2024 (2) TMI 311 - AAR - Customs

Classification of import goods - Main MIC Dust Protective Net - to be classified under Tariff Item 59119090 or not - HELD THAT - As per Note I of Chapter 39, throughout the nomenclature any reference to plastics does not apply to materials regarded as textile materials of Section Xl. Further as per Note 2(p) of Chapter 39, this chapter does not cover, goods of Section XI (textiles and textile articles). Moreover, PET is a plastic as per Explanatory Notes of Chapter 39 of the Harmonized Commodity Description and Coding System of World Customs Organization. And as per Chapter Notes of Chapter 54, polyester is one of the main synthetic fibres and PET is a type of polyester in terms of Explanatory Note to heading 3907. The goods in question are also not covered under Note 1 of Section XI regarding exclusions under the Section. The inference drawn by the concerned Commissionerate vide their comments against the application for advance rulings that fabric is made of PET having more than 95% component, so it seems to be correctly classifiable under CTH 3926, does not appear to be correct and may lead to wrong classification of the subject goods. Thus, on the basis of the said Section, Chapter Notes and the Explanatory Notes, it can be concluded that goods in question are not articles covered under Chapter 39 but the subject goods merit classification under Section XI. As per Explanatory Notes, a few woven fabrics are excluded from the woven fabrics classified under Chapter 50 to 55 and the textile fabric for technical uses classified under heading 5911 are one of them. Further, Note 1 of Chapter 59, provides that, except, where the context otherwise requires, for the purposes of this Chapter the expression textile fabrics applies only to the woven fabrics of Chapter 50 to 55 and heading 5803 and 5806 and Note 8 of Chapter 59 provides a list of goods to which heading 5911 applies but with the condition that such goods do not fall in any other heading of Section XI. Since, the subject goods are not covered under any other heading of Section XI and meant for technical use, these goods merit classification under Chapter 59 of the Import Tariff. The subject goods merit classification under Custom Tariff Sub-Heading 59119090 of the First Schedule of the Customs Tariff Act, 1975.

Summary

Issues Involved:
1. Classification of Main MIC Dust Protective Net under the Customs Tariff Act, 1975.

Summary of Judgment:

Issue 1: Classification of Main MIC Dust Protective Net

Applicant's Position:
The applicants, M/s. Vivo Mobile India Pvt. Ltd., sought an advance ruling on whether the Main MIC Dust Protective Net can be classified under Tariff Item 59119090. They argued that the Dust Protective Net is a textile material used for technical purposes, made of synthetic fibre (PET), and should be classified under Sub-heading 59119090. They provided detailed descriptions and technical specifications, emphasizing that the product is used for filtering and protecting mobile phone speakers from dust and is made of woven fabric, which falls under Chapter 54 and thus should be classified under Chapter 59.

Supporting Arguments:
- The applicants cited Note 1 to Chapter 59, which states that "textile fabrics" include woven fabrics of Chapter 50 to 55, including PET Mesh Fabric of Chapter 54.
- They referenced various rulings and judgments, including US Customs and Border Protection rulings and the case of Trijama Filterall Pvt. Ltd. vs Collector of Customs, to support their classification under Heading 5911.
- They argued that the classification under CTH 39269099 is not appropriate as the Dust Protective Net is a textile article for technical use, which is explicitly covered under Chapter 59.

Department's Position:
The concerned Commissionerate argued that the product should be classified under CTH 39269099, stating that the fabric is made of PET with more than 95% component and does not fall under the definition of textile material or human hair as required by Heading 5911.

Applicant's Response:
- The applicants rebutted the department's contention, emphasizing that PET is a synthetic fibre covered under Chapter 54.
- They argued that the Dust Protective Net is a woven textile fabric used for technical purposes and should be classified under CTH 5911.
- They distinguished their product from the US CROSS Ruling cited by the department, stating that their product is made of woven PET mesh fabric, not spunbonded polymer-based nonwoven web.

Authority's Analysis:
- The Authority considered the materials and submissions, noting that the Dust Protective Net is made of Mesh Fabric and a protective layer of PET, used for technical purposes.
- It was observed that PET is a type of polyester, a synthetic fibre covered under Chapter 54.
- The Authority concluded that the product is not covered under Chapter 39 but merits classification under Section XI, specifically Chapter 59, as it is a woven fabric used for technical purposes.

Ruling:
The Main MIC Dust Protective Net is correctly classified under Custom Tariff Sub-Heading 59119090 of the First Schedule of the Customs Tariff Act, 1975.