NCS/ARS/CL/10206

GAS GENSETS EQUIPMENT AND ACCESSORIES WITH MODEL: TCG 2032 V16B AND TCG 3020 V20R

You have applied for Tariff Classification for Gas Gensets Equipment and Accessories with Model number TCG 2032 V16B and TCG 3020 V20R

PRODUCT ANALYSIS 

The term Genset refers to the combination of Generator and Engine mounted together to form a single piece of Equipment where the Engine drives the Generator to produce electrical power. 

A Gas Genset is a type of generating set that runs on gas rather than conventional choices of fuel (Diesel or Petrol). Gas gensets primarily utilize natural gas, but they can also operate on other gaseous fuels like Natural gas, LNG, Biogas, Landfill gas, Coal gas, or Propane which are more environmentally friendly when compared to Diesel or Petrol. This is mostly used where continuous power supply is critical like Industries, Hospitals, Data centers, and other large facilities as a major source of electricity or power backup in other cases.

However, the TCG 2032 V16B and TCG 3020 V20R in the application both are Gas Gensets with same working principles but differs in power output ranges from (3000-4500 kW), flexibility and applications but uses gas to initiate combustion.

The TCG 2032 V16B is designed for higher power output needed (often exceeding 4,000 kW) in places like Large IPP projects, Industrial companies and recycling facilities with focus on reliability and flexibility.

While the TCG 3020 V20R is the versatile all-round talent engines, which offer a broader range of power output range (about 2,300 kW) and also accommodate a lower power required facility, this provides a good balance of efficiency and operational reliability in a more compact package.

TARIFF CLASSIFICATION 

In accordance with Note 4 to section XVI, both Gas Gensets and accessories mentioned in the application are composite product which consist of separate components combined to perform a particular function. Therefore, they will best be classified based on principle of functionality. Hence, the products are classified in Tariff Heading 8502 - Electric generating sets and rotary converters and subheading 8502.39

Based on the above, Gas Gensets TCG 2032 V16B and TCG 3020 V20R and accessories are effectively classified under HS code 8502.39.20.00 - Gas powered with 5% duty rate and zero VAT in the ECOWAS Common External Tariff (CET) 2022 - 2027. 

Legal Framework and Justification  

GIR 1 and 6