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PCT body of Appraisement-East classifies goods declared as ‘Polyester Pile Fabrics’

PCT body of Appraisement-East classifies goods declared as ‘Polyester Pile Fabrics’

KARACHI: The PCT Committee of the Model Customs Collectorate of Appraisement-East has concluded that the goods declared as “Polyester Pile Fabrics” is appropriately classifiable under PCT heading 5801.9000 in terms of General Rules for Interpretation.

The Additional Collector of Customs, MCC of Appraisement-West had referred a case to the PCT Committee vide letter C.NO SI/Misc/31/2013-IV dated December 28, 2013 titled “Classification of goods declared as Polyester Pile Fabric”.

According to the letter, M/S Sunrise International imported a consignment of Pile Fabrics vide GD No.KAPW-HC-53661 Dated November 1, 2013. The consignment was declared as Polyester Blanket size double bed 2 ply (packing 426 bales x 36 pieces, 1 bale x 20 pieces and 10 cartons x 6 pieces) declaring HS Code 6301.4000 @ 10% Customs Duty & taxes.

During the course of delivery of goods, the consignment was intercepted by the Directorate General of Intelligence and Investigation FBR, Karachi on the grounds that the goods are actually fabrics classifiable under PCT heading 5801.9000 and liable to be treated as Pile Fabric. The team of MCC Appraisement-West comprising PA (R&D), PA (Gr,IV) and shed staff along with the staff of the Directorate General of I&I-FBR, Karachi, examined the shipment on November 22, 2013. The team could not reach a consensus and two separate examination reports were submitted.

The examination report by the Directorate stated that “the consignment consisted of Polyester printed pile fabric in continuous length of 100ft and above, width 6.5ft with no defined demarcation for cutting (absence of weft threads not observed) in loosely packed than in bales.”

The examination report submitted by the Collectorate stated that “the consignment consists of polyester printed raised pile fabric for blanket in continuous length, having complete essential characters and printed demarcation for each piece of blanket. The representative sample forwarded to Custom House laboratory for confirmation of constituent material as well as to concerned group.”

The MCC Appraisement-West letter further explained that as per Rule 2 to General Rules for Interpretation “any reference in a heading to an article shall be taken to include a reference to that article incomplete or finished, provided that, as presented, the incomplete or unfinished article has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or failing to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled.

The letter also provided the definition of made-ups given in sub-para (a) and (b) of Para 7 of Section XI to the Explanatory notes.

In its meeting on October 23, 2014 the PCT Committee scrutinized the details of the case, examined the sample placed before it and perused the relevant sections of the Explanatory Notes. The sample as presented was that of Polyester printed pile fabric in continuous length with defined printed demarcation for cutting. The sample as presented did not qualify classification under the PCT heading 63.01 covering “Blankets and travelling rugs” on account of following reasons:

  1. The sample as presented was akin to “woven pile fabric” composed of tight warp and weft forming the ground fabric and warp or weft forming the pile. The high piles consisted of loops (cut) over the entire surface, on one side only and a regular pattern of defined printed demarcation for cutting. It was appropriately classifiable under PCT heading 58.01 bearing description “woven pile fabrics and chenilled fabrics, other than fabrics of heading 58.02 or 58.06”
  2. The sample did not qualify the inclusions appearing under PCT heading 63.01 “Blankets and travelling rugs” given in Sub-Chapter I to Explanatory Notes as it is continuous length with defined printed demarcation for cutting, which if cut along the printed demarcation, would still require adage of another piece of pile fabric equal size to be stitched on it to serve the purpose of double ply blanket. Moreover, by mere cutting along printed demarcation line, the pile fabric cannot be converted into a separate article having essential character of a blanket.
  3. Note 7 to Section XI regarding “Textile & Textile Articles” of Explanatory Notes being referred to gives an explanation of the term made-ups. The impugned item cannot be termed as made-up as it is not in a finished state i.e. ready for use without sewing or other working.

So in the light of the facts mentioned above the Additional Collector I, Chairperson Classification Committee Zeba Bashir Ahmed issued the public notice, dated November 29, 2014. The Notice said that the impugned goods are appropriately classifiable under PCT heading 5801.9000 in terms of Rule 1 of General Rules for Interpretation.