2026 (1) TMI 57 - AAR - Customs

Tariff classification of electric tactical hauler and parts: vehicle under 8709, remote 85269200, charger 85044030, parts 87099000.

The dominant issue was tariff classification of an electrically powered 'tactical hauler' and its components under the Customs Tariff applying GIR 1, ... Classification of parts of the Tactical Hauler (Loader Carrier) - classifiable under CTH 8709 or not - Wireless Remote, Remote Charger - Top Card Assembly (Electronic Control Unit) - Pinky Assembly (Electronic Control Unit), Batman Rev.0 - PCBA - Folding Mechanism Handle - Flexible Neck Connector - Breathable Vent - Battery Clip - Battery Plastic Cover A / Battery Plastic Cover B - Battery Cover Screw / Body Screws - Wheels with Motor |Wheel + Tyre + Motor] - Wheels without Motor |Rim with Tyre]. Tactical Hauler (Loader Carrier) - HELD THAT:- Tactical Hauler is a self-propelled, electrically powered vehicle designed for short-distance transport of goods such as military equipment and supplies, similar in function to works trucks used in factories, warehouses, or airports. The Tactical Hauler is not fitted with any lifting or handling equipment and is not suitable for passenger transport or for use on public roads, aligning with the design limitations noted in the heading. Its operational speed is generally low and it is capable of maneuvering in tight spaces due to a small turning radius. It features a load platform for direct carrying of goods and includes ergonomically designed handles or a folding mechanism that allows it to be pushed or pulled manually when required, especially in cases of battery depletion or silent movement. Additionally, it may be controlled remotely, further aligning with the category of pedestrian-controlled works trucks. Given these characteristics and its intended use in confined, operational areas similar to those described in the Explanatory Notes, the Tactical Hauler clearly meets the criteria outlined under Heading 8709 - Accordingly, based on the Explanatory Notes to Heading 8709, the Tactical Hauler qualifies for classification under CTH 8709, as it fulfils all the essential conditions prescribed therein. Wireless Remote - HELD THAT:- In the present case, the product in question, Wireless Remote is an electronic device that uses radio frequency (RF) technology to control the Tactical Hauler remotely, by transmitting directional and speed control signals to the vehicle's Electronic Control Unit (ECU). This functionality falls squarely within the scope of 'radio remote control apparatus' as described in the Explanatory Notes to heading 8526 - in view of the HSN Explanatory Notes and as per the application of General Interpretative Rule (GIR) 1, the Wireless Remote is appropriately classifiable under Customs Tariff Item (CTI) 8526 92 00 (Radio remote control apparatus) of the First Schedule to the Customs Tariff Act, 1975. Remote Charger - HELD THAT:- In the present case, the remote charger qualifies as a battery charger because its sole function is to supply electrical energy to recharge the battery embedded within the wireless remote control unit. A battery charger is a type of static converter that converts electrical energy (typically from an AC mains supply) into a suitable form, usually direct current (DC) to recharge a rechargeable battery - Accordingly, in view of the HSN Explanatory Notes and as per the application of General Interpretative Rule (GIR) 1, the Remote Charger merit classification under CTI 85044030 (Battery Charger) of the First Schedule to the Customs Tariff Act, 1975. Top Card Assembly (Electronic Control Unit) - HELD THAT:- The Top Card Assembly does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a 'part' under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Top Card Assembly is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Top Card Assembly is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition - Since all the three conditions have been satisfied, it can be concluded that the 'Top Card Assembly' qualifies as parts of Tactical Hauler under Chapter 87 in accordance with the Rule 1 of GIR, Section Note 2 and Explanatory Notes to Section XVII - by virtue of General Interpretative Rule 1, the Section Note 2 to Section XVII and Explanatory Notes to heading 8709, the Top Card Assembly merits classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. Pinky Assembly (Electronic Control Unit) - HELD THAT:- The 'Pinky Assembly' referred as ECU-2 qualifies as parts of Tactical Hauler under Chapter 87 in accordance with the Rule 1 of GIR, Section Note 2 and Explanatory Notes to Section XVII - Therefore, by virtue of General Interpretative Rule 1, the Section Note 2 to Section XVII and Explanatory Notes to heading 8709, the Pinky Assembly merits classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. Batman Rev.0 - PCBA - HELD THAT:- The Batman Rev.0 - PCBA does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a 'part' under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Batman Rev.0 - PCBA is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Batman Rev.0 - PCBA is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition - applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Batman Rev.0 - PCBA merit classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. Folding Mechanism Handle - HELD THAT:- The Folding Mechanism Handle does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a 'part' under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Folding Mechanism Handle is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Folding Mechanism Handle is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition - applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Folding Mechanism Handle merit classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. Flexible Neck Connector - HELD THAT:- The Flexible Neck Connector does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a 'part' under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Flexible Neck Connector