9911796707
TMI Blog2024 (2) TMI 1533X X X X Extracts X X X X X X X X Extracts X X X X ..... on which advance ruling is required: 2.1. That the Applicant is, inter alia, engaged in the business of manufacturing and sale of seasonal wear products (i.e. rainwear and winter wear). The Applicant is manufacturing and distributing Coated Fabric Raincoats and PVC Raincoats. Now the Applicant wants to export PVC raincoats. A PVC raincoat is a waterproof outer jacket made from polyvinyl chloride (PVC). The slick, non-permeable surface of PVC makes it a popular material for raincoats. The product, is inter alia, made from huge PVC rolls/sheets. The said PVC rolls undergoes panel cutting process (i.e. the huge rolls/ sheets are cut into smaller sheets for front & back portion, sleeves, pockets, etc.). The said small PVC sheets are generally not stitched with a needle and thread. Since PVC is nonporous, a needle would leave a large hole that would allow water to enter, making for a very ineffective raincoat, and weakening the seam. Instead, PVC seams are generally "welded" with heat, or bonded by chemical means. Either way, the all pieces of materials are melt together, either thermally or chemically, and are permanently bound. Thus, it is a non-woven product. Once all the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Car-Coats, Capes, Cloaks, Anoraks (Including Ski-jackets), Wind-Cheaters, Wind-Jackets and Similar Articles, Other Than Those of Heading 6203." Thus, it would include raincoats not knitted and crocheted made up of: (i) wool or fine animal hair; (ii) of cotton; (iii) of man-made fibers and (iv) other textile materials. In light of the above facts and circumstances, the Applicant has approached the customs authority for advance ruling to know the correct classification of the PVC raincoats under the customs Tariff i.e., whether the goods/products, in question, would merit classification under HSN code 392690 or HSN code 6201. 3. Statement containing the applicant's interpretation of law and/or facts, as the case may be, in respect of the questions(s) on which advance ruling is required: The Applicant submits that PVC raincoat will be covered under HSN code 6201. Section Note 14 to Section XI reads thus: "14. Unless the context otherwise requires, textile garments of different headings are to be classified in their own headings even if put up in sets for retail sale. For the purposes of this Note, the expression "textile garments" means garments of headings 6101 to 6114 and hea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s known as yarns, which are then either interlaced by weaving or interloped by knitting into planar flexible sheet like structures known as fabrics. Nonwoven fabrics are formed directly from fibres and filaments by chemically or physically bonding or interlocking fibres that have been arranged in a planar configuration (see Nonwoven textile fabrics, Tire cords). Textile fibres may be classified into two main categories and into a number of subcategories, as indicated in Table-1. The generic names of man-made fibres are defined and controlled by the Federal Trade commission (1) With the exception of glass and asbestos fibres and the speciality metallic and ceramic fibres, textile fibres are formed from organic polymers. Cellulose (gv) and proteins (gv) are the only important natural polymers in naturally occurring fibres (see Biopolymers). Table 1. Classification of Textile Fibres Naturally occurring fibres vegetable (based on cellulose), cotton, linen, hemp, jute, namieanimal (based on proteins), wood, mohair, vicuna, other animal hairs, silk mineral, asbestos Man-made fibres based on natural organic polymers rayon, regenerated cellulose acelate, partially acetylated cellulose de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n be classified mainly into natural or manmade fibres. Further, manmade fibres include fibres made from synthetic polymer which further includes polyvinyl derivatives. Further, polyvinyl derivatives include chloro-fibre which are manufactured from PVC. Therefore, textile fibres includes fibres of PVC. At this stage, the appellant has referred the judgment of the Hon'ble Supreme Court in case of Porritts & Spencer (Asia) Ltd. 1983 (13) E.L.T. 1607 (S.C.). In that case, the Apex Court held that the word "textiles" was derived from the Latin "texere" which meant "to weave", and it meant any woven fabrics. It is further held that when yarn of any material and description was woven into fabrics, what came out into being was a "textile" and it was known as such. Phenomenal advancement in science and technology resulting in a large variety of fabrics manufactured from materials till then unknown or un-thought of and new techniques invented for making fabric out of yarn have also been taken into consideration by the Hon'ble Supreme Court while laying down the law that any woven fabrics were "textiles" irrespective of the materials used, technique of weaving adopted and the end-use ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cloaks, anoraks including skijackets, wind-cheaters, wind-jacket and similar articles, such as three-quarter coats, greatcoats, hooded capes, duffel coats, trench coats, gabardines, parkas, padded waistcoats. The heading does not include: (a) Garments of heading 61.03. (b) Garments made up of knitted or crocheted fabrics of heading 59.03; 59.06 or 59.07 (heading 61.13). The applicant submitted that thus, on plain perusal of the above HSN Explanatory notes, it is evident that overcoats, raincoats, wind cheaters, wind jackets and similar articles which are used for protection against weather would be classified under chapter 62.01. Therefore, even going by the HSN Explanatory notes, the subject product would be classifiable under chapter heading 6201. Chapter heading 6201 specifically covers raincoats. It is well settled that specific heading would prevail over general. Even in terms of Rule 3(a) of the General Rules of Interpretation of the Customs Tariff Act, 1975, the heading which provides the most specific description shall be preferred to headings providing a more general description. This view has been endorsed by the Hon'ble Apex Court in the case of Commercial T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocess of PVC raincoats whereby it is evident that the products to be exported by the applicant is raincoat which can be said readymade garment. The fact that raincoat is made of PVC does not render it to be considered as article of plastic. Thus, classifying PVC raincoat under Chapter 39 is not apropos to the provisions of Chapter Notes of Chapter 39. 5.2 Notel of Section XI states that: "This Section does not cover:....... (h) woven, knitted or crocheted fabrics, felt or non-wovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of Chapter 39". This provision cannot eliminate the PVC raincoat from being classified under the chapters of Section XI, although, PVC raincoat is declared by the applicant as non-woven, but, it is made of PVC and not merely impregnated, coated, covered or laminated with plastics, or articles thereof. Thus, PVC raincoat remains classifiable under the chapters of Section XI. Further, Section Note 14 to Section XI reads thus: "14. Unless the context otherwise requires, textile garments of different headings are to be classified in their own headings even if put up in sets for retail sale. For the purposes of this Note, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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