AAR Classifies  Under Chapter 39; Probe & Camera Covers Held as Medical Accessories

Hi Care Remedy Private Limited, engaged in the manufacture of polymer-based medical disposables under a valid medical device licence, sought an advance ruling before the West Bengal Authority for Advance Ruling regarding the classification of ten products, including sterile and non-sterile EVA gloves, sterile aprons, OT shoe covers, probe covers, laparoscopy camera covers, intraoperative cable covers, drape sheets, and procedure drapes.

The applicant contended that since the products were sterilised, licensed as medical devices, and exclusively used in hospitals and clinical settings, classification should be determined by their medical function. It proposed the classification of probe and camera covers under HSN 9018 as medical instruments or appliances and aprons and drapes under HSN 6210 as surgical garments.

Issue Raised: Whether polymer-based medical disposables, should be classified under HSN 9018 or 6210 based on medical usage, or under Chapter 39 based on material composition; and whether certain equipment covers qualify as accessories to medical instruments under Chapter 90.

AAR’s Ruling: The Authority examined the case according to the General Rules for Interpretation of the Harmonised System and emphasized that classification must primarily follow the tariff structure and the nature and composition of goods unless a more specific entry applies. It held that EVA gloves are specifically taxable at 18% (9% CGST + 9% SGST). Sterile aprons were held classifiable under HSN 39262029 as plastic aprons and not textile garments under Chapter 62. OT shoe covers, drape sheets and procedure drapes were classified under HSN 39269099 as other articles of plastics. The claim for classification under HSN 6210 was rejected on the ground that the products were not textile-based garments falling under headings 5602, 5603, 5903, 5906 or 5907.

In respect of Endocavity/Transvaginal Probe Covers, Ultrasound Probe Covers, Laparoscopy Camera Covers and Intraoperative Cable Covers, the Authority held that although these items are not “instruments or appliances”, they function as accessories to medical instruments covered under Chapter 90.

Applying settled principles distinguishing “parts” and “accessories,” it ruled that these items qualify as accessories and are therefore classifiable under HSN 90330000 (parts and accessories of Chapter 90 instruments), taxable at 18% (9% CGST + 9% SGST). Thus, Chapter 39 classification was upheld for most products, while Chapter 90 classification was allowed only for specified equipment covers treated as accessories.

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