AI Drafter 
TaxTMI 
TaxTMI 
2026 (4) TMI 1754
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.... of notification 46/2011 dated 01.06.2011 before the Customs Authority for Advance Ruling, Mumbai respectively in terms of section 28 (H) 2 (a) and 28 H (2) (b) of the Act. Submission by Applicant- 3.1 M/s MRF Ltd is a company incorporated in India under the provisions of Company Act 1956 (2013) having its registered office located at No 114(124 old) Greams Road, Chennai, Tamil Nadu 600 006. The Applicant is involved in manufacturing activity of tyre and selling in India as well as abroad. 3.2 Applicant proposes to import mixture of rubber from the manufacturer in Indonesia or other countries listed under Appendix I of Notification 46/2011 dt 01/06/2011 and import through Chennai, Nhava Sheva and Hazira Customs/ Ports. Applicant has sought approval of clarification regarding classification of mixture of rubber falling under CTH 40028090 and exemption benefit under S No 501 (1) of notification 46/2011 dated 01.06.2011 before the Customs Authority for Advance Ruling, Mumbai respectively in terms of section 28 (H) 2 (a) and 28 H (2) (b) of the Act. In connection with Notification benefit under 46/2011 S no 501 Country of Origin Certificate in terms of N T Not 189/2009 is also....
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.... synthetic rubber may vary. iii) mixed rubber there will not be any specific % of natural rubber or synthetic rubber as there is no condition provided in the customs tariff. iv) the exclusion of substances provided in Note 5A of Chapter 40 will be maintained v) Mixture of rubber based on COO Certificate in terms of Notification 46/2011 sr. no. 501 Not. r/w 189/2009 (NT) 3.5 The classification sought for import of mixed rubber under heading 40028090 is in terms of HSN Explanatory Notes and Section Notes and Chapter Notes of Chapter 40. Though the applicant had imported one consignment vide bill of entry no 6711313 dt 05-01-2026 and cleared through Chennai Customs without any difficulty based on the analysis of manufacturer Analytical Certificate and country of origin certificate in terms of FTA Notification 46/2011 s no 501, the Applicant intends to import of similar goods in future through other ports without any difficulty if the Applicant obtains approval from CAAR Mumbai. Therefore, this application is being filed before the CAAR Mumbai for smooth import of raw material for running of manufacturing activity in the Applicant factory located in differ....
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....terpretation. GIR of Ist Schedule to the Customs Tariff Act 1975. Rule 1 of GIR provides that classification of goods shall be determined according to the terms of heading of the tariff and relative Section or Chapter Notes. In the event of goods cannot be classified solely on the basis of GIR 1, remaining Rule 2 to 6 to be applied. 4.4 In the instant case Chapter Heading 4002 covers mixture of products of heading 4001 with any products of this heading (4002) and sub-heading 400280 covers the same description- mixture of products of heading 4001 with any products of this heading. When the mixture of Rubber is covered under sub heading of 400280 and further tariff item is to be classified under tariff item- 8 digit 40028090 as 40028010 covers latex and 40028020 covers chemically modified natural rubber. 4.5 Therefore, GIR 1 applies to the present case of import of mixture of rubber. Further Chapter Notes 5A of Chapter 40 provides some exclusion substances for heading 4002. They are vulcanising agent, accelerators, retarders, pigments, plasticizers, fillers. Whereas Chapter Notes 5B provides some inclusion of emulsifiers, anti tac agents, breakdown products of emulsifiers, heat....
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....the subject goods through the jurisdiction of the O/o the Commissioner of Customs, Chennai-II (Import), Nhava Sheva-I, and Hazira. Accordingly, the application was forwarded for comments to the jurisdictional authorities, namely: (i) O/o the Commissioner of Customs, Chennai-II (Import), on 13.02.2026, 02.03.2026, 20.03.2026, and 10.04.2026; (ii) O/o the Commissioner of Customs, Nhava Sheva-I, Jawaharlal Nehru Customs House, on 13.02.2026, 02.03.2026, 20.03.2026, and 09.04.2026; and (iii) O)/o the Principal Commissioner of Customs, Hazira, on 16.02.2026, 12.03.2026, and 02.04.2026. Comments have been received from the jurisdictional authority at Hazira vide their letter dated 10.04.2026. However, no comments were received from the jurisdictional authorities of Chennai-II (Import) and Nhava Sheva-I, Jawaharlal Nehru Customs House. 5.2 The said Commissionerate of Hazira has furnished its comments vide letter dated 09.04.2026, submitted as follows: (a) No case is pending in respect of the applicant at Hazira Port, Surat. (b) No issue involved in the present application has been decided in the applicant's own case by the Appellate T....
