Chlorinated PVC classification under Heading 3904 qualifies for the more beneficial customs concession.

Chlorinated polyvinyl chloride is treated as a chemically modified form of PVC and remains classifiable under Heading 3904 of the Customs Tariff. Chapter Note 5 and Sub-heading Note 1(b) support classification of such modified polymers with the heading applicable to the unmodified polymer, and chlorination for improved high-temperature utility does not move the product out of Heading 3904. On that basis, the exemption entry for PVC under Sr. No. 480 of Notification No. 21/2002-Cus applies, and where two exemption rates were available, the more beneficial concessional rate was held applicable.

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Issues: Whether chlorinated polyvinyl chloride is classifiable under Heading 3904 of the Customs Tariff Act and eligible for the concessional rate of duty under Sr. No. 480 of Notification No. 21/2002-Cus dated 01.03.2002.

Analysis: Heading 3904 covers polymers of vinyl chloride in primary forms, including poly(vinyl chloride) not mixed with any other substances, other forms of PVC, copolymers, and other related variants. Chapter Note 5 and Sub-heading Note 1(b) support classification of chemically modified polymers under the heading appropriate to the unmodified polymer. The record showed that chlorination of PVC was undertaken to improve its utility for high-temperature applications, but this did not take it out of Heading 3904. The notification entry at Sr. No. 480 applied to PVC falling under Heading 3904, and where two exemption rates were available, the assessee was entitled to the more beneficial entry.

Conclusion: Chlorinated PVC falls under Heading 3904 and qualifies for the concessional rate of 5% BCD under Sr. No. 480 of Notification No. 21/2002-Cus dated 01.03.2002.

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