NCS/ARS/CL/10332

ADVANCE RULING ON THE TARIFF CLASSIFICATION OF A 6000 TPD CEMENT PRODUCTION PLANT

1. INTRODUCTION

This Advance Ruling is issued in respect of the tariff classification of a 6000 Tonnes Per Day (TPD) cement production plant, comprising integrated process systems for raw material preparation, clinker production, cement grinding, dispatch, fuel handling, safety systems, and electrical installations.

Due to transportation and logistical considerations, the plant may be imported in multiple consignments (batches). Notwithstanding this, the equipment collectively constitutes a complete industrial plant designed for cement manufacturing.

The objective of this ruling is to define the functional composition, process integration, and appropriate tariff classification of the plant and its constituent machinery in accordance with the applicable tariff provisions.

2. SCOPE OF THE RULING

Based on the submitted technical documentation, the cement plant comprises the following major process groups Raw Material Preparation & Raw Meal Production, Clinker Production (Pyro-processing), Cement Grinding, Cement Dispatch, Fuel Handling & Preparation, Safety Systems, and Electrical Systems. 

These sections are functionally interdependent and collectively perform the continuous production of cement.

3. PROCESS DESCRIPTION AND TECHNICAL ANALYSIS

TARIFF CLASSIFICATION

In line with the description and technical analysis above, all components of the plant are integrated and engineered to function as a single continuous production line, with each section contributing to the principal function of cement production.

Pursuant to Note 4 to Section XVI, which provides that:

“Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, transmission devices, electric cables or other means) intended to contribute together to a clearly defined function covered by a heading in Chapter 84 or 85, the whole is to be classified in the heading appropriate to that function,”

It is established that the plant constitutes a combination of machines performing a clearly defined industrial function.

Accordingly, the 6000 TPD cement production plant falls under tariff heading 84.74, ‘Machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid (including powder or paste) form …’

Given that the core operation of the plant is crushing and grinding of mineral materials as part of the cement production process, the plant is specifically classified under Tariff Subheading 8474.20.00.00 - Crushing or grinding machines with 5% rate of duty and 0% VAT in accordance with ECOWAS CET 2022–2027.

Furthermore, in accordance with General Rules of Interpretation (GRI) 2(a), the classification of the cement plant components remains classifiable under heading 8474.20.00.00 whether the plant is imported complete or in incomplete, assembled or disassembled due to reasons such as requirements or convenience of packing, handling or transport. See Explanatory Note V to GIR 2a.

LEGAL JUSTIFICATION

• GIR 1, Note 4 to Section XVI
• GRI 2(a) & 6