 2 to Section XVII. It is submitted that the subject goods are neither parts of general use nor covered under any of the Headings in Chapters 82 to 85. They are also not covered under any of the Headings in Chapters 90 to 96 of the First Schedule to the Customs Tariff Act, 1975. Therefore, the subject goods are not excluded by Note 2 to Section XVII.
3.8 Secondly, the subject goods, as imported, are designed for use in automotive sunroof systems and meant for placing along the edges of the sunroof opening in the roof of the vehicle to provide support and guidance for the sunroof panel as it slides open and closed. Therefore, the subject goods are suitable for use solely or principally with motor vehicles of Heading 8703 and merit classification under CTI 8708 99 00.
3.9 Thirdly, the subject goods are also not more specifically covered elsewhere in the nomenclature. Therefore, the subject goods merit classification under residuary entry CTI 8708 99 00.
3.10 Therefore, in view of the aforementioned, the Applicant is of the bona fide view that CT1 8708 99 00 is the most suitable classification for the subject goods.
3.11 The Applicant submitted that the subject goods merit classification under CTI 8708 99 00 as per the decisions of the’ Honble Supreme Court in the following cases’:
∴ GS Auto International Limited v. CCE [2003 (152) E.L.T. 3 (S.C.)],
∴ Cast Metal Industries Pvt. Ltd. v. CC [2015 (325) E.L.T. 471 (S.C.)],
∴ Westinghouse Saxby Farmer Ltd: v,’ CCE [2021 (376) E.L.T. 14 ‘(S.C)].-
Alternatively, the subject goods merit classification under CTI 7610 90 90:
3.12 The applicant submitted that Heading 7610 covers “Aluminum structures (excluding prefabricated buildings ‘of beading 94.06) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs. roofing frameworks. doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminum plates. rods, profiles, tubes and the like, prepared for use in structures”.
3.13 Under Heading 7610, Sub-heading 7610 10 covers “Doors, windows and their frames and thresholds for doors” and Sub-heading 7610 90 covers “Other”. Further, under Subheading 7610 90, CTI 7610 9010 covers structures, cri 7610 9020 covers “Parts of structures, not elsewhere specified” and CTI 7610 9030 covers “Aluminum plates, rods, profiles, tubes and the like, prepared for use in structure”.
3.14 The HSN ENs to Heading 7610 state that the HSN ENs to Heading 7308 apply, mutatis mutandis, to the Heading 7610. Having seen the HSN ENs to Heading 7308, it must be noted that the HSN ENs to Heading 7610 also state that aluminum and its alloys are sometimes used for their lightness instead of iron or steel in the manufacture of structural frameworks, ship’s superstructures, bridges, sliding doors, electric grid or radio pylons, telescopic pit props, door or window frames, railings. etc.
3.15 The applicant submitted that CTI 7610 9010 covers structures and CTI 7610 9020 ‘ covers “Parts of structures, not elsewhere specified” such as Doors, Windows and their frames etc. The applicant further submits that CTI 76109020 covers not only doors, windows and their frames but also parts of such windows and frames.
3.16 Therefore, the subject goods Viz. Aluminium Guide Rail which are in the nature of parts of windows and frames, would alternately merit classification under CTI 76109020:
Additional submission
4.1 The applicant vide letter dated 15.11.2024 submitted that the subject goods, namely, Aluminium Guide Rail, are long, narrow tracks in a sunroof assembly that provide support and guidance for the sunroof panel as it slides open and close. They are made of aluminium and are placed along the edges of the sunroof opening in the roof of the vehicle. The subject goods help to keep the sunroof panel in place and prevent it from rattling or vibrating during operation. They ensure safe, controlled movement, prevent damage, and contribute to a pleasant sunroof experience. For this purpose, the sunroof panels have drive cables that pull the glass panel to slide smoothly back and forth through the subject goods.
4.2 Heading 8302 covers “Base metal mountings, fittings and similar articles suitable for furniture, doors, staircases, “windows, blinds, coachwork, saddlery, trunks, chests, caskets or the like; base metal hat-racks, hat-pegs, brackets and similar fixtures; castors with mountings of base metal; automatic door closers of base metal”. Under Heading 8302, Sub-heading 8302 30 covers “other mountings, fittings and similar articles suitable for motor vehicles”..
