1. Ships and other floating structures imported for breaking up—Classi-fication according to World Customs Organisation, Brussels:—

(a) Movable gears such as lifting and handling machinery, anchors, navigational equipment, machine tools, firefighting equipment form part of vessel"s normal equipment and hence classified u/h 89.08.
(b) Fuel and Oil contained in the vessels" machinery and engines can also be regarded as forming integral part of the vessels and hence be classified u/h 89.08.
(c) Spare parts (such as propellers), whether or not in a new condition and movable articles (furniture, kitchen equipment, tableware etc.) showing clear evidence of use and which have formed part of normal equipment of vessels, are classifiable under heading 89.08.
(d) Remaining fuel and oil other than that mentioned in sub-para (b) above, and other ship stores including drinks and foodstuff are classifiable separately in their own appropriate headings.

MF (DR) Circular No. 37/96-Cus (F. No. 512/22/89-Cus.VI) dt. 3.7.1996)—1996 (65) ECR 47C