TaxTMI 
TaxTMI 
2025 (12) TMI 1325
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.... materials have been classified under the Customs Tariff Headings (CTH) as provided under the Import Tariff of the Customs Tariff Act, 1975. By way of the present application for Advance Ruling, the Applicant wishes to re-evaluate the recommended Customs Tariff Headings (CTH) under which the referred parts, sub-parts, inputs or raw materials to manufacture Lithium-ion cells should be classified. 1.7 The Applicant is also aware of the Notification No. 50/2017-Cus dated 30.06.2017 (hereinafter referred to as the 'Notification') wherein at Sr. No. 523A of the Notification, exemption is provided to parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells falling under CTH 8507 6000, subject to certain conditions. It is asserted that the Applicant believes that they are duly covered under the said Notification given that the same are being used in the manufacturing of the final product viz., Lithium-ion cells. Towards this, the Manufacturing Process Flow Chart may be perused. 1.8 In the light of the above facts, the Applicant desires to obtain an Advance Ruling under Section 28H of the Customs Act, 1962 (hereinafter referred to as the 'Act&#....
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.... been made to the Material Safety Data Sheet (MSDS). For the purpose of the classification, the First Schedule (Import Tariff) of the Customs Tariff Act, 1975 has been referred including the Headings, Chapter Notes, Section Notes, and the General Rules for the Interpretation of the First Schedule. Reference has also been obtained from the HSN Explanatory Notes issued by the World Customs Organisation. 2. Comments of the Port Commissionerate 2.1 The comments in respect of this application from the concerned port Commissionerate i.e ACC Import, New Custom House, Near IGI Airport, New Delhi-110037, have been received vide letter F.No CUS/APR/MISC/6674/2025-GR 1/2-O/o Pr COMMR-CUS-ACC(I)-DELHI dated 24.11.2025, In this regard the comments of this group are under 2.2 Question Whether the Applicant has rightly classified the goods to be imported which are in the nature of parts, sub-pats, inputs or Raw Materials Products under the relevant Customs Tariff Headings of the Import Tariff of the Customs Tariff Act. 1975 us mentioned in Appendix- 2.3 Question 2 If the subject parts, sub-parts, imports of raw materials Products are raw classifiable under the recommended Custom Tarif....
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....is the same as discussed for Golden PO tape. The product is a self-adhesive flat tape that will be imported in rolls of width not exceeding 20 cm. The product is pressure-sensitive. as discussed for Golden PO tape. The product is a self-adhesive flat tape that will be imported in rolls of width not exceeding 20 cm. The product is pressure-sensitive. In light of the foregoing discussion, the Applicant is of the view that the product will be classified as self-adhesive tape of plastic under CTH 3919 in terms of GI Rule 1 and more specifically under tariff entry 3919 10 00. 5. Double faced Adhesive tape 3919 10 00 Ingredients : Polyethylene terephthalate which is a type of polyester resin and adhesive on both sides of the tape in the nature of acrylic resin. Application : Enhance the bonding between the Lithium-ion cell and the Pocket, and enhance the relative position and stability HSN Classification Justification (as per Applicant) This product is double sided self-adhesive tape which does not have insulating properties. The constituent material of the tape is polyethylene terephthalate which is a type of polyester resin and the adhesive on both sides of the ....
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....ific CTH covering "Styrene-acrylic resin" the same has been classified under CTH 3903 90 90 - Others. 9. PVDF [KYNAR- HSV 900 PWD] 3904 69 10 Polyvinylidene Difluoride (PVDF) (C2H2F2)n. HSN Classification Justification (as per Applicant) Application: Binder for cathode slurry, used to stick the slurry to aluminum foil to prevent falling off End Use: Binder for cathode slurry Polyvinylidene fluoride or polyvinylidene difluoride (PVDF) is a highly non-reactive thermoplastic fluoropolymer produced by the polymerization of vinylidene difluoride. PVDF is a specialty plastic used in applications requiring the highest purity, as well as resistance to solvents, acids and hydrocarbons. PVDF has low density 1.78 g/cm3 in comparison to other fluoropolymers, like polytetrafluoroethylene. It is available in the form of piping products, sheet, tubing, films, plate and an insulator for premium wire. It can be injected, molded or welded and is commonly used in the chemical, semiconductor, medical and defense industries, as well as in lithium-ion batteries. Chapter 39 of the HSN classification deals with plastics and articles made from plastics, including various polymers. Head....
