Cellulose powder/microcrystalline cellulose powder and bleached cotton linters/bleached cotton linter pulp - Classification [sub-heading 3912.90 and Heading 14.01] - Central Excise - 6/90-CX.3

Cellulose powder/microcrystalline cellulose powder and bleached cotton linters/bleached cotton linter pulp - Classification [sub-heading 3912.90 and Heading 14.01] Circular No. 6/90-CX.3 Dated 19-2-1990 [From F. No. 93/5/90-CX.3] Government of India Central Board of Excise Customs New Delhi Subject : Classification of Cellulose powder/microcrystalline cellulose powder and bleached cotton linters/ bleached cotton linter pulp - Clarification regarding. Doubts have been expressed regarding the correct classification of cellulose powder/micro-crystalline cellulose powder, and bleached cotton linters/bleached cotton linter pulp, whether under Chapter 14 or 39 or 47 of CET. It also appears that there is a divergence in practice in the field formation. 2. The matter has been examined. The main raw materials for the manufacture of cellulose powder/microcrystalline cellulose powder are reported to be bleached cotton linters or hosiery rags or cotton waste or wood pulp etc. The raw material is mixed with hydrochloric acid and boiled for about 1 to 2 hours and thereafter the material is washed with plain water. It is later semi-dried in a drier, pulverised to fine powder and again dried. The resultant material is cellulose powder/micro-crystalline cellulose powder. The classification of this product under Chapter 14 is not appropriate inasmuch as it only covers vegetable plaiting materials; vegetable products, not elsewhere specified or included. The classification of the product under Heading 29.42 as "other organic compounds" is not correct. The Heading covers separate chemically defined organic compounds not classified elsewhere. The cellulose powder is not a separate chemically defined organic compound as well. It is merely cellulose obtained from out of bleached cotton linters, hosiery rags, wood pulp etc. The classification of the product under Chapter 47 (Heading 47.01) also does not appear to be correct. As per the Chapter Notes under Chapter 47 of HSN, the pulp covered by that Chapter consists essentially of cellulose fibres. Therefore, it is clear that the product which is covered by Chapter 47 is not exclusively cellulose. On the other hand, Heading 39.12 specifically covers "cellulose and its chemical derivatives". As per Explanatory Note under Heading 39.12 of HSN, cellulose, not elsewhere specified or included, in primary forms, is covered under the Heading 39.12. The cellulose powder/ microcrystalline cellulose powder, which is reported to be in powder for would also be covered by the expression "primary form", as per Note 6(b) of Chapter 39 of CET. Therefore, the appropriate classification of cellulose powder under Central Excise Tariff would be under Sub-heading 3912.90. In this connection your attentions is also invited to the instructions contained in Board's letter F. No. 93/51/88-CX.3 (Circular No. 32/88), dated 15-12-1988 on the same issue in the context of the old Tariff. 3. As regards the classification of cotton linters/bleached cotton linter pulp, it is observed that the same are specifically covered under Heading 14.04 of HSN. Though Chapter 14 of CET is not aligned with the corresponding Chapter of HSN the cotton linters/bleached cotton linter pulp would still merit classification under Heading 14.04 of CET as the main Chapter description under CET is exactly the same as that of corresponding Chapter of HSN. It may be seen that under the Central Excise Tariff, the various Headings of Chapter 14 of HSN have been grouped together under one Heading, viz.. Heading No. 14.01. As per Explanatory Note under Heading 14.04 of HSN, cotton linters are covered under that Headings, irrespective of their end uses and whether they are bleached or not. Further, as per the Chapter Notes under Chapter 14 of CET vegetable materials or fibres or vegetable materials of a kind used primarily in the manufacture of textiles suitable for use only as textile materials are excluded from Chapter 14. From this, it could be inferred that all other vegetable materials or fibres, vegetables materials of a kind not used primarily in the manufacture of textiles are covered by Heading Chapter 14, subject to the tariff description of that Heading. From the above it is clear that cotton linters, whether bleached or unbleached, would merit classification under Heading 14.01 of CET. Accordingly, it is clarified that cotton linters/bleached cotton linters would merit classification under Heading 14.01 of CET. 4. The above clarification may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis.