GOVERNMEN OF PAKISTAN

APPRAISEMENT COLLETORATE

CUSTOM HOUSE, KARACHI

No.CC/11/2002(A)                                                               DATED: 01-10-2002

SI/Misc/41/2002-II 

PUBLIC NOTICE NO.07 /2002- (APPG)  

SUB:  CLASSIFICATION OF PVC STABILIZER SAK-042”

A classification dispute of product “PVC Stabilizer SAK-042” came up before Classification Centre for discussion. 

2-         The Custom House Laboratory vide Test Report No.152/2002-II dated 15-01-2002 reported that.

                        “Sample on test is found to consist of lead salt of mixture of

Fatty Acid mainly of Stearic Acid (lead stearate). It is in the

form of while fine powder. Stated to be used as PVC

Stabilizer/lubricant”.

 3-         The goods were also tested by the HEJ Laboratory, University of Karachi. According to the test report, goods are lead salt of fatty acid with the following percentage composition:-

i-             Palmitic Acid 26.2%

ii-            Stearic Acid 24.4%

iii-           Other Fatty Acid 15.9%

 4-         In view of the above, following PCF headings were considered for classification of the subject product:-

i-             2915.9000

ii-            3812.3000

iii-           3824.9099

 5-         The PCT heading 2915 covers, the Stearic Acid, its salts and Esters. According to Chapter Notes 5(c)(1) of Chapter 29, inorganic salts of organic compounds are to be classified in the heading appropriate to the organic compound. Accordingly, the goods SAK-042, which are lead salt of stearic acid (organic acid), they are to be classified alongwith the organic compound i.e. Stearic Acid. However, the percentage of fatty matter is less than 90% therefore, in terms of exclusion (d), such goods are excluded from the purview of PCT heading 29.15. Thus, the classification of the product under PCT heading 29.15 was ruled out.

 6-         The PCT heading 3812.3000 covers compound stabilizer for rubber and plastic. The word “compound” as per Explanatory Notes to Chapter 38.12 is defined as under:-

i-             Deliberate mixtures and blends

ii-            Reaction mixtures including products produced from a

Homologous series such as fatty acid or fatty alcohols of heading 38.23

 7-         Since, the goods are neither deliberate mixtures and blends nor reaction mixtures, therefore, the goods do not fall under the definition of compound” hence classification under PCT heading 3812.3000 was also ruled out.

 8-         The Classification Centre observed that goods are salt of stearic acid in which the percentage of fatty matter is less than 90% such type of acid are called crude fatty acid. Therefore, by virtue of exclusion (b) at page 385 of the Explanatory Notes, the goods are classified under PCT heading 3824.9090, which states that “Salts and esters of crude Stearic Acid (generally heading 34.01, 34.04 and 38.24”).

 9-         In view of the Classification Centre unanimous observation it is, therefore, ruled that the correct PCT heading of “PVC Stabilizer SAK-042” IS “3824.9099.

                                       (Signed by)

(Abdul Waheed Khan)

Collector

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