Customs Circular No 19/2013 dated 09-05-2013

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Tariff Unit

Circular No.19 / 2013 – Customs

229-A, North Block, New Delhi

9th May, 2013

To
All Chief Commissioners of Customs/ Customs (Prev.)/ C&CE,
All Commissioners of Customs / Customs (Prev.) / C&CE
All Directors General of CBEC,
All Commissioners of Customs & Central Excise (Appeals).

Sir / Madam,

Subject: Classification of Filters referred to as “Disposable Sterilized
Dialyzer†and “Microbarrier†: for filtering blood†– regarding

Doubts have been raised regarding classification of the filters referred to as
“Disposable Sterilized Dialyzer†and “Microbarrier†: for filtering blood,
whether under heading 9018, in tariff item 90189031 which provides for “renal
dialysis equipment (artificial kidneys, kidney machines and dialysers)†or under
8421 in tariff item 84212900 as –“Other†, filter.

2.  Brief product description is as follows:
   (A) Disposable Sterilized Dialyzer: is a disposable dialyzer sterilized with
   ethylene oxide; it consists of a 25-cm-long cylindrical casing, of rigid
   plastics, with stoppers at both ends and two 3-cm threaded tubes 19 cm apart on
   one side; the stoppers and tubes are also made of rigid plastics. The article
   contains hollow fibres and is presented packed in a flexible plastic wrapper. In
   order to function, the article has to be connected, by means of a circuit of
   tubes, to a special appliance (probably an artificial kidney) which enables the
   blood and the dialysate to circulate and toxic matter to be evacuated.
   (B) Microbarrier: consist essentially of a filtration mesh of materials like
   polyester in a transparent housing designed for filtering blood. Microaggregates
   consisting of leukocytes, platelets, cell fragments and proteins, in sizes
   ranging from 30 to 200µm, are removed from stored blood.
   The aforesaid product description is illustrative in nature for the purpose of
   classification of similar / identical goods in the First Schedule of Customs
   Tariff Act, 1975.
3.  The available information reveals that, in medicine, Dialysis is also called Hemodialysis, Renal Dialysis, or Kidney Dialysis. It involves the process of
   removing blood from a patient whose kidney functioning is faulty, purifying the
   blood by dialysis, and returning it to the patient’s bloodstream. The
   hemodialyzer or artificial kidney is a machine that provides a means for
   removing certain undesirable substances from the blood or of adding needed
   components to it. By these processes the apparatus can control the acid-balance
   of the blood and its content of water and dissolved materials. In fact,
   Dialysis, a technique frequently used in biochemistry, is a membrane-separation
   method used for removing dissolved salts from solutions of proteins or other
   large molecules. As seen the complete machine which performs this process is
   classifiable in subheading 9018.90 which reads as, “other instruments and
   appliances†.
4.  The complete blood purifying system i.e., blood and dialysis fluid
   circulation systems consists of semipermeable membrane, entire process monitor
   and controller, etc., is covered in tariff item 90189031 which provides for
   “renal dialysis equipment (artificial kidneys, kidney machines and dialysers)†.
   It includes the aforementioned “Disposable Sterilized Dialyzer†and / or “Microbarrier†.
   They find use as filters and qualify as parts of blood purifying system of
   subheading 9018.90. Therefore, as required by Chapter Note 2 (a) to Chapter 90,
   the question to be decided is whether these parts or accessories of blood
   purifying system are included in any of the headings of Chapter 90 or of Chapter
   84, 85 or 91.
5.  In this regard, the classification of goods in First Schedule of the Customs
   Tariff Act, 1975 is governed by the principles contained in the General Rules
   for the Interpretation (GRI) of Import Tariff. The GRI 1 provides that “the
   titles of Sections, Chapters and sub-chapters are provided for ease of reference
   only; for legal purposes, classification shall be determined according to the
   terms of the headings and any relative Section or Chapter Notes..†In accordance
   with Rule 1 and Note 2 (a) to Chapter 90, subject to Note 1 to Chapter 90,
   “parts and accessories for machines, apparatus, instruments or articles of this
   Chapter,.. which are goods included in any of the headings of this Chapter or of
   Chapter 84, 85 or 91 (other than heading No. 84.85, 85.48 or 90.33) are in all
   cases to be classified in their respective headings; … †. Further, the second
   paragraph of Part III of the HS General Explanatory Note to Chapter 90, gives
   guidance for the application of Chapter Note 2(a) to this Chapter. According to
   this Note, “parts which in themselves constitute articles falling in any
   particular heading of Chapter 90, 84, 85 or 91 are in all cases to be classified
   in their respective headings†.
6.  The heading 84.21 covers, inter alia, filtering or purifying machinery and
   apparatus for liquids. Therefore, in accordance with the stipulation mentioned
   in paragraph 5 above, the aforementioned articles, viz. “Disposable Sterilized
   Dialyzer†and “Microbarrier†, are classifiable in heading 84.21, subheading
   8421.29, and tariff item 84212900.
7.  To sum up, it is clarified that both the articles, viz. “Disposable
   Sterilized Dialyzer†and “Microbarrier†, as filters would be classified in
   heading 84.21, subheading 8421.29, tariff item 84212900 – - Other, by
   application of GRI 1, Note 2 (a) to Chapter 90.
8.  In this regard, suitable instructions may be issued to field formations for
   strict compliance.

Yours faithfully,
(Subodh Singh),
OSD (Customs), Tariff Unit
Fax: 011 – 23092173F.No. 528/90/2012-STO (TU)