SS Sheet under PCT heading 7219.9090: FBR body rules against imposition of 20pc duty

ISLAMABAD: The customs classification committee of the Federal Board of Revenue (FBR) has declared that the Collectorate of Customs Appraisement (East) Karachi has wrongly imposed a 20 percent duty on the import of ‘Printed Stainless Steel Non-Magnetic Sheet Cut to Size’.

The committee has issued a ruling and endorsed the viewpoint of an importer of Printed Stainless Steel Non-Magnetic Sheet Cut to Size’, who have accurately cleared the item at zero-percent customs duty.

On the other hand, the Collectorate of Customs Appraisement (East) Karachi has wrongly imposed 20 percent duty on the import of this item.

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The Collectorate of Customs Appraisement (East) forwarded a reference for the classification of ‘Printed Stainless Steel Non- Magnetic Sheet Cut to Size’.

Brief facts as reported by the referring Collectorate are that importer M/s Subhan Enterprises imported multiple items of Gas Hob and parts, including ‘Printed Stainless Steel Non-Magnetic Sheet Cut to Size’. The importer declared the goods as ‘SS Sheet’ under PCT heading 7219.9090.

The Collectorate was of the view that the impugned good on Examination were found to be ‘Printed Stainless Steel Non-Magnetic Sheet Cut to Size’ and the same were assessable under PCT heading 7321.9000. However, the importer contended that merely cut to sizes and/ or printing/ embossing did not change essential character of the goods being stainless steel sheet and that the same still required further working by machine presses and tools to enable it to be finally a part of Gas Hob; hence, as imported, the same is classifiable under PCT heading 7220 in the light of Explanatory Notes of HS Code 7220 of the Harmonized Coding System.

The importer’s request for provisional assessment under Section 81 of the Customs Act, 1969 was acceded to by referring the matter to Classification Committee for determination of PCT heading under Pakistan Customs Tariff.

Several meetings of Classification Committee were held which were attended by the Departmental representative and members of the Classification Committee but no one appeared from the importer side. The representative of the Collectorate reiterated that since the sheets are cut to size and imported with some hob/ range hood parts, therefore, the same are classifiable as parts under PCT heading 7321.9000.

The Committee observed that the impugned goods ‘Printed Stainless Steel Non Magnetic Sheet Cut to Size’ as imported and presented can be used for multiple purposes, depending upon further work to be done upon them. These sheets do not attain the essential character of being part of Hob or Stove as the same are cut to size flat sheet and no work is done on them to contain holes/ spaces/ compartments for burner/ knob placements.

Furthermore, in their present condition and form, these sheets cannot be fitted with or used as part of Hob/ Stove as these are flat sheet, without any holes, ridges, bends, bolts/ screws/ rivets attachments, etc. These sheets need to be worked upon as stated above to make them to be used with Hob/ Stove.

The ruling added that the Committee is of the view that “Printed Stainless Steel Non-Magnetic Sheet Cut to Size’ is appropriately classified under PCT heading 7220.9090.

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