KARACHI: The PCT Committee of the Model Customs Collectorate of Appraisement-East has come to conclusion that the item declared as “Calcium Sulphate” is most appropriately classifiable under PCT heading 2520.
The Model Customs Collectorate Port Muhammad Bin Qasim had referred a case to the Committee vide letter C.No.6(92) Gr-1 , Classification Committee/2012-PaCCS dated November 15, 2012.
The case pertained to a consignment of Calcium Sulphate (hemihydrates/dehydrate) imported by M/S Cotton Craft (Pvt) Ltd under PCT 2520.1010. The goods were provisionally assessed in PCT 2520.2000 after consulting the relevant literature, explanatory notes to the Pakistan Customs tariff and online resources indicating that the goods have passed through the process of calcinations to bring them into hemi-hydrated form. The test report furnished by Custom House laboratory further confirmed the goods to be dried Calcium Sulphate (hemi-hydrate).
The MCC Port Qasim opined that the imported goods comprise gypsum partially dehydrated by calcinations and therefore correctly classifiable in PCT 2520.2000 while the declared PCT is for naturally occurring Hydrated Gypsum. The importer contesting the assessed PCT, saying that the imported goods were Calcium Sulphate/Plaster of Paris and that their correct PCT was as declared, that is 2520.1010, requested that the dispute be transferred to the Classification Committee for the final decision.
The PCT committee held meetings on November 6 and 25, 2014 respectively during which importer contended that the item Calcium Sulphate was imported for manufacturing of Orthoplast (Plaster of Paris Bandages). The importer also argued that Calcium Sulphate (Hemihydrate/Dihydrate) is Plaster of Paris and falls under PCT 2520.1010, whereas other products made up from Calcined Gypsum or Calcium Sulphate fall under PCT heading 2520.2000 (plaster). It was further argued that Calcium Sulphate (Hemihydrate/Dihydrate)/Plaster of Paris is being used in manufacturing of product “Orthoplast (Plaster of Paris Bandages) which is registered as a drug by the Ministry of Health vide product registration No.009332.
The Committee analyzed the importer’s arguments in light of Explanatory Notes to PCT heading 25.20 titled “Gypsum; Anhydrite, Plasters (Consisting of Calcium Gypsum or Calcium Sulphate) whether or not colourd, with or without small quantities of accelerators or retarders.” The Committee observed that PCT heading 2520.1010 pertains to Gypsum; anhydrite whereas PCT heading 2520.2000 pertains to Plasters. Furthermore, the Explanatory Notes explains that Gypsum is natural Anhydrous Calcium Sulphate generally white and friable while anhydrite is a natural Hydrated Calcium Sulphate used in the manufacture of sulphuric acid or of certain types of plasters that consist of Gypsum partly or completely dehydrated by calcinations.
Since the dispute pertained primarily to Calcium Sulphate, whether anhydride or calcined, representative samples (sealed) were drawn from another consignment of the importer bearing the same description and classification and referred to Customs House Laboratory for test. The result of the test clearly indicated the item as Calcium Sulphate Hemihydrate (Plaster).
Read with Explanatory Notes to the PCT heading 25.20 which read, “The characteristics of gypsum is that, when calcined, it loses part of its water thus forming plasters which on being mixed with water set hard. In order that plasters should not set too quickly small quantities of retarders are often added to the calcined gypsum. For special purposes gypsum is calcined until all its water is lost, and small quantity of an accelerator such as alum is added. Similar plasters are made by adding alum to natural anhydrite.”
The Committee therefore concluded in the light of rule 1 to the General Rules of Interpretation that the impugned item, that is Calcium Sulphate (Hemihydrate-Dihydrate) is most appropriately classifiable under PCT heading 2520.2000. The public notice to this effect dated December 17, 2014 was issued by Additional Collector I, Chairperson Classification Committee Zeba Bashir Ahmed.