is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Flexible Neck Connector is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition - applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Flexible Neck Connector merit classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. Breathable Vent - HELD THAT:- The Breathable Vent does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a 'part' under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Breathable Vent is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Breathable Vent is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition - applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Breathable Vent classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. Battery Clip - HELD THAT:- The Battery Clip does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a 'part' under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Battery Clip is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Battery Clip is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition - applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Battery Clip merit classification under CTI 8709 90 00 as a part of a Tactical Hauler, falling under Heading 8709. Battery Plastic Cover A / Battery Plastic Cover B - HELD THAT:- As per Section Note 2(b) to Section XVII of the Customs Tariff, general-purpose plastic items that do not have the essential character of a vehicle part and are not uniquely identifiable as such are excluded from classification under Chapter 87. Given that the Battery Plastic Cover A and Battery Plastic Cover B do not meet the criteria for classification as a specific vehicle part and are not custom-designed for the Tactical Hauler, it is excluded from Chapter 87 - applying General Interpretative Rule 1, and considering the Section Note 2(b) to Section XVII and Explanatory Notes, the Battery Plastic Cover A and Battery Plastic Cover B merit classification under CTH 3926(Other articles of plastics and articles of other materials of headings 3901 to 3914), more specifically under CTI 39269099 (Other) of the First Schedule of the Customs Tariff Act, 1975. Battery Cover Screw / Body Screws - HELD THAT:- Since the Battery Cover Screws and Body Screws are made of iron or steel, serve a general fastening function, are standard articles of general use that are not unique or specifically engineered solely for use in the Tactical Hauler, fall squarely within the scope of Heading 7318, and they are excluded from classification under Heading 8709 (as vehicle parts) - applying General Interpretative Rule 1, and considering the Section Note 2(b) to Section XVII and Explanatory Notes, the Battery Cover Screws / Body Screws merit classification under CTI 7318 (Screws, bolts, nuts, coach screws, screw hooks, rivets, cotters, cotter-pins, washers (including spring washers) and similar articles, of iron or steel), more specifically under CTI 73181900 (Other), of the First Schedule of the Customs Tariff Act, 1975. Wheels with Motor [Wheel + Tyre + Motor] - HELD THAT:- The Wheel with Motor does not fall under any of the exclusion clauses listed in Section Note 2 of Section XVII of the Customs Tariff. Accordingly, the first condition for classification as a 'part' under Section XVII is satisfied. Additionally, based on the technical description and functional use submitted by the applicant, it is clear that the Wheel with Motor is exclusively or principally used in the Tactical Hauler, which falls under Heading 8709. This satisfies the second condition. Finally, the Wheel with Motor is not more specifically classified elsewhere in the Customs Tariff, fulfilling the third condition - applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Wheel with Motor merit classification under CTI 8709 90 00 as a part of the Tactical Hauler, falling under Heading 8709. Wheels without Motor |Rim with Tyrel - HELD THAT:- Although tyres alone are generally classifiable under Heading 4011 or 4012, and wheels or rims under 8709(for vehicles of headings 8709), in this case, the combined rim with tyre is specifically configured and manufactured for exclusive use in a Tactical Hauler, which is classifiable under Heading 8709 as a 'self-propelled works truck not fitted with lifting or handling equipment.' Moreover, the Explanatory Notes to parts under Heading 8709 as mentioned above specifically clarify that this heading includes wheels, whether or not fitted with tyres, when they are parts of vehicles of this heading - Accordingly, applying General Interpretative Rule 1, and considering the Section Note 2 to Section XVII and Explanatory Notes to Heading 8709, the Wheel without motor (comprising rim and tyre) merit classification under CTI 8709 90 00 as a part of the Tactical Hauler, falling under Heading 8709. Thus, the classification is summarised as follows: i) Wireless Remote - to be classified under CTI 85269200. ii) Remote Charger - to be classified under CTI 85044030. iii) Pinky Assembly (Electronic Control Unit), Batman Rev.0 - PCBA, Folding Mechanism Handle, Flexible Neck Connector, Breathable Vent, Battery Clip, Wheels with Motor [Wheel+Tyre +Motor] and Wheels without Motor [Rim with Tyre] - to be classified under CTI 87099000. iv) Battery Plastic Cover A /Battery Plastic Cover B - to be classified under CTI 39269099. v) Battery Cover Screw/ Body Screws - to be classified under CTI 73181900. 