Government of Pakistan
Model Customs Collector of (Appraisement)
Custom House, Karachi
No.CC-27/2011(A) Dated: 09.09.2011
PUBLIC NOTICE NO. 10/2011(A)
SUB: Classification of Lead concentrate (Powder Ash Form)
The Collectorate of Customs PaCCS referred a case in which M/s. Century Engineering Karachi filed GD for export of goods declared as “Lead Concentrate” under PCT heading 2607.0000. The Collectorate got the samples tested from Customs Lab which reported that the goods were in the form of dark grey color fine powder consisting essentially. Lead Sulphide in association of Zinc Sulphide and Iron Sulphide containing silica. The samples were also tested by M/s. AQ Khan Laboratory which showed the following composition.
Lead Pb = base
Sulpher = 9.7%
Oxygen = 7.5%
Silicon = 1.4% and Sodium 1.8% were also detected as impurities.
2. The MCC PaCCS were of the view that since the product in question is in the form of powder drawn from battery scrap, therefore it is lead powder which is classifiable under PCT heading 7804.2000.
3. The PCT Committee examined the issue on 22.08.2011 and discussed the following PCT heading at length;
7804.2000
2607.0000
2620.2900
The documents, literature, flow chart showing different stages of process of retrieving the product in question from Battery Scrap has also been inspected. The whole of process of extrusion was explained by the exporter indicating that the subject material was residue of lead battery scrap.
4. The PCT heading 7804 covers lead plates, strips, foil, lead powder and flakes. The product in question was obtained after melting the battery scrap. Flow chart of the whole process shows that the following component by weight were obtained;
Metallic lead = 35%
Lead sulphide/oxide = 40%
Plastic = 15%
Residual = 3%
The above composition clearly shows that the product in question i.e. lead powder / ash obtaining through the aforesaid process in which lead was separated and its residue which was being exported can not be termed as lead powder within, meaning of PCT heading 7804 as major portion as lead has already been separated.
5. As regard PCT heading 2607.0000, the concentrate has been defined in explanatory note to chapter 26 is as under :-
“for the purpose of heading 2601 to 2607, the term concerntarte applies to ores which have had part or all of the foreign matter removed by the special treatments, either because such foreign matter might hamper subsequent metallurgical operations and with a view of economical transport”.
In view of the above explanation the product in question can not be termed as concentrate as declared by the exporter since the product in question was obtained from battery scrap and not through special treatment to ores. Therefore, this heading is also not relevant.
6. According to Explanatory Notes to heading 2620, it covers ash and residues (other than those of heading 26.18 or 26.19) which contain metal or metallic compounds, and which are of a kind used in industry either for the extraction of metal or as a basis for the manufacture of chemical compound of metal. They result from the treatment of ores or intermediate metallurgical products or from electrolytic, chemical or other processes which do not involve the mechanical working of metal. This heading also includes sludge from electrolytic baths after preparation of refining of metal and electro galvanizing sludge and accumulator sludge. In view of the above it is clear that the goods in question which are in powder from are actually ash obtained from the battery scarp after separating the major portion of lead, therefore, the goods are correctly classifiable under PCT heading 2620.2900.
In view of the above position the classification Committee unanimously accorded approval for classification of residual of battery scrap in the form of powder/ash, conforming to the above composition under PCT heading 2620.2900.
Signed by
(Dr. Zulfiqar Ahmed Malik)
ADC-I/Chairman PCT Committee
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