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....n heading 4002, the expression "synthetic rubber" applies to: (a) unsaturated synthetic substances which can be irreversibly transformed by vulcanisation with sulphur into non-thermoplastic substances which, at a temperature between 18℃ and 29℃, will not break on being extended to three times their original length and will return, after being extended to twice their original length, within a period of five minutes, to a length not greater than one and a half times their original length. For the purposes of this test, substances necessary for the cross-linking, such as vulcanising activators or accelerators, may be added; the presence of substances as provided for by Note 5(B)(ii) and (iii) is also permitted. However, the presence of any substances not necessary for the cross-linking, such as extenders, plasticisers and fillers, is not permitted; " Chapter 40: "Rubber and articles thereof" - This chapter covers all forms of rubber, both natural and synthetic, as well as articles made from rubber. It includes raw rubber, semi-finished rubber products, and finished rubber goods. The chapter encompasses elastomers with rubber-like properties used in various industries. ....
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....ed olefins, which encompasses fluorinated polymers like PVDF. Subheading 3904.69 covers "Other Polymers of Halogenated Olefins" that are not specifically listed under more narrowly defined categories. PVDF, being a fluorinated polymer, falls under this subheading as it does not fall into the more specific categories of polymers listed in other subheadings. CTH 3904 69 10 is designated for "Polyvinylidene Fluoride" specifically and precisely identifies PVDF. 10. Additive Ethylpyrrolidone - Acrylate copolymer NMP solution 3906 90 90 Ethylpyrrolidone - Acrylate copolymer NMP solution HSN Classification Justification (as per Applicant) Application: Binder for Cathode slurry, used to stick the slurry to aluminum foil to prevent falling off End Use: Binder for anode slurry An acrylate polymer (also known as acrylic or polyacrylate) is any of a group of polymers prepared from acrylate monomers. These plastics are noted for their transparency, resistance to breakage, and elasticity. Acrylate polymer is commonly used as an adhesive. applications, including as a thickener in slurries for battery manufacturing. This CTH is appropriate because it directly covers CMC and it....
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....ry forms" - This heading specifically deals with synthetic rubbers, which are artificially produced elastomers. "Primary forms" typically refer to the basic, unprocessed state of the material, such as liquids, pastes, sheets, or chunks. Subheading 4002.11: Styrene-butadiene rubber (SBR); carboxylated styrene-butadiene rubber (XSBR) - This heading includes Styrene-butadiene rubber (SBR) which is a synthetic rubber copolymer of styrene and butadiene. CTH 4002 11 00 specifically covers "Latex" which refers to the liquid form of the rubber, typically an emulsion of the polymer in water. Appendix-1, then what should be the appropriate classification/ CTH for the parts, sub-parts, inputs of raw materials Products to be imported by the Applicant given the composition and end use of the subject parts sub-parts inputs or raw materials Products As per the applicant the proposed classification of Polyether-modified polysiloxane (PEMPS) 39072990 i.e. Other of Other of Other polyethers as importer has informed that instant products is polyether and as there is no specific heading for the same, the goods appears to be classifiable under CTH 39072990 which appears to be incorrect as the ....
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....low chart and role of subjected goods in the manufacturing. Also, the Authorised representatives were advised to furnish an excel sheet containing the product details, description and it uses along with the photographs. 4. Additional Submission :- 4.1 In response to the comments received from the concerned Commissionerate, the applicant submitted additional submissions vide mail dated 13.12.2025 which are as follows: 4.2 The Applicant, ATLBattery Technology (India) Private Limited (hereinafter referred to as the "Applicant"), respectfully submits this response pursuant to the comments communicated by the concerned assessment group, namely the Office of the Assistant Commissioner of Customs, Group-1 and Group-2, New Customs House, New Delhi (hereinafter referred to as the "Assessing Authority"). 4.3 The said comments pertain to Application No. 81/2025 dated 28.04.2025 (hereinafter referred to as the "Application") filed by the Applicant under Section 28H of the Customs Act, 1962, and have been forwarded to us by your esteemed office for our consideration and reply. PRELIMINARY SUBMISSION 4.4 That, vide the Application, the Applicant has sought an advance ruling in ....
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....r reclassification under a different heading. 4.12 That the Learned Assessing Authority has proposed classification under CTI 3910 0090, under CTH 3910, which covers "Silicones in primary forms". It is respectfully submitted that CTH 3910 is attracted only in cases where the primary polymer structure consists of a siloxane (-Si-O-Si-)„chain, i.e., where the silicone polymer constitutes the backbone. In the present case, the backbone is unequivocally a polyether chain, and the polysiloxane component is neither predominant nor structural. Hence, the reliance on CTH 3910 is misplaced and legally unsustainable. 4.13 That even assuming arguendo that GRI 3(b) were applicable (though the Applicant submits that GRI 1 fully resolves the issue), the essential character of the good is indisputably derived from the polyether backbone, which provides the bulk of the molecular weight, determines the principal physicochemical behaviour, and governs the core polymeric properties. As such, the essential character test further reinforces classification under CTH 3907 and not under CTH 3910. 4.14 That in view of the foregoing, the Applicant submits that classification under CTI 3907 29....
