CHAPTER 89 (Chapter Notes)

Relevant Judgements

Tariff Item Description of goods Unit Policy

Rate of duty                                         SWS : 10% 

Standard Preferential Areas Effective rate of duty Specified countries
(1) (2) (3) (4) (5) (6) (7) (8)
8901 CRUISE SHIPS, EXCURSION BOATS , FERRY-BOATS, CARGO SHIPS, BARGES  AND SIMILAR VESSELS FOR THE TRANSPORT OF PERSONS OR GOODS            
8901 10 - Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferry-boats of all kinds :            
8901 10 10      --- Ships u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8901 10 20      --- Launches u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8901 10 30      --- Boats u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8901 10 40      --- Barges u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8901 10 90      --- Other u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8901 20 00 - Tankers u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Chile: 80%
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8901 30 00 - Refrigerated vessels, other than those of Sub-heading 8901 20 u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8901 90 00 - Other vessels for transport of the goods and other vessels for the transport of both persons and goods u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8902 FISHING VESSELS; FACTORY SHIPS AND OTHER VESSELS FOR PROCESSING OR PRESERVING FISHERY PRODUCTS            
8902 00 - Fishing vessels; factory ships and other vessels for processing or preserving fishery products :            
8902 00 10      --- Trawlers and other fishing vessels u Free  Free% - BCD: 5%5
IGST: 5%		 Korea: Nil
Singapore: Nil
UAE: Nil
Chile: 80%
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
8902 00 90      --- Other u Free  10% - BCD: 5%5
IGST: 5%		 Singapore: Nil
UAE: Nil
Chile: 80%
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 YACHTS AND OTHER VESSELS FOR PLEASURE OR SPORTS; ROWING BOATS AND CANOES            
  - Inflatable (including rigid hull inflatable) boats:            
8903 11 00      -- Fitted or designed to be fitted with a motor, unladen (net) weight (excluding the motor) not exceeding 100 kg u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 12 00      -- Not designed for use with a motor and unladen (net) weight not exceeding 100 kg u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 19 00      -- Other u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
  - Sailboats, other than inflatable, with or without auxiliary motor:            
8903 21 00      -- Of a length not exceeding 7.5 m u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 22 00      -- Of a length exceeding 7.5 m but not exceeding 24 m u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 23 00      -- Of a length exceeding 24 m u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
  - Motorboats, other than inflatable, not including outboard motorboats:            
8903 31 00      -- Of a length not exceeding 7.5 m u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 32 00      -- Of a length exceeding 7.5 m but not exceeding 24 m u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 33 00      -- Of a length exceeding 24 m u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
  - Other:            
8903 93 00      -- Of a length not exceeding 7.5 m u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8903 99 00      -- Other u Free 25% - BCD:Nil 1,2.. IGST: 28%
CESS: 3%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8904 00 00 TUGS AND PUSHER CRAFT u Free 10% - BCD: 5%5
IGST: 5%		 Singapore: Nil
UAE: Nil
Chile: 80%
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8905 LIGHT-VESSELS, FIRE-FLOATS, DREDGERS  , FLOATING CRANES, AND OTHER VESSELS THE NAVIGABILITY OF WHICH IS SUBSIDIARY TO THEIR MAIN FUNCTION; FLOATING DOCKS  ; FLOATING OR SUBMERSIBLE DRILLING OR PRODUCTION PLATFORMS            
8905 10 00 - Dredgers u Free Free% - BCD:Nil 1,2.. IGST: 5% Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8905 20 00 - Floating or submersible drilling or production platforms u Free 10% - BCD:Nil 1,2.. IGST: 5% Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8905 90 - Other :            
8905 90 10      --- Floating docks u Free 10% - BCD: 5%5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8905 90 90      --- Other u Free 10% - BCD: 5%5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8906 OTHER VESSELS, INCLUDING WARSHIPS AND LIFEBOATS OTHER THAN ROWING BOATS            
8906 10 00 - Warships u Restricted 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8906 90 00 - Other u Free 10% - BCD: Nil5
IGST: 5%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8907 OTHER FLOATING STRUCTURES ( FOR EXAMPLE, RAFTS, TANKS, COFFER-DAMS, LANDING-STAGES, BUOYS AND BEACONS)            
8907 10 00 - Inflatable rafts u Free Free% - BCD:Nil 1,2.. IGST: 5% Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8907 90 00 - Other u Free 10% - BCD:Nil 1,2.. IGST: 5% Singapore: Nil
UAE: Nil
Chile: 80%
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil
8908 00 00 VESSELS AND OTHER FLOATING STRUCTURES FOR BREAKING UP u Free 2.5% - BCD: Nil
IGST: 18%		 Singapore: Nil
UAE: Nil
Australia: Nil
Japan: Nil
Malaysia: Nil
SAFTA: 5%
Korea: Nil

