HDPE classification for customs exemption upheld despite minor chemical modification and trace additives

Chemically modified high density polyethylene granules remained classifiable as HDPE where laboratory reports showed the goods were polymer of ethylene with 98% ethylene content and only minor additives. The chemical character was not altered by the modification or the small proportion of additives, so the goods fell within the exempted HDPE entry in Notification No. 12/2012-Cus dated 17.03.2012 and qualified for exemption.

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Issues: Whether chemically modified high density polyethylene granules remained classifiable as high density polyethylene for the purpose of exemption under Notification No. 12/2012-Cus dated 17.03.2012.

Analysis: The relevant entry in Serial No. 237 granted exemption to high density polyethylene (HDPE). The laboratory reports recorded that the imported goods were polymer of ethylene (HDPE) and that they were chemically modified. The composition showed 98% ethylene by weight, with additives present only in a minuscule percentage. On this basis, the chemical character of the goods remained HDPE and was not altered by the minor additives or modification.

Conclusion: The imported goods were held to fall within the exempted entry for HDPE, and the assessee was entitled to exemption under Notification No. 12/2012-Cus dated 17.03.2012.

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