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TMI Blog2022 (4) TMI 1496X X X X Extracts X X X X X X X X Extracts X X X X ..... Pollution Control Board (CPCB), New Delhi along with NEERI, Nagpur and IIT, New Delhi carried out a study on the adequacy of various tyre pyrolysis plants, including the plant of the applicant at Erode, to meet environmental concerns. This report, herein referred to as the CPCB report, has been cited by the applicant for explaining the processes involved in the tyre pyrolysis plant and the properties of the recovered goods. As per the CPCB report, the tyre pyrolysis process is used for the recovery of pyrolysis oil, carbon black and steel from waste tyres/End of Life Tyres (ELTs). A typical waste tyre/End of Life Tyre (ELT) consists of about 60% volatile organics, 30% fixed carbon and 10% ash by weight. Pyrolysis is a chemical reaction that involves the molecular breakdown of larger molecules into smaller molecules by heating in absence of air. Pyrolysis is also known as thermal cracking, thermolysis, depolymerization, etc. Pyrolysis of tyres & rubber products results in pyrolysis oil, pyrolysis gas (pyro gas), carbon black & steel. The quantity and quality of each product depend on the type of waste tyre including process variables, temperature, pressure, and residence time. The p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the TPO does not correspond to any specific BIS standard and the subject goods are being used as furnace oil. It may be fit to be classified under sub-heading 2710 19 90 of the customs tariff. The applicant proposes the classification of the recovered carbon black under six-digit entry 2803 00. 2.4 In relation to the above-mentioned goods, the questions on which advance rulings have been sought are as follows :- (1) Whether TPO and recovered carbon black are classifiable under sub-headings 2710 19 90 and 2803 00 90, respectively? If not, then what are the suitable sub-headings for both? (2) Whether, TPO and recovered carbon black are included in the negative list of the India-Sri Lanka Free Trade Agreement? (3) Whether, both the goods are allowed for free trade and exempted from customs duty in India? 3. In their CAAR-1 application, the applicant has stated that they would be importing under the jurisdiction of the Principal Commissioner/Commissioner of Customs, Chennai, Tuticorin and Vishakhapatnam. Their application, therefore, was forwarded to the jurisdictional Principal Commissioners/Commissioners of Customs for comments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ered carbon black : Aromatic : Non-Aromatic = 5% to 10%: 95% to 90%. 5. I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing. In the absence of any comments from the jurisdictional Principal Commissioners/Commissioners of Customs on the impugned subject matter, I proceed to render advance rulings on the basis of information available on record as well as information gathered from open sources. The issue before me is the classification of TPO and recovered carbon black, along with their treatment on import under ISFTA. It has been explained that tyre pyrolysis is the industrial process of breaking down large molecules of the used/ELT tyre into smaller molecules of oil, gas and carbon black. The waste tyre pyrolysis process yields a gaseous fraction of mainly non-condensable gases, an oily fraction mainly composed of organic substances, and a solid fraction that comprises mainly carbon, metal, and other inert material. The composition of the primary pyrolysis products is influenced by process operating parameters such as the feed size, temperature and pressure, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er hand, covers coal and other natural mineral fuels, petroleum oils and oils obtained from bituminous minerals, their distillation products, and products of a similar kind obtained by any other process. In this chapter, oils are covered under Headings 2707, 2709 and 2710. Heading 2709 covers crude petroleum oils and crude oils obtained from bituminous minerals (e.g., from shale, calcareous rock, sand), i.e., natural products, whatever their composition. As pyrolysis oil is not obtained from natural products, Heading 2709 is not applicable. Heading 2707 covers oils and other products of the distillation of high-temperature coal tar; similar products in which the weight of the aromatic constituents exceeds that of the non-aromatic constituents. As per the submission made by the applicant, the weight of the non-aromatic constituents exceeds that of the aromatic constituents and the typical aromatic to non-aromatic ratio is 10%-30% to 70%-90%. As the weight of non-aromatic constituents exceeds that of the non-aromatic constituents, TPO under consideration is not classifiable under Heading 2707. Petroleum oils and oils obtained from bituminous minerals, other than crude; preparations n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 803 00 10. Carbon black is a finely divided form of amorphous carbon, usually obtained as soot from partial combustion of hydrocarbons. Note 1(a) to Chapter 28 states that it contains separate chemical elements and separate chemically defined compounds, whether or not containing impurities. Carbon black is a chemically defined material. The HSN explanatory notes state that carbon black results from the incomplete combustion or cracking (by heating, by electric arc or by electric sparks) of organic substances rich in carbon. In the present case, the carbon black is recovered under the pyrolysis of tyres. Further, HSN notes state that it may contain oil impurities. Primarily, carbon black is used as a pigment for the manufacture of paint, printing ink, shoe polish, etc., in making carbon paper, and as a reinforcing agent in the rubber industry. However, the carbon black recovered from tyre pyrolysis, as stated by the applicant, exhibits a high calorific value, making it possible for fuel applications. The applicant further stated that carbon black is intended to be used as solid fuel in calciners of cement kiln for co-processing in the calcination process of cement manufacturing. HSN ..... X X X X Extracts X X X X X X X X Extracts X X X X
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