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....primary forms". The said heading attracts a statutory Basic Customs Duty rate of 10%. 4.26 That the Applicant had, in the Application, submitted that Polyvinylidene Fluoride (PVDF)-also known as polyvinylidene difluoride-is a highly non-reactive, thermoplastic fluoropolymer produced by the polymerisation of vinylidene difluoride, an halogenated olefin (CH2 = CF2). PVDF is universally recognised within polymer chemistry as a member of the fluoropolymer family, and is utilised in a diverse range of applications including piping, tubing, films, sheets, coatings, engineering plastics, speciality insulation, and, pertinently, as a binder in cathode slurry for lithium-ion batteries, which constitutes the Applicant's declared end-use. 4.27 That Heading 3904 expressly covers: "Polymers of vinyl chloride or of other halogenated olefins, in primary forms." Vinylidene difluoride (CH2 = CF2) is, beyond dispute, an halogenated olefin, specifically a fluorinated olefin. Its polymer, PVDF, therefore falls squarely within CTH 3904 by plain application of General Rule for Interpretation (GRI) 1, which mandates classification according to the wording of the heading and re....
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.... salts". The Applicant reiterates that the justification contained in the Application-identifying Na-CMC as a sodium salt of carboxymethyl cellulose, a chemically modified cellulose derivative expressly provided for under CTH 3912-is correct. No adverse comments have been issued by the Assessing Authority, and the proposed classification therefore stands affirmed. SUBMISSIONS ON THE APPLICABILITY OF THE BENEFIT UNDER NOTIFICATION NO. 45/2025-CUS (SERIAL NO. 314) READ WITH THE CUSTOMS IGCR RULES, 2022 4.41 That the Applicant respectfully submits that Notification No. 50/2017-Cus dated 30.06.2017 has now been subsumed and superseded by Notification No. 45/2025-Cus. Accordingly, the exemption entry earlier appearing at Serial No. 523A of Notification No. 50/2017-Cus now stands relocated and renumbered as Serial No. 314 in Notification No. 45/2025-Cus ("the substituted Exemption Notification"). 4.42 That the Learned Assessing Authority, while referring to Serial No. 523A of the erstwhile Notification No. 50/2017-Cus, has correctly reproduced the substance of the exemption, which continues in pari materia under Serial No. 314 of Notification No. 45/2025-Cus. The entry prescribe....
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....ts IGST @ 28% under Sl.No.139 of Schedule IV of Notification No.001/2017-Integrated Tax (Rate) dated 28-07-2017. It is to note that SI.No.376AAA of Schedule III of the Notification is reserved only for Lithium ion Accumulators and not for parts of the lithium ion accumulator and SI.No.453 of Schedule III is for the goods which are not specified in Schedule I,II,III, IV, V or VI. 3. In this regard, it is further, observed that all the Bills of Entry under which the above goods have been imported were provisionally assessed. The importer has now requested for reassessment of the said BEs to pay the differential duty arising on account of this incorrect IGST Notification, along with the interest on this amount. 4. In view of the above, it is requested to consider the importer's request for re- assessment of the said Bills of Entry favorably so as to enable the importer to pay the differential IGST along with Interest at the earliest. This issues with the approval of the Additional Director General, DRI, HZU. Nature and Scope of the DRI Investigation 4.56 The DRI's correspondence - including Enquiry Letter dated 20.01.2023, Summons dated 02.03.2....
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....1/2025 dated 10.11.2025, In response to this letter DRI, Hyderabad Zonal Unit vide mail 17.11.2025 cleared that Investigation is not about/against HSN classification of Imported goods. 5. Discussion, Findings and Conclusion: 5.1 Having examined the CAAR-1 application, the comments received from the jurisdictional Customs Commissionerate, the record of personal hearing, the additional submissions of the applicant and the applicable legal framework, I find the application to be valid in terms of Customs Act, 1962 and the CAAR Regulations, 2021. I, therefore, allow the application and proceed to determine the classification of the proposed imports on the basis of the information on record. Product description: 5.2 As per the applicant's submission, the proposed imports are thirteen items used in the manufacture of lithium-ion cells: (i) Golden PO tape :- It is single sided self-adhesive tape made up of polypropylene. It does not have insulating properties. The constituent material of the tape is polypropylene and the adhesive on one side of the tape is in the nature of Hot melt pressure sensitive adhesive. It is used to wind the Lithium-ion cell head and tail ....