4.3 As per the JISN Explanatory Notes to Heading 8302,
a) The heading covers general purpose classes of base metal accessory fittings and mountings, which are used largely on furniture, doors, windows, coachwork, etc. Goods within such general classes remain in this heading even if they are designed for particular uses (e.g., door handles or hinges for automobiles).
b) However, the heading does not extend to goods forming an essential part of the structure of the article, such as window frames or swivel devices for revolving chairs.
c) Mountings, fittings and similar articles suitable for motor vehicles (e.g., motor cars, lorries or motor coaches), not being parts or accessories of Section XVII. For example: footrests; grip bars, window opening mechanisms etc.
4.4 From the HSN Explanatory Notes to Heading 8302, it is clear that Heading 8302 only covers fittings and articles such as footrests, grip bars and window opening mechanisms (for example, manual window regulator). The HSN Explanatory Notes to Heading 8302 also make it clear that Heading 8302 does not extend to goods forming an essential part of the structure of the article, such as window frames.
4.5 ‘In the present case, Sunroof systems of cars are akin to the window of a car and are an essential part of the stricture of cars. It would be relevant to note that the HSN Explanatory Notes to Heading 8302 also treats window frames as an essential part of the structure of an article.
4.6 Having said that, Guide Rails are an integral part of the Sunroof Systems as the Guide Rails are permanently placed along the edges of the sunroof opening in the roof of the vehicle to provide support and guidance for the sunroof panel as it slides open and closed. Therefore, it is clear that the Guide Rails in question, being an essential part of sunroof systems (window frames) is excluded from the purview of Heading 8302 as per the HSN Explanatory Notes.
4.7 Reliance in this regard is placed on the decision of the Hon’ble Tribunal in CCF v. J.S. Enterprises [1999′(113) E.L.T. 944 (Tribunal)” wherein the Hon’ble Tribunal examined the classification of aluminium sections for use in the manufacture of aluminium doors and windows. While the assessee classified the goods under Heading 7616, the Department wanted to classify the goods under Heading 8302. After appreciating the nature of the goods, the Hon’ble Tribunal observed that the goods in question were sections made of aluminium to be used in the doors and windows and that they were in the nature of the frames for the aluminium doors and windows. Resultantly, the Tribunal held the following:
a) Heading 8302 covers general purposes clauses of base metal accessories and mountings of furniture, doors; windows, coach work etc.
b) The heading does not extend to goods forming an essential part of the structure.. It does not extend to the goods which make the doors or windows but is restricted to those items which are used in the doors, windows, etc.
c) The Aluminium Sections are classifiable under Heading 7613 as other ‘articles of Aluminium.
4.8 The applicant submitted that the Guide Rails in question are akin to door/window sections considered by the Hon’ble Tribunal in J.S. Enterprises (Supra) as both the Guide Rails and the sections are an integral part of frames to hold the door/window. The Hon’ble Tribunal, while dealing with the classification has also held that the sections are not in the nature of mounting and fittings but in the nature of frames to make the. door itself…Resultantly, the Hon’ble Tribunal ruled out Heading 8302 and held that the sections would merit classification under Heading 7613.
4.9 In view of the decision in J.S. Enterprises (Supra), it is submitted that the Guide Rails, being an essential part of sunroof systems (windows), must be held to be frames of the sunroof systems (windows) itself and resultantly excluded from the purview of Heading 8302. Since the Guide Rails are not specifically covered under any heading, the Guide Rails must be held to merit classification under CTI 8708 9900.
4.10 Heading 7610 covers “Aluminium structures (excluding prefabricated buildings of beading 94.06) and parts of structures (for example, bridges and bridge-sections, towers, lattice masts, roofs. roofing frameworks. doors and windows and their frames and thresholds for doors, balustrades, pillars and columns); aluminium plates, rods, profiles, tubes and the like, prepared for use in structures”.
