Classification of steel chains as parts of general use bars Chapter 84 treatment and denies Heading 98.06 benefit.

Steel chains imported as spare parts for agricultural machinery were held classifiable under Tariff Heading 73.15 because that heading expressly covers chains and parts thereof, and Section Note (2) of Section XV treats chains as parts of general use. Section Note (1)(g) of Section XVI excludes parts of general use from Chapter 84, so the goods could not be placed under Tariff Heading 84.32. As Tariff Heading 98.06 applies only to parts of machinery of Chapters 84, 85, 86, 89 and 90, the claimed benefit under that heading was also unavailable. The earlier order cited by the appellant was not helpful because it did not address the relevant chapter notes.

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Issues: Whether steel chains imported as spare parts for agricultural machinery were classifiable under Tariff Heading 73.15 as parts of general use, or under Tariff Heading 84.32 and consequently Tariff Heading 98.06 with the benefit of Notification No. 69/87.

Analysis: The goods were chains of iron or steel, and Tariff Heading 73.15 expressly covered chain and parts thereof. Section Note (2) of Section XV defined chains as parts of general use, while Section Note (1)(g) of Section XVI excluded such parts of general use from Section XVI. On that footing, the goods could not be taken to Chapter 84 as claimed by the appellant, and Tariff Heading 98.06 could not apply because it covers only parts of machinery of Chapters 84, 85, 86, 89 and 90. The earlier order relied upon by the appellant did not deal with the relevant chapter notes and was therefore of no assistance.

Conclusion: The chains were correctly classifiable under Tariff Heading 73.15 and not under Tariff Heading 84.32 or Tariff Heading 98.06. The appeals failed.

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