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.... Other 3904 10 90 --- Other - Other poly (vinyl chloride), mixed with other substances: 3904 30 90 --- Other 3904 50 90 --- Other - Fluro-polymers : 3904 61 00 -- Polytetrafluroethylene 3904 69 10 --- Poly (vinyl fluoride), in one of the forms mentioned in Note 6(b) to this Chapter 3904 69 90 --- Other 3904 90 - Other: 3904 90 10 --- Chlorinated poly vinyl chloride (CPVC) resin 3904 90 90 --- Other 3906 ACRYLIC POLYMERS IN PRIMARY FORMS - - Poly (methyl methacrylate): 3906 10 10 --- Binders for pigments or inks 3906 10 90 --- Other 3906 90 - Other : 3906 90 40 --- Poly (acrylic acid) 3906 90 50 --- Polyacrylonitrile (PAN) 3906 90 60 --- Copolymers of acrylonitrile 3906 90 70 --- Sodium polyacrylate 3906 90 90 --- Other 3912 CELLULOSE AND ITS CHEMICAL DERIVATIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED, IN PRIMARY FORMS - Cellulose acetates : the pocket at the end of Lithium-ion cells and enhancing the bonding between the bare Lithium-ion....
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....nder consideration are a general category of polymers consisting of a silicon- oxygen backbone with organic groups, typically methyl groups, attached to the silicon atoms. They are used as electrolyte additives in lithium-ion batteries to improve ionic conductivity, thermal stability, and cycling performance. With their flexible and amorphous nature, they enhance ionic conductivity, which is crucial for efficient lithium-ion transport within the battery. I note that the applicant has proposed CTI 3907 29 90 for these goods while the jurisdictional Commissionerate has proposed CTI 3910 00 90 Heading 3907 covers "polyacetals, other polyethers and epoxide resins, in primary forms; polycarbonates, alkyd resins, polyallylesters and other polyesters, in primary forms" while Heading 3910 covers "silicones in primary forms". The applicant has submitted that since the instant product is a Polyether and there is no specific heading covering the said product, it can be classified under CTI 3907 29 90 (Other of Other of Other polyethers). I find that Chapter 39 of the HSN classification deals with plastics and articles made from plastics, including various polymers. I note that the goods i.e P....
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....n, it is classified in Chapter 39 as a primary form of the polymer. An acrylate copolymer is, by definition, an Acrylic Polymer. Therefore, the chemical composition of the main component leads directly to Heading 3906. Subheading 3906.90.90 is the residual code for various acrylic copolymers in their liquid/solution form that do not meet the strict specifications of the other subheadings. Since the product is not covered by any other subheading, I conclude that the product i.e. Additive - Ethylpyrrolidone - Acrylate copolymer NMP solution merits classification under CTI 3906 90 90. 5.6.6 Additive - Lithium Carboxymethyl Cellulose and Additive - Sodium Carboxymethyl Cellulose :- : I note from the submissions and material placed on record that the product in question i.e Additive - Lithium Carboxymethyl Cellulose is a water-based binder, synthesized from cotton and lithium ethoxide, used in lithium-ion batteries, offering advantages like better reversibility, superior electrochemical performance, and being cheaper and more eco-friendly than traditional binders. Carboxymethyl cellulose (CMC) is a cellulose derivative with carboxymethyl groups (-CH2-COOH) bound to some of the hydrox....
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.... Thus, the availability of the exemption hinges primarily on compliance with the IGCR procedure and the demonstrable end-use of the imported goods in the manufacture of lithium-ion cells classifiable under 8507 60 00. 5.7.2 In the present matter, the thirteen products examined earlier viz. "Golden PO tape, Blue hot melt tape, Bottom/top tape, Green tape, Double faced Adhesive tape, Black acrylic tape, Polyether-modified polysiloxane, POLYSOL LB-150J, PVDF [KYNAR- HSV 900 PWD], Additive - Ethylpyrrolidone - Acrylate copolymer NMP solution, Additive - Lithium Carboxymethyl Cellulose, Additive - Sodium Carboxymethyl Cellulose and Binder-SN-307R Styrene-Butadiene copolymer (SBR)" are all directly integrable in the lithium-ion cell production line. The first six are self adhesives and form an essential part to increase the mechanical structure stability of the lithium ion cell. Polyether-modified polysiloxane is used as electrolyte additives, POLYSOL LB-150J is used for adhesive applications, PVDF [KYNAR- HSV 900 PWD] is used as binder for cathode slurry, Additive - Ethylpyrrolidone - Acrylate copolymer NMP solution is used as binder for anode slurry, Additive - Lithium Carboxymethyl....