GOVERNMENT OF PAKISTAN

MODEL CUSTOMS COLLECTORATE OF APPRAISEMENT (EAST)

CUSTOMS HOUSE, KARACHI

C.NO.-42/KAPE/PCT/2016                                                  Dated: / ‘      .05.2018

PUBLIC NOTICE No. 02/2018-MCC(E)

SUB:    CLASSIFICATION OF 3-WHEELER CARGO LOADER IN DISMANTLED/UNASSEMBLED CONDITION.

FACTS

Model customs Collectorate appraisement (East) forwarded a reference for the classification of  the 3-wheeler cargo loader (Dismantled/un-assembled condition) imported by 3-wheeler cargo loader is dismantled unassembled condition is not classifiable under the PCT 8704-3150 as this heading is exclusively for the 3-wheeler cargo loader in CBU condition.

 Moreover the Collectorate was of the view that the PCT heading 8704.3140 (Components for the assembly manufacture of 3-wheeler cargo loader, in any kit form is exclusively for the purpose of  classification of the components of the assembly/manufacture of 3-wheeler cargo loader imported under SRO-656(I)2006 dated 22-6-2016 by an importer registered with the.

 Engineering Development Board (EDB). The Collectorate is of the opinion that the components 

For the assembly/manufacture of 3-wheeler cargo loader imported without the quota of the Engendering Development Board (EDB) is Classifiable under PCT heading 8704.3190 attracting customs duty @60% the goods. Were released provisionally and the matter was referred by the Clarence Collectorate to Classification Committee for determination of appropriate PCT heading of the subject goods for uniform assessment.

 PROCEEDING

2.     The matter was considered by the classification committee in meetings held on 10-3-2018 and 07-04-2018. How ever, as representative of Engineering Development board (EDB) did not attend the meeting therefore it was decided to call to call another meeting so that view point of EDB being the regulatory authority under ministry of industries and production could also be discussed in the classification committee. The third and last meeting was held on 04-05-2018. Engr. Roshan Lal (Manager South) EDB attend the meeting. The representative of the Collectorate was of the view that the PCT 8704.3140 covers the import of components for the assembly/manufacture of 3-wheeler cargo loader in any kit form and PCT 8704-3150 covers the import of 3-wheeler cargo loader in CBU condition. Various Importers/manufacture have been classifying 3-wheeler cargo loader in dismantled/un-assembled condition under PCT heading 8704.3140 and 8704.3150 attracting customs duty @50%whereas the Collectorate is of the opinion that the same is correctly classifiable under PCT heading 8704.3190 (- - - others), attracting customs duty @60%

 3.    The importers forwarded the following arguments to seek the classification of the good under PCT heading 8704.3140 

          i.      Classification is to be determined according to the terms of heading and independent of any quota under any SRO, as has quota under any SRO cannot alter the classification of the goods.

        ii.      The goods i.e 3-wheeler cargo loader imported and dismantled SKD/CKD condition are currently classifiable under PCT heading 8704.3140 in terms of Rule-I of general Rules Interpretation.

       iii.      Classification of the subject goods under the PCT heading 8704.3190 will violate the spirit of the condition of the import Policy order, 2016 of the opponents for the manufacture of any vehicle can only be imported by an importer registered with the ministry of Industries and & production.

4. The representative of EDB Engr. Roshan Lal Informed the Classification committee that EDB issues the quota for import of components of 3-wheeler cargo loader, By importer cum assembled and manufacture Under SRO 656(I)/2006 dated 22-26-2016 under PCT heading 8704.3140.

 ISSUE:

 5.   Whether 3-wheeler cargo loader in un-assembled dismantled condition or in SKD/CKD condition is Classifiable under PCT heading 8704.3140 as claimed by the importers or to be classified in PCT Heading 8704.3190 as Determined by the Collectorate or ay other appropriate heading of the Pakistan custom Tarff. 

 PRODUCT ANALYSIS:

6.     Examination reports and image of the consignment have been analyzed imported consignment contains all the parts for assembly/manufacture of the 3-wheeler cargo loader and the consignments are in completely dismantled condition. On further probe. It was revealed that components would be assembled without any further processing such as welding etc.

 LAW AND ANALYSIS

7.    At the outset, the classification committee observed that classification has to be determined according to the terms of heading. Relative section or chapter notes. General rules of interpretation and WCO guidelines given in Explanatory Notes. Classification of goods is irrespective of duty exception or importability matters.

 8.    First, the classification committee considers PCT Code 8704.3150 as declared by importers. This PCT is for “---3-wheeler Cargo Loader (CBU)”,  The committee was of the opinion that since the subject goods are not in CBU condition which is specially mentioned in description of PCT 8704.3150is excluded in terms of GR-I

 9.   The committee that consider that PCT Code 8704.3190 other. The Collectorate has assessed the subject goods in this PCT Heading, The committee observed that as per General rules of interpretation 3(a), the heading which provides the most specific description shall be preferredto heading providing a more general description, therefore this subheading covers goods which are not specified else where in other subheading of HS-Code 87.04. The subject goods i.e 3wheel cargo loader is dismantled condition consisting of components for the manufacture of 3-wheel loader is specially mentioned at PCT heading 9704.3140. Therefore PCT heading 8704.3190 “---Other” is also excluded being not specific to the subject goods. The committee also discussed Collectorate view point regarding SRO 656(I)/2006 with regard to the classification as given is para 1 above and was of the opinion that determination of appropriate classification is independent of any SRO.

 10.  The committee than discussed PCT Code 8704.3140 This PCT code covers components for the assembly manufacture of 3-wheeler cargo loader, in any kit form. The committee analyzed the argument that PCT 8704.3140 is exclusively for the purpose of the classification of components for the assembly/manufacture of 3-wheeler cargo loader. Since Subject goods are not in CBU condition and rather declared by various importers as components, Kit un-assembled dismantled, CKD/SKD, Therefore most appropriately Classifiable in PCT code 8704.3140.

 HOLDING:

 11.    The subject goods i.e components for the manufacture of 3-wheeler cargo loader 3-wheeler cargo loader is dismantled /un-assembled condition or 3-wheeler cargo loader in CKD/SKD Condition is appropriately classifiable in PCT Heading 8704.3140 of the Pakistan customs Tariff in terms of general rules of interpretation –I and 3 (a).

 12.   The above decision is based upon the documents and information provided to the classification committee and shall be treated as annulled, if it is found, at any subsequent stage that the same was obtain by providing incorrect, false, misleading or incomplete information.

       (Mona Mehfooz)

     Additional collector-IV

Chairperson Classification Committee