TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Anti-dumping duty on industrial laser machines: standalone imported laser sources not covered; treated as parts, not complete machines</h1> Anti-dumping duty under N/N 15/2023-Customs (ADD) applied only to 'industrial laser machines' in fully assembled, SKD or CKD form, not to standalone ... Applicability of N/N. 15/2023-Customs (ADD) dated 22.12.2023 for levy of Anti-dumping duty on import of Laser Source - HELD THAT:- The imported laser sources are merely parts or components of industrial laser machines. They lack independent functionality and are incapable of performing cutting, marking, or welding operations unless integrated with multiple other subsystems. As such, they do not fall within the scope of 'Industrial Laser Machines in fully assembled, SKD or CKD form' as contemplated under Notification No. 15/2023-Customs (ADD). N/N. 15/2023-Customs (ADD), following the DGTR's Final Findings dated 27th September 2023, concluded after thorough investigation that industrial laser machines from certain countries were being dumped in India at prices below normal value, causing material injury to domestic manufacturers, and identified that such machines consist of complex integrated systems including laser sources, focusing optics, laser heads, scanner heads, CNC controllers, motion platforms, cooling units, structural frames, safety enclosures, and control software, which collectively enable high-speed, precise operations like cutting, welding, and marking - The DGTR's findings clearly confirm that laser cutting, welding, or marking machines consist of numerous critical components, and that a laser source by itself does not possess the essential character of a complete machine. 4.12 As per settled principles under the Customs Tariff Act, 1975, classification must be based on the condition of goods at the time of import, consistent with Rule 2(a) of the GIR, which stipulates that incomplete articles are classified as complete only if they exhibit the essential character of the finished product, a standard the laser source fails to meet as it lacks integrated systems necessary for independent operation. The anti-dumping duty under the said Notification No. 15/2023-Customs (ADD) dated 22nd December 2023 is not applicable on laser sources, which, as presented, constitute merely a part or component and do not possess the essential character of complete industrial laser machines. However, it will be open to the field formation to see as to whether the subject goods are associated with the assembly in SKD/CKD form, to complete a laser cutting marking and welding machine as a whole or otherwise. Issues: Whether anti-dumping duty under Notification No. 15/2023-Customs (ADD) dated 22nd December 2023 is applicable to imported laser sources or whether such laser sources are parts/components not liable to ADD.Analysis: The Authority examined the nature and function of the imported laser sources and the legal framework comprising the Customs Tariff Act, 1975, Rule 2(a) of the General Interpretative Rules, HSN Explanatory Notes, and Notification No. 15/2023-Customs (ADD). The facts show that the goods are imported as individual laser sources which generate the laser beam but lack the mechanical, optical, electronic and control subsystems (such as laser heads, focusing optics, gantry/motion systems, CNC controllers, cooling units and safety enclosures) necessary for independent operation as cutting, marking or welding machines. The DGTRs final findings referenced in the notification define the scope of ADD to apply only to industrial laser machines in fully assembled, SKD or CKD form where physical and functional integration of all necessary subsystems renders the unit ready for immediate operation. Rule 2(a) requires incomplete articles to exhibit the essential character of the finished product to be classified as such; the submitted technical evidence and certifications show the laser source lacks that essential character at the time of importation. Classification and applicability of ADD therefore rest on the condition and functional capability of the goods at import, supported by HSN guidance treating such items as specialised parts suitable for use with specified machines.Conclusion: The Authority concludes that the imported laser sources, as presented, are parts or components of industrial laser machines and do not possess the essential character of fully assembled, SKD or CKD industrial laser machines; accordingly, anti-dumping duty under Notification No. 15/2023-Customs (ADD) dated 22nd December 2023 is not attracted to the import of those laser sources.
TaxTMI 
TaxTMI 
