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2022 (1) TMI 1344 - CUSTOMS AUTHORITY FOR ADVANCE RULINGS, NEW DELHIClassification of imported goods - parts of electronic toy cars” i.e. battery driven motor, on-off switch, small speakers for sound, LED indicator lights with its PCB, garari (pulley i.e. small plastic wheel with grooved rim) and plastic base - classifiable as “Parts of electronic Toy cars” under Customs Tariff Head 9503 or under Schedule I to the Customs Tariff Act, 1975 - benefit of concessional rate of 5% provided under Serial Number 592 of Notification No. 50/2017-Cus. (Tariff), dated 30-6-2017 - Whether such “parts of electronic Toy cars” as described above, imported in a single consignment would be eligible to be constituted or having the essential character of a complete or finished article as an “Electronic Toy Car” to fall under the category of “Electronic Toy Cars” instead of its “parts” under Customs Tariff Head 9503 attracting a higher rate or duty? HELD THAT:- Chapter 95 of Schedule I to the Customs Tariff Act covers Toys, Games and Sports Requisites; Parts and Accessories thereof; and Heading 9503 covers Tricycles, scooters, pedal cars and similar wheeled toys; dolls’ carriages; dolls; other toys .. Further, it is observed that Chapter Note 3 of Chapter 95 provides that subject to Note 1 of Chapter 95, parts and accessories which are suitable for use solely or principally with articles of the Chapter are to be classified with those articles. The goods under reference (as depicted by IMAGE ‘A’ and IMAGE ‘B’, above), are parts of electronic toy cars in semi-assembled condition. Though they have not reached the stage of completion to be considered as electronic toy cars, these parts, in the assembled stage that have been presented, have acquired the essential characteristics of electronic toy car. However, at this intermediate stage, the semi-assembled unit, as presented, have acquired a new character distinct of the various parts namely, battery driven motor, on-off switch, small speakers for sound, LED indicator lights with its PCB, garari (pulley i.e., small plastic wheel with grooved rim) and plastic base, which have gone into the making of the semi-assembled unit. This semi-assembled unit has acquired sufficient features to be considered as “parts of electronic toy car”. Therefore, the item under import should appropriately be considered as part of a toy, and the same is classifiable under Heading 9503 in terms of Chapter Note 3 of Chapter 95. Eligibility of the said “parts of electronic toy car” for benefit under Notification No. 50/2017-Cus., dated 30-6-2017 - HELD THAT:- Serial Number 591 of the said notification provides for concessional rate of duty to “parts of electronic toys for manufacture of electronic toys falling under Heading 9503, subject to condition No. 9, viz. if the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017. Therefore, having concluded that the “parts of electronic toy car” as presented are classifiable under Heading 9503, it follows that the said goods would be eligible for concessional rate of duty prescribed under S. No. 591 of Notification No. 50/2017-Cus., dated 30-6-2017, subject to the condition prescribed therein.
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