TaxTMI 
TaxTMI 
2026 (5) TMI 774
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.... in the business of supply, installation, testing, commissioning, and maintenance of elevators and escalators across India. Historically, the applicant has been importing fully assembled elevator equipment under model number HGE-Z, wherein the goods are manufactured by Hitachi China, invoiced through Hitachi Japan, and delivered directly from China to India. The applicant now proposes to implement a localization model starting with Phase I, under which certain components of the elevator system under model number HGE-Z will be sourced domestically within India, and the balance components will be imported in unassembled form directly from Hitachi China. 2.2 The applicant also informed that while the elevator will no longer be imported in a fully assembled state, the components proposed to be imported constitute the core mechanical, electrical, and safety systems of the elevator and enable its primary function of vertical transportation. In this context, the applicant seeks an Advance Ruling to determine the appropriate classification under the First Schedule to the Customs Tariff Act, 1975 for the imported elevator components. Specifically, the applicant seeks confirmation on whet....
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.... entrance. 3. Car Frame Car Frame The structural skeleton supporting the elevator car enclosure. Connects to hoisting ropes, safety gear, and guides. Takes dynamic and static loads during movement and emergency stops. Hitachi China Anti-Vibration Rubber; Damping pads placed under the car frame or machine to reduce vibrations passed into the building; Hitachi China Weighing Device Load sensors that detect car weight to prevent overloading and enable intelligent load-based dispatching. Counterweight (CWT) Frame Holds counterweight blocks. Provides a balancing force to reduce motor load and power consumption. Hitachi China Car and CWT Pulley Ensures correct rope tension and direction. Help to balance the elevator car's weight, making movement efficient. Hitachi China Sub Weights & Balance Weight Counteracts the weight of the elevator car to ensure balanced and smooth movement up and down the shaft. Locally 4. Car Car Enclosure; The outer shell of the elevator cabin, including side panels, floor, and rear wall; Locally Transom; Horizontal section above the car door opening. Provides support and a finish; ....
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....or maintenance personnel Locally Shaft Cable Trunking Sheet metal trays/channels for organizing and protecting shaft wiring (e.g., call signal cables, safety lines). 10. Switch Operating Panel Board (OPB); Inside-car control panel containing: Call buttons, alarm, door open/close, and emergency buttons. Hitachi China Indicators; Digital or LED displays showing floor number, direction, overload, etc. Button PCB The printed circuit board that integrates all pushbuttons and indicators with logic circuits. 3.2 Further, the imported goods consist of core mechanical, electrical, control, and safety sub-systems that collectively enable the elevator's primary function: safe and efficient vertical transportation of persons or goods. It will be shipped in disassembled/unassembled form and will not include certain structural and architectural parts, which will be sourced within India. These components are meant to be assembled at the project site along with the locally procured items to complete the installation of elevators as per the customer-specific requirements. The components are customized for and traceable to Model HGE-Z and are identical in s....
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....oduct's essential function and do not alter its classification. 4. Essential Character Test 4.1 The test under Rule 2(a) hinges on whether the imported goods, as presented, have the essential character of the complete equipment. In this case the elevator's motion, control, electrical interface, and safety features are all captured in the import, the imported package is functionally and commercially recognized as the main body of the elevator system, and the model number (HGE-Z) and warranty (18 months) remain unchanged from fully assembled past imports, reinforcing functional equivalence. 5. Therefore, the applicant stated that by applying Rule 2(a), the imported set of elevator components under Phase I retains the essential character of a complete electric elevator, despite being unassembled and despite certain auxiliary parts being locally sourced. It is submitted that the import should accordingly be classified under HSN 84281011. 6.1 The following systems will be imported in unassembled form and together form the core functional and operational units of the elevator: i) Car Frame and Drive System: ○ Car frame, traction machine, car an....
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....(building side) where the elevator doors are fitted. * It serves as the interface between the building structure and the elevator door. * Provides structural alignment for door operation. e. Door Header * This is the horizontal supporting member above the elevator landing doors. * It typically houses components like the door operator (which would be imported). * Its function is to anchor and align the door mechanism on each floor. The above components are architectural or mounting elements, required for proper fitting and alignment of the doors, but they are not involved in movement, propulsion, safety, or control of the elevator. In the Applicant's case, the core door operating mechanism (door machine unit and controller) would be imported, which is what actually opens and closes the doors. So, while jamb frames and headers are important for installation, they do not contribute to elevator motion or essential function. 6.3 Sub Weights and Balance Weights These are counterbalancing elements attached to the counterweight frame in an elevator system. Their job is to balance the weight of the elevator car, reduce....