4.11 As per the I ISN Explanatory Notes to I leading 7610, the Heading excludes,
a) Assemblies identifiable as parts of articles of Chapters 84 to 88
b) Floating structures of Chapter 89
c) Prefabricated buildings (heading 9406)
4.12 Thus, if Guide Rails are held to be classifiable under CTI 8708 9900, then they will be excluded from Heading 7610. On the contrary, if the Guide Rails are treated as excluded from Heading 8708, then they must be classified under Heading 7610 and under CTI 7610 9090in terms of the afore-mentioned HSN Explanatory Notes to Heading 7610.
5. Port of Import and reply from jurisdictional Commissionerate:
5.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods . i.e. Assy Guide Rail at the jurisdiction of Office of the Commissioner of Customs, Chennai-II(lmport), Chennai. The application was forwarded to the Office of the Commissioner of Customs, Chennai Customs for their comments on 12.07.2024, 12.08.2024 & 29.10.2024.
> The Commissioner of Customs, Chennai-II vide their letter dated 11.11.2024, has submitted as follows:
> The subject goods i.e. Aluminium Guide Rail are long, narrow tracks in a. sunroof assembly that provide support and guidance for the sunroof panel as it slides to open and close.
> The subject goods are neither parts of general use nor covered under any of the
heading in Chapters 90 to 96 of the First Schedule to the Customs Tariff Act, 1975. Therefore, the subject goods are not excluded by Note 2 to Section XVII.
> The subject goods are designed for use in automotive sunroof systems and meant for placing along the edges of the sunroof opening in the roof of the vehicle to provide support and guidance for the sunroof panel as it slides open and closed. Therefore, the subject goods are suitable for use solely or principally with motor vehicles of heading 8703 and merit classification under CTI 87089900.
> The subject goods are also not more specifically covered elsewhere in the nomenclature. Therefore, in view of the aforementioned, the CTI 87089900 is the most suitable classification for the subject goods.
> The Heading 76109010 covers structures and CTI 76109020 covers “parts of structures, not elsewhere specified’ such as door, windows and their frames etc. The applicant submitted that CTI 76109020 covers not only doors, windows and their frames but also parts of such windows and frames and therefore, the subject goods viz. Aluminium Guide Rails which are in the nature of parts of windows and frames, would alternatively merit classification under CTI 76109020. The same is factually not correct as the subject item “Aluminium Guide Rail” is a part and parcel of sunroof system used in automobiles and classifiable under CTI 87089900 only.
6. Details of Hearing:
6.1 A hearing was held on 05.09.2024 at 03.00 PM. Shri S. Ganesh Aravindh, Advocate appeared for the hearing on behalf of the applicant. He reiterated the contention submitted with the application. He submitted that the subject goods i.e. Aluminum Guide Rail described as Assy Guide Rail is to be rightly classifiable under CTI 87089900. In support of their claim, he relied upon the HSN Explanatory Note, to the Section XVII that all the three conditions are satisfied. He explained that the said goods are essential parts of a sunroof cars and intended for the said purpose only. He also relied upon the Instruction No. 01/2022 Cus. dated 05.01.2022, Instruction No. 25/2022-Cus dated 03.10.2022 and case laws in the matter of M/s. Intel Design System India Pvt. Ltd. Vs. CC, GS Auto International Limited v. CCE (2003), Cast Metal Industries Kt.. Ltd: V.. CC (2015), Westinghouse Saxby Farmer Ltd. v. CCE (2021) as submitted in their compilation dated 05.09.2024. He also argued that alternatively the subject goods may also fall under Chapter Heading 7610. Heading 8302 was also discussed against which he submitted this heading would not merit classification and they sought 10 days’ time to submit the written submission.
Nobody appeared on behalf of the Department for hearing.
