2020 (12) TMI 275 - AAR - GST

Classification of goods - Non Woven Fabric, which is made using PP granules - Non Woven Fabric like Non Woven Fabric bag, 3 ply mask, surgical cap, gown, shoe cover and other disposable items - HELD THAT - In the instant case fiber grade polypropylene granules are processed to form PP Spun bonded Non woven fabrics which is classified under Chapter Heading 5603 in First Schedule to the Custom Tariff Act, 1975 - In the instant case, non-woven bag is produced by processing non-woven fabric. The non-woven fabric is cut to size and stitched to give it a shape of the bag. Therefore, in view of Section Note 7 of Section Xl of Custom Tariff, the non- woven fabric bags are made-up textile articles . The sacks and bags made up of textile material including those made of man-made textile material such as polypropylene strip or the like used for packing of goods would be covered under Chapter Heading 6305 - non-woven fabric bags will be classifiable under Tariff item 6305 33 00. The Disposable surgical cap resembles a shower cap with an elastic opening. The applicable subheading for the disposable surgical cap will be 6505 90 which provides for Hats and other headgear, knitted or crocheted, or made up from lace, felt or other textile fabric, in the piece (but not in strips), whether or not lined or trimmed; hair-nets of any material, whether or not lined or trimmed - others - The applicable subheading for the disposable surgical mask and shoe cover will be 6307 which provides for Other made up articles, including dress patterns . The fact whether the raw material is manufactured in the same unit or different does not have any effect on the classification of final product. In the first process, the final product will be PP spun bonded nonwoven fabric whereas in second process, nonwoven fabric will be used as raw material for manufacturing final product such as bags, surgical masks, gowns, shoe cover etc and HSN will be applicable accordingly.

Summary

Issues: Classification of Non Woven Fabric and Products Made from It

Issue 1: Classification of Non Woven Fabric
The applicant sought a ruling on the classification of non-woven fabric made from polypropylene granules. The process involved melting the material and passing it through a spinning unit to obtain polypropylene filament, which was then bonded thermally to form the fabric. The Authority considered the relevant Customs Tariff Act, which classified nonwovens under Chapter Heading 5603 as "Of man-made filaments." The non-woven fabric bags produced from this material were deemed as "made-up textile articles" under Chapter Heading 6305. The ruling specified that non-woven fabric bags would be classified under Tariff item 6305 33 00.

Issue 2: Classification of Products Made from Non Woven Fabric
The applicant also inquired about the classification of products made from non-woven fabric, such as 3-ply masks, surgical caps, gowns, and shoe covers. The disposable gown made from nonwoven fabric was classified under Chapter Heading 6210 10, while the disposable surgical cap fell under subheading 6505 90. The disposable surgical mask and shoe cover were classified under subheading 6307, which covers "Other made up articles, including dress patterns."

Issue 3: Impact of Manufacturing Non Woven Fabric on Product Classification
The applicant questioned whether the classification of products made from non-woven fabric would change if the fabric was manufactured in the same unit. The Authority clarified that the classification of the final products depended on the raw material used and the manufacturing process, irrespective of whether the raw material was produced in the same unit. The ruling emphasized that the classification would be based on the final product manufactured, with the HSN applicable accordingly.

Conclusion
The Authority ruled on the classification of non-woven fabric and products made from it, providing detailed explanations based on the Customs Tariff Act. The ruling specified the appropriate tariff items for each product category and clarified that the classification of products was independent of whether the raw material was manufactured in the same unit. The ruling provided clear guidance on the classification of non-woven fabric and related products under the relevant tariff headings.