TaxTMI 
TaxTMI 
2026 (4) TMI 1096
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....of anti-dumping duty on the same. 3. Submission by Applicant- 3.1. Adient India Private Limited is a private limited company incorporated under the Companies Act, 1956. 3.2. The Applicant is engaged in the manufacture and supply of complete seat systems and its assembly for four-wheeler motor vehicle. The Applicant is a major supplier of automotive seats for the leading Original Equipment Manufacturers ("OEMs") and also their suppliers in India. 3.3. The Applicant is proposing to import Foam Production Line with 32 Station Conveyors (including Dry Side and Metering Machine) (Part No. CAP0003805) from China from supplier namely Krauss Maffei Machinery (China) Co. Ltd. The applicant has submitted a copy of the purchase order. 3.4. The machine will be imported in CKD/SKD condition and all the parts required for making the machine will be presented for clearance at the same time. The machine comprises of two major parts which are as follows: i. Metering machine ii. Dry side. The applicant submitted various details of the subject goods viz ... Copy of catalogue of metering machine and dry side, technical details of the machine and Process flow of the ....
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....for manufacturing PUR. Water heating units are installed on oval shape racetrack which are linked with carriers & moving continuously with carriers. Water heating units circulates hot water into moulds to heat up the moulds. 3.16 Further, clamping force of 80 kilo newtons (approximately 8.02 tonnes) is also required to be applied for manufacturing PUR. 3.17 Once the above process of pouring, heating and applying clamping force is completed and after one round completion, carrier comes in operator area where it starts opening the mould to allow the operator to take out the PUR foam from mould and the cycle continues. Photographs of dry side are provided below: Imposition of Anti-dumping duty on import of plastic processing machinery or injection moulding machines falling under tariff entry 8477 10 00 and 8477 90 00. 3.18 Vide Notification No. 21/2025-Customs (ADD) dated 26.06.2025, the Central Government has imposed Anti-Dumping Duty ("ADD") on import of plastic processing machines or injection moulding machines used for processing and moulding of plastic materials falling under tariff entry 8477 10 00 and 8477 90 00. 3.19 As per Note 2 of Notification No. 21/2025-Cus....
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....oulding machines and other thermoforming machines - Other machinery for moulding or otherwise forming: 8477 51 00 -- For moulding or retreading pneumatic tyres or for moulding or otherwise forming inner tubes 8477 59 00 -- Other 8477 80 - Other machinery: 8477 80 10 --- Machinery for making rubber goods 8477 80 90 --- Other 8477 90 00 - Parts Thus, a machine for manufacture of products from plastics, which is not specified or included elsewhere in Chapter 84 will be classified under CTH 8477. 4.1.6 As provided above, polyol is mixed with isocyanate in pre-decided quantity for manufacturing the PUR. Polyol is classifiable under tariff entry 3907 29 10 of the First Schedule to the Tariff. It is submitted that Chapter 39 of Schedule I of the Tariff provides for "Plastic and articles thereof". 4.1.7 Accordingly, it is submitted that as the polyol used in manufacturing of PUR is a type of plastic, the machine imported by the Applicant falls under CTH 8477 as the said CTH covers machinery for the manufacture of products from plastics. Thus, the foam manufacturing machine merit classification under CTH 8477.....
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.... i.e. "Injection-moulding machines". b. Without prejudice to the above, the foam manufacturing machine can be classified under tariff entry 8477 59 00. 4.1.12 Without prejudice to above, it is submitted that the foam manufacturing machine can be classified under tariff entry 8477 59 00. 4.1.13 As provided above, foam manufacturing machine falls under the CTH 8477 as the said CTH provides for machinery for the manufacture of products from plastics and the machine is not specified or included elsewhere in Chapter 84. 4.1.14 It is submitted that CTH 8477 inter alia includes "Other machinery for moulding or otherwise forming" which includes tariff entry 8477 51 00 and 8477 59 00. Tariff entry 8477 51 00 provides "For moulding or retreading pneumatic tyres or for moulding or otherwise forming inner tubes" and tariff entry 8477 59 00 provides "Other". The relevant entries of Heading 8477 are extracted below: 8477 Machinery for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter - Other machinery for moulding or otherwise forming: 8477 51 00 -- For....