1. ISSUES PRESENTED AND CONSIDERED (i) Whether the 'Tactical Hauler' is classifiable as a 'works truck' under Customs Tariff Heading 8709, so that its components may be assessed as 'parts' of vehicles of heading 8709. (ii) Whether the Wireless Remote, operating on radio frequency technology, is classifiable as 'radio remote control apparatus' under heading 8526. (iii) Whether the Remote Charger is classifiable as a 'battery charger' under heading 8504. (iv) Whether the listed electronic control units/boards and certain plastic components qualify as 'parts' of the Tactical Hauler under CTI 87099000, applying Section XVII (including the exclusions in Note 2) and the 'solely or principally' use test. (v) Whether Battery Plastic Cover A/B, and Battery Cover/Body screws are excluded from classification as vehicle 'parts' by Section Note 2 to Section XVII and therefore classifiable under headings 3926 and 7318 respectively. (vi) Whether wheels (with motor; and rim with tyre without motor) are classifiable as 'parts' under CTI 87099000 notwithstanding incorporation of a motor/tyre. 2. ISSUE-WISE DETAILED ANALYSIS Issue (i): Classification of the Tactical Hauler under heading 8709 Legal framework: The Court applied General Interpretative Rule 1 and relied on the scope and features described for heading 8709, including the explanatory features distinguishing such vehicles (short-distance transport of loads, unsuitable for public road/passenger transport, low speed, tight turning radius, possibility of pedestrian/manual control). Interpretation and reasoning: Based on the product description, the Tactical Hauler is an electrically powered, self-propelled load-carrying vehicle used for short-distance transport of goods (military equipment), not fitted with lifting/handling equipment, not suited for public-road goods/passenger transport, and capable of remote and manual operation. These characteristics were found to align with heading 8709. Conclusion: The Tactical Hauler was held classifiable under Customs Tariff Heading 8709. Issue (ii): Wireless Remote-classification under heading 8526 Legal framework: The Court applied GIR 1 and the tariff description for heading 8526 covering 'radio remote control apparatus.' Interpretation and reasoning: The Wireless Remote was found to be a joystick-based controller transmitting commands wirelessly to control the Tactical Hauler. On clarification at hearing that it operates using RF technology, its function was treated as squarely falling within 'radio remote control apparatus.' Conclusion: Wireless Remote classified under CTI 85269200. Issue (iii): Remote Charger-classification under heading 8504 Legal framework: The Court applied GIR 1 and the tariff structure under heading 8504, specifically tariff item 85044030 for 'battery chargers.' Interpretation and reasoning: The charger's sole function is to recharge the embedded battery of the remote control, and it operates as a static converter supplying suitable charging power. This matched the tariff description for battery chargers. Conclusion: Remote Charger classified under CTI 85044030. Issue (iv): Whether specified ECUs/PCBA and certain plastic components qualify as 'parts' of heading 8709 Legal framework: The Court applied GIR 1 and Section XVII principles for 'parts,' including the three cumulative conditions drawn from the Section XVII explanatory approach: (a) not excluded by Section Note 2; (b) suitable for use solely or principally with vehicles of Chapters 86-88; and (c) not more specifically covered elsewhere. The Court also referred to the parts coverage under heading 8709. Interpretation and reasoning: The Top Card Assembly (ECU-1), Pinky Assembly (ECU-2), and Batman Rev.0 PCBA were treated as vehicle-specific internal control/support electronics essential to operation (receiving/processing control inputs, executing power delivery to motors, and displaying battery status). Despite being electronic, the Court held they were not independent apparatus for Chapter 85 classification because they lacked standalone function and were designed for integration into the Tactical Hauler. For the Folding Mechanism Handle, Flexible Neck Connector, Breathable Vent, and Battery Clip, the Court accepted clarifications that they were customized, not market-available as generic items, and unsuitable for other machinery; therefore they were not treated as general plastic goods under Chapter 39 and satisfied the 'solely/principally' use test while not being excluded by Section Note 2. Conclusion: Top Card Assembly, Pinky Assembly, Batman Rev.0 PCBA, Folding Mechanism Handle, Flexible Neck Connector, Breathable Vent, and Battery Clip were each classified as parts of the vehicle under CTI 87099000. Issue (v): Battery Plastic Cover A/B and Battery Cover/Body screws-exclusion from Chapter 87 parts Legal framework: The Court applied Section Note 2(b) to Section XVII excluding 'parts of general use' of base metal and similar goods of plastics from classification as vehicle parts, even if used in vehicles, and applied GIR 1. For screws, heading 7318 was applied as the specific heading for iron/steel fastening articles. Interpretation and reasoning: Battery Plastic Cover A and B were found to be general-purpose plastic enclosure items not uniquely configured for exclusive use with the Tactical Hauler, and therefore excluded from Chapter 87 and placed under Chapter 39. Battery Cover/Body screws were treated as standard fastening articles of iron/steel (parts of general use), excluded from Chapter 87 and falling within heading 7318. Conclusion: Battery Plastic Cover A/B classified under CTI 39269099; Battery Cover/Body screws classified under CTI 73181900. Issue (vi): Wheels with motor and wheels without motor-classification as parts under heading 8709 Legal framework: The Court applied GIR 1, Section XVII 'parts' principles (including non-exclusion by Note 2, sole/principal use, and no more specific inclusion elsewhere), and the explanatory understanding that heading 8709 parts include 'wheels, whether or not fitted with tyres.' Interpretation and reasoning: The wheel+tyre+motor assembly was treated as an integrated, dedicated propulsion/mobility unit designed solely for the Tactical Hauler; despite containing elements that could fall under other headings in isolation (motor/tyre), the composite assembly was held to have the character of a vehicle part for the heading 8709 vehicle. The rim-with-tyre wheel (without motor) was found specifically configured for exclusive use with the Tactical Hauler, and wheels (with or without tyres) were expressly contemplated as parts for heading 8709 vehicles. Conclusion: Wheels with motor and wheels without motor (rim with tyre) classified under CTI 87099000.