6.2 A second h6aring was held online on 21.11.2024 at 03.00 PM. Shri S. Ganesh Aravindh, Advocate appeared for the hearing on behalf of the applicant. He had submitted an additional submission in the matter. He also submitted HSN Explanatory Notes to the Section XV contending that the CTH 8302 is not applicable iii the present elasSifieation of intended import of Guide Rail for sunroof–in a car. He also relied upon a case law–in the case of M/s. J.S. Enterprises. He submitted and reiterated that the subject goods merit classification under CTH 8708, more particularly under CTI 87089900. He also contended that if the subject goods cannot be made classifiable under CTH 8708, the alternative classification may be CTH 7610,more specifically CTI 76109020.
Nobody appeared on behalf of the Department for hearing.
DISCUSSION AND FINDINGS
7.1 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 hearing, additional submission of the applicant and comments provided by the concerned jurisdictional Commissionerate in this matter. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework.
7.2 The Applicant has sought advance ruling in respect of the following questions:
a. Whether the product “Assy Guide Rails” is classifiable under CTI 87089900 of First Schedule of Customs Tariff Act, 1975 as parts of motor vehicles or otherwise?
7.3 At the outset, 1 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.
7.4 The applicant submitted that the subject goods i.e. Assy Guide Rails will be used in the- manufacture of sunroof system of an automobile. The subject goods in a sunroof assembly is a long, narrow track that provides support and guidance for the sunroof panel as it slides open and closed. The Guide Rail also help to keep the sunroof panel in place and prevent it from rattling or vibrating during operation. Guide Rail ensure safe, controlled movement, prevent damage and contribute to a pleasant sunroof experience.
7.5 Before deciding on 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 GR1, 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.
7.6 I find that the applicant has contended that the classification of the subject goods i.e. Assy Guide Rail is justified under Customs Tariff Entry 87089900 as parts of motor vehicles.. They also proposed that subject goods alternatively merit classification under CTI 76109020.
7.7 Now, I take up the issue to examine the aspects of classification of the product i.e. Assy Guide Rail under CTH 8708 as parts of motor vehicle as proposed by the applicant.
7.7.1 I find that Chapter 87 of the First Schedule to the Customs Tariff Act, 1975 covers goods described “Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof’. Chapter Heading 8708 covers “Parts and accessories of the motor vehicles of headings 8701 to 8705″. Relevant portion of CTH 8708 is also reproduced below for ease of reference:
7.7.2 I find that applicant has stated that the Assy Guide Rail is used in a sunroof assembly of a motor vehicle that provide support and guidance for the sunroof panel as it slides open and closed. Thus’, it remains to be seen here whether Assy Guide Rail may be classified as “Parts and accessories” of the motor vehicles of headings 8701 to 8705. Chapter 87 is covered under Section XVII (vehicles, aircraft, vessels and associated transport equipment). Classification of parts and accessories of motor vehicle is governed by Section Note 2 and 3 of Section XVII and same as mentioned below:
2. The expressions- “parts” and “parts ‘and accessories” do not apply to the following. articles, whether or not they are identifiable as for the goods of this Section:
(a) joints, washers or the like of any material (classified according to their constituent material or .in heading 8484) or other articles of vulcanised rubber other than hard rubber (heading 4016);
(b) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39);
(c) articles of Chapter 82 (tools);
(d) articles of heading 8306; .
(e) machines and apparatus of headings 8401 to 8479, or parts thereof other than the radiators for the articles of this Section, articles of heading 8481 or 8482. or, provided they constitute integral parts of engines and motors, articles of heading 8483;
(f) electrical machinery or equipment (Chapter 85);
(g) articles of Chapter 90;
(h) articles of Chapter 91; (ij) arms (Chapter 93);
(k) luminaries and lighting fittings and parts thereof heading 9405; or
(l) brushes of a kind Used as parts of vehicles (heading 9603).
3. References in Chapters 86 to 88 to —parts or — accessories do not apply to parts or accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part of accessory.
7.7.3 Thus, Section Note 2 of Section XVII restricts the application of the expression “parts” and “parts and accessories” by excluding certain articles from being classified under the chapter 87 of this Section. Clause (b) of Note 2 excludes the following: –
“(b) parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39)”
I find that Assy Guide Rail does not fall under the exclusion of “parts of general use” as elaborated herein above.
