Tariff classification of coir-backed floor coverings depends on chapter notes; PVC, rubber or latex backing excludes the concessional coir entry.

Chapter 57 classification turns on the product description read with the chapter notes. Coir mats, mattings and floor coverings are treated as falling within the concessional coir entry only when they are made exclusively of coir fibres. Where the goods have coir as the exposed surface but are backed with PVC, rubber or latex, the backing materials are a substantive part of the product and the articles answer the description of backed textile floor coverings under heading 5703. The advance ruling therefore held that such goods do not qualify for the concessional coir entry and fall under tariff sub-heading 5703 90 90, attracting GST at the higher rate.

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Issues: Whether coir mats, mattings and floor coverings backed by PVC, rubber or latex are classifiable under tariff headings 5702, 5703 or 5705 as coir mats, mattings and floor coverings eligible for the concessional rate, or under tariff sub-heading 5703 90 90 attracting the higher rate of GST.

Analysis: Chapter 57 of the Customs Tariff Act covers carpets and other textile floor coverings in which textile materials serve as the exposed surface when in use. The product in question has coir as the exposed surface, but it is also backed by PVC, rubber or latex and the backing materials are used in the manufacturing process with equal importance. On a combined reading of the relevant chapter notes and the tariff entries, the entry for coir mats, mattings and floor coverings applies to articles made exclusively of coir fibres, whereas tufted carpets and other textile floor coverings of heading 5703 cover the backed products described in the application. The product therefore does not answer the description of coir mats, mattings and floor coverings in the concessional entry.

Conclusion: The goods are not classifiable under the coir entry in Schedule I and are classifiable under tariff sub-heading 5703 90 90, attracting GST at 12% under Schedule II.

Final Conclusion: The requested concessional classification was declined, and the products were held liable to the higher GST rate under the appropriate tariff entry.

Ratio Decidendi: For tariff classification under Chapter 57, the relevant entry depends on the description of the goods read with the chapter notes, and coir-backed floor coverings with substantial PVC, rubber or latex backing are not covered by the concessional entry for coir mats, mattings and floor coverings.

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