Note :

1. This section does not cover :

(a) Transmission or conveyor belts or belting, of Chapter 39, or of vulcanized rubber (heading No.40.10); or other articles of a kind used in machinery or mechanical or electrical applicances or for other technical uses, of vulcanized rubber other than hard rubber (heading No.40.16);

(b) Articles of leather or of composition leather (heading No.42.04) or of furskin (heading No.43.03), of a kind used in machinery or mechanical appliances or for other technical uses;

(c) Bobbins, spools, cops, cones, cores, reels or similar supports, of any material ( for example, chapters 39,40,44,or 48 or section XV)

(d) Perforated cards for Jacquard or similar machines (for example, Chapter 39 or 48 or section XV);

(e) Transmission or conveyor belts or belting of textiles material (heading No.59.10) or other articles of textile material for technical uses (heading No.59.11);

(f) Precious or semi-precious stones (natural, synthetic or reconstructed), of heading Nos. 71.02 to 71.04 or articles wholly of such stones of heading No.71.16, except unmounted worked sapphires and diamonds for style (heading No.85.22);

(g) Parts of general use, as defined in Note 2 to Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39);

(h) Drill pipe (heading No. 73.04);

(ij) Endless belts of metal wire or strip (Section XV);

(k) Articles of Chapter 82 or Chapter 83;

(l) Articles of Section XVII;

(m) Articles of Chapter 90;

(n) Clocks, watches or other articles of Chapter 91;

(o) Interchangeable tools of heading No.82.07 or (brushes of kind used as parts of machines of heading No.96.03); similar interchangeable tools are to be classified according to the consituent material of their working part (for example, in Chapter 40,42,43,45 or 59 or heading No.68.40 or 69.09);

(p) Articles of Chapter 95; or

(q) Typewriter or similar ribbons, whether or not on spools or in cartridges (classified according to their constituent material, or in heading 96.12 if inked or otherwise prepared for giving impressions).;

2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading No.84.84,85.44,85.45,85.46 or 85.47) are to be classified according to the following rules :

(a) Parts which are goods included in any of the heading of Chapter 84 or 85 (other than heading No.84.09,84.31,84.48,84.66,84.73,84.85,85.03,85.22,85.29,85.38 and 85.48) are in all cases to be classified in their respective heading.

(Please refer Cus Cir No.78/2002 Date 28/11/2002)

(b) Other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading No.84.79 or 85.43) are to be classified with the machines of that kind or in heading Nos.84.09, 84.31,84.48,84.66,84.73,85.03,85.22,85.29 or 85.38 as appropriate. However, parts which are equally suitable for use principally with the goods of heading Nos.85.17 and 85.25 to 85.28 are to be classified in heading No.85.17.

(c) All other parts are to be classified in heading No.84.09,84.31,84.48,84.66,84.73,85.03, 85.22,85.29 or 85.38 as approrpiate or, failing that in heading No.84.85 or 85.48.


3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative funcions are to be classified as if consisting only of that component or as being that machine which performs the principal functions.

4. Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the heading in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function.

5. For the purposes of these Notes, the expression "machine" means any machine, machinery, plant, equipment, apparatus or appliance cited in the heading of Chapter 84 or Chapter 85.

Import licencing note :

(1) Consumer durables including automobiles in SKD/CKD condition or in ready to assembles sets are in the restricted. They are not permitted for import except against a licence or Public Notice issued in this behalf. The classification of SKD/CKD packs shall be governed by the following rule :

"Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, procided that as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of the rule) presented unassembled or disassembled".

(Above Section Note has been amended vide BUDGET 2001-2002)

(Pl. see POLICY CIRCULAR NO.7(RE–01), Dated: 21.08.2001)