ISLAMABAD: The Customs Classification Committee (CCC) of the Federal Board of Revenue (FBR) has ruled that the “Complete Solar DC Ceiling Fan without blades” would be subjected to 20 percent customs duty at the import stage. The committee has issued a new ruling in this regard.

There was a classification dispute whether the Solar DC Ceiling Fan are subjected to zero percent customs duty under the Pakistan Customs Tariff heading number 8501.3100 or 20 percent duty under the PCT heading number 8414.5190.

According to the ruling, in light of the above considerations, the Classification Committee holds the opinion that the ‘Complete Solar Dc Ceiling Fan without blades’ is appropriately classified under Pakistan Customs Tariff (PCT) heading 8414.5190, applying GIR Rules 1 and 2(a).

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Upon examination of PCT heading 8501, it becomes apparent that it is specifically limited to motors intended for use in various types of mechanical and electrical machinery, including fans.

However, the subject goods, described as “Complete Solar Dc Ceiling Fan without blades,” despite being incomplete due to the absence of blades, are considered to possess the essential character of a complete fan. For classification purposes, they are treated as unfinished fans falling under heading 8414.

Moreover, the committee is of the opinion that the term ‘essential character’ is attributed to goods designed or built to serve a clearly defined function. This implies that if a product is specially designed to perform a clearly defined function, it shall be considered to have the ‘essential character’ of said item, whether or not presented in a complete or finished state.

The same has been categorically ruled in imports of CKD/SKD Kits which are specifically created in tariff headings of CBU in various Budgetary Measures approved by National Assembly for air conditioners, deep freezers, washing machines and auto vehicles etc.

Therefore, the goods as presented clearly indicate that these are ‘Fan Sets without blades only’, in retail packing for sale, and qualify as ‘incomplete Ceiling Fans’ under PCT heading 8414, customs classification committee added.

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