Government of Pakistan
Model Customs Collectorate of Appraisement
Custom House, Karachi
No. CC-06/2010(A) Dated: 27.01.2011
PUBLIC NOTICE NO. 01/2011
SUB: Classification of Gas Generators
The classification aspect of product namely “Gas Generators” has been referred to Classification Center by the Model Customs Collectorate , Lahore.
2. According to the examination report and manufactures printed catalogue, the product “Kohler brand Gas Generator, Model 17RES” multi-fuel LP Vapour/Natural Gas comprises of Alternator (model 2F5) while its prime mover is a Gas Engine (model CH980 ) which is ignited by natural gas/lpg. The importer had sought its classification under PCT heading 8502.3900 while the MCC Lahore is of the view that these generators are correctly classified under PCT heading 8502.2000.
3. The importers contended that PCT Code 85.02 deals with “Electric generating sets and rotary converters”. Generating sets with compression-ignition internal combustion piston engines (diesel or semi diesel engines), use Diesel for ignition are classified PCT headings 8502.1110 to 8502.1390 and Generating sets with spark ignition internal combustion piston engines, use Petrol for ignition are classified under PCT heading 8502.2000. Whereas, Generating sets of PCT heading 8502.3100 to 8502.3900 are either wind powered or use any fuel other than Diesel or Petrol for ignition.
4. Importers further contended that the impugned Generating sets are dedicated Gas Grantors with Digital Spark and Advance Optimizers and their sole source of ignition is Natural Gas / LPG. As such those can neither be ignited from Diesel nor by Petrol, therefore, are ousted from the purview of PCT heading 8502.1110 to 8502.1390 and PCT heading 8502.2000, hence, classifiable under residuary PCT heading 8502.3990.
5. On the other hand MCC-Lahore is of the view that as per Harmonized Commodity and Coding System. Generating Sets with spark ignition internal combustion piston engine (petrol or gas) are classifiable under PCT heading 8502.2000 and Generating sets other than compression or spark ignition internal combustion piston engines are classifiable under PCT heading 8502.3000.
6. The classification Committee has considered the classification aspect in the light of arguments from both sides. According to the Explanatory Notes to the relevant heading 8502, the expression “generating sets” applies to the combination of an electric generator and any prime mover e.g. hydraulic turbines, steam turbines, wind engines, reciprocating steam engines, internal combustion engines etc. The generating steam engines, internal combustion engine etc. The generating sets divided in following three categories under heading 85.02:-
(i) Generating sets with compression-ignition internal combustion engines (diesel or semi-diesel engines). These have been further sub-divided on the basis of their output in KVAs under sub heading 8501.1110 to 8501.1390.
(ii) Generating sets with spark ignition internal combustion piston engines (Heading 8502.2000), and
(iii) Other generating sets (Heading 8502.3100 and 8502.3900).
7. It has to be ascertained whether the generator in question is run by a spark ignition internal combustion engine or not. Spark ignition combustion engines when imported separately are classified under PCT heading 84.07. Explanatory Notes to heading 84.07 describe that the characteristic feature of these engines is that they are equipped with sparking plugs fitted into the cylinder head for supplying high tension current to the cylinder for combustion of fuel. These notes go on to state that the most usual fuel for such engines is petrol but other include kerosene, alcohol, hydrogen, coal gas, methane etc. it was for this reason that a separate sub heading 8407.9010 was created by the Government of the Pakistan for “Gas Engines” treating them as spark ignition reciprocating internal combustion piston engine.
8. According to the literature available on record, impugned generating set is run by a spark-ignition reciprocating engine which uses natural gas or LPG as its fuel. The literature shows that the engine contains DSAI electronic spark ignition system (i.e. Digital Spark Advance Ignition).
9. In view of the foregoing, the Classification Committee rules that the imported “Gas Generators” by application of Rule 1 of the Explanatory Notes to Harmonized Commodities Description and Coding System and Pakistan Rule 1 of Pakistan Customs Tariff are classified under heading 8502.2000.
Signed by
(Gul Rehman)
Additional Collector/Chairman PCT Committee
cacaccacacacacacacacaca