FBR’s Customs Committee Call Out Wrongly Imposed 20% Duty on Printed Stainless Steel

The customs classification committee of the Federal Board of Revenue (FBR) has declared that the importer of  ‘Printed Stainless Steel Non-Magnetic Sheet Cut to Size’ has accurately cleared the item at zero-percent customs duty.

However, the Collectorate of Customs Appraisement (East) Karachi has wrongly imposed a 20 percent duty on the import of this item. In this regard, the committee issued a ruling on Thursday.

The Collectorate of Customs Appraisement (East) forwarded a reference for the classification of ‘Printed Stainless Steel Non-Magnetic Sheet Cut to Size’. Brief facts as reported by the referring Collectorate are that importer M/s Subhan Enterprises imported multiple items of Gas Hob and parts, including ‘Printed Stainless Steel Non-Magnetic Sheet Cut to Size’.

The importer declared the goods as `SS Sheet’ under PCT heading 7219.9090. The Collectorate was of the view that the impugned good on Examination were found to be ‘Printed Stainless Steel Non-Magnetic Sheet Cut to Size’ and the same was assessable under PCT heading 7321.9000.

However, the importer contended that merely cutting to sizes and/or printing/embossing did not change the essential character of the goods being stainless steel sheet and that the same still required further working by machine presses and tools to enable it to be finally a part of Gas Hob, hence as imported, the same is classifiable under PCT heading 7220 in the light of Explanatory Notes of HS Code 7220 of the Harmonized Coding System.

The importer’s request for provisional assessment under Section 81 of the Customs Act, 1969 was acceded to by referring the matter to Classification Committee for determination of PCT heading under Pakistan Customs Tariff.

Several meetings of the Classification Committee were held which were attended by the Departmental representative and members of the Classification Committee but no one appeared from the importer side. The representative of the Collectorate reiterated that since the sheets are cut to size and imported with some hob/range hood parts, therefore, the same are classifiable as parts under PCT heading 7321.9000.

The Committee observed that the impugned goods ‘Printed Stainless Steel NonMagnetic Sheet Cut to Size’ as imported and presented can be used for multiple purposes, depending upon further work to be done upon them. These sheets do not attain the essential character of being part of a Hob or Stove as they same are cut to size flat sheets and no work is done on them to contain holes/spaces/compartments for burner/knob placements.

Furthermore, in their present condition and form, these sheets cannot be fitted with or used as part of a Hob/Stove as these are flat sheets, without any holes, ridges, bends, bolts/screws/rivets attachments, etc. These sheets need to be worked upon as stated above to make them to be used with Hob/Stove.

In view of the above, the Committee is of the view that “Printed Stainless Steel Non-Magnetic Sheet Cut to Size’ is appropriately classified under PCT heading 7220.9090, the classification committee added.

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