Classification of goods in CKD/SKD condition in Customs

Goods imported in completely knocked down (CKD) condition are complete goods or just a conglomeration of parts—that is the question in customs . It has been so for long . Judging from the number of decisions given by the Tribunal this year and every year and considering the several High Court and Supreme Court judgements also, the issue needs some introspection in totality which this treatise proposes to do . Issues are two. First issue is if the goods in CKD/SKD condition are complete goods or not, when some parts are not there. Second, there are always exemptions for goods imported in CKD condition or as parts. The question arises about the applicability of exemption. Similar problem is there in Central Excise also but here we are dealing only with Customs. The general principle that is applicable on these two issues is given in the statutory rules called General Rules for the Interpretation of this Schedule.

Source : Business Standard