Mr Nilesh Parekh

[NILESH PAREKH]

Sir I would like to know that whether MEIS can be claimed under HS code 56079090 if ropes and twines are made up of polyethylene or polypropylene. Please guide as to whether MEIS can be claimed or not

[YAGAY andSUN]

Dear Nilesh,

Please find our appended reply to your query. Also check the chapter 3 of FTP and HBP Vol.1 2015-2020 and Notifications issued in this regard..

Ropes made out of Polyethen or polypropylene will fall under chapter 39. Please choose the right classification in this regard. Just for the purpose of claiming MEIS do not classify the goods under wrong tariff. However MEIS rate under HS Code 56079090 is mentioned below just for your kind information. but check the correct classification and chapter note of chapter 39 and 56 in this regard as claiming wrong MEIS is an offense.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

ITC(HS) Code : 56079090

___________________________________________________________________________________________________
ITC(HS) Code	Item Description	MEIS- Reward Rate (in%) Country Group [Click below A ,B , C]
		[A]	[B]	[C]
56079090	Other Twine,Cordage,Rope And Cables	5	5	5
___________________________________________________________________________________________________
* The ITC (HS) codes for which a * is marked will get MEIS rewards @2% for exports to Japan. For other countries in the Group B, the rewards will not be available
# The ITC (HS) codes for which a # is marked will get MEIS rewards @2% for exports to Bangladesh and Sri Lanka. For other countries in the Group C, the rewards will not be available

[NILESH PAREKH]

SIR

THANK YOU FOR YOUR PROMPT REPLY

MY ONE OF THE CLIENT WAS USING HSN CODE 56074900 FOR PE/PP ROPES SINCE LAST 15 YEARS. IS IT NOT A CORRECT CODE? AS THERE IT IS SPECIFICALLY MENTIONED "TWINES, CORDAGE, ROPES & CABLES MADE UP OF POLYETHYLENE OR POLYPROPYLENE"

NOW THEY WERE UNDER A CONFUSION FOR THIS CODE AS HERE THE WORDS USE ARE "POLYETHYLENE OR POLYPROYLENE" AND THEY USE MATERIAL IN COMBINATION OF BOTH, SO THEY ARE PLANNING TO GO FOR 56079090 WHICH IS UNDER "OTHER" CATEGORY OF 5607 - TWINE, CORDAGE, ROPES AND CABLES, WHETHER OR NOT PLAITED OR BRAIDED AND WHETHER OR NOT IMPREGNATED, COATED, COVERED OR SHEATHED WITH RUBBER OR PLASTICS

WHETHER THIS INTERPRETATION IS CORRECT? THEY DO NOT INTEND TO CLAIM MEIS BUT THEY ARE IN CONFUSION FOR ABOVE SAID INTERPRETATION OF WORD "OR" IN 56074900

[Dharmendra Desai]

Please do not use 56079090 for Rope made from Polypropylene or polyethylene,, because in future custom will arise query and you have to pay penalty. its is my self experience. use only 56074900 for Rope.

AI Summary

Tariff classification: classify polyethylene and polypropylene ropes under the specific polymer heading to avoid misclassification penalties. Whether polyethylene or polypropylene twines, cordage, ropes and cables qualify for MEIS depends on correct tariff classification; practitioners advise using the HS heading that specifically describes polymer-made ropes (56074900) rather than the residual 'other' heading (56079090) to avoid customs queries and penalties. Although an informational table lists a MEIS reward rate for the residual heading, exporters must follow chapter notes and accurate classification when claiming incentives because misclassification is an offence.