DBK Tariff Classification

[Pradeep Jain]

We had been exporting the Automobile components to USA and UK. And availing export benefits 5% under DEPB Scheme vide DEPB Sl. No. 442 “ Spline Hub for Clutch Plate “ since Nov.2008. In the month of Aug’2011 Customs department had raised Query memo 27th August’2011 that some components such as Counter Shaft, Auxiliary Gear, Counter Shaft 2nd , Clutch sliding, splitter and Clutch sliding ( Range) classified item as “ Spline Hub for Clutch “and claiming DEPB 5% under Sr. No.442 of Product code 61. DEPB is admissible only on Spline hub for Clutch plate. Written submission on about query memo is made to the Customs Department. But neither reply is given nor Show Cause Notice is issue till date. After that since Oct’2011 DEPB has been withdrawn and Duty Draw-back( DBK) is introduced. The same product item, i.e. “ Spline Hub for Clutch “ vide tariff classification no. 8708026 ,is mentioned on ARE-1 and Shipping Bills by us, since it is more appropriate to our product. However, since the matter is not resolved, so far, Customs department has been assessing our Shipping Bills provisionally since beginning of DBK i.e. Oct.’2011 to till date. Further, “without prejudice” reserving our right to defend our contention on the issue, we want to adopt the DBK tariff item as under:- 1- Tariff item 8708067-“Identifiable ready to use machined parts/ components made wholly or predominantly of Alloy Steel ( not less than 90% by weight ) manufactured through Forging process, not elsewhere specified” vide Customs Notification no. 92/2012-Customs (N.T.) dated 4th Oct’2012, OR 2- Tariff item 8708099 others Now our query is that - if we change our stand to stop the litigation with the Customs Department,- -will effect the matter covered by the department through above said Query Memo. -What intimation is to be given to the department, if we go for change in tariff code.

Regards

Pradeep Jain

AI Summary

Exporter Faces Customs Query on Tariff Classification for Auto Parts; Considers Change to Avoid Litigation An individual exporting automobile components to the USA and UK under the DEPB Scheme faced a Customs query regarding the classification of certain components, such as the Spline Hub for Clutch Plate. Since DEPB was replaced by Duty Drawback (DBK) in October 2011, the exporter has been using tariff classification no. 8708026 on shipping documents. Due to unresolved issues with Customs, the exporter considers changing to tariff items 8708067 or 8708099 to avoid litigation. The discussion includes whether prior intimation to Customs is necessary to prevent charges of fact suppression.