Conditions

1. If the importer follows the procedure set out in the Customs (Import of Goods at Concessional Rate of Duty or for Specified End Use) Rules,2022. (Vide:- Notification No.50/2017-Condition No- 9)

2. If, -
(a) the importer is a licensee or lessee or contractor, he shall produce to the concerned Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be, a document evidencing that he falls in the category of a specified person and give an undertaking to pay duty, fine or penalty that becomes payable, if any of the Conditions of this notification are not complied with;
(b) the importer is a sub-contractor, he produces to the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, at the time of importation, a certificate issued by a senior official who is authorised by the Board of Directors to issue such a certificate, of the concerned licensee or lessee or contractor certifying that the goods are intended for specified purpose along with an undertaking from such licensee or lessee or contractor and the subcontractor, as the case may be, liable to pay duty, fine or penalty that becomes payable, if any of the Conditions of this notification are not complied with;
(c) the importer or any specified person (transferor), seeks to transfer the goods to any other specified person (transferee),-
(i) the transferor shall give an intimation to the concerned Assistant Commissioner of Customs or the Deputy Commissioner of Customs, as the case may be, about such transfer and get himself discharged in respect of the goods so transferred;
(ii) the transferee shall give an undertaking to comply with the Conditions of this notification, as if he is the importer of these goods.
(iii) where the transferee is a sub-contractor, the lessee or the lesser or the licensee or the contractor of such sub-contractor, as the case maybe, shall also give an additional undertaking to make himself liable to pay duty, fine or penalty in case the sub-contractor fails to comply with the Conditions of this notification;
(d) the goods so imported are sought to be disposed after their use in unserviceable form or as scrap, the importer or the transferee, as the case may be, shall dispose of these goods, through MSTC, or any other Government agency, notified by the Central Government for this purpose, by paying a duty at the rate of 7.5% of the transaction value of such goods
Explanation.- For the purposes of this Condition, goods imported on or before the 1st day of February, 2022, claiming concessional rate of duty, either under this Condition or any preceding exemption for such goods, are to be disposed off on or after 2nd day of February, 2022, may be disposed off in accordance with clause (d) of this Condition.  (Vide:- Notification No.50/2017-Condition No- 48)

3. If,-
(a) the importer makes a declaration at the time of import that the barges would be re-exported;
(b) the barges are re-exported, by the same ship which brought them or by any other ship under the same shipping agency, within two months of the date of importation or such extended period as the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, may allow; and
(c) the importer executes a bond, in such form and for such sum as may be specified by the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, binding himself to pay that sum if the re-export does not take place within the period specified under condition (b) above. (Vide:- Notification No.50/2017-Condition No- 82)

4. If,-
(a) the importer maintains a proper account of import , use and consumption of the specified goods imported for the purpose of repairs of ocean going vessels and submits such account periodically to the commissioner of customs in such form and in such manner as may be specified by the said commissioner;
(b) the importer, by the execution of bond, in such form and for such sum as may be specified by the Commissioner of Customs , binds himself to pay on demand an amount equal to the duty leviable on the spares and consumables, as are not proved to the satisfaction of the said commissioner to have been used or otherwise consumed for the aforesaid purpose, within a period of one year from the date of importation thereof or within such extended period as that commissioner, on being satisfied that there is sufficient cause for not using or consuming them, as the case may be, for the aforesaid purpose within the said period, allow.
Explanation.-"Ocean going vessels" includes-
(i) Liners; cargo vessels of various kinds including refrigerator vessels for the transport of meat, fruit or the like, vessels specified for the transport of particular goods (grain, coal, ores or the likes); tankers(petrol, wine or the like );yachts and other sailing vessels ; cable ships; ice-breakers ; floating factories of all kind( for processing whales, preserving fish or the like) whale catchers; trawlers and other fishing vessels; life boats ,scientific research vessels; weather ships; vessels for the transportation or mooring of buoys ; pilot boats ;hopper barges for the disposal of dredged material or the like;
(ii) War ships of all kinds including submarines;
(iii) Tugs, dredgers, fire-floats and salvage ships ; and
(iv) Oil rigs , drilling ships and jack-up rigs. (Vide:- Notification No.50/2017-Condition No- 83)

5. If the vessels and other floating structures are intended to be broken up after their importation, the importer shall present a fresh bill of entry to the Commissioner of Customs, and thereupon such goods shall be chargeable with the duty which would be payable on such goods as if they were entered for home consumption, under section 46 of the Customs Act, 1962 (52 of 1962), on the date of the presentation of such fresh bill of entry, for the purposes of break-up of such goods. (Vide:- Notification No.50/2017-Condition No- 84)