LAHORE: Customs collectorate has issued order-in-appeal (OIA) against M/s Noor Enterprises by not setting aside assessment made by respondent at USD 1.45 kg by re-assessing and re-classifying its imported goods as hair coat/serum falling under PCT heading-3305.9020.
M/s Noor Enterprises filed an appeal at the Collectorate of Appeal on the grounds that the appeal is directed against assessment of Magic Black Hair Color Shampoo subject matter of GD No.LAPR-HC-8824 dated 13.01.2015 falling under HS Code-3305.1000 at USD 1.45 kg by declaring the same as hair coat/serum falling under HS Code-3305.9020 on the basis of Valuation Ruling No. 596/2013 dated 24.10.2013.
The appellant prayed to collector of appeal that the assessment made by the respondent at USD 1.45 kg by re-assessing and re-classifying the goods as hair coat/serum falling under PCT heading-3305.9020 be set aside and the product being hair shampoo falling under PCT heading-3305.1000 be directed to be assessed at USD 0.85 kg vide serial-05 of Valuation Ruling 596/2013 dated 24.10.2013.
The appeal was heard on 26.01.2015. Mian Abdul Ghaffar, Advocate appeared on behalf of appellant and reiterated the points given in the memo of appeal. Syed Qamer Abbas, Appraiser appeared & represented the department and stated that previously it has been cleared as shampoo.
Noor Enterprises contended during the course of hearing that the product is a shampoo and it is only used for washing/ conditioning of the hair. He was of the view the product when applied produces foam while rubbing and applying on the hair just like an ordinary shampoo and it does not contain any hydrogen per oxide which is an essential part of any coloring dye.
The collectorate said that the product is a dying colour as it contained pure water, Cocamide DEA, Propylene Glycol Ammonium Hydroxide, Oxyquinoline sulphate, Disodium Phosphate, Hydrogen per oxide and Ethanolamine like chemicals.
The collectorate observed that it is clearly mentioned on the packing of the product, “5 Minutes White to Black”. Though the product is not a coating dye, it can be termed as Hair Serum with the main and distinguished feature of “blackening of white hair within 5 minutes.”
The collectorate underscored that the product is being branded/ marketed as a coloring dye and that the Assistant Collector (G-I), Model Customs Collectorate (Appraisement), Lahore has rightly classified it under PCT heading “3305.9020” as a hair dye /serum.
The Collector of Model Customs Collectorate (Appraisement), Lahore may order to initiate audit of all past clearances in which the product has been cleared as a shampoo in order to recover the short levied amount of duty and taxes on all these clearances, the collectorate of Appeal said. Since the goods have been classified under the PCT heading “3305.9020” as a colour dye/ serum, the value of the same will be assessed in accordance with the value of hair dye/serum, the collectorate added.
