2026 (2) TMI 340 - AAR - Customs

Classification of imported brass rods based on as imported composition, held classifiable as copperzinc alloy under tariff heading.

Classification of imported brass rods must be determined by their form and condition as imported under the General Rules for Interpretation; postimport ... Classification of goods - imported 'Brass rods' - Condition of the article at the time of import (as imported) - General Rules for Interpretation (GRI) 1 and 6 - Classification of alloys by predominant metal - Definition of bars and rods (Section XV Note 9) - Eligibility for Advance Ruling under Chapter VB (Importer with IEC) - HELD THAT:- It is a settled legal principle that a product's classification is determined by its form and condition when presented for customs clearance. Classification is therefore based solely on the technical specifications of the product in its 'as imported' state. The applicant has referred to decision of the Hon'ble Supreme Court in the case of Dunlop India Ltd. [1975 (10) TMI 94 - SUPREME COURT] In the case of Weaves [1996 (2) TMI 143 - SUPREME COURT] and Vizag Shipping and Metal Processors [2005 (7) TMI 413 - CESTAT, BANGALORE], the court has affirmed that a product's 'as imported' condition is the sole basis for imposing countervailing duty. Consequently, any modifications or activities performed after importation have no bearing on its legal classification or duty liability Thus, the subject goods-brass rods-must be classified based on their condition at the time of import, regardless of their eventual conversion into finished products like valves. Whether the 'Brass Rods' merit classification under CTH 7407 2120 or any other CTH. - HELD THAT:- It is evident that Chapter 74 covers 'Copper and articles thereof'. The product under Consideration is 'Brass Rods'. The subject goods under consideration being an alloy of copper, zinc and lead where copper is predominant by weight as per the Material Data Safety Sheet, merit classification under Chapter 74 by virtue of application of GRI 1 and the relevant Section Notes to Section XV. As per the Material Safety Data Sheet provided by the applicant, Copper is the predominant constituent by weight and Zinc clearly predominates over other elements (Lead, Tin, Nickel, Iron, Aluminium). Also, Nickel by weight is < 0.3% and Tin by weight is < 0.3%. Thus, the subject product meets all conditions for classification as Copper-Zinc base alloy (brass) under Chapter 74 and Customs Tariff Sub-Heading 7407 21 as 'Of copper-zinc base alloys (brass)' under the First Schedule of the Customs Tariff Act. The subject goods merit classification under Heading 7407 21 in terms of Rule 1 of the General Rules for Interpretation. The subject goods are alloy of copper, zinc and lead where copper is predominant by weight and Zinc predominates other elements. Further, weight of nickel is also less than 5% and tin less than 3%. Section Note 9 to Section XV specifically deals with the classification of the goods falling under the Chapter 74 to 76 and 78 to 81, by providing certain definitions to aid the classification of goods falling under the Chapter 74 to 76 and 78 to 81. Similarly, HSN Explanatory Note to Customs Tariff Heading 7407 makes reference to the Bars and rods. Bars and rods are defined in Note 9 (a) to Section XV. The subject goods being manufactured in conformity with the definition of 'bars and rods' are thus classifiable under CTH 7407 21 20. Thus, the Commissionerate has also agreed upon that the 'Brass Rods' merit classification under CTH 7407 21 20. Thus, Brass Rods are classifiable under CTH 7407 21 20 of the First Schedule to the Customs Tariff Act, 1975. Issues: Whether the imported 'Brass rods' (as described) are classifiable under Customs Tariff Item 7407.21.20 of the First Schedule to the Customs Tariff Act, 1975.Analysis: The product as imported is a solid rod of alloy CW617N/CuZn40Pb2 with uniform circular cross-section and produced by extrusion; its chemical composition shows copper as the predominant metal (57-59%) and zinc as the predominant element among remaining constituents, with nickel and tin below prescribed limits. Classification is governed by the General Rules for Interpretation (GRI), Section Notes to Section XV (including notes on alloys and definition of bars and rods) and Sub-heading Notes to Chapter 74. GRI 1 directs classification according to the terms of the headings and applicable Section/Chapter Notes; GRI 6 applies for sub-headings. The Section and Chapter Notes define 'base metals', prescribe that an alloy is classified according to the metal which predominates by weight, and define 'bars and rods' as rolled, extruded, drawn or forged products with uniform solid cross-section. The HSN explanatory notes to Chapter 74 and Heading 7407 similarly describe bars and rods and the circumstances under which cast or sintered products are included. On the combined application of these rules and the product's technical specifications and composition in its as-imported condition, the goods fall within Chapter 74 (copper and articles thereof), Heading 7407 (copper bars, rods and profiles) and the sub-heading for copper-zinc base alloys (brass).Conclusion: The Brass rods are classifiable under Customs Tariff Item 7407.21.20 of the First Schedule to the Customs Tariff Act, 1975 in favour of the applicant (assessee).