2026 (2) TMI 339 - AAR - Customs

Classification of plastic wall panels and mouldings: held as plastic plates or sheets under heading 3921, not builders' ware.

Classification of imported plastic panels and mouldings turns on the essential character test under the General Rules for the Interpretation. The ... Classification of goods - imported products described as PS moulding, PS wall panel, PS L profile, PS wall panel sheet, PVC panel foam, PVC sheet UV, PVC panel, PVC vinyl sheet, PVC panel WPC mould, PVC wall panel and PU wall panel - classifiable under Heading 3921 (other plates, sheets, film, foil and strip, of plastics) Or under Heading 3925 (builders' ware of plastics, not elsewhere specified or included) - General Rules for the Interpretation (GIR) - essential character test - in-line extrusion/profiled edges not amounting to further working - HELD THAT:- It is settled principle of law that the classification of any good under Customs Tariff Act, 1975 is governed by the General Rules for the Interpretation of the Import Tariff. Further, Rule 1 of GRI stipulates that 'classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes.' It is only when the headings and notes do not require otherwise then one may proceed to the subsequent rules. After due examination of Tariff heading and chapter notes, the principal contention of the applicant is that the goods, notwithstanding certain surface finishing such as UV coating, printing or embossing, retain their essential character as plates or sheets of plastics of regular rectangular shape. The applicant has stressed that in terms of Chapter Note 10 to Chapter 39 and submitted that such plates or sheets remain classifiable under heading 3921, even if, when so cut, they become articles ready for use. The applicant has therefore asserted that classification under heading 3925, which covers builders' ware of plastics, is not appropriate for their products. Based on the information on record, there are in fact two categories of products are listed in this application. The first category comprises plain PVC sheets, supplied in large rectangular form with or without surface printing undoubtedly having character as plastic sheets in terms of Chapter Note 10. The another category, which comprises mouldings, wall panels and goods with interlocking tongue-and-groove edges, designed to be fitted continuously to create a wall or ceiling surface. These products in view of the department exhibit characteristics of builders' ware/structural elements/architectural features and their classification require to be examined in further detail. The Commissionerate concern relates particularly to the above second category. Their argument is that once a sheet is profiled in such a manner as to interlock and form part of the building structure, its essential character changes from a mere sheet to a constructional article. The panels are not integrated into the structural framework of the building but are applied as a decorative overlay on existing finished walls. The wall structure exists independently and functions identically whether these panels are present or absent. This is fundamentally different from true structural elements like drywall, which forms the actual wall surface, or partition systems, which create the spatial divisions. The mere fact that a product is used on walls does not make it a 'structural element used in walls.' The category contemplates products that are integral to the wall structure itself, not decorative overlays applied to finished walls. I find these PVC panels remain essentially decorative sheets designed for aesthetic wall covering as a substitute of paint & wall papers, temporarily in nature and easily removable, lacking structural function, architectural complexity, or permanent integration into building frameworks. The correct classification under CTH 3921 reflects both the goods' essential character as plastic sheets and their commercial understanding as decorative wall coverings. In view of above, no force in the department's argument. Thus, find that the products retain the essential form of plates/sheets of plastics within the meaning of Note 10 to Chapter 39. The longitudinal interlocking/tongue-and-groove at the edges is an in-line extrusion profile and, on these facts, does not amount to 'further working' of the type exemplified in the Chapter and explanatory notes (e.g., drilling, milling, framing, twisting, cutting into non-rectangular shapes). The HSN EN to 3921 explicitly embraces cellular and reinforced/laminated/supported sheet products that remain plates/sheets and are not covered by 3918/3919/3920 or Chapter 54. The subject panels fit that description. Therefore, hold that the following goods mentioned in application are classifiable under heading 3921 of the Customs Tariff; goods of polymers of styrene in the sheet/panel form fall under 39211100; goods of polymers of vinyl chloride in the sheet/panel form fall under 39211200; goods of polyurethanes in the sheet/panel form fall under 39211390; and other plastics or sheets retaining the character of plates/sheets fall under 39219029, subject to verification of the actual composition, structure (cellular/non-cellular; reinforced/laminated/supported) by the field formation in this regard. I, rule accordingly. Issues: (i) Whether the imported products described as PS moulding, PS wall panel, PS L profile, PS wall panel sheet, PVC panel foam, PVC sheet UV, PVC panel, PVC vinyl sheet, PVC panel WPC mould, PVC wall panel and PU wall panel are classifiable under Heading 3921 of the Customs Tariff Act, 1975 (other plates, sheets, film, foil and strip, of plastics) or under Heading 3925 (builders' ware of plastics, not elsewhere specified or included).Analysis: The classification is governed by the General Rules for Interpretation and the relevant Chapter Notes and Explanatory Notes to Chapter 39. Chapter Note 10 restricts headings 3920/3921 to plates, sheets, film, foil and strip of regular geometric shape, whether or not surface-worked, uncut or cut into rectangles, but not further worked. Chapter Note 11 lists the specific articles that fall under heading 3925 and subordinates 3925 to more specific headings. The products include two categories on the material record: plain rectangular sheets with surface treatments and sheets/panels with in-line extrusion profiles such as interlocking edges. The factual findings on record indicate that embossing, printing, UV coating and interlocking edge profiles are formed during the extrusion process and do not amount to subsequent 'further working' that would remove the products from the scope of Note 10. The panels are lightweight, retain rectangular geometric character, are removable without damage, and lack load-bearing structural function. The commercial character and essential form of the products on the evidence correspond to plates/sheets of plastics; the Chapter 39 explanatory notes to 3921 expressly cover cellular and reinforced/laminated sheets. The applicability of headings must prefer the more specific description; hence where products remain plates/sheets as per Note 10 they fall under 3921 rather than the residual heading 3925 which applies only to the enumerated building articles.Conclusion: The products classifiable as sheets or panels made of polymers of styrene, vinyl chloride, polyurethanes or other plastics retain the essential character of plates/sheets within Note 10 and are classifiable under Heading 3921 of the Customs Tariff Act, 1975. Specifically: goods of polymers of styrene in sheet/panel form under 39211100; goods of polymers of vinyl chloride in sheet/panel form under 39211200; goods of polyurethanes in sheet/panel form under 39211390; and other plastics/sheets retaining plate/sheet character under 39219029, subject to field verification of composition and structure.Ratio Decidendi: Where plastic products retain the essential character of plates or sheets as defined in Chapter Note 10 (including cellular or reinforced sheets and surface-working performed during formation), they must be classified under Heading 3921 and cannot be reallocated to the residual Heading 3925 which applies only to the specific building articles enumerated in Chapter Note 11.