Government of Pakistan
Model Customs Collectorate of Appraisement
Custom House, Karachi
No. CC-26/2010-A Dated: 23.05.2011
PUBLIC NOTICE NO. 03/2011
SUB: CLASSIFICATION OF THREE WAY DAMPER AND AUXILIARY EQUIPMENT FOR COMBINED POWER PROJECT.
The classification aspect of the “Three Way Damper and Auxiliary Equipment” for combined cycle power project has been referred to the Classification Centre (Appraisement) by MCC-Port Qasim, classifiable under heading 8404.1000 or 8402.9010. The subject plant and machinery as per information provided by the importers, MCC Port Qasim and catalogue are 3 way damper; comprising of one inlet and two outlet, are Auxiliary units of boiler to be used with 560 MW Bin Qasim combined Cycle Power Project.
2. The following possible PCT headings were considered by the Classification Committee:
i) 8404.1000
ii) 8402.9010
3. The importers explained that is a 3 way Diverter (Damper) which is a part of heat recovery system. According to them, it comprises of one inlet and two outlets, which will be used to divert high temperature exhaust gases from the Gas Turbine to by pass stack or to the heat recovery system of the main steam generating boiler. These dampers are custom engineered and designed to accommodate all internal and external loads as required from time to time. The 3 Way Diverter (Damper) is a part of heat recovery system attached with the main steam boiler and is correctly classifiable under PCT Heading 8402.9010 as per the supplier’s declaration and classification of goods under PCT heading 8402.90. Whereas PCT heading 8404.1000 refers to Auxiliary Plants for use with boiler of 8402 pr 8403, but the same does not seem to be appropriate since the imported Dampers – diverting device is not a plant but is only a small part of heat recovery system, therefore, it can only be classified under heading 8402.9010 or 8404.9010.
4. On the other hand MCC (Port Qasim) is of the view that impugned plant and machinery being Auxiliary Unit of the boiler is classifiable under heading 8404.1000.
5. The members of the Classification Committee considered arguments of both sides and the literature/ catalogue available on record, According to General Note B(2) at Page XVI-84-5 of Chapter 84 to the Harmonized Commodity Description Coding System, PCT heading 8402 to 8424 cover the other machines and apparatus which are classified mainly by reference to their functions and regardless of the field of industry in which they are used. The machine under discussion i.e. 3 Way Damper comprising of one inlet and two outlets used to divert the hot gases to the heat recovery system of main steam boiler, which as per documents/ drawings produced by the importers constitutes auxiliary machine of the boiler. Since auxiliary machines are specified under PCT heading 8404.1000, therefore, Classification Committee ruled that by application of Rule 1 of the Explanatory Notes to Harmonized Commodities Description and Coding System and Rule 1 of Pakistan Customs Tariff, the impugned 3 way Dampers are appropriately classifiable under PCT heading 8404.1000.
Signed by
(Dr. Zulfiqar Ahmed Malik)
Additional Collector/Chairman PCT Committee
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