24 May 2021
We are clearing lot of parts & accessories related to medical devices under 9018 by paying additional health cess of 5% .. Need to understand whether medical manufactures are allowed to clear parts & accessories which is used solely for medical devices under 9033 , by saving additional health cess of 5% .
As per my Understanding, if parts & accessories are not mentioned else were under chapter 90, then the same can be groped under 9033. If i group parts & accessories which is solely used for medical devices under 9033 for clearance, then will there arise any objection from customs.
09 July 2024
When it comes to the classification and clearance of parts and accessories related to medical devices, particularly under the GST and customs duty framework in India, it's crucial to understand the correct classification and implications regarding health cess.
### Classification of Parts and Accessories
1. **Chapter 90 Classification**: - Chapter 90 of the Customs Tariff deals with various instruments and apparatus used in medical, surgical, dental, and veterinary sciences. - Medical devices and their parts and accessories are typically classified under Chapter 90.
2. **Additional Health Cess**: - Certain goods, including medical devices and their parts and accessories, are subject to an additional health cess of 5% under the GST regime.
3. **Classification of Parts and Accessories**: - Parts and accessories used solely for medical devices are generally classified under the same heading as the complete device, provided they meet specific criteria such as functionality, intended use, and material composition.
### Addressing Your Query:
1. **Clearance under Chapter 9033**: - Chapter 9033 of the Customs Tariff covers parts and accessories for machines, apparatus, and instruments of Chapter 90. - If the parts and accessories in question are integral to the functioning or operation of medical devices classified under Chapter 90, they can be classified under Chapter 9033 for clearance.
2. **Health Cess Implications**: - The additional health cess of 5% applies specifically to medical devices and their parts and accessories. If these parts and accessories are appropriately classified under Chapter 9033 and are essential components of medical devices, they should qualify for the exemption from the health cess. - However, this exemption depends on correct classification and compliance with customs regulations. It's advisable to consult with customs authorities or a qualified customs broker to ensure proper classification and adherence to applicable duties and cess.
3. **Customs Clearance Considerations**: - While grouping parts and accessories under Chapter 9033 for clearance can be done to potentially save on health cess, it's crucial to ensure that: - The classification is accurate and justified based on the nature and function of the parts. - Documentation and declarations accurately reflect the intended use and compliance with customs regulations.
### Objection from Customs
- If you classify parts and accessories under Chapter 9033 and they are challenged by customs authorities, objections could arise if: - The classification is not substantiated by technical specifications or usage. - There is ambiguity regarding the applicability of health cess exemption. - Customs authorities believe the parts should be classified differently under Chapter 90.
### Conclusion
To sum up, parts and accessories used solely for medical devices can indeed be classified under Chapter 9033 for customs clearance to potentially avoid the additional health cess of 5%, provided they meet the criteria for classification and are integral to medical devices. However, to ensure compliance and to avoid objections from customs, it's essential to:
- Verify the classification with customs authorities. - Maintain accurate documentation and technical specifications. - Seek expert advice from customs consultants or legal professionals specializing in customs and GST regulations for medical devices.
This approach will help in navigating the regulatory landscape effectively and ensuring compliance with applicable duties and cess.
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