7.7.4 Further, Section Note 3 of Section XVII read as follows:
“References in Chapters 86 to 88 to “parts” or “accessories” do not apply to parts or • accessories which are not suitable for use solely or principally with the articles of those Chapters. A part or accessory which answers to a description in two or more of the’ • headings of those Chapters is to be classified under that heading which corresponds to the principal use of that part of accessory.”
7.7.5 The HSN Explanatory Notes to Section XVII further amplifies the scope and ambit of the Section Notes. Part III deals with Parts and accessories. The same is reproduced below for ease of reference:
(III) PARTS AND ACCESSORIES
” …. The other Chapters of this Section each provide for the classification of parts and accessories of the vehicles, aircraft or equipment concerned. It should, however, be noted that these headings apply only to those parts or accessories which comply with all three of the following conditions.
(a) They must not be excluded by the terms of Note 2 to this Section and
(b) They must be suitable for use solely or principally with the articles of Chapters 86 to 88 and
(c) They must not be specifically included elsewhere in the Nomenclature.
The above provisions _show that for any item to be classified as a part and accessories in Chapter 87, all the three conditions as at (a), (b) and (c) above have to be fulfilled cumulatively.
7.7.6 I find that as per the explanatory notes to the heading 8708, which puts three conditions to satisfy for becoming parts and accessories of the motor vehicles of heading 87.01 to 87.05. I have gone through the list of ‘parts and accessories’ excluded as per the provisions of the Explanatory Notes 2 to Section XVII and found that ‘Assy Guide Rail’ does not find mention in the same. Therefore, the first condition is satisfied. Further, on the basis of the submission given by the applicant it is further seen that ‘Assy Guide Rail’ as per its configuration, specific functions and uses, is a part, which can be used solely or principally in the sunroof assembly of the motor vehicle. The presence of the model number and part number on the subject goods i.e. Assy Guide Rail to a sunroof assembly confirms that this part is specifically designed to perform a function within that subsystem of the car’s body. Motor vehicles are covered under headings 87.01 to 87.05 of Chapter 87 of the First Schedule to the Customs Tariff Act, 1975. Thus the second condition is satisfied. Further, the product is not specified particularly anywhere else in the Tariff, therefore, the third condition, i.e., they must not he specifically included elsewhere in the Nomenclature’ is also satisfied. Since all the three conditions have been satisfied, it can be concluded that the ‘Assy Guide Rail’ is covered under the heading 8708 only and is in accordance with classification in terms of–Rtile 1 of GIR, Section XVII and . Chapter Notes of Customs Tariff Act, 19Th.
7.7.7 One thing which I would like to discuss here is that explanatory notes to the heading 8708 which contains only an illustrative list of the parts and accessories covered under that heading and not an exhaustive list. Further, just because this illustrative list may or may not contain any entry relating to any specific item (in the instant case ‘Assy Griide Rail’) or its parts or accessories, it does not necessarily mean that the parts or accessories; which are riot simply Mentioned in the ‘ambit of this list, cannot be or should not be classified under the said heading; From a bare reading of the Chapter Heading 8708, it can be derived that it covers parts and accessories designed for motor vehicles or are integral to their structure and this chapter heading is wide enough in its scope so as to cover all parts and accessories of Motor vehicles and is not limited to only the specific entries given in the Chapter Heading 8708.
It is pertinent to mentioned that CTH 8708 includes parts and accessories that form part of the vehicle’s body structure. This is significant because parts that are directly related to the construction or functionality of the vehicle’s bodywork (such as the framework, panels, roof, doors, and related components) are classified under this heading. I find that CTI 87082900 under heading 8708 is used for other parts and accessories that are components of the vehicle’s body but are not specifically categorized elsewhere in the heading.
The Assy Guide Rail is an essential component of the vehicle’s body structure, specifically related to the sunroof system. Since it is a vital part of the roof assembly, contributing to the integrity and functionality of the bodywork, it will come under the scope of “other parts and accessories of the body of motor vehicles” and accordingly merit classification under CTI 87082900 of the First Schedule of Customs Tariff Act, 1975.
