ISLAMABAD: The Customs Appellate Tribunal has remanded back the case regarding the classification of etersol 1612-2 to the Customs Adjudication for a fresh judgement with the consultation of PCT committee.
According to the details, the importer Arshad and Company imported a consignment of etersol 1612-2 from Taiwan and sought clearance under PCT Heading 3906.9090 chargeable to 10 percent customs duty.
The representative samples were forwarded to Customs House Laboratory for confirmation of the description. The lab reported the sample on test is found to be an aqueous emulsion of synthetic resin acrylic. It is in form of milky white liquid. In the light of examination and lab report, the goods were found appropriately classifiable under PCT Heading 3907.9900 attracting 20 percent customs duty.
The value of goods were assessed by the department for payment of duty and taxes at $41,600 as against the declared value $17,760. The importers were charged for deliberately mis-declaring the description, classification and value of goods, involving differential duty and taxes amounting to Rs 1.959 million.
The Customs Adjudication ordered the assessment of the goods under PCT Heading 3906.9020. Dissatisfied, the importers approached Customs Appellate Tribunal. The tribunal observed that the fact at dispute is the classification whether goods i.e. Etersol 1612-2 constituted aqueous emulsion of acrylic, resin classifiable under PCT Heading 3906.9090, 3907.9900 or 3906.9020.
The importer’s contention is based on the ground that the impugned goods are Etersol 1612-2 which is an aqueous emulsion of “Synthetic Resin Acrylic”. It is in the form of milky white required in primary form which is appropriately classifiable under PCT Heading 3906.9090 carrying 10percent customs dutyb and 2.0 percent Sales Tax in terms of SRO 1125(1)/2011 value added sales tax rate 2.0 percent and Income Tax of 2.0 percent as declared.
They further argued that impugned goods had been cleared for a long time under PCT Heading 3906.9090. The manufacturers’ literature also supports the importer’s contention.
They further argued that impugned goods were assessable at $1.11/per kg on the strength of Pakistan Chemical and Dyes Merchants Associations Certificates.
The clearance collectorate claimed the impugned goods aqueous emulsion of synthetic resin acrylic classifiable under PCT Heading 3907.9900 chargeable to customs duty 20 percent.
The Adjudication authority on the other hand, through the impugned order, ascertained PCT Heading 3906.9020 as the appropriate classification instead of PCT 3907.9900. The importers provided a number of past test reports which showed aqueous emulsion Synthetic Resin (acrylic) in milky while liquid and past evidential GDs cleared under PCT Heading 3906.9090.
The Tribunal observed that importer’s contention for classification of their goods under PCT heading 3906.9090 seems to draw strength from test report endorsed on GD. The tribunal also observed that the department itself is not clear about actual PCT heading applicable to the goods in question and remanded back the case to the adjudicating authority for a fresh consideration in consultation with the PCT committee of Custom House.
