Circular No. 3/88 Dated 9-2-1988

Classification of tyre-bead-wire-rings manufactured out of duty paid copper coated steel wires — Reg.- Certain doubts had been raised regarding the appropriate classification of tyre-bead-wire-rings which are reportedly used for the manufacture of bicycles tyres and cycle rickshaw tyres etc. and are manufactured out of duty paid copper coated steel wires.

The matter has been examined in the Ministry. It has been reported that, for the manufacture of tyre-bead-wire-rings, duty paid copper coated steel wires are purchased from the market in big pellets. These are reeled on to the smaller size reels by means of a device run with electric motor. The smaller size reels so wound is put on the manually operated machine installed for the manufacture of tyre-bead-wire-rings, on which the steel bead wire is cut to size after obtaining the required number of plies (3,4,5 etc.). Both the cut/open ends of the wire are bent in the shape of small hooks which are inter-locked and pressed manually with pliers. The hook joint is then tied with galvanized iron wire and the complete tyre-bead-wire-ring is taken off the machine. The ring is then tested on a gauge/template for testing that the tyre-bead-wire-ring is of proper size. If it fails in the test, it is rejected. Tyre-bead-wire-rings go into the manufacture of rubber tyres and bicycle and motor vehicle parts. It has been reported that some manufacturers produce such tyre-bead-wire-rings from duty paid copper coated steel wires within their factories while others purchase such tyre-bead-wire-rings from outside.

So far as the classification of such tyre-bead-wire-rings is concerned, Ministry’s attention has been invited to the HSN Explanatory Notes on pages 1037 and 1038 under HSN Heading No. 73.26 which corresponds to the Heading No. 73.08 of the CET. In such notes, there is a reference to different articles of wire as distinct from wire as such. Therefore, it appears that as such goods are classifiable under HSN heading 73.26, these should also be appropriately classifiable under heading No. 73.08 of the CET which covers ‘other articles of iron or steel. Under the Heading 73.08 of the CET, such tyre-bead-wire-rings would appropriately be classifiable under sub-heading No. 7308.90.

All pending assessment may be finalised on the above basis.

The trade may be suitably advised.

[F. No. 139/93/87-CX.4]