NCS/ARS/CL/10367

You have requested an Advance Ruling on the tariff classification of the following air compressor models: Atlas Copco GA37 VSDP A 13 MEAC 400V, Atlas Copco XAS 88, Atlas Copco XATS 156, and AB75E270T 400/3/50.

Product Analysis

The Explanatory Notes to heading 8414 describe compressors as machinery used to compress gases into cylinders, support chemical processes and refrigeration systems, and store compressed air or other gases in reservoirs for use in equipment such as pneumatic engines, picks, winches, brakes, conveyor tubes, and submarine ballast tanks.

• Atlas Copco XAS 88: A fuel-operated industrial compressor with an integrated generator and aftercooler. It has a capacity of 5 cubic meters of air per minute and is mounted on a wheeled chassis for towing.
• Atlas Copco XATS 156: A medium-sized towable compressor with an 80-kW motor and a 175-litre fuel tank. Mounted on wheels with a tow bar, it is designed for heavy-duty use in industries such as quarrying, sandblasting, and construction.
• Atlas Copco GA37 VSDP A 13 MEAC 400V: An oil-injected rotary screw compressor with a 37 kW (50 hp) motor, integrated refrigerant dryer, Elektronikon® Touch or Swipe controller, and SMARTLINK real-time remote monitoring and optimization features. Its components include an interior permanent magnet motor, compressor element, oil-cooled motor, high-tech fan, air cooler, integrated dryer, inlet valve, and inverter.
• AB75E270T 400/3/50: A piston compressor with a 7.5 hp (5.5 kW) motor and a compression capacity of 827 litres of air per minute. It includes a pressure-reducing valve, start/stop/auto switch, TEFC motor, heavy-duty air intake filter, and a powder-coated tank.

You have also stated that these compressors are applicable in the following sectors:

1. Construction (Drilling, breaking, sandblasting, concrete spraying).

2. Mining (Ventilation, drilling, blasting).

3. Oil & Gas (Pipeline testing, drilling, pigging).

4. Utilities (Cable blowing, road maintenance).

5. Manufacturing (Pneumatic tools, automation).

6. Agriculture (Irrigation, pesticide spraying).

7. Automative (Repair tools, tire inflation).

Tariff Classification Decision

Under the Harmonized System, Atlas Copco XAS 88, AB75E270T 400/3/50 and Atlas Copco XATS 156, which are mounted on wheeled chassis for towing, are classifiable under HS Code 8414.40 – ‘Air or vacuum pumps, air or other gas compressors and fans ...; air compressors mounted on a wheeled chassis for towing’. Atlas Copco GA37 VSDP is classifiable under HS Code 8414.80 .00.00– - ‘other air compressors’.

Under the ECOWAS CET 2022–2027, Atlas Copco XAS 88, AB75E270T 400/3/50 and Atlas Copco XATS 156 is effectively classified in tariff heading, 8414.40.00.00, ‘air compressors mounted on a wheeled chassis for towing’, attracting a 10% duty rate and 0% VAT.  While Atlas Copco GA37 VSDP is effectively classified in tariff heading, 8414.80.10.00 - ‘other’, – - ‘industrial air compressors’, attracting a 5% duty rate and 0% VAT.

Legal Framework & Justification 

GIR 1 & 6