7.7.8 The applicant has contended that the product i.e. Assy Guide Rail is a part of the body • of the motor vehicle and same is classifiable under CTI 87089900 of the First Schedule of Customs Tariff Act, 1975.
In this regard, it is pertinent to mentioned that as per the arrangement of entries under Chapter Heading 8708, which covers parts and accessories for motor vehicles of headings 8701 to 8705, there are eight single dash (-) entries. The first single dash (-) entry pertains to bumpers and parts thereof, while the second single dash (-) entry pertains to other parts and accessories of the bodies of motor vehicles. This second single dash (-) entry is further subclassified into three double dash (-7) entry Viz. first —Safety seat belts, second- Front windscreen (windshields), rear window and other window specified in sub-heading Note 1’ to • this Chapter and third- Other. The subsequent last single dash (-) entry, 87089900 as claimed by the applicant, pertains to other parts and accessories of motor vehicles.
It, is clear that the subject goods are integral part of the body of a motor vehicle of heading 8703, and as such, should be classified under CTI 87082900 as the preceding heading specifically covers parts that are directly associated with the motor vehicle’s body. Therefore, it is not appropriate to classify the product under the broader category of CTI 87089900, which. covers ‘other types of parts and accessories of motor vehicle’ other than parts and accessories of motor vehicle’s body.
7.7.9 I note that the Assy Guide Rail is used in the sunroof system of a vehicle. The sunroof is a specialized part of a car’s bodywork that allows light and air to enter the vehicle, and the guide rail is an essential component for the movement and secure positioning of the glass panel. Further, a part number that specifically identifies the Assy Guide Rail as a motor vehicle part suggests that it is designed specifically for use in motor vehicles.
In this regard, I observed that that Hon’ble Supreme Court in the case of Commissioner of Central Excise Vs. Wockhardt Life Sciences Ltd reported in 2012 (277) ELT 299 (SC) had held that the functional utility and predominant usage of the commodity must be taken into account apart from the understanding in common parlance to determine the correct classification of the product. The Hon’ble Supreme Court in the case of Collector of Customs Vs. Kumudam Publications [1997 (96) ELT 226 (SC)] has held that “it is not entirely correct to–say that the end use or function of the goods is irrelevant to decide the question of classification”. A three Judge Bench of the Hon’ble Supreme Court had also relied upon the function and end use in determining the classification in the case of Indian. Tool Manufactures Vs. Asst. Collector of Central Excise, Nasik & Others reported in 1994 (74) ELT 12 (SC). The applicant itself has submitted that the said product is used in the manufacturing of sunroof system of automobiles.
Thus, considering the ratio of the above judgements and function of the product, provisions of Note 2 and Note 3 of Section XVII of Customs Tariff, General HSN Note to Section XVII, the Assy Guide Rail as a part of the automobile’s sunroof mechanism is rightly classifiable under CT1 87082900 (Other Parts and accessories of bodies of motor vehicles of headings 8701 to 8705).
7.8, The Applicant has also contended that the subject goods i.e. Assy Guide Rail described as Aluminium Guide Rail which are in the nature of parts of windows and frames, would alternatively merit classification under CTI 76109020 (Parts of structures, not elsewhere specified).
In this regard, it is pertinent to mentioned that the Assy Guide Rail in a motor vehicle sunroof system is an assembly component designed specifically to support and guide the movement of the glass panel in a sunroof system. It provides structural integrity and helps in ensuring the smooth operation of the sunroof mechanism. While the product is made from aluminium, its function is specialized for a particular part of the vehicle’s roof system, not as a general structural or enclosure component like windows or doors.
Chapter Heading 7610 under Chapter 76 covers “Aluminium structures (excluding prefabricated buildings)”, including a variety of aluminium frames, panels, and structural components for various uses. This typically includes products such as aluminium frames for windows, doors, and even sections used in construction or other general applications. The items classified here are generally structural components (i.e., frames or supports) for buildings, windows, doors, or other enclosures, and are typically designed for enclosing or framing purposes.
