GOVERNMENT OF PAKISTAN

MODEL CUSTOMS COLLECTORATE OF

APPRAISEMENT (EAST)

CUSTOM HOUSE, KARACHI. 

C.No. 17(213)KAPE/DC(Classification)Weboc/2014                dated: 20-12-2014

PUBLIC NOTICE NO.16/2014

SUB:  Classification of “Reb Palm Olein

The MCC Customs House, LMQ Road: Multan, referred a case to the Classification Committee vide letter 'bearing C.No.MDP/DIA/260 /2012/584  dated 26.02.2014 details ofthe ease are as below:

 2. The Consignments of RBD Palm Olien (Refined Bleached & Deodorized Palm Oil) are being imported from Malaysia and other countries by M/s Hafeez Ghee & General Milk (Pvt.) Limited Multan and in-bonded from MCC Port Qasim Karachi to bonded warehouse of the aforementioned importer. The said firm got these consignments of RBD cleared through ex-bond GDs declaring PCT heading 12511.9030. The Directorate of Internal Audit, Lahore has raised Audit observation that PCT heading declared by the importer is incorrect. Instead it should have been 1511.9090 applicable to “other”. It was further mentioned in the Collectorate’s letter that the scheme of nomenclature of Palm Oil and its fractions under PCT Heading 1511 is as under:-

 3.         From the above scheme it is evident that “Palm Olein” is classifiable under PCT heading 1511.9030. The description “Palm Olein” against heading 1511.9030” also covers Palm Olein if the Palm Olein is refined, bleached and deodorized (RBD)”. No separate PCT heading is available for RBD Palm Olein. It was further stressed that MCC Port Qasim has been assessing aforesaid goods under PCT heading 1511.9030.

 4.         The PCT Committee held meetings on 18.04.2014, 3.06.2014, 24.07.2014 and 27.11.2014. The representative from MCC Multan appeared and reiterated the arguments combined in the letter sent from the Collectorate. The Committee consulted the Explanatory Notes to chapter 15.11 and nothing contrary was found to place the item in the PCT heading 1511.9090 “other”. In fact the PCT heading 15.11 mentions Palm Oil and its fractions, whether or not refined, but not chemically modified. Furthermore the PCT heading for Palm Olein (1511.9030) covers in its ambit the aspect of “refined, bleached, and deodorized" but no chemical modification accrues due to this process. To produce refined oil, crude palm oil is processed through three refining stages, namely degumming, bleaching and deodorizing. In degumming, the gum and fatty acid in crude palm oil and crude palm kernel oil are separated together with other impurities such as trace minerals, copper and iron by the application of phosphoric acid. In bleaching, the oil is mixed with bleaching earth(betonies calcium) in a vacuum room to remove impurities and colour pigments in the palm oil. In deodorizing, the odour and taste of the oil are removed when the oil is steamed at high temperatures of between 240ₒC to260ₒC and then cooled to room temperature.RBD palm Olein is obtained by the fractionation of RBD palm oil; through the process of crystallization, RBD oil is cooled until crystals are formed. The crystallized oil in the crystallized is then filtered through a membrane to separate the liquid fraction i.e. Olein from these olein fraction i.e. stearin.

 5.         Now as far as classification of the item, the terms of heading 15.11, clearly indicate "Palm Oil and its fractions, whether or not refined, but not chemically modified’'. The single dash heading appearing first in order pertains to Crude Oil, followed by another single dash heading for "Other”, which cover in its scope the fractions of Palm Oil other than Crude Palm Oil meaning thereby, that since RBD palm Olein is obtained by the fractionation of RBD palm oil, hence it is classifiable under the PCT heading 1511.9030, irrespective of the fact whether Palm Olein is RBD or not.

 2.          In light of aforesaid process explained in detail, the impugned item is most appropriately classifiable under PCT heading 1511.9030, under rule 1 of the General Rules for Interpretation.                                                   

       Signed by

(Zeba Bashir Ahmed)

Additional Collector I

Chairman Classification Committee

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