GOVERNMENT OF PAKISTAN

COLLECTORATE OF CUSTOMS (APPRAISEMENT)

CUSTOM HOUSE, KARACHI.

CC-06/05-A                                                                                  Dated 14-09-2005 

PUBLIC NOTICE NO. 20/2005-(A)

SUB:  CLASSIFICATION RULING – CARGO ALUMINUM CLADDING SHEET.

Classification of coated aluminum cladding sheets came up for discussion before classification committee. Importer was present. Catalogue of the manufacturer was consulted which describes the goods as aluminum composite material (ACM). It is composite panel consisting of two aluminum cover sheets with plastic or a high mineral filled core. Panels are coated with a fluorocarbon (e.g. PVDF) lacquer system and supplied with a protective peel-off foil. The panels are produced with various core thicknesses in continuous process enabling the cutting of the panels to size. They are in rectangular form of sizes 1600mm x 3000mm, 1600mm x 4200mm. Aluminum sheets are 1mm thick plastic or mineral filled core thickness in 6mm. Panels are used for external cladding of buildings, internal decoration, etc.

2.         The classification committee considered PCT heading 76.10 and 76.06 for possible classification.

Appraising Group officials were of the view that PCT heading 76.10 inter alia covers aluminum plates, rods, profiles, tubes and the like, prepared for use in structures. Imported panels are undoubtedly meant for use in structures and thus attract classification under heading 76.10 (7610.9000) by virtue of rule 1 of the general rules of interpretation of the schedule. Importer on the other hand, contended that panel comprised of two aluminum cover sheets and plastic filled core. It is composite article and, by virtue of note 3 (b) of the general rules of interpretation, attracts classification in chapter 76.06 as aluminum sheets are develop the essential character of the product. He further contended that explanatory notes to heading 76.10, read with heading 73.08, describe classification in these headings, when the plates / sheets are prepared (e.g. drilled bent or notched) for use in structures. The disputed panels are not prepared and as such fall outside the ambit of heading 76.10. World Customs Organization also decided classification of such products under heading 76.06.

3.         The committee deliberated upon classification and observed that, in terms of explanation at page 13-14 and 1261 of explanatory notes to HS, plates prepared for use in structures have been classified under heading 76.10 if made of aluminum and under 73.08, if made of steel. The term "prepared for use in structures" has been elaborated as those which are drilled, bent, notched etc. No such process has been subjected to the imported panels. As such, imported goods cannot be termed as "prepared for use in structures". Therefore, they fall outside the ambit of heading 76.10. It was further considered by the committee that the goods being composite article and developing essential character of aluminum sheets, rather than core plastic material, as such attract classification under heading 76.06 by virtue of note 1 to general rules of interpretation. Classification under heading 76.06 was considered in consonance with the classification decision taken vide HSC/20 by the Harmonized System Committee and published at page 39E of the Compendium of Classification Opinions, issued by the World Customs Organization.

4.         In view of the above, the classification committee decided classification of the coated aluminum cladding sheets under heading 76.06 (i.e. 7606.1100 if not alloyed and 7606.1200 if alloyed).

Signed by

(Dr. Sarfraz Ahmad Warraich)

Additional Collector Chairman Classification Committee

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