Classification of blended yarn in which acrylic predominates and manufactured by the process of garnetting of chindies and rags - Clarification - Regarding - Central Excise - 25/90-CX.1

Classification of blended yarn in which acrylic predominates and manufactured by the process of garnetting of chindies and rags - Clarification - Regarding Circular No. 25/90-CX.1 Dated 26-11-1990 [From F. No. 55/5/88-CX.1] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise and Customs, New Delhi Subject : Classification of blended yarn in which acrylic predominates and manufactured by the process of garnetting of chindies and rags - Clarification - Regarding. Attention is invited to Board's Circular No. 8/MMSF089-CX.1, F.No. 55/5/88-CX.1, dated 7th July 1989 , and to say that doubts continued to be raised regarding the classification of blended yarn in which acrylic predominates and manufactured by the process of garnetting of chindies or rags etc., whether under sub-heading No. 5504.31 or 5504.39 of the CET. 2. The sub-heading No. 5504.31 covers 'yarn in which acrylic and modacrylic staple fibre predominates by weight and contains other synthetic staple fibre in the form of waste or in the form of fibre produced out of such wastes.' The 'blended yarn' under reference contains, besides acrylic and synthetic fibres, certain other fibres like natural fibres. The presence of these natural fibres has given rise to the doubts as to whether such acrylic blended yarn is covered by sub-heading No. 5504.31. In Board's Circular, dated 7-7-1989 it was clarified that the sub-heading 5505.31 did not include possibility of presence of natural fibres in the yarns classified thereunder. Therefore, it was clarified that yarn in which acrylic or modacrylic staple fibre predominates in weight and contains other synthetic staple fibre in the form of waste or in the form of fibre produced out of such wastes was classifiable under sub-heading 5504.31 and if it contains any fibres other than synthetic fibres the classification would be under sub-heading 5504.39. However, the field formations and the trade represented that the entry in the sub-heading No. 5504.31 is not restrictive and does not prohibit the presence of any other fibres along with acrylic and modacrylic staple fibres and synthetic staple fibres. 3. In the North Zone Tariff Conference held in June 1990 the classification of blended yarn consisting of 70% acrylic fibre and 30% viscose staple fibre came up for discussion. As per the ratio of the Board's above said circular, the classification of such variety of yarn would appear to be under sub-heading No. 5504.39, as viscose staple fibre is not specifically mentioned in sub-heading 5504.32. However, the Conference felt that the Board's above referred clarification was not correct and the classification of such variety of yarn would be under sub-heading No. 5504.32 only. The Conference noted that had it been the intention of the Government not to include such yarns manufactured with predominance of acrylic fibres along with the other textile materials (other than synthetic fibres) upto the specified limit, the same could have been stated quite specifically as had been done in the description against sub-headings 5504.21, 5504.22 and 5103.10 of CET. Accordingly, the Conference viewed that the Board's instruction contained in Circular F. No. 55/5/88-CX.1, dated 7-7-1989 should be reviewed. 4. The matter has been further examined in the Board. On a reading of Section XI 'Textiles and Textile Articles' of CET it is clear that, for the purpose of classification of blended yarns, the two important factors to be considered are (1) predominance of a particular fibre, and (2) the wordings of headings and sub-headings. It is felt that, as per Section Notes 2(A) and 2(B)(ii) of Section XI, the presence of any other textile material in a blended yarn, even if it is not specifically mentioned, does not alter the classification of such a blended yarn, the classification of which depends on the two factors referred to above. The only exception is when the Government, as a conscious decision, makes it clear in the statute itself (Section Notes, Chapter Notes, Headings and Sub-headings) that a particular entry does not permit the presence of any other textile material in a blended yarn, as is the case with sub-headings 5504.21, 5504.22 and 5103.10 of CET. This is not so with the sub-headings 5504.31 and 5504.32. In the absence of any indication that the two sub-headings do not permit the presence of any other textile material, the Classification of blended yarns under those sub-headings should be done in the light of the Section Notes. As per section 2(A) of Section XI of CET, articles of a mixture of two or more textile materials are to be classified as if consisting wholly of that one textile material which predominates by weight over any other single textile material. As per Section Note 2(B)(ii), for the purpose of Note 2(A), the choice of appropriate heading shall be effected by determining first the chapter and then the applicable heading within that chapter, disregarding any materials not classified in that chapter. 5. In view of the position stated above, the classification of blended yarn consisting of 70% acrylic fibres and 30% viscose, as discussed in the North Zone Tariff Conference, would be under the sub-heading No. 5504.32 as that sub-heading does not preclude the presence of any other fibre. Similarly, in the case of acrylic blended yarn in which acrylic and modacrytic staple fibres predominate and, besides containing other synthetic staple fibres in the form of waste or in the form of fibres produced out of such waste, also contains other fibres like natural fibres etc., the classification would be under sub-heading 5504.31. The sub-heading No. 5504.31 does not prohibit the presence of any other fibres in addition to the acrylic or modacrylic staple fibres and other synthetic staple fibres in the form of waste or in the form of fibres produced out of such waste. The instructions contained in Board's Circular F. No. 55/5/88-CX.I, dated 7-7-1989 may be treated as modified to the above extent. 6. This may be brought to the notice of the field formations and trade interest.