Customs - Rail Cum Road Vehicle - Classification - Board Clarification
IT seems the field formations of Customs are classifying rail cum road vehicles both in chapter 86 which covers, "Railway or tramway locomotives, rolling-stock and parts thereof; railway or tramway track fixtures and fittings and parts thereof; mechanical (including electro-mechanical) traffic signalling equipment of all kinds", and in chapter 87 which covers, "Vehicles other than railway or tramway rolling-stock, and parts and accessories thereof."
Board has examined the issue .
The General Rules of Interpretation (GRI), Rule 1 inter alia states that, "…for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes…".
Note 4(a) to Section XVII states that, "For the purposes of this Section, vehicles specially constructed to travel on both road and rail are classified under the appropriate heading of Chapter 87…".
Board is of the considered view that the correct classification in the harmonised Customs Tariff in case of Rail cum Road Vehicles should be in the appropriate heading in Chapter 87 by application of GRI 1 (Note 4 (a) to Section XVII).
So, Board wants all pending provisional assessment cases of Rail Cum Road Vehicle imports to be finalised based on the above instructions.
CBEC Circular No. 14/2012 - Cus., Dated: June 11, 2012