2021 (9) TMI 1433 - AAR - Customs

Classification of goods - Clear Float Glass having absorbent layer - Eligibility of exemption Notification No. 46/2011-Cus., dated 1-6-2011 - HELD THAT - The subject goods are clear float glass, with an absorbent layer, which is fluorescent under UV illumination. The subject goods are not wired, not tinted and not green in colour. The Heading 7005 10 covers non-wired glass having an absorbent, reflecting or non-reflecting layer and the Headings 7005 21 to 7005 29 deal with non-wired glasses which are body tinted, opacified, flashed etc. Therefore, the subject goods should more appropriately be covered under sub-heading 7005 10 90. The subject goods Clear Float Glass having an absorbent layer merit classification under Heading 70.05 and more specifically, under sub-heading 7005 10 90 of the First Schedule to the Customs Tariff Act, 1975. The said imports shall also be governed by the provisions of Notification No. 37/2020-Customs (ADD), dated 11-11-2020. The benefit of exemption Notification No. 46/2011-Cus., dated 1-6-2011 would be determined in accordance with conditions laid down in the said notification. Application disposed off.

Issues:
1. Classification of Clear Float Glass having an absorbent layer
2. Eligibility of exemption Notification No. 46/2011-Cus., dated 1-6-2011.

Analysis:
1. The applicant, a proprietorship concern involved in importing and trading glass products, sought an advance ruling on the classification of "Clear Float Glass with Absorbent layer" under sub-heading 7005 10 90. The applicant intended to claim the benefit of 'Nil' rate of customs duty under exemption Notification No. 46/2011-Cus., dated 1-6-2011, for goods imported from Malaysia. The applicant argued that the subject goods should be classified under 7005 10 90 based on the presence of an absorbent layer and provided evidence from domestic manufacturers and import data to support their classification.

2. The Authority for Advance Rulings analyzed the manufacturing process of float glass, noting that float glass in sheets, as described in Heading 7005, involves specific raw materials and a manufacturing process that results in flat glass without surface grinding or polishing. The ruling highlighted the provisions of Notification No. 46/2011-Cus., dated 1-6-2011, which exempts specified goods imported from ASEAN countries, including those falling under sub-headings 7005 10 20 to 7005 10 90. Additionally, Notification No. 37/2020-Customs (ADD) imposed anti-dumping duty on Clear Float Glass from Malaysia, emphasizing the need to substantiate the origin of imported goods.

3. Considering the submissions and materials presented, the Authority ruled that the subject goods, Clear Float Glass with an absorbent layer, should be classified under Heading 70.05 and more specifically under sub-heading 7005 10 90 of the Customs Tariff Act, 1975. The ruling emphasized that while the exemption under Notification No. 46/2011-Cus., dated 1-6-2011, seemed applicable based on the applicant's contentions, evidence of the goods' origin must be provided to customs authorities for each import. The ruling also noted that the imports would be subject to the provisions of Notification No. 37/2020-Customs (ADD) imposing anti-dumping duty on such goods from Malaysia.

4. In conclusion, the Authority held that the subject goods, Clear Float Glass with an absorbent layer, are classified under sub-heading 7005 10 90 and are subject to the conditions of both the exemption Notification No. 46/2011-Cus., dated 1-6-2011, and the anti-dumping duty under Notification No. 37/2020-Customs (ADD). The ruling emphasized the importance of providing evidence of the goods' origin to customs authorities for each import to avail of the exemption benefits.

← Previous Next →