Government of Pakistan

Model Customs Collectorate of Appraisement

Customs House Karachi 

No.  CC-64/2009 (A)                                                                        Dated: 20.04.2010

PUBLIC NOTICE NO.04/2010-CC

SUB: Classification of complete distributed control system (dcS)

            The classification aspect of product namely “Distributed Control System” (DCS) has been referred to Classification Committee of this Collectorate by MCC-Multan.

2.         The product as per information available and catalogue provided by the importer is Distributed Control System (DCS), which is dedicated system used to control manufacturing processes that are continuous or batch-oriented, such as oil refining, petrochemicals, central station power generation etc. DCS is connected to sensors and actuators and use set point control to control the flow of material through the plant. The set point control loop consist of a pressure sensor, controller and control valve. The pressure or flow measurements are transmitted to the controller, usually through the aid of a signal conditioning input! output (I/O) device. When the measured variable reaches a certain point, the controller instructs a valve or actuation device to open or close until the fluidic flow process reaches the desired set point. Processes are not limited to fluidic flow through pipes, however, and can also include things like paper machines and their associated variable speed drive and motor control centers, cement kilns, mining operations, ore processing facilities, and many others.

3.         The importers claimed classification of the impugned equipment under H.S. Code 84.71 being automatic data processing unit.

4.         On the other hand MCC-Multan suggested PCT heading either 8543.7090 or 8537.1090.

5.         The following possible PCT headings were discussed in the meeting:

            i) 84.71           ii) 8543.7090             iii) 8537.1090            iv) 9032.8990

6.         Members of the Committee examined the PCT heading 84.71, which covers Automatic  Data Processing Machines and units thereof, containing a central processing unit, input devices and output devices, whereas DCS system is more complex system used to control manufacturing processes. DCS is connected to sensors and actuators and use set point control to regulate the flow of materials through the plant. Therefore, PCT heading 84.71 is ruled out.

7.         The PCT heading 85.43 was also ruled out as the same covers Electrical Machine and apparatus having individual functions being a generic heading for machinery not elsewhere specified. The impugned equipment perform automatic control of flow, level, pressure which are specifically defined in subsequent chapters.

8.         The Chapter Notes of PCT heading 85.37 describes the “Programmable controllers” which are digital apparatus using a programmable memory for the storage of instructions for implementing specific functions such as logic, sequencing, timing, counting and arithmetic, to control, through digital or analog input/output modules, various type of machine. Thus, PCT heading 85.7 is not relevant.

9.         Whereas, perusal of PCT heading 90.32 reveals that it covers instruments and apparatus for automatically controlling the flow, level, pressure or other variables of liquid or gases, or for automatically controlling temperature. It further states that Automatic control apparatus for liquids or gases and apparatus for automatically controlling temperature form part of complete automatic control systems and consist essentially of the following devices:

A device for measuring the variable to be controlled (pressure or level in a tank, temperature in a room, etc); in some cases, a simple device which is sensitive to changes in the variable (metal or bi-metal rod, chamber or bellows containing an expanding liquid, float, etc.) may be used instead of a measuring device.

 A control device, which compares the measured value with the desired value and actuates the devices described in (C) below accordingly      

 A starting, stopping or operating device. Apparatus for automatically controlling liquids or gases or temperature, within the meaning of Note 7(a) to this chapter, consists of these three devices forming a single entity or in accordance with Note 3 to this Chapter, a functional unit.

 That Instruments and apparatus for automatically controlling the flow, level pressure and other variables of liquids or gases or for automatically controlling temperature are connected to an appliance which carries out the orders (pump, compressor, valve, furnace burner, etc.) which restores the variable (e.g., liquid measured in a tank or temperature measured in a room) to the prescribed value, or which, in the case of a safety system, for instance, stops the operations of the machine or apparatus controlled.

10.       From the perusal of foregoing and Explanatory Notes to heading 85.37 and 90.32, it is evident that impugned product DCS, where in process flows of Industries are controlled and managed qualifies the criterion described under PCT heading 90.32. Thus, the H.S. Code 9032.8990 is most appropriate heading for the purpose of classification of the Distributed Control System, wherein process flows of industries are controlled and managed.

 11.       In view of the following discussion the Classification Committee ruled that the impugned product Distributed Control System (DCS), by application of Rule I of the Explanatory Notes to Harmonized Commodity Description and Coding System, is appropriately classifiable under PCT Heading 9032.8990.

Signed by

(Gul Rehman)

Additional Collector

Chairman PCT Committee

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