GOVERNMENT OF PAKISTAN

MODEL CUSTOMS COLLECTORATE OF APPRAISEMENT

 CUSTOM HOUSE, KARACHI.

No.CC/13/2013(A)                                                                                                         Dated:28-06-2013

Public Notice No. 07 of 2013

SUB:    Classification of “Decolox 32” (Benzoyle Peroxide)

Brief facts of the case are that a product namely Decolox 32 (Benzoyle Peroxide) was imported from Germany and release sought under PCT heading 2916.9090. The classification of the goods became a contention issue and was referred to classification committee for consideration.

2.         A meeting of the Classification Committee was he Id on 20.06.2013. The following officers/officials were co-opted as members of the Classification Committee:-

3.         During the hearing, the representatives of importers Mr. Attah Ullah Zia appeared and famished original literature of the manufacturer which describes the product as “Flour improver” with following qualities:-

·         Compensation for a low gluten or protein content

·         Compensation for crop damage caused by the weather

·         Optimization of wheat mixtures

·         Correction of excessively strong or week wheat verities

·         Improvement of qualities with wet or week doughs

·         Compensation for shortages of quality wheat

·         Trouble-free inclusion of substitutes such as maize or tapioca

The literature further defines the product as under:-

4.         In order to determine the composition, the goods were subjected to chemical test. The conclusion by the Customs House, Karachi Lab, are as under:-

            “10992

            Decolox 32, Benzoyle Peroxide

The sample on test is found to be a preparation consisting of benzoyle peroxide in association with calcium carbonate, calcium phosphate, corn starch, anti-caking agent. It is in the form of white power – likely to be used as flour improver.

5.         Various HS Codes were considered for classification of the gods such as 2916.3200, 2106.9090 and 3824.9099. Provisions of HS code 2916.3200 are not applicable in this case as chapter 29 covers separate chemically defined organic compounds whether or not containing impurities whereas in this case the goods as per test report was identified as “ a preparation consisting of benzoyle peroxide with certain chemicals which is likely to be used as flour improvers”. Therefore, this HS codes was considered not appropriate. Next possible HS code is 2106.9090 which is residual heading of HS code 21.06 where food preparations not elsewhere specified or included fall. The chemical examiner of the Customs Lab showed his reservations on the grounds that the product under question is added in the flour in very small quantities as flour improver and as such it does not possess any nutritious value. The HS code 2106.9090 therefore may not be considered. The final HS code for consideration was 3824.9099. It is unanimously agreed by the committee members that such type of preparation; have no specific classification / HS code in Pakistan Customs Tariff. Since, the goods contain benzoyle peroxide in association with calcium carbonate, calcium phosphate, com starch and anticaking agent. It is in the form of white power which is to be used as flour improver and as such i: will be classified under residual heading of HS code 38.24 that is to say 3824.9099 as it is out of purview of 2916.3200 being not a separate chemically defined compound and as well as from HS code 2106.9090 since the product does not have any nutritive value.

6.         The     Committee, therefore, concluded that the instant goods will fall under heading 3824.9099 which is more relevant with the chemical composition of the goods in this case.

Signed by

Additional Collector-I

Chairman PCT Committee

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