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2022 (1) TMI 1283 - AAR - CustomsClassification of the APU Off Combo Unit proposed to be imported - to be classifiable under Customs Tariff Heading/HSN Code 8803 30 00 as ‘Other parts of aeroplanes or helicopters’ under the general description ‘Parts of goods of Heading 8801 or 8802’ or not? - HELD THAT:- In this case, it has been indisputably brought out and amply illustrated that the clearly defined function of an APU off combo unit is only as a replacement of a part of aircraft, i.e., it’s APU. By combining several functions into a single unit, the Unit is clearly customized for use only with aircrafts. Therefore, it is reasonable to hold that the Unit can only be regarded as a part of aircraft which replaces the on-board APU and contributes to operational efficiency and eco friendliness. The only function of the Unit that is clearly defined is its function as the substitute to the APU, i.e., substituting an aircraft part. The GPU has an inbuilt computer system which synchronizes with the aircraft mechanism and which also activates the computer operations in the aircraft. The GPU cannot be used as a normal generating set in view of its inbuilt configuration, which facilitates only functions of aircrafts - The HSN General Explanatory Notes to Chapter 88 lay down that, ‘Subject to the provisions of the Notes to Section XVII, it also covers parts of such equipment. The relevant Section Notes have already been discussed above and the conclusion thereof is that the Unit under consideration, based on its design and intention to be used solely as a source of power and preconditioned air to stationary/parked aircrafts, merits classification under Chapter 88 of the Customs Tariff. Note 3 to Section XVII states that 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 or accessory. The Unit can only be termed and considered as a part of aircraft which replaces the on-board APU and is suitable for use solely and principally with aircrafts falling under Chapter 88 and is not hit by the exclusion provision of the notes to Section XVII. Thus, APU OFF combo unit merits classification under chapter sub-heading 8803 30 00 of the First Schedule to the Customs Tariff Act, 1975.
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