AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1015
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....er 0388021713 issued by the Additional Director General of Foreign Trade, Mumbai under section 7 of the Foreign Trade (Development and Regulation Act), 1922 (22 of 1922). Applicant is presently engaged in both trading and manufacturing across diverse sectors, including consumer goods, industrial products, and engineering solutions. The applicant intends to import the 'Forklift Drive Train (Parts of Forklift)'. The Applicant is seeking correct classification of the subject goods. As the applicant's interpretation the subject goods are classifiable under CTI 84312010. 2.2 It is informed by the applicant in CAAR-I form, that none of the models of subject goods under consideration in the instant application is pending in the applicant's case before any officer of Customs, Appellate Tribunal or any Court of Law. 3. The details of the subject goods as submitted by the Applicant: 3.1 What is a Forklift: A forklift (also called an industrial truck, lift truck, jitney, hi-lo, fork truck, fork hoist, and forklift truck) is a powered industrial truck used to lift and move materials over short distances. 3.2 What is a Forklift Drive Train: a) A for....
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....right mounting, which is made of MS mounting plate or has a Trunion mechanism, based on different types of forklift design methodology. The forklift does not have suspension as found in conventional automobiles. The Forklift Drive Train has a customized internal design to provide a buffer/cushioning effect to internal parts and save them from vibration damage. d) End Use of 'Forklift Drive Train': The 'Forklift Drive Train' is exclusively used in the manufacture of forklifts, which are used in material handling applications for lifting, shifting, and stacking Material inside warehouses, ports, logistics centers, and industrial environments. 4. The Applicant has submitted that the subject goods 'Forklift Drive Train' are parts of forklift. In support of the claim of the Applicant that the subject goods are parts of Forklift has submitted as below: 4.2 The Applicant submitted that the definition of "Part" according to Chapter 11 of the DGFT Policy for ready reference is reproduced below: Part - means an element of a sub-assembly or assembly not normally useful by itself, and not amenable to further disassembly for maintenance p....
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....SOLELY OR PRINCIPALLY WITH THE MACHINERY OF HEADINGS 8425 TO 8430 8431 10 - Of machinery of heading 8425: 8431 10 10 --- Of pulley tackle and hoists, other than ship hoists, winches or capstans 8431 10 90 --- Other 8431 20 - Of machinery of heading 8427: 8431 20 10 --- Of forklift trucks 8431 20 90 --- Other 5.4 The Applicant has submitted that according to 'Note 2(b) and Parts' to the Section XVI (Section XVI Covers Chapters 84, 85 & 86 of the Customs Tariff Act, of 1975) and 'Parts' to Chapter 84 of the Harmonized Commodity Description and Coding System Explanatory Notes (ENs), the 'Forklift Drive Train' which is solely or principally part of the forklift is properly and correctly classifiable under Customs Tariff Item (CTI) 84312010 and it is not specifically excluded from Chapter 84 or CTH 8431. The Applicant has also submitted that the subject goods are not excluded by any exclusion Note/clause of the section XVI and Chapter Notes. 5.5 The applicant has also referred the judgement in case of Commissioner of Central Excise, Trichy Vs. PSP Steels (P) Ltd. [2013(295) ELT. 224(Tri. - Chennai)] Material Lifting & ....
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....parts of forklift will suitably fall under CTH 8431 more possibly under heading CTI-84312010. They relied upon HSN Explanatory Note- Section Note 2(B)-II parts and to the Chapter XVII notes-Para A(5). It was asked to provide specific literature about the Drive trains for forklift and price pattern/value of the subject goods in respect of complete unit of forklift. They seek a couple of days' time which is permitted. Nobody appeared for PH from the department side. 7.2 On 15.09.2025 for the literature part of the subject goods the applicant provided the European journal of Research and development on Modelling of Forklift Drivetrain and running the fuel consumption cycle. The Applicant also submitted the price breakup/pattern of the "forklift drive train" w.r.t. the complete "Forklift". As per the price breakup submitted by the applicant the cost of the subject goods "Forklift Drive Train" with respect of the Forklift is 10% and 15% respectively in case of electric Forklift and diesel Forklift. Discussion and Findings: 8. At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, bein....
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....e Train' is not a generic automotive part, but a custom-designed industrial component. It is a specific part of the 'Forklift' without which it could not function. The 'Forklift Drive Train' is specifically engineered and manufactured for integration into forklifts. Applicant has also submitted that this part is suitable for use solely and principally with forklifts and cannot be used on any other highway off-highway vehicles or other vehicles of Chapter 87. The Applicant has submitted that a forklift drivetrain is a system that transmits power from the engine or motor to the wheels, allowing the forklift to move and lift loads. It consists of various components working together to efficiently transfer power and enable the forklift's operation, including the engine / motor, transmission, and axles. I find a forklift cannot be built or function without a drivetrain. In view of the components it constitutes, the integration it requires and its functions specified, it is observed that that forklift drivetrain qualifies as part of forklift in as much as a Forklift would not be able to perform its function. 13. Now, I consider the classification part of the su....
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....of the CTH 8427 and 8431, I find that Forklift trucks are classifiable under CTH 8427 and the parts suitable for use solely or principally with the machinery of headings 8425 to 8430 are covered by CTH 8431. The parts of forklift trucks are specifically covered under CTI 84312010. Accordingly, it can safely be deduced being part of forklift trucks, "Forklift Drive Train" are classifiable under CTI 84312010. 15. Before coming to final conclusion for the classification of the subject goods. I would also go through whether Forklift Drive is covered by any of the exclusion clauses of the Section XVI notes and Chapter notes of Chapter 84. The Note 2 of Section XVI is produced below for reference: Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b)....