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2022 (10) TMI 441 - AAR - CustomsClassification of goods - HDPE woven fabric - to be classified under Tariff Heading 3926 or 3923? - export of Duty Drawback scheme, rather they plan to export under Advance Authorization Scheme - HELD THAT:- In Headings 39.20 and 39.21, the expression “plates, sheets, film, foil and strip” applies only to plates, sheets, film, foil and strip (other than those of Chapter 54) and to blocks of regular geometric shape, whether or not printed or otherwise surface-worked, uncut or cut into rectangles (including squares) but not further worked (even if when so cut they become articles ready for use). HDPE woven fabric is not classifiable under Headings 39.20 and 39.21. Heading 3923 covers Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics. It includes sacks and bags (including cones) under Heading 3923 10; Stoppers, lids, caps and other closures under Heading 3923.50; and residual entry others under 3923.90. The explanatory notes to this heading further explain that this heading covers all articles of plastics commonly used for the packing or conveyance of all kinds of products - A careful reading to this heading suggests that HDPE woven fabric is not covered under this heading, in particular under the expression under closures. Further, since the fabric is in roll form, even though it can be used to make bags or sacks, following the settled principle of law, the classification of the article should be based on the form it is presented in, and therefore, cannot be classified under Heading 3923 10. Heading 3925 covers Builders’ ware of plastics, not elsewhere specified or included. Even though the applicant has contended that the fabrics are those which are used to cover buildings under construction, they cannot be considered as builder’s ware of plastics, taking into account the Explanatory Notes of HSN and description of the articles mentioned in the heading/sub-heading - residual Heading 3926, covering Other articles of plastics and articles of other materials of Headings 39.01 to 39.14. This heading covers articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or of other materials of Headings 39.01 to 39.14, noting that HDPE in its primary form is covered under Heading 3901. HDPE woven fabrics (uncoated/one-side coated/double-side coated) are most appropriately covered under residual Heading 3926 and further the residual sub-heading 3926 90 99 of the Customs Tariff Act, 1975.
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