Classification of ‘PVC resin Impact Modifier ‘Kane ACE B 22’ - ...

Tribunal Upholds Classification of PVC Resin Impact Modifier Under Heading 3902 Due to Predominant Butadiene Content.

May 14, 2024

Case Laws     Customs     AT

Classification of ‘PVC resin Impact Modifier ‘Kane ACE B 22’ - change of classification from 3902 to 3906 - Interpretation of sub-heading note - The Tribunal analyzed the relevant Chapter Notes, particularly Chapter Note 4, which states that copolymers are to be classified under the heading covering the comonomer unit that predominates by weight. The Tribunal noted that Butadiene content in the product is nearly 50%, significantly higher than the content of other comonomers such as Methyl Methylacrylate (15-20%). Subheading notes are applicable within a heading once the classification under the main heading is determined. The product should be classified under Chapter Heading 3902 based on the predominance of Butadiene by weight. Consequently, the impugned order was set aside, and the appeal was allowed.

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