Customs Classification of Knitted Innerwear: Distinguishing Slips from Brassieres based on Functionality (In re Furo Enterprises)
The classification of imported textile garments under the Customs Tariff Act, 1975, frequently presents complex challenges, particularly when visual similarities between distinct products lead to interpretative disputes between the assessee and the revenue department. A recent advance ruling by the Customs Authority for Advance Rulings (CAAR), Delhi, in the case of M/s Furo Enterprises, provides critical clarity regarding the classification of girls' innerwear.
The core of the dispute revolved around whether knitted garments featuring shoulder straps and elastic bands should be classified as "slips" under Heading 6108 or as "brassieres" under Heading 6212. This article provides a comprehensive analysis of the ruling, the legal arguments presented, and the interpretative principles applied by the Authority to distinguish between garments based on their functional utility rather than mere visual characteristics.
Background of the Case
The applicant, M/s Furo Enterprises, a proprietorship firm engaged in the import and sale of unbranded readymade garments, sought an advance ruling under Section 28H of the Customs Act, 1962. The application, dated 20.06.2025, requested a determination on the correct classification of proposed imports described as "Girls’ Slips" of various models and sizes.
Product Specifications
The subject goods were identified as girls' innerwear manufactured from knitted synthetic fibers. Specifically, the applicant proposed to import two models (Model No. S017 and Model No. 4016). The technical specifications provided were:
- Composition: 90% Nylon and 10% Spandex.
- Construction: Knitted fabric.
- Design: The garments were described as undergarments worn beneath a dress or top. They featured narrow shoulder straps and elasticized bands.
- Intended Use: The primary function was stated to be modesty and layering (hanging from the shoulders or waist) rather than providing body support.
The assessee contended that despite the presence of straps, the goods were legally and functionally "slips" and not "brassieres," as they lacked the structural elements required for bust support.
The Classification Dispute
The conflict in classification arose from the competing interpretations of the physical features of the garments. Three specific headings within the First Schedule to the Customs Tariff Act, 1975 were under consideration:
- Heading 6108: Covering women's or girls' slips, petticoats, briefs, panties, and similar articles, knitted or crocheted.
- Heading 6208: Covering similar underclothing (slips, petticoats, etc.) that are not knitted or crocheted.
- Heading 6212: Covering brassieres, girdles, corsets, braces, suspenders, garters, and similar articles (whether or not knitted).
The Department’s Contention
The jurisdictional Port Commissionerate reviewed the application and the accompanying photographs of the product. Their objection was primarily visual. The Department argued that the presence of shoulder straps combined with elasticized bottom bands gave the garments the appearance of brassieres.