Classification of glazed newsprint under Heading 4801 displaced nil-rate exemption and attracted concessional customs duty treatment.

Imported glazed newsprint in reels was treated as classifiable under Heading 4801 after Chapter Note 3 to Chapter 48 brought all types of newsprint within that heading from 1-1-1996. On that basis, the claimed classification under Heading 4802.60 and the associated nil-rate exemption were not accepted. The specific customs notifications were applied instead, with the result that the goods were eligible only for the concessional duty treatment provided under those notifications.

---

---

Issues: Classification of imported glazed newsprint and eligibility to customs duty exemption under the claimed tariff heading and notifications.

Analysis: The imported goods were glazed newsprint in reels. The lower authorities held that, with effect from 1-1-1996, all types of newsprint fell under Heading 4801 by virtue of Chapter Note 3 to Chapter 48 of the Customs Tariff Act, 1975. On that basis, the goods were considered more appropriately classifiable as newsprint under Heading 4801 rather than under Heading 4802.60. The claimed nil-rate treatment under the general exemption was rejected, and the specific Notifications No. 83/96 and 84/96 Customs were treated as applicable, attracting duty at the concessional rate.

Conclusion: The classification under Heading 4801 was upheld and the claimed nil-rate exemption under Heading 4802.60 was not accepted; the appeal failed on merits.

---