Ampoule manufacturing: Glass tubing subjected to 20pc customs duty: FBR

ISLAMABAD: The Customs Classification Committee of the Federal Board of Revenue (FBR) has declared that the glass tubing meant for manufacture of ampoules would be subjected to 20 percent customs duty.

The Customs Classification Committee has issued a ruling to give legal viewpoint on the classification dispute. The committee stated that the Collectorate of Customs Appraisement-East, Karachi forwarded a reference for the determination of classification of glass tubing meant for manufacture of ampoules.

Brief facts of the case as reported by referring Collectorate are that importers-cum-manufacturers imported glass tubing for manufacturing of ampoules under two PCT Codes (i.e. 7002.3200 and 7002.3910).

Food emulsifiers, stabilisers: FBR body imposes 20pc customs duty

The referring Collectorate further stated that importers of these goods agree that their imported goods are used for manufacturing of ampoules.

However, importers contend that glass tubing having expansion upto 5x10-6are classifiable under PCT Code 7002.3200 as such glass tubes comply with the parameters described under the said PCT Code, whereas those glass tubing having expansion more than 5x10-6are classifiable under PCT Code 7002.3910.

The Board vide various communiqués directed the field formations to examine the issue for corrective measures, if and where applicable. The Collectorate of Customs Adjudication-II, Karachi referred the matter to the Classification Centre for determination of appropriate classification of impugned goods.

The Committee observed that the issue primarily related to the dispute of imposition and/or collection of Regulatory Duty on PCT heading 7002.3910 in terms of S.R.O. 840(1)/2021 dated 30.06.2021 and as superseded vide SRO.966(I)/2022 dated 30.06.2022.

However, the Committee decided to proceed for determination of classification and peruse the relevant provisions of law dealing with the HS Classification.

The Classification Committee considered the arguments and stance of both sides and examined the documents put forth and perused the relevant provisions of law dealing with the HS classification. Classification of any imported goods under Pakistan Customs Tariff is determined under the General Rules for the Interpretation (GIR) of First Schedule to the Customs Act, 1969.

The Committee considered the PCT headings relied upon by the importers, the referring Collectorates and others. The Classification Committee is of the view that the ‘Neutral glass tubing of a kind used for the manufacture of ampoules, having a linear coefficient of expansion not exceeding 5x10-6per Kelvin within a temperature range of 0oC to 300oC having’ is appropriately classified under PCT Heading 7002.3200, whereas ‘Other Neutral glass tubing of a kind used for the manufacture of ampoules having a linear coefficient of expansion exceeding 5x10-6 per Kelvin within a temperature range of 0oC to 300oC’ is appropriately classified under PCT Heading 7002.3910.

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