Project import classification denied where a captive power plant was treated as a later operational addition, not part of the original fertiliser project.

Project import classification under Heading 84.66 was unavailable where the imported captive power plant was not shown to be an integral part of the fertiliser project at the time of initial setting up or part of a registered contractual arrangement for the project. The record indicated it was a later addition to address operational needs such as voltage fluctuations and power failures, rather than machinery for manufacture or substantial expansion. The claim for assessment under Heading 84.66 was therefore rejected.

---

---

Issues: Whether the imported captive power plant qualified for assessment under Heading 84.66 of the Customs Tariff Act, 1975 as goods for initial setting up or substantial expansion of the fertiliser project.

Analysis: The benefit of project import classification was examined against the requirement that the goods must form part of the original project structure or be shown as part of a registered and existing contractual arrangement for the project. The record did not show that the captive power plant was conceived as an integral part of the fertiliser project at the time of its initial setting up, nor that it formed part of the producing machinery. The import was treated as a later addition to meet operational needs such as voltage fluctuations and power failures, rather than as machinery for manufacture of fertiliser or for substantial expansion of the plant.

Conclusion: The imported goods did not qualify for assessment under Heading 84.66 of the Customs Tariff Act, 1975 and the claim was rejected.

---