Import of PAU by Roche Pakistan: CCC’s ruling resolves duty, tax assessment issue

ISLAMABAD: The Customs Classification Committee of the Federal Board of Revenue (FBR) has given a decision in favour of a leading research-based healthcare company on the assessment of duties and taxes on the import of the Post-Analytical Unit.

The new ruling has resolved the issue over the assessment of duties and taxes on the import of the Post-Analytical Unit by M/s Roche Pakistan Limited used in the laboratories for hydraulic robotic movement of sample tubes with labeling, sealing, and stacking operations.

In this connection, the Collectorate of Customs (Appraisement) East Karachi issued a valuation ruling on Friday.

According to the order, the Collectorate of Appraisement, East, Karachi, forwarded a reference for the determination of the appropriate classification of the “Cobas P 501 Post-Analytical Unit”.

The referring collectorate was of the view that the impugned goods were classifiable under Pakistan Customs Tariff (PCT) heading 8418.6990 on the basis of the essential character and principal function of the machinery, being a storage refrigerated machinery with a storage capacity of 13,500 samples at a controlled temperature with the additional functions of rack and tube identification, sample capping, a sorting system, and the disposal of expired or left-over samples.

On the other hand, importer contended that their goods were classifiable under PCT 8428.9090 as the main functionality of the entire module was a hydraulic robotic movement of sample tubes with labeling, sealing, and stacking operations for storing the leftover samples in a storage area; therefore, the functional operation of the unit is lifting, handling, loading, unloading, and stacking.

The meetings on the subject matter were attended by the representatives of the importer and the members of the Classification Committee. The representatives of the importer explained the functions of the unit and how the product in question was designed to handle, store, and retrieve the biological sample tubes in racks in an organised manner.

They explained before the committee that the impugned “Cobas P 501 Post-Analytical Unit” is a fully automatic system in the form of a modular device system consisting of an input compartment, optical image processing with a rack-and-tube identification camera, a sample capper, one tube and one rack handling unit each, and a sorting system.

The committee observed that the “Cobas P 501 Post-Analytical Unit” consists of six major functional components, like an input/output area, a connected input/output area, a rack and tube type identification system, a re-stopper or de-stopper, storage area, and an automated washing area, all connected by powerful robotics.

The Committee observed that PCT heading 8418 covers “Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15.”

The committee noted that impugned unit is a composite machine. Therefore, this seamless, integrated lifting, loading, and unloading unit of a composite machine will be a guiding factor for the determination of the HS heading of the entire composite module of the “Post-Analytical Unit.”

The committee also observed that a similar function is also stated in the Explanatory Notes to Heading 8428 as “Industrial Robots specially designed for lifting, handling loading or unloading” under “(III) Other Special Lifting or Handling Machinery.”

In view of the above, the Classification Committee is of the view that “Cobas P 501 Post-Analytical Unit” is appropriately classified under PCT heading 8428.9090 by application of GIR 1, 3(b), and Section Note (3) of Section XVI.

The above classification determination is specific to the product whose details/specifications have been given above. Further, the ruling is based on the documents, including literature/catalogue provided by the applicant and shall be treated as annulled if it is found at any subsequent stage that the same was obtained by providing incorrect, false, misleading, or incomplete information by the importer.

Copyright Business Recorder, 2022