Plastic scrap versus plastic waste: PVC flakes were not treated as licence-restricted waste, defeating confiscation.

PVC scrap imported as flakes was considered against Paragraph 27(2) of the Import Trade Control Handbook 1992-1997, which covered plastic waste requiring an import licence. Technical opinion indicated the material could be treated as primary form PVC usable directly for applications, so the distinction between waste and scrap was applied in favour of the importer. The lower import price was not treated as conclusive proof that the goods were waste. Earlier departmental decisions were distinguished, and authority supporting the view that plastic scrap was not covered by Paragraph 27(2) was followed. The import was therefore not treated as prohibited plastic waste, and confiscation and penalty were not sustained.

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Issues: Whether PVC scrap imported in the form of flakes was covered by Paragraph 27(2) of the Import Trade Control Handbook 1992-1997 as plastic waste requiring an import licence, and whether the confiscation under Section 111(d) of the Customs Act, 1962 was sustainable.

Analysis: The imported goods were found to be PVC flakes, and the record included technical opinion indicating that the material could be treated as primary form PVC and used directly for applications. The distinction between waste and scrap was applied to hold that Paragraph 27(2), which refers to plastic waste, did not automatically cover plastic scrap. The lower price of the imported material, by itself, was not treated as conclusive proof that the goods were waste. The earlier decisions relied upon by the department were distinguished, while the decisions supporting the importer were followed on the point that plastic scrap was not hit by Paragraph 27(2).

Conclusion: The import was not held to be prohibited plastic waste requiring a licence, and the confiscation and penalty order was not restored.

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