Central Excise - Classification of products made out of combination of plastics and material other than textiles - Regarding - Central Excise - 7/90-CX.3

Central Excise - Classification of products made out of combination of plastics and material other than textiles - Regarding Circular No. 7/90-CX.3 Dated 23-2-1990 [From F. No. 93/6/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Classification of products made out of combination of plastics and material other than textiles - Regarding. Doubts have been expressed on the classification of products obtained by combination of plastics and materials, other than textiles, either by a single operation or by a number of successive operations. The matter has been taken up with the Board by All India Plastic Film Converters Association. 2. The matter has been examined. It appears that one of their member units is manufacturing packaging materials in roll form which consists of plastic sheets/film separated by a layer of aluminium foil. A polyester film in roll form, which has been printed with a specific design of a customer, is laminated at first with aluminium foil on one side by means of adhesive, heat and pressure. This is again laminated with another film, viz., polyethylene on other side. Thus, a product is obtained which has two plastic films separated by a layer of aluminium foil. The doubt which has arisen is whether such product in roll form would merit classification under Ch. 76.06 and 76.07) or under Chapter 39 (39.20/39.21, as the case may be). It would be seen that H. No. 76.07 covers product made of aluminium foil whether or not printed or backed with paper, paper board, plastics or similar backing material of thickness, (excluding any backing) not exceeding 0.2 mm. The Heading would, therefore, cover the products made out of aluminium foil not exceeding 0.2 mm. in thickness backed with paper, paper board and plastics or similar backing material (excluding the thickness of any backing) on one side, and it would not cover the products of type as mentioned above. If the thickness of the aluminium foil is more than 0.2 mm., it would appear to fall under Heading No. 76.06, subject to other conditions. Aluminium foil which is backed by material, on both sides by plastics is nothing but a product of plastic films/sheets separated by a layer of aluminium foil. The classification of products made out of combination of plastic materials, other than textiles, has been explained in the Explanatory Notes of HSN to Chapter 39 on page 554. Under the Heading "Combination for plastics and materials" other than textiles, at S. No. (b) it has been clearly mentioned that products consisting of plastic plates, sheets etc. separated by a layer of another material, such as metal foil, paper board etc. are covered by Chapter 39 provided they retain the essential character of articles of plastics. As regards the determination of the essential character, the same may vary as between different kinds of goods. It may, for example, be determined by the nature of the material or component, its bulk, quantity, weight or value or by the role of a constituent material in relation to the use of the goods. For example a product which is made of 12 micron aluminium foil and having 10 micron, polyester film on one lakh side and 40 micron polyester film on other side and in which the printing is done on the plastic film/sheets shall have the essential character of plastics inasmuch as the bulk and role of the constituent material is determined by plastics only. 3. The above guidelines may be kept in view while deciding the classification of products obtained by combination of plastic and material, other than textiles. 4. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis.