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2021 (8) TMI 317 - AAR - CustomsClassification of imported goods - Drones - classifiable under the heading 88.02 of the first schedule to the Customs Tariff Act, 1975 or otherwise? - rate of duty applicable on the import of the drones - HELD THAT:- Classification, in terms of Rule l, is to be decided on the basis of the terms of the headings and any relative section or chapter notes. In this ease, the heading 8802 includes within its ambit helicopters, and according to the explanatory notes to the HSN such helicopters are used for aerial photography amongst other uses. It is settled law that the explanatory notes have considerable persuasive value. Under such circumstances, the need for resorting to the Rule 3(b) doesn’t seem to arise at all. Therefore, notwithstanding the WCO classification advice to the contrary, it is my considered opinion that Mavie 2 drones merit classification under sub-heading 88021 100 of the first schedule to the Customs Tariff Act, 1975. This conclusion is consistent with the new chapter note I, which would come into force w.e.f. as it states that the expression “unmanned aircraft” means any aircraft, other than those of heading 8801, designed to be flown without a pilot on board. Tello drones with or without camera would merit classification under heading 9503 of the first schedule to the Customs Tariff Act, 1975 and would attract basic customs duty @ 60% adv“ IGST @ 18%, Social Welfare Surcharge @ 6% - Both AGRAS T 16 and Mavic 2 drones would merit classification under heading 8802 of the first schedule to the Customs Tariff Act, 1975 and would attract basic customs duty @ 10%, IGST @ 5%, and Social Welfare Cess @ 1%. However, if any import is made for personal use, the rate of IGST would be 28% and it would also attract a GST compensation cess. Application disposed off.
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