The Assy Guide Rail is not a’ frame or structure used to enclose or support a window or door in the traditional sense. Instead, it serves as a guiding mechanism in the sunroof system, specifically to hold and move the glass pallet of the sunroof. The product is thus more of a mechanical or functional part of the sunroof assembly, rather than a structural frame.
The product in’ question does not perform ‘the function of enclosing or providing structural support for windows or doors. It is part of a specific vehicle feature (the sunroof) and does not fit the Conventional description of a frame for windows, doors, or other structures classified under Heading 7610 as claimed by the Applicant.
As per Note 1(g) of Section XV of the Harmonized System (HS) Nomenclature, Section XV (which covers “Base Metals and articles of base metal”) excludes article’s that are classified under Section XVII, which pertains to “Vehicles, aircraft, vessels, and associated transport equipment.” Since the Assy Guide Rail is a component specifically designed as a part of a motor vehicle’s sunroof system, it falls under the scope of Section XVII, Which covers parts and accessories of vehicles.
Therefore, the Assy Guide Rail is not a frame for windows or ‘doors and being an automotive part, is excluded from classification under Section XV as per Note 1(g) of Section XV. As a result, it cannot be classified under Chapter 76 (which deals With aluminum articles, including frames and structural components) under Heading 7610, as that heading pertains to aluminum structures generally used in building or window and door frames, not automotive parts.
7.9 The applicant has contended that the Assy Guide Rail is not classifiable under heading 8302. In this regard, I find that as per Explanatory Notes to heading 8302, this heading covers general purpose classes of base metal accessory fittings and mountings, .such as are used largely on furniture, doors, windows, coachwork etc. However, the heading does not extend to goods forming an essential part of the structure of the article, such as window frames or swivel devices for revolving chairs. The heading 8302 also covers mountings, fittings and similar articles suitable for motor vehicles (e.g., motor cars, lorries or motor coaches), not being parts or accessories of Section XVII. For example: footrests; grip bars, window opening mechanisms etc.
From the above, it is clear that Heading 8302 covers “base metal fittings, mountings, and accessories” that are used for general purposes. These items are typically employed on furniture, doors, windows, coachwork, etc. The Explanatory Notes specifically mention that the goods covered by this heading are accessory fittings that serve as part of a larger structure or article, but not the essential parts of the structure itself. The heading does include accessories for motor vehicles (e.g., footrests, grip bars, window-opening mechanisms). However, these are also accessories rather than parts of the essential structure of the vehicle.
In the case of the Assy Guide Rail, it is described as a component of the sunroof system in cars. A sunroof system is integral to the vehicle’s body structure, and the Assy Guide Rail plays a critical role in its function and installation. Thus, Assy Guide Rail forms an essential part of the vehicle’s body or structure (such as the sunroof) and it is considered a part of the vehicle, not merely an accessory fitting. Section XVII covers goods such as parts for motor vehicles (including cars, trucks, and motor coaches). It includes components that are integral to the vehicle’s structure and functionality, like chassis, engines, and parts of the bodywork.
The Assy Guide Rail, as a component of the sunroof system in motor vehicles, does not fit the definition of a “general-purpose accessory” as described in the Explanatory Notes to heading 8302. Since it is a functional part of the vehicle, it should be classified under Section XVII, which deals with parts and accessories of motor vehicles.
Thus, the Assy Guide Rail cannot be classified under CTH 8302 as it is clearly an integral part of the sunroof system of the vehicle, which is part of the vehicle’s structure and falls under the relevant sections for vehicle parts and accessories.
8. On the basis of foregoing discussions and findings, I reach to conclusion that the product i.e. Assy Guide Rail described as Aluminium Guide Rail merit classification under CTI-8708 (Parts and accessories of motor vehicles of headings 8701 to 8705), more specifically under CTI 87082900 (Other parts and accessories of bodies) of the First Schedule of Customs Tariff Act, 1975.
9. I rule accordingly.
(Prabhat K. Rameshwaram)
Customs Authority for Advance Rulings, Mumbai
F. No. CAAR/CUS/APPL/79/2024-0/o Commr-CAAR-Mumbai
Dated:26-11-2024
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