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....indicated that Cannon does not import complete systems. The applicable subheading for the metering units will be 8413.19.0000, HTSUS, which provides for other pumps fitted or designed to be fitted with a measuring device. The rate of duty is free. The applicable subheading for the "Internet" and other mixing heads, when presented separately, will be 8481.80.9050, HTSUS, which provides for other taps, cocks, valves and similar appliances. The rate of duty will be 2 percent ad valorem. The applicable subheading for the mold carriers and the "multidaylight" press will be 8477.90.8595, HTSUS, which provides for parts of machines for working rubber or plastics or for the manufacture of products from these materials, not specified or included elsewhere in this chapter: other: other. The rate of duty will be 3.1 percent." 4.1.17 From the above relevant extract, it is apparent that a polyurethane foam molding system will be classified under subheading 8477 59 where all the parts required to constitute the same are imported and presented for clearance together. The above cross ruling has classified the parts in separate tariff entries because the mixing heads w....
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....microbial fats or oils 8479 20 10 --- Oil-seed crushing or grinding machinery including purifying tanks 8479 20 90 --- Other 8479 30 00 - Presses for the manufacture of particle board or fibre building board of wood or other ligneous materials and other machinery for treating wood or cork 8479 40 00 - Rope or cable-making machines 8479 50 00 - Industrial robots, not elsewhere specified or included 8479 60 00 - Evaporative air coolers - Passenger boarding bridges 8479 71 00 -- Of a kind used in airports 8479 79 00 -- Other - Other machines and mechanical appliances: 8479 81 00 -- For treating metal, including electric wire coil-winders 8479 82 00 -- Mixing, kneading, crushing, grinding, screening, sifting, homogenising, emulsifying or stirring machines 8479 83 00 -- Cold isostatic presses 8479 89 -- Other: 8479 89 10 --- Soap cutting or moulding machinery 8479 89 20 --- Air humidifiers or dehumidifiers (other than those falling under heading 8415 or 8424) 8479 89 30 --- Mechanical shifting machines 8479 89 40 ....
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....he incomplete or unfinished article possesses the essential character of the complete or finished article at the time it is presented for clearance. Furthermore, Rule 2(a) also provides that a reference to an article shall be taken to include that article in an unassembled or disassembled state at the time of its clearance. The relevant extract of Rule 2(a) of GI Rules is provided below for ready reference: "Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this Rule), presented unassembled or disassembled." 4.2.3 Thus, upon a perusal of Rule 2(a), it can be observed that goods presented for clearance, even in an unassembled or disassembled form (i.e., CKD/SKD form), are to be classified under the heading applicable to the fully assembled goods. 4.2.4 In the present case, all the parts required for making foam manufacturin....
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....) is applied for manufacturing PUR. The fact that clamping force of 80 kilo newtons is applied can be verified from technical details of the foam manufacturing machine. Snapshot of the relevant extract of technical details is provided below: 4.3.4 In light of the above, it is submitted that even if the foam manufacturing machine is classified under tariff entry 8477 10 00, Notification dated 26.06.2025 is not applicable to the present case as clamping force of 8.02 tonnes is applied for manufacturing PUR, whereas Notification dated 26.06.2025 is applicable only if clamping force of machines is 40 tonnes and above. 4.3.5 In view of above, the Applicant prays for a ruling concluding that ADD shall not be payable on import of foam manufacturing machine from China as Notification dated 26.06.2025 provides for imposition of ADD only if clamping force is 40 tonnes and above whereas the clapping force of the machine to be imported is 8.02 tonnes. 5. Port of Import and reply from jurisdictional Commissionerate: The applicant in their CAAR-1 indicated that they intend to import the subject goods from O/o The Commissioner of Customs (NS-V), Nhava Sheva. The application was forwar....
