Home Case Index All Cases Customs Customs + AAR Customs - 2023 (10) TMI AAR This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (10) TMI 1306 - AAR - CustomsClassification of goods intended to be imported - Compounded Rubber - to be classified under CTH 4005 1000 or not - HELD THAT:- In view of scope of tariff headings under CTH 4005 of the first schedule to the Customs Tariff Act, 1975 Compounded rubber formulation 2 (without Carbon Black but with less than 5 parts of SBR -Styrene butadiene rubber) and Compounded rubber formulation 3 (without Carbon Black but with less than 5 parts of clay) merit classification under CTH 4005 99 90: Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip - 'Other' and are not eligible for duty exemption benefit under serial number 503 of the notification 46/2011-Cus. dated 1-6-2011 amended from time to time. However, they are eligible for partial duty exemption benefit under serial number 504 of the notification 46/2011-Cus. dated 1-6-2011 amended from time to time subject to the fulfilment of conditions of the said notification. It is to mention that the presence of zinc oxide and stearic acid in this formulation requires sample testing post-importation from the point of view of checking whether this formulation is still in a unvulcanized state or not. Applicant has categorically submitted that the presence of zinc oxide and stearic acid in this formulation is not as an active agent or vulcanizing agent. Claim of applicant is required to be objectively proved by way of an outcome of the chemical test conducted at the time of importation. This aspect of product testing is a part of Customs Compliance Verification (CCV) process after importation of goods - the utility of the claim of applicant that the presence of zinc oxide and Stearic acid in this formulation is not as an active agent or vulcanizing agent is limited only to support applicant's contention, during advance ruling process, that the goods will not be in a vulcanized state. It is thus concluded that: a. Compounded rubber formulation 1 (with less than 5 parts of Carbon Black) mentioned in para 5.1 merits classification under CTH 4005 1000 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip - compounded with carbon black or silica and is eligible for duty exemption benefit under serial number 503 of the notification 46/2011- Cus. dated 1-6-2011 amended from time to time subject to the fulfilment of conditions of the said notification as well as notification 189/2009-Cus. (N.T.) dated 31-12-2009 amended from time to time, b. Compounded rubber formulation 2 (without Carbon Black but with less than 5 parts of SBR -Styrene butadiene rubber) mentioned in para 5.1 merits classification under CTH 4005 99 90 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip -Other and is eligible for duty exemption benefit under serial number 504 of the notification 46/2011-Cus. dated 1-6-2011 amended from time to time subject to the fulfilment of conditions of the said notification as well as notification 189/2009-Cus. (N.T.) dated 31-12-2009 amended from time to time. c. Compounded rubber formulation 3 (without Carbon Black but with less than 5 parts of clay) mentioned in para 5.1 merits classification under CTH 4005 99 90 Compounded rubber, unvulcanised, in primary forms or in plates, sheets or strip -Other and is eligible for duty exemption benefit under serial number 504 of the notification 46/2011 -Cus. dated 1-6-2011 amended from time to time subject to the fulfilment of conditions of the said notification as well as notification 189/2009-Cus. (N.T.) dated 31-12-2009 amended from time to time.
|