Central Excise - Classification of Polyols and Isocyanates, when added with other additives such as fillers, plasticisers, flame proofing agents, pigments, blowing agents etc., - Central Excise - 20/89

Central Excise - Classification of Polyols and Isocyanates, when added with other additives such as fillers, plasticisers, flame proofing agents, pigments, blowing agents etc., Circular No. 20/89 Dated 8-3-1989 [From F. No. 93/22/88-CX.3] Government of India Ministry of Finance (Department of Revenue) Central Board of Excise Customs, New Delhi Subject : Central Excise - Classification of Polyols and Isocyanates, when added with other additives such as fillers, plasticisers, flame proofing agents, pigments, blowing agents etc., Attention is invited to Circular No. 2/89-CX.3 issued vide Board's F. No. 93/22/88-CX.3, dated 4-1-1989, wherein it was clarified that Polyols and Isocyanates, when presented together at the time of sale should be assessed to the Central Excise duty individually on merits. 2. Now a doubt has been raised as to whether Polyols and Isocyanates containing additives such as fillers, plasticisers, flame proofing agents, pigments, blowing agents and etc., and presented together at the time of sale should also be assessed individually on merits or otherwise. 3. The issue has been examined in consultation with the Dy. Chief Chemist, CRCL, whose opinion is enclosed. The Board agrees with the opinion of the Dy. Chief Chemist. 4. Accordingly, it is clarified that Polyols and Isocyanates when added with additives such as fillers, plasticisers, flame proofing agents, pigments, blowing agents etc., before being presented together for sale should also be assessed individually on merits. 5. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably informed. 6. All pending assessments may be finalised on the above basis. COPY The reaction of hydroxyl terminated resins with isocyanates to form polyurethane foam requires important modification by auxiliary agents. Blowing agents are required to generate foaming. Trichloro- fluoromethane, 2-chloropropane, emthylene chloride are the widely used blowing agents. The process is usually accelerated by a suitable catalyst and the cell size is usually regulated by the use of a foam stabilizer. These two ingredients are not required in every case. The chemicals employed as catalysts and foam stabilizers are the tertiary amines and copolymers of silicones with polyoxyalkylenes respectively. In addition to the above, special properties and foaming conditions can be obtained through the use of numerous miscellaneous additives such as fillers, plasticisers, flame proofing agents and pigments. These additives are added to any one of the components preferably to the polyol component of polyurethane. These are the permitted additions and do not alter the classification of polyols from Chapter 39. The inference that the polyols and isocyanates will be assessed separately only if they do not contain the additives is not proper. The presence of the additives in the components do not qualify them for the term "set". Therefore, the polyols and the isocyanates would merit classification individually on merits, even if they contain additives. Sd/- (DR. BADRI PRASAD) 3rd March, 1989 Deputy chief Chemist