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.... Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. 10. Rule 1 of the General Rules for Interpretation provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes and thus, gives precedence to this while classifying a product. Rules 2 to 6 provide the general guidelines for classification of goods under the appropriate sub-heading. In the event the goods cannot be classified solely on the basis of Rule 1, and if the headings and section or chapter notes do not otherwise require, the remaining Rules 2 to 6 may then be applied in sequential order. I. CLASSIFICATION OF THE SUBJECT GOODS A. Technical Nature and Functional Scope 11. The subject goods comprise a complete and integrated foam manufacturing system consis....
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....5. Polyurethane foam is a polymer falling within the ambit of Chapter 39 of the First Schedule to the Customs Tariff Act, which covers "Plastics and articles thereof." Further, polyol-being a primary input in the manufacture of polyurethane foam-is classifiable under tariff entry 3907 29 10. In view of the above, and considering that the subject machine is specifically designed for the manufacture of such polymer-based products, it is evident that the goods are appropriately classifiable under Heading 8477. The subject goods, being plastic processing machinery, are thus squarely covered under Heading 8477 of the Tariff. C. Whether the Subject Goods are "Injection Moulding Machines" (CTH 8477 10 00) 16. The principal issue to be determined relates to whether the subject goods merit classification under tariff entry 8477 10 00 - "Injection moulding machines". 17. In this regard, it is essential to understand the scope of the term "injection moulding machine" in trade and technical parlance. Injection moulding is a process involving: * Introduction (injection) of material into a mould cavity; * Conformation of the material to the shape of the mould; ....
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....ject machine squarely falls within the scope of "injection moulding machines. Additionally, the applicant has itself admitted and unequivocally acknowledged that the imported machine satisfies the essential characteristics of a reaction injection moulding machine. 23. Accordingly, applying Rule 1 of the General Rules for Interpretation, the subject goods are appropriately classifiable under tariff item 8477 10 00 - that covers Injection moulding machines. D. Alternative Classifications: 26. The alternative classifications proposed by the applicant under CTH 8477 59 00, 8477 80 90, and 8479 89 99 have been duly considered. However, the same are found to be devoid of merit for the following reasons: * CTH 8477 59 00 is a residual sub-heading covering "other moulding machines". It is a settled position in law that where goods are squarely covered by a specific entry-in the present case the goods are very well covered under the description, "injection moulding machines" under CTH 8477 10 00-recourse to a residual entry is not tenable. * CTH 8477 80 90 is in the nature of a general residual entry within Heading 8477, intended to cover only those machines which....
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....ustain. ON ANTI-DUMPING DUTY (ADD) :- 26. The submissions advanced by the applicant seeking classification of the subject goods under CTH 8477 59 00 and claiming non-applicability of Anti-Dumping Duty (ADD) have been carefully examined in light of the statutory provisions, technical characteristics of the goods, and settled principles of tariff interpretation. The said contentions are found to be legally and factually untenable for the reasons elaborated hereunder: A.1 The Subject Goods as "Other Moulding Machinery" 27. The applicant has sought to classify the subject goods under CTH 8477 59 00 as "other machinery for moulding or otherwise forming". This contention is based on an erroneous appreciation of the functional identity and operational characteristics of the machine. 28. It is observed that the subject goods perform the core function of introducing (injecting) reactive material into mould cavities, followed by shaping and solidification within the mould. This sequence of operations constitutes the defining feature of an injection moulding process. Notably, the applicant has itself expressly admitted and unequivocally acknowledged that the imported machine sa....
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....ding section (32 mould carrier/cassettes); * Clamping mechanism (pneumatic air bag system); * Automated control systems. 37. The presence of these components, functioning in an integrated manner, clearly establishes that the machine is not merely a generic moulding device but a complete injection moulding system. 38. The applicant's classification under 8477 59 00 fails to account for this integrated functional identity and instead isolates certain process aspects, which is not permissible under GRI A.4 Misplaced Reliance on Foreign Ruling 39. The applicant has relied upon a US Cross Ruling to support classification under a subheading equivalent to 8477 59. 40. This reliance is misplaced for the following reasons: * Classification under the Indian Customs Tariff is governed strictly by the provisions of the Customs Tariff Act, the General Rules for Interpretation, and relevant Section/Chapter Notes; * Foreign rulings, including those under the US HTSUS, are not binding and have only limited persuasive value; * The cited ruling itself distinguishes between individual components and complete systems and does not conclusi....
