TaxTMI 
TaxTMI 
2025 (12) TMI 1564
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....ubmissions: 2.1 . The Applicant, M/s. Covestro (India) Private Limited submitted that it is engaged in the importation of Makrofol Polycarbonate Film into India, classifying such imports under tariff item 3920 61 90 of the First Schedule to the Customs Tariff Act. The Applicant further stated that the question forming the subject matter of the present application was neither pending before any officer of Customs, the Appellate Tribunal, nor any Court, and had also not been decided earlier by the Appellate Tribunal or any Court. It was further conveyed that an Audit Consultative Letter dated 31 January 2024 had been received from the Office of the Commissioner of Customs (Audit), Chennai, concerning the classification of Makrofol Polycarbonate Film; however, the Applicant pointed out that the audit objection raised therein had subsequently been dropped by way of a Closure Letter dated 13 August 2024 issued by the said Commissioner, upon consideration of the explanation and supporting documents furnished by the Applicant. The applicant explained that the Makrofol Polycarbonate Film consisted of an extruded film made from polycarbonate material (Makrofol(r) from Covestro), typicall....
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.... the product under tariff item 3920 61 90, and that this classification was also reflected in Certificates of Origin issued by the competent authority in Thailand, samples of which were annexed along with a Bill of Entry (Annexures 6 and 7). The Applicant emphasized that under the Customs Tariff Act (CTA), classification is to be made by determining the appropriate chapter, heading, sub-heading, and tariff item. In this context, it was maintained that Makrofol Polycarbonate Film rightly fell under tariff item 3920 61 90. The relevant entries in Chapter 39 were cited, noting that Heading 3920 encompasses plates, sheets, film, foil, and strip of plastics that are non-cellular and not reinforced, laminated, supported, or similarly combined with other materials, with sub-heading 3920 61 specifically covering polycarbonates and tariff item 3920 61 90 applying to types other than rigid plain or flexible plain. 2.5 The applicant further clarified that the film in question is made from extruded polycarbonate plastic, which is embossed and rolled onto cores, and is non-reinforced, non- laminated, unsupported, and not combined with other non-plastic materials. Accordingly, it was argued t....
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....pplicant relied on US Customs Rulings NY R04405 and N224376, both of which classified polycarbonate films under heading 3920 despite optical or photochromic features. It was emphasized that while the film's optical properties are significant for its end use, other attributes-such as mechanical strength, durability, heat resistance, and processing versatility-are equally crucial in defining its essential character. 2.8 The Applicant also referred to the EU Binding Tariff Decision DEBTI10553/22-1, which classified polycarbonate protective glass under heading 3920 61, thereby reinforcing the view that optical properties alone do not necessitate classification under Chapter 90. Therefore, on the strength of the foregoing submissions, the Applicant requested for an advance ruling confirming classification of Makrofol Polycarbonate Film under tariff item 3920 61 90. 3. Details of Hearing A personal hearing in the matter was held on 23.06.2025 at 01:00 PM, during which Shri Bhargav Mansatta and Shri Saurabh Kumar, representing the applicant, appeared online. They reiterated the contention filed in the application that the subject import goods i.e Makrofol Polycarbonate Film t....
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....or glass, and clarified that, even where certain grades contain minor co-layers of other plastics or possess optical characteristics, polycarbonate remains the dominant component imparting the product's essential character. Consequently, the Applicant maintained that the film is correctly classifiable under Heading 3920 rather than Heading 9001. 4.3 Upon thorough examination of the Applicant's submissions, supporting technical literature, international tariff decisions, and relevant statutory provisions of the Customs Tariff Act, 1975 ("CTA"), the core issue for determination is whether "Makrofol Polycarbonate Film" is classifiable under Customs Tariff Heading (CTH) 3920, particularly under sub-heading 3920 61 90, or whether its classification could alternatively fall under Heading 9001 owing to the presence of certain optical properties in some grades. The classification of imported goods under the CTA is guided by the General Rules for the Interpretation of the First Schedule ("GRI") along with the relevant Section and Chapter Notes. 4.4 Chapter 39 of the Customs Tariff deals with "Plastics and Articles thereof." Heading 3920 specifically covers: "Other plates, shee....
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....r optical elements ... unmounted ... " and is restricted to finished optical components. Importantly, polycarbonate films such as Makrofol are not specifically mentioned under this heading. Further, Note 1(f) to Chapter 90 categorically excludes articles of plastics that are classifiable more appropriately under Chapter 39, unless they are clearly identifiable as optical elements. The film in question, although it may exhibit optical clarity or anti-glare features, does not assume the essential character of optical elements such as lenses, prisms, or polarizing plates. It remains an intermediary product which is further processed or assembled to make a finished product and is used across various industrial, automotive, and lighting applications. 4.7 Under Rule 3(a) of the General Rules for the Interpretation of the Harmonized System (GRI), when goods appear prima facie classifiable under two or more headings, "the heading which provides the most specific description shall be preferred to headings providing a more general description." In the present matter, a potential classification question arises between Heading 3920 61 90, which explicitly covers "films of polycarbonate," an....