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....cing does not affect the elevator's essential function or classification. * Shaft Lighting ▪ Lighting installed inside the elevator shaft (not inside the cabin). ▪ Meant for maintenance visibility, safety, and compliance with installation norms. Shaft lighting has no role in elevator motion or control. It does not interact with the elevator control system or passenger interface. * Shaft Cable Trunking (Sheet Metal Parts) ▪ It is metal ducting used to neatly house and guide electrical cables inside the elevator shaft. ▪ Ensures cable safety and organized routing. ▪ It is a supportive installation component, not a core system. ▪ These are like a conduit or raceway, it simply holds the wiring - it is not electrically functional. ▪ The wires and cables themselves - along with the electrical control systems - are imported. 6.5 External Structural Components are Installation-Specific, Not Identity-Defining Components such as guiderails, brackets, fishplates, jamb frame, and door header are external to the elevator cabin and are customized based on ....
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....llation or aesthetic finishing, and as such, do not alter the essential character under Rule 2(a). 9. In addition to the legal and technical justification, the Applicant submitted that the proposed classification of the imported components 'under Tariff Item 84281011 is also consistent with the commercial identity and past practice associated with the product. The import arrangement under the Phase I localization model retains continuity with the previously followed approach when complete elevators were imported into India which is more specifically discussed below: * Continuity of Model Number (HGE-Z) a. The goods proposed to be imported under the localization model will continue to carry the same model number - HGE-Z as used in the import of fully assembled elevators in the past. b. The model number identifies a specific technical configuration of the elevator system, which remains unchanged even though some structural parts will now be locally procured. c. This reflects that the technical and functional configuration of the elevator remains identical, reinforcing the essential character of the imported components. * Warranty Te....
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.... M/s Hitachi Lift India Pvt. Ltd., is an Indian company holding a valid Importer-Exporter Code (IEC No. 0508000131). Accordingly, the applicant satisfies the definition of "applicant" under Section 28E(c) (i) of the Customs Act, 1962. II. Nature of Activity: The applicant proposes to import elevator equipment in unassembled / disassembled form from Hitachi Elevator (China) Co., Ltd., under a phased localization model (Phase-I). The imported components include traction machine, control panel, car frame, door machine unit, safety gear and other essential mechanical, electrical and safety systems, which are intended to be integrated in India with certain auxiliary and structural components sourced locally, followed by installation and commissioning at customer sites. III. Admissibility under Proviso to Section 28-1(2): As per the declaration made by the applicant and available records, the question on which advance ruling has been sought is not pending before any officer of Customs, Appellate Tribunal or any Court, nor has it been previously decided in the applicant's own case. Accordingly, the application appears admissible under the provisions....
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....rted unassembled elevator components, when examined collectively, do not satisfy the test of essential character of a complete elevator, and therefore do not merit classification as complete elevators under Heading 8428. h. Accordingly, the imported goods appear more appropriately classifiable as parts of elevators under Heading 8431, subject to examination of individual components and their specific description at the time of import. VI. Submission: In view of the foregoing, this office is of the considered view that the applicant's claim for classification of the imported unassembled elevator components as a complete elevator under CTH 8428 1011 by application of Rule 2(a) is not acceptable. The final classification may, however, be decided by the Hon'ble Authority based on the facts, submissions and applicable legal provisions. 12. Details of Personal Hearing: - Shri Shailesh Bapat (AR), Shri Dheeraj Vohra and other AR appeared online for Personal Hearing in this matter on 01.12.2025. They reiterated the contention filed with the application that the subject goods are complete elevator system in CKD condition. This elevator system can be ....
