Imports of goods under Chapter 84 of ITC (HS) – DGFT Clarification
THE Customs at JNPT have sought a clarification on the requirement of complying with the conditions of Import Licensing Note No. 1 and 2 of Chapter 87 of ITC (HS) Classification (Vehicles other than Railway or Tramway Rolling – Stock and parts and accessories thereof) even if the goods fall under Chapter 84 of ITC(HS) (Machinery and mechanical appliances; parts thereof)
The Notes read as:
++ This Chapter does not cover railway or tramway rolling-stock designed solely for running on rails.
++ For the purpose of this Chapter "tractors" means vehicles constructed essentially for hauling or pushing another vehicle, appliance or load, whether or not they contain subsidiary provision for the transport, in connection with the main use of the tractor, of tools, seeds, fertilizers or other goods.
DGFT has examined the issue and observes that the goods in question like Reach Stackers / Fork Lifts have been specifically covered at 8 digit level (Code : 8427 20 00) under Chapter 84 of ITC(HS), as mentioned by Customs. This is also clear from a plain reading of Chapter 84 of ITC(HS).
And clarifies that, “Such goods, that are in the nature of machine and equipments and are covered under Chapter 84 of ITC(HS), cannot be classified under Chapter 87 of ITC(HS). Therefore, Import Licensing Note No. 1 and 2 of Chapter 87 of ITC(HS) are not applicable to goods covered under Chapter 84 of ITC(HS)”.
DGFT Circular No. 30 (RE-2010)/2009-14., Dated: April 27, 2011