Central Excise - Poly Vinyl Acetate Emulsion - Whether classifiable under H.No.39.05 or 35.06 of CET - Clarification regarding - Central Excise - 47/90

Central Excise - Poly Vinyl Acetate Emulsion - Whether classifiable under H.No.39.05 or 35.06 of CET - Clarification regarding Circular No. 47/90 Dated 31-8-1990 [From F. No.112/35/89-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Central Excise - Poly Vinyl Acetate Emulsion - Whether classifiable under H.No.39.05 or 35.06 of CET - Clarification regarding. A doubt has been raised as to whether Poly Vinyl Acetate Emulsion is covered under Heading No. 35.06 as "prepared glues and prepared adhesives not elsewhere specified or included" or under Heading No.39.05 as polymers of vinyl acetate in primary forms. 2. This issue was also discussed in the 1st North Zone Tariff-cum-General Conference held at Jaipur on the 20th and 21st February, 1990. The conference could not, however come to a specific conclusion as regards the correct classification of the said goods as the data were not adequate. It, therefore, desired the Chief Chemist, CRCL to ascertain the factual position by visiting the factory and give his opinion. 3. The classification problem of Poly Vinyl Acetate has mainly arisen due to the fact that Poly Vinyl Acetate Emulsion containing additives such as protective colloid, initiator, surfactant and buffers etc. can be used as adhesive. This adhesive property has given rise to doubts that it could also be classified as prepared glues and adhesives falling under Chapter 35. It is a recognised fact that polymers of Chapter 39 which contain additives such as protective colloids, catalyst, initiators, surfactant and buffers etc. have adhesive properties, and sparingly they are used as such also. However, HSN Explanatory Notes make a distinction between polymers having adhesive properties and polymers specially formulated for use as glues or adhesives, and polymers itself, put up for retail sale as glues or adhesives not exceeding net weight of 1 kg. In this connection, exclusion clause (b) under General Explanatory Notes of Chapter 39 (p. 555) is very relevant. According to that note preparation of polymers under Heading 39.01 to 39.13 specially formulated for use as glues or adhesives and products of Heading No. 39.01 to 39.13 put up for retail sale as glues or adhesives not exceeding net weight of 1 kg. are excluded from Chapter 39. This would other wise mean that polymers of Heading No. 39.01 to 39.13 though having adhesive property could not be treated as adhesives or glues unless they satisfy exclusion Note (b) of the Explanatory Notes under Chapter 39 (HSN 555). 4. The Chief Chemist who has given his opinion in this regard after visiting the production unit has stated that Poly Vinyl Acetate Emulsion with additives such as protective colloids, initiator, surfactants and buffers etc. and having inherent adhesive property does not cease to be a polymer of Vinyl Acetate in primary (emulsion) form, and therefore it would be liable for classification under Heading No. 39.05 of CET unless its usage and mode of presentation for sale is such that by virtue of exclusion Note (b) of the Explanatory Notes under Chapter 39 (p. 555), it merits classification under H.No.35.06 of the CET, 1985. 5. Accordingly, it is clarified that Poly Vinyl Acetate Emulsion containing additives such as protective colloids, initiators, surfactant and buffers etc. would squarely be covered by H. No. 39.05 of the CETA, 1985 unless its usage and mode of presentation for sale is such that by virtue of exclusion Note (b) of the Explanatory Notes under Chapter 39 (p. 555); it merits classification under H.No.35.06 of the CET, 1985. 6. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 7. All pending assessments may be finalised on the above basis.