TMI Blog2022 (10) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said goods involve extrusion of raw material namely HDPE granules, films which are obtained slit into strips; weaving of fabric is done on looms. It is also stated in the application that the raw materials used for manufacturing High Density Polyethylene (HDPE) Woven Fabric is E52009 HDPE [MFI - 0.90 g/10min, Density - 0.952g/cc] and raw material used for lamination of Fabric is Low Density Polyethylene LA1070 [MFI - 8.5g/10min, Density - 0.917g/cc], Further, it is also mentioned that HDPE woven fabric is widely used for packing and wrapping of various products. The HDPE fabric is used for manufacturing of tarpaulin, HDPE Bags for packing, wrapping of various products etc. 5. The applicant has also stated that Custom Tariff does not have specific description/classification for HDPE woven fabric; Tariff Heading 3923 does not deal with fabric, it only deals with articles for the conveyance or packing of goods including sacks and bags and Tariff Heading 3926 deals with other articles of plastics ; in our understanding it includes HDPE woven fabric; therefore, they are classifying HDPE woven fabric under Customs Tariff 3926 90 99 - others for their export shipments. In light o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake additional submission clarifying the intent to import the said goods; (b) On a question regarding the sample of the goods, he stated that they have not brought any sample with them; but explained the goods are those which are used to cover buildings under construction. It was explained to him that the Authority would find it useful if sample of goods was presented for better appreciation of the same; (c) On a question regarding the goods being exported, he clarified that they have earlier exported the specific goods, covered under the application; they do not intend to export the goods under Duty Drawback scheme, rather they plan to export under Advance Authorization Scheme. (d) He also stated that for domestic sale, they are classifying their goods under Heading 3926 for the purposes of levy of GST. 7.2 The Authority advised him to make additional submissions on the lines discussed during the PH and to submit sample of the goods in question, if feasible. Shri Doogar requested to grant time for the purpose, which was granted by the Authority. 8.1 M/s. Harmony submitted additional submissions vide their letter dated 25-10-2021 along with a sample of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coating/impregnation/lamination. On perusal of the sample supplied along with the applicant s letter dated 25-10-2021, it is observed that item is made by weaving of strips; therefore, the applicant was also requested to mention thickness and width (in mm) of such strips which are woven to make the item intended for import/export. The applicant vide their email dated 9-11-2021 submitted that following would be the technical specification of the HDPE fabric which they intend to export of import : length-5000 meter to 10,000 meter, breath-72 -125 Flat fabric, shape-fabric in rolls, raw material-HDPE granules and additives; sample is of uncoated fabric but ruling has been sought for un-coated as well as coated, impregnated, laminated or otherwise and coating/impregnation/lamination has been done after weaving and for coating/impregnation/lamination, materials used is LDPE granule and additive; details of strips/tapes which are woven, thickness-34 micron and width-2.4 mm. 8.3 Thereafter, vide email dated 10-11-2021, the applicant was asked to furnish a representative sample of HDPE woven fabric, coated, impregnated, laminated or otherwise. The applicant, vide their letter dated 15 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ught ruling on classification of the said goods for both import and export purpose, implying its appropriate classification under First and Second Schedule to the Customs Tariff Act. However, given the structure of the Second Schedule, it is not possible for me to pronounce a ruling under the said Second Schedule. Further, since the applicant has expressly clarified during the PH that they are not interested in seeking a ruling in respect of the drawback rates, the same is not being considered; and for this reason as well reliance on the Drawback Schedule for determining classification as proposed by the concerned Commissionerate may not be appropriate. 9.4 I find that the item under consideration is HDPE woven fabric, whether single side coated, double side coated or uncoated. In the GST Tax Invoice dated 9-10-2021 submitted by the applicant the commodity has been described as HDPE flat white fabric, coated . At this juncture, I wish to highlight the fact that the applicant has sought ruling on article in the form of fabric and not sack or bag made from the said fabric. Therefore, following the settled principle of law, I proceed to determine the classification of HDPE woven f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said goods are classifiable under Chapter 39 covering Plastics and Articles thereof; Rubber and Articles thereof. 10. I note that the applicant has contended that the goods are classifiable under sub-heading 3926 90 99, whereas the concerned Commissioner has suggested sub-heading 3923 10 90. I find that both the entries at the eight digit level are residuary --- Other . Heading 3923 covers Articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics, of which includes - Sacks and bags (including cones). Heading 3926 is a residuary heading at the four digit level itself, covering 39.26 - Other articles of plastics and articles of other materials of Headings 39.01 to 39.14, of which sub-heading 3926 90 is a residuary entry at six digit level and 3926 90 99 is a residuary entry at the eight digit level. 10.1 I find it prudent to examine the possibility of classifying the said article under any of the heading/sub-heading of Chapter 39, starting with Heading 3915 before considering the residuary classification under sub-heading 3926 90 99 suggested by the applicant. For this purpose, I specifically take note of the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout magnetic tape, (c) Stoppers, lids, caps and other closures. 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. 10.5 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. 10.6 I now come to the 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, notin ..... 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