Rule 2(a) Classification of Incomplete/Unfinished Articles :

(i) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented; the incomplete or unfinished article has the essential character of the complete or finished article.

(ii) It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or dis – assembled.

Analysis

(i) If any particular heading refers to a finished/complete article, the incomplete/unfinished form of that article shall also be classified under the same heading provided the incomplete/unfinished goods have the essential characteristics of the finished goods.

(ii) If any particular heading refers to a finished/complete article, the unassembled/dis-assembled form of that article shall also be classified under the same heading provided the unassembled/dis-assembled goods have the essential characteristics of the finished goods.

Examples:- (a) Railway coaches removed without seats would still be railway coaches. (b) A car without seats would still be classified as car.

Only goods requiring minor adjustments can be construed as having the essential character

It was held that only goods requiring minor adjustments would be construed as having the essential character. Those requiring major processes like turning, grinding, broaching, groove cutting, heat treatment, surface treatment etc., cannot be construed as having the essential character of complete and finished articles and cannot fall within the scope of rule 2(a ) of the General Interpretative Rules.

[Motor Industries Company Ltd. v. Assistant Collector of Customs 1992 (62) E.L.T. 13 (Mad.)]

Rule 2(b) – Classification of Mixtures/Combinations of a Material/Substance with Other Materials/Substances

(i) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances.

(ii) Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance.

(iii) The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3.

Analysis

The following propositions are laid out by the above rule.

(a) Any reference to a material or substance would refer to mixture or combination of that material or substance.

(b) Any reference to goods containing a particular material or substance would include a reference to goods consisting wholly or partly of such specified material or substance.

Examples (a) The term coffee will include coffee mixed with chicory. (b) Natural rubber will cover a mixture of natural and synthetic rubber.