TMI Blog2021 (9) TMI 321X X X X Extracts X X X X X X X X Extracts X X X X ..... goods need to be done in the state in which the goods are imported, the essential character of a swivel seat is not achieved. There appears to be no doubt that the components of swivel seats/chairs proposed to imported are specifically designed for manufacture/assembly of goods described under the sub- heading 94013000 - it is concluded that heading 9401 is the appropriate classification for the components of swivel seats in disassembled state, the only possible entry at eight-digit level is 94019000. The components of swivel seats/chairs, proposed to be imported by the applicant in dis-assembled form, merit classification under sub-heading 94019000 of the first schedule to the Customs Tariff Act 1975. - CAAR/Mum/ARC/33/2021 - - - D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bly in their Pune plant. The inputs/raw materials required for these parts would be procured locally or imported as per the need. The chairs so assembled/ manufactured are designed to be placed on the floor or ground only. 3. The applicant has stated that customs duty is charged on import of goods into India under the provisions of Customs Act, 1962 at the rate specified in the first schedule to the Customs Tariff Act, 1975 on the value as prescribed under the provisions of the Act and Customs Valuation (Determination of Value of Imported Goods) Rules, 2007. The importer is required to file a bill of entry consistent with the invoice and the packing list. Typically, goods as mentioned in the bill of entry are assessed to customs duty in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicant, classification of imported goods should ordinarily be done as they are presented to the customs officer. In the present case the imported components of a swivel/revolving chair would be presented in disassembled form wherein all the parts of such chair would be placed in one carton/box. On assembly of the said parts, the result would be an unfinished chair which would have functions such as turning around on a fixed central point and height adjustment function. Further, the said unfinished chair can be kept on the ground or floor. Under the chapter 94, heading 94.01 covers seats (other than those of heading 94.02), whether or not convertible into beds, and parts thereof. The tariff entry 94013000 includes in its ambit swivel se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es of the applicant that in paragraph 8 of their application, they have stated that after the proposed import, the applicant would complete remaining activities such as seat/bottom and castor(wheels) assembly at their Pune plant and also that the inputs/raw materials required would be procured locally or imported, and therefore, in light of such assertions, they would be required to provide the following details so that an informed decision can be taken. The list of components required for assembly/manufacture of a chair, The list of components that would be imported, The list of components that would be domestically procured, Whether the imported components would be ready for assembly or would there be a need of further work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared as 'TV2 FRAME BLCK+ 3D BLCK, 4D, NO SEAT(ICP02163RP/1P00090495) (FOR OFFICE FURNITURE)' and the classification adopted was sub-heading 94013000. However, no checklist, invoice, or packing list have been submitted by the applicant. From the description of goods as reproduced above, it is not possible to deduce exactly what has been imported. However, the description 'NO SEAT' appear to be in conformity with the applicant's submissions that seats (and castor wheel assemblies) would be domestically procured. In light of the above, I proceed to examine the heading 9401 suggested by the applicant as the appropriate classification of the product/s intended to be imported. The Note 2 to Chapter 94 lays down that, ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed import of swivel chairs in disassembled form is not actually a bar to the classification under heading 9401. In fact, the HSN Explanatory Notes make it clear that articles of furniture presented disassembled or unassembled are to be treated as assembled articles of furniture, provided the parts are presented together. However, the fact that seats would not actually be a part of the components intended to be imported and presented to the Indian Customs authorities for assessment and clearance, makes it difficult to convince oneself that, the essential character of a swivel seat is achieved without the seat. As a matter of fact, going by the description of the sub-heading, i.e., swivel seats and variable height adjustment, it is clear tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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