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....omponents will be imported from Hitachi China in unassembled condition. The applicant also submitted that the imported components include Rail clips, car frame, Door machine, safety systems, electrical control systems and electrical systems. These components constitute the functional core of the elevator. Locally sourced items (e.g., guiderails, entrance jamb frame, car enclosure, car door, electrical shaft lighting and shaft cable trunking) are structural, passive, or installation-specific. The imported goods retain the essential character of a complete elevator. Reliance is placed on Rule 2(a) of GRI, arguing goods presented unassembled but having essential character must be classified as complete goods. That the system enables vertical transportation, which defines an elevator. Additional arguments that continuity of model number (HGE-Z), lump-sum invoicing, warranty consistency and supplier classification under 84281011 is to be carefully evaluated. 14.5 I find that the relevant Rule 1 of GRI provides that classification shall be determined according to the terms of the headings and relevant Section or Chapter Notes and Rule 2(a) of GRI applies only when incomplete or una....
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....d articles presented unassembled or disassembled provided that they are to be treated as complete or finished article by virtue of first part of this Rule. (VII) For the purpose of this Rule, "articles presented unassembled or disassembled" means articles the components of which are to be assembled either by means of fixing devices (screws, nuts, bolts etc.) or by riveting or welding, for example, provided only assembly operations are involved. No account is to be taken in that regards of the complexity of the assembly method. However, the components shall not be subject to any further working operations for completion in to finished state. Unassembled components of an article which are in excess of the number required for that article when complete are to be classified separately." Basis the above it is submitted that Rule 2(a) is applicable in cases where: * only assembly operations are involved irrespective of the complexities of the assembly methods for assembling an article imported in unassembled form; and * goods unassembled or disassembled can be put together by simple fixing device (screws, nuts, bolts etc.) or by riveting or....
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....nd components have all the essential ingredients imparting character essential for elevator, in that case such parts and components could be classified as elevator. In the proposed model, the imported goods requiring classification lack some of the most critical components such as the guiderails, entrance jamb frame, car enclosure, car door, electrical shaft lighting and shaft cable trunking. These essential components will undergo complex assembly/manufacturing operations by using highly skilled labour in India. Therefore, in absence of the above-mentioned essential components, it could be incomprehensible to say that the incomplete or unfinished elevator resemble the essential character of elevator. Accordingly, in terms of the above Circular, the imports proposed to be made by the applicant will not reflect the 'essential characteristics' of elevator when all the essential components/parts are not being imported and hence the imported goods will be classified as per the respective classification without invoking Rule 2(a). 15. Furthermore, I carefully considered the submission, records and applicable legal provision. The relevant extract of the same has been reproduce....
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.... building; 4 Weighing Device Load sensors that detect car weight to prevent overloading and enable intelligent load-based dispatching. 5 Counterweight (CWT) Frame Holds counterweight blocks. Provides a balancing force to reduce motor load and power consumption. 6 Car and CWT Pulley Ensures correct rope tension and direction. Help to balance the elevator car's weight, making movement efficient. 7 Door machine with unit controller Comprises door motor, drive belt/pulley, sensors, and control PCB. Automatically opens/closes doors at landings and inside the car. 8 Safety Gear A mechanical braking system mounted on the car frame that clamps onto the guide rails when triggered. Activated during overspeed or free-fall situations, controlled by the overspeed governor. 9 Buffer Located at the bottom of the shaft, under the car and CWT. Absorbs kinetic energy if the car travels beyond the lowest floor (overtravel). 10 Over speed Governor A speed-sensing mechanical device with centrifugal weights. Trips the safety circuit and engages the safety gear if elevator speed exceeds a set limit. 11 Traction (Driving) MC Main ....
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....r and excluded from chapter 84 by Note 1(a). Further, rail clips are parts of general use and are excluded from chapter 84 by Note 1(g). The relevant portion of CTH 4016 is referred hereunder: 40.16 -Other articles of vulcanised rubber other than hard rubber. 4016.10 - Of cellular rubber -Other: 4016.91 - Floor coverings and mats 4016.92 - Erasers 4016.93 - Gaskets, washers and other seais 4016.94 - Boat or dock fenders, whether or not inflatable 4016.95 - Other inflatable articles 4016.99 - Other The imported goods Anti Vibration Rubber is not specifically covered under any heading of chapter 40, therefore, merit classification under CTH 4016, more specifically under CTI 40169990 as other articles of vulcanised rubber other than hard rubber as the HSN explanatory notes of CTH 4016 provides that this heading covers all articles of vulcanised rubber (other than hard rubber) not covered by the preceding headings of this Chapter or by other Chapters. 15.2 Further, relevant portion of CTH 7326 is reproduced hereunder: 73.26 - Other articles of iron or steel(+). - Forged or stamped, but not further worked : 7326....
