Tariff classification of pulley mechanism parts affirmed; exemption notification not available for imported components used in spindle speed regulator

Imported components used to make a VPS Stepless Spindle Speed Regulator were treated as a pulley mechanism, with classification determined by the article's own character rather than its intended use in ring spinning frames. Applying the interpretative rules, section notes and explanatory notes, goods that are themselves covered by a specific tariff heading remain classifiable there even if designed for a larger machine; the components were therefore classifiable under Heading 84.63. The exemption under Notification No. 350-Cus./76 was not available because the notification did not extend to these parts, a view reinforced by the later separate notification for such goods.

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Issues: Whether the imported components used for manufacture of a VPS Stepless Spindle Speed Regulator were classifiable under Heading 84.63 of the Customs Tariff and, if so, whether the goods were entitled to concessional assessment under Notification No. 350-Cus./76 dated 2nd August, 1976.

Analysis: The product manufactured from the imported components was found, on the technical material and the installation manual, to be essentially a pulley mechanism in which the diameters of sheaves are varied to obtain different speeds. The fact that the regulator was intended for use in ring spinning frames did not control classification where the article itself was regarded as a sheave or pulley. Under the interpretative rules and the section notes relied upon, goods that are themselves articles covered by a specific heading are classifiable in that heading, and the explanatory notes specifically treated pulleys and pulley blocks as classifiable in their own appropriate heading even if specially designed to form part of a larger machine. The separate notification issued later for these goods also supported the view that the earlier exemption notification did not cover them.

Conclusion: The goods were correctly classified under Heading 84.63, and the benefit of Notification No. 350-Cus./76 could not be extended to the imported parts.

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