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....w - a. A plastic processing machine in semi knocked down stage shall mean a plastic processing machine which is not fully assembled but is transacted as a plastic processing machine with parts or sub-assemblies not fitted together and the machine is not ready to use. A semi knockdown machine shall also imply sub-assemblies namely clamping/clamp unit, injection unit with or without screw & barrel, machine base frame and fabrication frames/covers imported for injection moulding machine. b. A plastic processing machine in completely knocked down stage shall mean a plastic processing machine in its incomplete or unfinished form, has the essential character of the complete machine when put together, and contains all components required for assembling the machines." 51. A plain reading of the above Note makes it abundantly clear that the scope of the notification is deliberately broad and technology-neutral, encompassing all forms and configurations of injection moulding machinery, irrespective of their state of assembly. The governing criteria are the functional identity of the machine as a plastic processing/injection moulding system and its clamping force falling ....
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....s of their total effective clamping capacity and overall functional identity. A. Determination of Clamping Force 54. . The relevant portion of technical specifications of the subject goods regarding clamping force is produced verbatim as below: 2,1.4 Cassette system 32 Mould Carrier/Cassettes Each mould carrier consisting of: 2 (two), integrated pivot bearings for tilting mould carrier lid 2 (two), integrated pivot bearings for tilting mould carrier frame base frame, to carry the air bag support and the lower platen parted bottom plate (two halves) each with four taps (M12) for mould fixing, made in carbon steel Platen thickness 15mm 4 (four), pneumatic air bags, 2 (two) for each platen, selectable for individual or combined parallel stroke 1 (one) upper frame, built as rigid steel frame for mould fixing. Mould fixing flexibility from front to back side 3 (three), mechanical locking latches (middle and as far as possible outside the carrier) Larger mould size possible in between the front latches Portable with fork lift Mecha....
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....n. The machine is engineered and commercially understood as a single integrated unit, wherein multiple moulding stations collectively contribute to the overall production capacity. Therefore, the effective clamping capacity must be assessed with reference to the machine as a whole. 61. Accordingly, the total effective clamping force is computed as: * 16.32 tonnes x 32 stations = approximately 522.24 tonnes B. Applicability of Notification 62. The aggregate clamping force of approximately 522.24 tonnes falls squarely within the range of 40 tonnes to 1500 tonnes specified in the notification. 63. Further, the notification expressly covers: * Injection moulding machines; * Machines imported in CKD/SKD condition; and * Machines possessing the essential character of complete machinery. 64. As already established: * The subject goods are classifiable under CTH 8477 10 00; * The goods are imported in CKD/SKD form but constitute a complete machine; * The clamping force, when assessed on a cumulative basis, satisfies the prescribed threshold. 65. In the present case, the Applicant proposes to import "Foam Produ....
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.... Chen Hsong Machinery Taiwan Co., Ltd. 39% 8. -do- -do- Taiwan Any country including Taiwan Huarong Plastic Machinery Co., Ltd 0% 9. -do- -do- Taiwan Any country including Taiwan Any producer other than producers mentioned at S No. 7 and 8 above 53% 10. -do- -do- Any country other than China PR and Taiwan Taiwan Any producer 53% It is observed that Krauss Maffei Machinery (China) Co. Ltd. is not among the specifically listed producers covered under Serial Nos. 1 to 4 of the Table. Accordingly, the subject imports would fall under the residual category applicable to "any producer other than those specified". 67. Therefore, in terms of Serial No. 5 of the said notification, imports of the subject goods originating in or exported from China PR from producers other than those specifically listed attract Anti-Dumping Duty at the rate of 63% of CIF value. 68. In view of the above, the subject goods proposed to be imported by the Applicant from Krauss Maffei Machinery (China) Co. Ltd. are squarely covered under the scope of Notification No. 21/2025- Customs (ADD) dated 26.06.2025, and are liable to Anti-Dumping ....