Cus - Declaration of conformity filed before US authorities indicates that boats are recreational craft - classifiable under Hdg 8903 as Motorboats: CESTAT
By TIOL News Service
MUMBAI, DEC 01, 2016: THIS is an appeal filed in the year 2005.
The appellant filed bill of entry for clearance of imported boats declared as ‘excursion boats' andclaimed classification under heading 89011030 r/w Notification 21/2002-Cus. (serial No. 352).
As per appellant,although the manufacturer termed these boats as sports boats, actually they are meant for ferrying persons from one station to another station in Goa, hence they are to be classified under heading 89011030.
The adjudicating authority disagreed and held that the goods are correctly classifiable under heading 8903 9200 as sports boat.
Since the Commissioner(A) upheld this order, the appellant is before the CESTAT.
After considering the submissions made by both sides, the Bench extracted the competing entries as below -
| Tariff Item |
|
Description of goods |
Unit
|
Rate of duty
|
| |
|
|
|
Standard
|
Preferential Areas
|
| (1) |
|
(2) |
(3)
|
(4)
|
(5)
|
| 8901 |
|
Cruise ships, excursion boats , ferry-boats, cargo ships, barges and similar vessels for the transport of persons or goods |
|
|
|
| 8901 10 |
|
Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferry-boats of all kinds: |
|
|
|
| 8901 10 10 |
---
|
Ships |
u
|
10%
|
-
|
| 8901 10 20 |
---
|
Launches |
u
|
10%
|
-
|
| 8901 10 30 |
---
|
Boats |
u
|
10%
|
-
|
| 8901 10 40 |
---
|
Barges |
u
|
10%
|
-
|
| 8901 10 90 |
---
|
Other |
u
|
10%
|
-
|
| 8901 20 00 |
-
|
Tankers |
u
|
10%
|
-
|
| 8901 30 00 |
-
|
Refrigerated vessels, other than those of Sub-heading 8901 20 |
u
|
10%
|
-
|
| 8901 90 00 |
-
|
Other vessels for transport of the goods and other vessels for the transport of both persons and goods |
u
|
10%
|
-
|
| 8903 |
|
Yachts and other vessels for pleasure or sports; rowing boats and canoes |
|
|
|
| 8903 10 00 |
-
|
Inflatable |
u
|
10%
|
-
|
| |
-
|
Other : |
|
|
|
| 8903 91 00 |
--
|
Sail boats, with or without auxiliary motor |
u
|
10%
|
-
|
| 8903 92 00 |
--
|
Motorboats, other than outboard motorboats |
u
|
10%
|
-
|
| 8903 99 |
--
|
Other : |
|
|
|
| 8903 99 10 |
---
|
Canoes |
u
|
10%
|
-
|
| 8903 99 90 |
---
|
Other |
u
|
10%
|
-
|
The CESTAT, thereafter, observed -
+ It is the appellant's claim that boats fall in the category of heading 8901 as excursion boats, ferry boats by virtue of the various applications made by them to the Government of Goa for granting them permissions for ferrying the passengers and tourists between two places in the river.
+ The claim of the appellant is unacceptable as the declaration of conformity filed by the manufacturer of the boats before the authorities in United States indicates that the boats which are imported by the appellant, are recreational craft. The said declaration of conformity also states that the craft is powerboat.
+ The certificate of registration as issued by the Port officer, Government of Goa, specifically registered these boats as "motor boats - Mars, Mercury" etc. and relies upon the declaration filed by the manufacturer i.e. Regal Marine Industries, Florida, though the description of the boat has been stated as excursion boats.
+ On casual perusal of the said reproduction of the photographs, we find that the boats which are imported by the appellant would merit classification only under heading 8903 as motor boats, other than outboard motor boats which is a specific entry indicated in the Customs Tariff Act.
+ We find that the HSN Explanatory Notes to chapter 8901 specifically excludes the vessels of heading 8903. It would mean that heading 8901 would exclude vessels which are specifically listed in the said heading of 8903. In 8903, motorboat is mentioned as specific vessel under specific heading.
Holding that the impugned order is correct and legal and does not suffer from any infirmity, the appeal was rejected.
(See 2016-TIOL-3091-CESTAT-MUM)
