KARACHI: The PCT Committee of the Model Customs Collectorate (MCC) of Appraisement (East) during its recent meeting has unanimously agreed upon that the imported goods in unassembled form have essential character of an “electricity meter”, hence classifiable under PCT heading 9028.3000 as per rule 2(a) of the General Rules for Interpretation.
The Collector of Customs Adjudication-I vide its Order-in-Original (ONO) No.255077 had forwarded a case to the PCT Committee pertaining to classification dispute concerning the item bearing description of “Electric Parts” imported vide Goods Declaration No. KAPE-HC-108627.
The concluding para of the ONO No25507 is reproduced below: “In view of above facts, the authorities concerned of the Customs Adjudication ordered that the impugned goods be released under Section 81 of the Customs Act, 1969 by securing government revenue with such security/undertaking as deemed appropriate by the Collectorate and the matter be referred to the classification Center established in the MCC-East for decision in case the classification Centre rules that such consignments of PC Boards and components for meters are to be treated as complete meters by virtue of GIR2, demand should be raised against all imports made in past five years in terms of Section32(3) of the Customs Act, 1969.
The Adjudication authorities have made that decision in the light of the case linked with importer M/s Creative Electronics (Pvt) Ltd in which it had imported a consignment declared as electronic parts under PCT headings i.e. 8532.2900, 8533.1000, 8541.6000, 8541.2900, 8532.2900, 8504.9040, 8533.2900, 8542.3900, 8531.2000, 8533.1000, 8506.5000, 8544.1900, 8534.0000, 8533.2900, 8533.1000, 8523.2900, 8533.1000 and 7806.0010. The assessment group of MCC-Appraisement (East) assessed the said items under the PCT Heading 9028.3000 under the description of “electricity meter” on the basis of examination report.
The assessment group opined that the electricity meters have been imported in knocked down condition having essential character of electricity meters under rule 2(a) of the General Rules for Interpretation. The importer’s contention is that the impugned items are “Components for manufacturing of electric meters”, since the importer had mis-declared the classification and description to evade higher rate of duty and valuation, then the case was instituted and referred to the Adjudication Collectorate.
Later on, the meeting headed by Chairperson Classification Committee Zeba Bashir Ahmed, Additional Collector-I examined the arguments put forth by both sides, scrutinized the documents/replies submitted and inspected the sample presented before the Committee. The samples consisted of components i.e. capacitors, resistors, integrated circuits, un-mounted printed circuit boards, ferrite core, lithium battery, voltage stabilizer, voltage wire, shunt assembly, variable resistors, LED/LCD panels and switch.
The members of Committee opined that the items as presented had the essential character of the finished or complete article, hence could be conclusively characterized as “electricity meter”, as per rule 2(a) of the General Rules for Interpretation. The impugned item is therefore to be treated as the electricity meter classifiable under PCT Heading 9028.3000. It is pertinent to mention here that the AIB/R&D Branch of MCC-Appraisement (West) has unearthed the said mis-declaration in import of electricity meter parts and then the PCT Committee of MCC-Appraisement (East) took out the matter and decided the PCT Heading on import of electricity meter parts.
