If base station of fast trackers alone is imported then it will be classified under HS 847180.

The base station for the Fitness Tracker converts electrical signals from the pedometer into data signals the computer can understand. The base station is powered by the computer, and charges the Tracker when it is physically docked with the base station. The base station is principally and solely used with a computer and meets Note 5c to Chapter 84 as a signal converting unit.

  Hence, it will be  classified under HS 847180.

Fitness Tracker, which records steps and motion , is classified under HS 903180 .

If the Fitness Tracker makes use of a three axis accelerometer to record not only a user’s steps, but motion as well. It uses this information to determine how many calories are being burned by the wearer. It uses the built-in accelerometer to track the user’s movement in three dimensions, and attempts to calculate the number of calories burned from this information. Then it is classified under  HS 903180 .

The tariff classification of the Fitness Tracker is based on functions it perfoms and how it is sold and shipped

What is  Fitness Tracker:

The Fitness Tracker measures the intensity and duration of the user’s physical activities, calories burned, steps taken, distance traveled, and how long it takes one to fall asleep.

When worn, the Fitness Tracker automatically tracks your exercise intensity levels, calories burned, sleep quality, steps and distance. Calories, steps, and distance traveled are displayed on a blue Organic LED display on the device.

The Fitness Tracker stores this information and wirelessly transmits it to a base station that is plugged into one’s computer. The information is then uploaded to a personal Fitness website that allows the user to track their progress towards their personal fitness goals.

If the Fitness Tracker is packaged with the base station, the belt clip, and the wristband and they are imported together and sold as a set, thus they should be classified as a composite goods under  HS 903180  .

if imported separately,belt holster of Fitness tracker will be classified HS 392690

The belt holster is made of a single piece of plastic, and contains a cavity wherein the Fitness Tracker can be snapped into place. The belt holster allows the user to attach the Fitness Tracker to thick belts, belts it would not be able to fit around without the use of the holster.

Classification of the belt holster  will be  HS 392690

wireless digital pedometer is merely counts a user’s steps then it is classified under HS 902910 .

If  Fitness Tracker  is just  wireless digital pedometer, and merely counts a user’s steps then it is classified under  HS 902910 .

The Sleep Wristband classification is HS 630790.

 The Sleep Wristband  is a textile wristband composed of 88% nylon and 12% spandex. It has a hook and loop closure fastener strip, and the Fitness logo screen-printed on the band. The Fitness Tracker clips to the wristband is designed to be worn while the user sleeps, enabling the Fitness Tracker to track the user’s movement and determine when they fall asleep.

Thus ,if imported seperately ,the Sleep Wristband will be  classified  under  HS 630790.

The tariff classification of a Fitness Band for exercise is HS 950691

What is fitness band:

The product is an exercise device that consists of a latex band that has a PVC/ABS handle on each end. The band is designed for resistance training during an exercise workout.

Such Fitness Band for exercise are classified under  HS 950691

Level playing field is provided to domestic manufactures of Tunnel Boring Machine(TBM) vis a vis with imported TBM by the Central Government through Notification No 04/2014 -Customs,dated 3.2.2014

Notification to remove CVD benefits available to the imported  TBM-

 [TO BE PUBLISHED IN PART II, SECTION 3, SUB-SECTION (i) OF THE GAZETTE OF INDIA, EXTRAORDINARY]

GOVERNMENT OF INDIA

MINISTRY OF FINANCE

(DEPARTMENT OF REVENUE)

Notification No. 04 /2014-Customs

New Delhi, the 3^rd February, 2014

            G.S.R.     (E).- In exercise of the powers conferred by sub-section (1) of section 25 of  the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue), No. 12/2012-Customs, dated the 17^th March, 2012, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 185(E), dated the 17^th March, 2012, namely:-

            In the said notification, in the Table,  against serial number 397 and the entries relating thereto, the following shall be substituted, namely:-

“397

84 or any other Chapter

The following goods, namely:- (A) Tunnel boring machines (B) Parts and components of (A) for use in the assembly of Tunnel boring machines

Nil Nil

- -

- -”.

 [F.No. 354/10/2012-TRU]

(Akshay Joshi)

Under Secretary to the Government of India

Note: The principal notification No. 12/2012-Customs, dated the 17^th March, 2012, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 185(E), dated the 17^th March, 2012 and was last amended vide notification No. 02/2014-Customs, dated the 20^th January, 2014, published vide number G.S.R. 35(E), dated the 20^th January, 2014.

Tunnel Boring Machines (TBM) are supplied for execution of tunneling infrastructure including India `s ambitious project of Metro Rail Networks. 

Earlier ,the effective rate of CVD as NIL has been prescribed in the case of Tunnel boring machine, Parts and components of Tunnel boring machines for use in the assembly of Tunnel boring machines when imported into India, as per SN 397 of the Customs Notification 12/2012. This notification benefit is extended to goods falling under Chapter 84 or any other Chapter. Thus the intention of this notification is to extend benefits to TBM as such and all goods used in manufacturing of TBM.

However,Tunnel boring machines falls under Central Excise Tariff Heading  8430 and used to  attracts Central Excise duty @ 12% ,whereas ,  parts and accessories  of  these  machines falls under Central Excise Tariff Heading  8431  and attracts Central Excise duty @ 12% as per the First Schedule to  the the Central Excise Tariff Act, 1985 (5 of 1986).

 What is law for levying  additional duty on imported goods equal to effective duty of excise leviable on the goods  manufactured in India:

 Section 3 of the said Customs Tariff Act 1975 (51 of 1975)   is reproduced herewith for easy reference -

“ (1) Any article which is imported into India shall, in addition, be liable to a duty (hereafter in this section referred to as the additional duty) equal to the excise duty for the time being leviable on a like article if produced or manufactured in India and if such excise duty on a like article is leviable at any percentage of its value, the additional duty to which the imported article shall be so liable shall be calculated at that percentage of the value of the imported article:”

Explanation to the above sub-section (1) of section 3 of the said Customs Tariff Act 1975 (51 of 1975)  is also reproduced herewith for easy reference

-“Explanation.— In this sub-section, the expression the excise duty for the time being leviable on a like article if produced or manufactured in India” means the excise duty for the time being in force which would be leviable on a like article if produced or manufactured in India or, if a like article is not so produced or manufactured, which would be leviable on the class or description of articles to which the imported article belongs, and where such duty is leviable at different rates, the highest duty.”

In terms of the Explanation   to sub-section (1) of section 3 of the said Customs Tariff Act , additional duty is equal to effective duty of excise leviable on the goods  manufactured in India . This duty is also called Counter Veiling Duty (CVD) to the imported   goods.

Therefore,  before issuing  this Customs Notifcations, if Tunnel boring machines and their parts and components are manufactured in India then they are suffered Central Excise Duty @ 12 %, and whereas, if they are imported then NIL rate of duty is attracted. This has not only resulted in putting local manufacturers of these goods at  great disadvantage  vis-à-vis with imported goods, but ,it is also in total negation of basic principle of  Counter veiling Duty(CVD) to provide level playing field to imported goods and locally manufactured goods. 

Now,  after issuing  Notification No 04/2014 -Customs,dated 3.2.2014  by the Central Government ,to remove Nil rate of duty benefit available to the imported TBM , there is level playing field to imported and locally manufactured  TBM. 

  This  would make Indian manufacturer more competitive and fuel growth of economy.