The Solace of the Residuary Category: The Need to Change an Age-Old Classification Regime in India

摘要

In a dynamic technological environment where the world has become a global market, India follows the age-old classification regime for the purposes of imports and exports. The issue came to light with a recent trade notice issued by the Directorate General of Foreign Trade raising concerns over the recurring classification of goods in the residuary entry, 'others'. Against this backdrop, it is timely to explore the reasons cited by importers for resorting to the residuary category, and the arising negative repercussions. This requires consideration of the scheme of classification under the Customs Tariff Act, 1975, the principles enumerated in international texts on classification, and the object of the scheme of classification. We also provide suggestions and strategies for importers as well as the Government to tackle the menace of misclassification under the residuary entry.