Government of Pakistan
Model Customs Collectorate of Appraisement (East)
Customs House, Karachi
C.No. 17(155)KAPE-DC (Classification) WeBOC/2014 Dated: 14.11.2014
Public Notice No. 12 of 2014
SUB: Classification of goods declared as lcd/led display panels
The MCC Appraisement (West) Karachi, vide letter bearing C.No.SI/Misc/332/2014-VI dated 22.09.2014, forwarded a case to the PCT Committee with details as appearing below:
2. M/s. Mubashir Enterprises, Karachi have imported a consignment declared to contain LCD/LED Display Penal under PCT heading 8529.9090 as parts subitbale for use solely or principally with the apparatus of heading 85.25 to 85.28. Upon physical examination of the representative samples however, the goods are found as having essential character of LED TV and as such cannot be classified as parts. Instead, keeping in view provisions of rule 2(a) of GIR, the goods are found to be correctly classifiable under PCT heading 8528.7212 as complete or finished television sets. Upon disagreement by the importers with the ascertained classification, matter was referred to committee of three experienced Principal Appraisers. The committee comprising three Principal Appraisers unanimously opined that goods are 32” and 42” LED TV sets of Samsung brand in assembled form in retail packing without back plastic cover, speaker and small number of accessories. The PCT heading 8528 already determined by the Assessment Group is in order. Upon persistent representations of the importer, however, the matter is being referred to the classification Centre for issuance of a Classification Ruling in the matter.
3. During the meeting held on 27.09.2014 and 13.11.2014, the representative of MCC Appraisement (West) opined that; the imported goods have essential character of TV receivers. No special further manufacturing is involved. The Goods are 32” and 40” TV set without back cover, and built in System Card, speakers, ribbon and wires. Thus the goods under consideration are LCD receivers is unassembled form. The importer and his representative asserted that the job of TV is to reproduce audio/video singles and since the impugned goods do not contain components that catch/decode/retransmits audio/video signals, same is not liable to be classifiable under PCT heading for LCD/LED TV sets.
4. The importer submitted a detail reply saying that; as per provision of rule of GIR, classification is determined according to terms of the heading and any relevant section or chapter notes. If we refer to heading 8528 “reception apparatus for television whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus” means that it must contain some instrument/appliance or mechanism or something else which must be capable of receiving broadcast signals and transforming them into video as far as rule 2(a) of GIR, same cannot be applied to imported LED/LCD panels as same does not have any essential character of television i.e. it cannot display may image or video and even cannot amplify any sound. Furthermore, the importer presented copies of import tariff of Canada south Africa and UK containing classification of flat display panels of various types under PCT heading 8529 as parts for television sets. The Importer’s representative also referred to the Indian Concessionary SRO 12/2012 dated 17.03.2012.
5. The members of the committee scrutinized the details of the case, perused the additional documents presented by the importer and examined the sample as presented before the committee. As far as Trade Tariff of South Africa, same mention display panels against HS Code 8529, but this classification has been linked with the promotion of local manufacturing industry to which rebate of full duty and permit system have also been linked. The relative value added by the assemblers has been taken into account in arriving at the extent of the rebate. As far as Canadian Tariff, same classifies Flat Panel screen assemblies under heading 85.29 against applicable preferential tariffs. As far concessionary SRO No. 12/2012 dated 17.03.2012 in practice of Indian Customs, the notification is issued on the pattern as the concessionary SRO 565(I)/2006 dated 5.06.2006 in practice of Pakistan Customs. The concession offered under the concessionary notification is granted to manufacturer in Pakistan, where PCT heading are taken only for reference purposes and actual description of item is more important to be linked with appropriate classification to be determined by the Assessing Officers.
6. The samples of complete television set and imported LCD/LED screens were presented before the committee to differentiate between a complete television set and LED/LCD display panel. The samples were consistent with LCD/LED television panels without build in system card, back cover, speakers and ribbons/wires. On being asked about the built in system cards and back cover, the importer replied that the same are also imported separately. The sample as presented has a rectangular shape with outer border of black plastic. Inside the back plastic border, plastic film type envelop sandwiching LCD (as main viewing screen exactly identical with demonstrated complete television) with rear side compose of a colored metallie sheet with a number of die punches and holes of mounting of various electronic components, LEDs are also visible between LCD and rear metallic sheet. The font panel comprised a logic card mounted on the top. A table stand was also present inside the carton containing the LCD/LED penal. The carton gave the appearance of retail packing.
7. The entire issue has been examined in light of rule (2) a of General Rules for Interpretation and based on this, the sample as presented with clearly akin to a complete television set in terms of essential character. Moreover, in terms of value component of impugned item as compared with the value of missing parts, it could be conveniently gathered that LED/LCD penal occupies major portion of the value as juxtaposed to built-in System card, ribbion, wires and back cover.
8. After detailed deliberations, the Committee has reached the conclusion that the item declared as LCD/LED Panels in retail packing, as presented, are appropriately classifiable under PCT sub-heading 8528.7212 in terms of rule 2(a) to the General Rules for interpretation.
Signed by
(Zeba Bashir Ahmed)
Additional Collector I
Chairperson Clarification Committee
abcdabdcabccdabdcabcd