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....3.81- Having a maximum weighing capacity not exceeding 30 kg 8423.82- Having a maximum weighing capacity exceeding 30 kg but not exceeding 5000 kgs 8423.89 Other 8423.90 - Weighing machine weights of all kinds; parts of weighing machinery The subject goods, described as a load weighing device for elevators, are designed to measure the load acting on the elevator car and generate a corresponding output for safe and efficient operation. The essential character and principal function of the impugned goods is that of weighing, inasmuch as they determine the weight of passengers and goods within the lift car. In terms of GRI 1, classification is to be determined according to the terms of the headings read with relevant Section and Chapter Notes. Heading 8423 specifically covers weighing machinery of all kinds, and the impugned goods squarely fall within its ambit by virtue of their primary function. Further, in terms of Section Note 2 to Section XVI, parts which are goods included in any of the headings of Chapters 84 or 85 are in all cases to be classified in their respective headings. Since the impugned goods are complete and identifiable as weighing a....
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.... classification of part, this heading covers parts for use solely or principally with the machinery of headings 84.25 to 84.30. The goods i.e. Car frame, Counterweight (CWT) Frame, Door machine with unit controller, Safety Gear, Buffer, Over Speed Governor, Traction (Driving) Machine, Machine Beam, Spacer and Button PCB (if not Bare PCB, classifiable under CTH 8534) are parts of elevator for use solely and principally with the elevator and not specifically covered under any other heading. Therefore, in terms of Section Note 2(b), such parts are to be classified with the machines of that kind or in heading 8431, more specifically under CTI 84313910. 15.5 CTH 8483 covers "Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)". Sub-heading 8483.50 covers Flywheels and pulleys, including pulley blocks. Since, the goods i.e. Car and CWT Pulley are specifically covered under CTH 8483, therefore, merit clas....
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....PORATING INSTRUMENTS OR APPARATUS OF CHAPTER 90, AND NUMERICAL CONTROL APPARATUS, OTHER THAN SWITCHING APPARATUS OF HEADING 8517 8537 10 00 - For a voltage not exceeding 1,000 V kg. 15% - 8537 20 00 - For a voltage exceeding 1,000 V kg. 15% - The HSN explanatory notes of CTH 8537 provides that- These consist of an assembly of apparatus of the kind referred to in the two preceding headings (e.g., switches and fuses) on a board, panel, console, etc., or mounted in a cabinet, desk, etc. They usually also incorporate meters, and sometimes also subsidiary apparatus such as transformers, valves, voltage regulators, rheostats or luminous circuit diagrams. The goods of this heading vary from small switchboards with only a few switches, fuses, etc. (e.g., for lighting installations) to complex control panels for machine-tools, rolling mills, power stations, radio stations, etc., including assemblies of several of the articles cited in the text of this heading. The heading also covers : (1) Numerical control panels with built-in automatic data processing machine, which are generally used to control m....
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.... 8544 42 10 --- Paper insulated m 15% - 8544 42 20 --- Plastic insulated m 15% - 8544 42 30 --- Rubber insulated m 15% - --- Other: 8544 42 91 ---- Paper insulated, of a kind used in telecommunication m 15% - 8544 42 92 ---- Plastic insulated, of a kind used in telecommunication m 15% - 8544 42 93 ---- Rubber insulated, of a kind used in telecommunication m 15% - 8544 42 99 ---- Other m 15% - 8544 49 -- Other 8544 49 10 --- paper insulated m 15% - 8544 49 20 --- Plastic insulated m 15% - 8544 49 30 --- Rubber insulated m 15% - --- Other 8544 49 91 ---- Paper insulated, of a kind used in telecommunication m 15% - 8544 49 92 ---- Plastic insulated, of a kind used in telecommunication m 15% - 8544 49 93 ---- Rubber insulated, of a kind used in telecommunication m 15% - 8544 49 99 ....