CIRCULAR No.45/2001-CUS.
Dated 7th August, 2001
Classification of pedestrian controlled tractors/power tillers as rotary tillers
under heading 84.32. - Reg.
I am directed to refer to the subject mentioned above and to say
that a representation has been received in Board's office stating that
pedestrian controlled tractors/power tillers classifiable under CTH 87.01 are
being cleared as rotary tillers under CTH 84.32 and that the incorrect
classification has adversely affected the interests of the domestic industry.
2. The matter has been examined. In this connection, comments on classification
and assessment practice followed were called for. The Custom Houses were also
requested to forward copies of brochure/technical literature of the equipment in
question. From the reports received, it appears that the Custom Houses are
following the decision of the Conference of Commissioners of Customs on Tariff
and Allied Matters held at Cochin (Oct.' 95) wherein it had been decided that
few models of power tillers would merit classification under CTH 84.32 as
agricultural machinery for soil preparation or soil cultivation.
3. HS Explanatory Notes to heading 87.01 state that the heading covers tractors
of various types. Such tractors may also be equipped with a tool box, with a
provision for raising and lowering agricultural implements, with coupling
devices for trailers or semi trailers or with a power take off for driving
machines such as threshers and circular saws. It is further stated that this
heading also covers 'pedestrian controlled tractors' or 'walking tractors'.
These tractors are small agricultural tractors equipped with a single driving
axle carried on one or two wheels, and like normal tractors, they are designed
for use with interchangeable implements which they may operate by means of a
general purpose power take off. Such tractors are not usually fitted with a seat
and the steering is effected by means of two handles.
4. Rotary tillers/cultivators are reported to be an implement/attachment with
blades or tines mounted on a power driven shaft. These equipment classifiable
under CTH 84.32 are fitted as an attachment to tractor. Power tillers are, on
the other hand, prime movers in which the direction of travel and control for
field operations is performed by the operator walking behind it. Hence, it is
clear that power tillers/pedestrian controlled tractors/walking tractors are
different from rotary tillers.
5. The Explanatory Notes make it clear that 'pedestrian tractors' are to be
classified under CTH 87.01, as tractors and not as 'rotary tillers' under
heading 84.32. The Custom Houses may, therefore, kindly ensure that 'pedestrian
controlled tractors' or walking tractors are not cleared in the guise of rotary
tillers. Difficulties, if any, faced in the implementation of above instructions
may be brought to the notice of the Board.
Please acknowledge receipt of this circular.
Sd/-
(K.M, Ravichandran)
Senior Technical Officer (TU)