In Ruling No. CAAR/Mum/ARC/35/2023- AAR - Compounded rubber formulations classified under specific Tariff headings; Formulation 1 under CTH 4005 1000, Formulation 2 and Formulation 3 under CTH 4005 99 90: AAR (Maharashtra)
Member P. Vinitha Sekhar (Secretary, Additional Commissioner) [12-05-2023]


Read Order: In Re M/s MRF Limited


Chahat Varma


New Delhi, May 25, 2023: The Maharashtra bench of the Authority for Advance Rulings has classified Compounded rubber formulation 1 (with less than 5 parts of Carbon Black) under CTH 4005 1000, Compounded rubber formulation 2 (without Carbon Black but with less than 5 parts of SBR - Styrene butadiene rubber) and Compounded rubber formulation 3 (without Carbon Black but with less than 5 parts of clay) under CTH 4005 99 90, and held that they are eligible for duty exemption under serial number 503 of the notification 46/2011- Cus. dated 1.6.2011.


M/s MRF Ltd. (applicant), a regular importer of raw materials needed in the manufacture of tyres, sought advance ruling for import of compounded rubber with Carbon Black or Silica or Styrene Butadiene Rubber (SBR) from suppliers in Thailand, Malaysia, Indonesia, and Vietnam.


The Authority observed that the determining factor for classifying the imported goods was primarily the chemical composition and characteristics of the proposed imports.


The Authority further held that the classification of the product under Customs Tariff Heading 4005, whether as vulcanized or unvulcanized, can only be ascertained through a chemical composition test.


“Claim of applicant is required to be objectively proved by way of an outcome of the chemical test conducted at the time of importation. This aspect of product testing is a part of Customs Compliance Verification (CCV) process after importation of goods. Jurisdictional Customs Commissionerate carries out process of testing of imported goods with the help of concerned agencies to cross-examine accuracy of declaration of goods in the import documents namely a Bill of entry and it's supporting documents before an out of charge (00C) is granted. Hence the utility of the claim of applicant that the presence of zinc oxide and Stearic acid in this formulation is not as an active agent or vulcanizing agent is limited only to support applicant's contention, during advance ruling process, that the goods will not be in a vulcanized state,” observed the Authority.


Add a Comment