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....goods are intermixture of Natural rubber and synthetic Rubber and that CTH 4002 specifically covers the said goods i.e. mixture of any product of heading 4001 with any products of this heading (4002) in primary forms or in plates, sheets or strip. That their product does not fall under category of Chapter Note 5A of chapter 40 and Chapter Note 5B is applicable in their case. He contended that the subject goods merit classification under CTH 4002 and more specifically under CTI-400280. He further claimed that the subject goods is eligible for FTA exemption under Notification 46/2011 Sr. No. 501. That the applicable conditions to be fulfilled is the terms of Notification- 189/2009 pertaining to the Rules of origin. Nobody appeared for PH from the department side. DISCUSSION AND FINDINGS 7.1 Admissibility and Scope of the Application 7.1.1 I have carefully considered the application filed in Form CAAR-1, the supporting documents placed on record, the submissions made during the course of personal hearing, and the comments furnished by the jurisdictional Commissionerate of Hazira. The ruling is being pronounced on the basis of the facts available on record and the applic....
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....f heading and entries: 7.2.1 The relevant tariff entries are reproduced below for ease of reference: CTH/CTSH/CTI Description of Goods 4002 SYNTHETIC RUBBER AND FACTICE DERIVED FORM OILS, IN PRIMARY FORMS OR IN PLATES, SHEETS OR STRIP; MIXTURES OF ANY PRODUCT OF HEADING4001 WITH ANY PRODUCT OF THIS HEADING, IN PRIMARY FORMS OR IN PLATES, SHEETS OR STRIP .... .... 40080 MIXTURES OF ANY PRODUCT OF HEADING4001 WITH ANY PRODUCT OF THIS HEADING ..... ..... 4002 80 90 --- Other 7.2.2 A plain reading of the above tariff entries clearly indicates that mixtures of natural rubber (falling under heading 4001) with synthetic rubber (falling under heading 4002), when presented in primary forms or in plates, sheets or strip, are specifically covered under sub-heading 4002 80. Such mixtures, when not more specifically enumerated, fall under tariff item 4002 80 90. 7.2.3 In the present case, as submitted by the applicant, the subject goods are mixtures of natural rubber and synthetic rubber in primary form, with variable proportions, and are stated to be devoid of substances excluded under Note 5(A) to Chapter 40, thereby retaining the essential charact....
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.... natural and synthetic rubber, shall not contain any of the substances specified under Note 5(A). It has further been stated that any additives, if present, would be limited to those permissible under Note 5(B), and that the goods would retain their essential character as raw rubber. 7.3.4 The Hon'ble Supreme Court, in the case of M/s Mannampalakkal Rubber Latex Works [2007 (217) E.L.T. 161 (S.C.)], has held that classification of rubber products is to be determined primarily on the basis of the composition test, and that the determining factor is whether the product retains the essential character of rubber as a raw material. The jurisdictional Commissionerate has also relied upon the said judgment in its comments. 7.3.5 Applying the above statutory provisions and judicial principles to the facts of the present case, I find that where the goods consist of mixtures of natural rubber and synthetic rubber in primary form, do not contain prohibited substances under Note 5(A), and retain the essential character as raw rubber in primary form. 7.3.6 Further, the above conclusion is reinforced by the Harmonised System of Nomenclature (HSN) Explanatory Notes to Heading 4002, w....
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....cation of the subject goods is contingent upon the actual composition and nature of the imported goods at the time of clearance. 7.5.2 Accordingly, the jurisdictional Customs authorities, at the time of import, may undertake examination of the goods, verification of the manufacturer's analytical certificate, and chemical testing, wherever considered necessary, so as to ascertain compliance with Chapter Note 5(A) of Chapter 40 and to confirm that the goods retain the essential character of raw rubber and is not compound or vulcanized . 7.6 Eligibility for Exemption under Notification No. 46/2011-Cus 7.6.1 As discussed above, the subject goods, i.e. mixtures of natural rubber falling under Heading 4001 and synthetic rubber falling under Heading 4002, classifiable under CTH 40028090, are also proposed for assessment under Serial No. 501 of Notification No. 46/2011-Cus dated 01.06.2011, which provides concessional rate of duty under the ASEAN-India Free Trade Agreement (AIFTA). The relevant extract of the said notification is reproduced below: ......... December, 2009 [G.S.R. 944 (E), dated the 31st December, 2009], except as respects things done or omitt....
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....ixtures of natural and synthetic rubber under Heading 4002, read with the provisions of Chapter Note 5 to Chapter 40 and the General Rules for Interpretation. The decisive factor remains whether the goods retain the essential character of raw rubber and do not contain substances excluded under Note 5(A). 8.2 The submissions of the applicant, supported by the statutory provisions, HSN Explanatory Notes, and judicial precedent, indicate that the subject goods are, in principle, classifiable under tariff item 4002 80 90. However, such classification is necessarily subject to verification of the actual composition of the goods at the time of import. This includes confirmation that the goods are unvulcanised and do not contain impermissible additives, through appropriate examination, including testing wherever required, as part of the Customs Compliance Verification (CCV) process by the jurisdictional Customs authorities. 8.3 Further, the eligibility for concessional duty under Notification No. 46/2011-Cus dated 01.06.2011 is contingent upon fulfilment of the prescribed conditions. In particular, this includes compliance with the Rules of Origin under Notification No. 189/20....