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TMI Blog2021 (9) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... the intended product to be imported is not cladded/plated/coated. Therefore, these cold-rolled products are specifically classifiable under subheading 72.09. The applicant has stated that the waste goods they intend to import are classifiable as per para 13.3. The applicant has submitted that the length of the coil will be of 10-20 metre - the impugned item is essentially a cold-rolled product. Thus, it is classifiable under subheading 72.09 Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or more, cold-rolled (cold reduced), not clad, plated or coated . The width of the goods to be imported is in the range of 900 to 1400 mm and thickness in the range of 0.03 to 4 mm. Under this subheading the 8-digit classification depends upon the thickness of the coil. Therefore, depending upon the thickness of the goods to be imported, an appropriate 8-digit classification may be applied under subheading 72.09. In case of uneven thickness, the goods would be classified under residual tariff heading 72099000. The goods mill processed non-alloy ferrous waste metal goods wound in coil does not appear to be waste or scrap, and therefore, not classifiable under sub he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the applicant and elaborated the specific parameters. It is further stated that such goods do not satisfy parameters for cold-rolled coil as prescribed under IS-513:2008. Thus, it is neither a hot-rolled coil nor a cold-rolled coil. Section note 8(a) (ii) of Section XV describes waste and scrap as metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons. The product satisfies the above definition owing to its non-uniform thickness at indefinite intervals, its tensile strength and elongation. The impugned product is a re-rollable scrap and is classifiable under tariff 72044900 as other waste and as per notification no. 02/2021-Customs, the basic customs duty on this product is 2.5%. 3. The applicant has further stated that this product is not a prime product and is used only by secondary steel manufacturers who in turn re-roll this waste in the desired configuration. The chartered engineer certificate to this end is also submitted. The chartered engineer visited one of the units of unorganised steel manufacturer of steel hinges. The chartered engineer has explained the re-rolling process undertaken at the said unit as follows:- The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ges introduced in the Finance Bill, 2021 and it is used for re-rolling by unorganized sector and attracts 2.5% duty. As regards the further uses of the re-rollable waste coil a chartered engineer certificate is enclosed by the applicant which is self-explanatory. Further as per para 13.3 of IS 2549:1994 (Code for classification of processed ferrous scrap), which reads as, It shall consist of crop and (front and back end cutting) of semi-finished or finished products suitable for re-rolling of maximum and minimum sizes agreed upon between buyer and sellers . Accordingly, goods to be imported are classifiable under heading 72.04. 5. The application was heard on 05.08.2021 in virtual mode. No one appeared on behalf of the Principal Commissioner/Commissioner of Customs, Indore. The applicant was represented by Shri Sunil Deshpande, authorised representative, who has taken me through their application. The end cuttings which would be imported by the applicant are wound on a coil. The length of such sheet doesn t exceed 10-15 metres. He also clarified that the sheet is of variable thickness, but do not exceed 3mm He also explained that the test report submitted along with the CAAR-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods width, thickness and length? A: The above re-rollable waste which is proposed to be imported by us namely mill processed non-alloy ferrous waste wound in the coil has the following physical parameters:- Thickness- Our product does not contain any specific thickness and thus a particular thickness cannot be specified. Our product contains numerous thicknesses ranging from 0.30 mm to 4mm in each and every coil to be imported. Width- each and every coil has a different width which may range from 900mm to 1400mm. Length- The average weight varies from 200 to 800 kgs. Correspondingly, average length varies from 10 to 20 meters. Q5. What is the Carbon content by weight? A: The carbon content of our product to be imported varies from 0.04-0.30%. Q6. Whether imported goods are clad, coated or plated? If yes, then with which metal/element? A: The above re-rollable waste which is to be imported by us has no cladding or plating. 8. I have considered all the materials placed before me for the subject product. I have gone through the submissions made by the applicant during the personal hearing and reply received from the jurisdictiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... teristically have a width many times higher than their thickness in sharp contrast to long products where the sections are square or rectangular having a small ratio of width to thickness. The applicant stated vide email dated 17.08.2021 that they intend to import coils having a thickness in the range of 0.30 mm to 4 mm and width from 900 mm to 1400 mm These physical parameters satisfy the explanation given in the above chapter note. Therefore, impugned goods are liable to be viewed as flat products. 10. Flat products are used in important manufacturing sectors like in automobiles, railways, shipping, pressure vessels including boilers, pipes for conveying fluids, domestic appliances like that of manufacturing white goods, security storage items, in construction like those in roofing, in packaging where tinplate plays important role. Strips and sheets are manufactured by hot rolling process, however, when they are required to have higher yield strength and to be used with closer tolerances of thickness and with smoother or brighter surface they are subjected to cold rolling. As elaborated by the applicant, the hot-rolled product undergoes cold rolling. This is nothing but the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old-rolled sheet or strip. However, as stated earlier, the scope of this standard is related to requirements of cold reduced low carbon steel sheets and strips for bending and drawing purpose and where the surface is of prime importance. There are many other operations that can be carried out on sheet and strip, like shearing, blanking, stamping, embossing, spinning, roll forming, etc. Therefore, the impugned goods may not be considered as a prime product as per BIS 513:2008, it still can be used for other purposes as a cold-rolled sheet or strip. 12. As per the applicant, section note 8 (a)(ii) provides an explanation for classifying their goods as waste and scrap. Further, the 8-digit classification as stated by the applicant is 72044900. Subchapter 72.04 covers ferrous waste and scrap; remelting scrap ingots of iron or steel. Section note 8(a) of Section XV covers waste and scrap: i) all metal waste and scrap ii) metal goods definitely not usable as such because of breakage, cutting-up, wear or other reasons. Such waste and scrap of iron or steel is of a miscellaneous nature and generally takes the form of (1) Waste and scrap from the manufacture or mechanical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... old ship suitable for re-rolling without undergoing process of melting and length 2000 mm (max), width 800 mm (max), thickness 8 mm (minimum). In case of rails and railway materials there will be no size restriction. 13.3 Re-rollable steel scrap, crop ends: It shall consist of crop ends (front and black end cuttings) of semi-finished or finished products suitable for re-rolling of maximum and minimum sizes agreed upon between buyer and sellers. The applicant has stated that the waste goods they intend to import are classifiable as per para 13.3. The applicant has submitted that the length of the coil will be of 10-20 metre. Thus, conditions, as mentioned in para 13.1 and in para 13.2 are not satisfied. Further, it is difficult to get such a high length of scrap from crop and (front and back end cuttings) of a coil. Therefore, para 13.3 does not appear to be applicable to this product. This further substantiates the discussion of previous para, that the goods cannot be considered as waste and scrap. 14. As discussed in para 10, the impugned item is essentially a cold-rolled product. Thus, it is classifiable under subheading 72.09 Flat-rolled products of iron or non- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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