ISLAMABAD: The Customs classification committee of the Federal Board of Revenue (FBR) on Tuesday imposed a lower rate of 3 percent Customs duty on the import of “Sodium Naphthalene Sulphate FON-A” a raw material used in making different chemicals in local markets of Pakistan.

In this connection, the committee has rejected the viewpoint of Collectorate of Customs (Appraisement) East, which imposed 16 percent duty on the import of the said item.

The committee has issued a ruling in terms of Chapter-II (Classification) of customs general order (CGO) 12/2002.

The crux of the ruling is that the said raw material is not subjected to 16 percent duty but only 3 percent customs duty at the import stage.

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According to the ruling of the FBR’s Customs classification committee, the Collectorate of Customs (Appraisement) East forwarded a reference for the determination of classification of “Sodium Naphthalene Sulphate FDN-A.”

Brief facts as reported by the referring Collectorate are that M/s Vertex Chemicals (Pvt) Ltd. Imported a consignment declared to contain “Sodium Naphthalene Sulphate FDN-A” under PCT heading 3824.9999. On Lab Test, the goods were reported as sodium salts of naphthalene sulfonateformaldehyde condensate product in form of dark brown powder.

During scrutiny, the Collectorate found that Sodium Naphthalene Sulphate FDN-A is directly used as superplasticizer
and used as concrete admixture, which is classifiable under Head 3824.4000.

Another company M/s Ultra Construction Chemicals (Pvt) Ltd filed complaint before the Federal Tax Ombudsman for ascertainment of classification.

The departmental representative reiterated the stance of the Collectorate that the impugned goods are superplasticizer for concrete or concrete admixture which were correctly classifiable under PCT heading 3824.4000 as “Prepared additive” by application of GIR Rule 3(a).

On the other hand, the representatives of the importers contended that subject goods were raw material used as concrete admixtures and used in making different chemicals for customers in local market of Pakistan. Incharge Custom House Lab was called who opined that the impugned goods were not prepared additives.

It was observed that the issue of classification arose in past and the Collectorate classified in the PCT heading 3824.9999. Past and present clearance history showed that the goods released under PCT heading 3824.9999. The current aforementioned Custom House Lab opinion also says that the impugned good are not prepared additives, thereby cannot be classified as prepared additives under PCT heading 3824.4000.

Copyright Business Recorder, 2023


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