TaxTMI 
TaxTMI 
TaxTMI 
2024 (8) TMI 1684
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....h the CAAR-1 application: 2.1 Applicant intends to import 'Sanceler EM-2' (Prepared Rubber Accelerators) which is mixture, manufactured by trademark holder Sanshin Chemical Industry Co. Ltd., Japan. It has been described in the category "Vulcanization Accelerator for rubber (Blended Accelerator)" by the suppliers. The product is composed of the following ingredients and does not have any other components: Description HS Code CAS No. Contents (%) Dibenzo thiazyl disulfide (MBTS) 2934.20 120-78-5 19.0 Zinc Ethylphenyldithiocarbamate (ZEPC) 2930.20 14634.93-6 19.0 Tetramethylthiuram disulfide (TMTD) 2930.30 137-26-8 19.0 Cyclohexylamine salt of 2 mercaptobenzothiazole (CMBT) 2934.20 37437-20-0 19.0 Zinc salt of 2 Mercaptobenzothiazole (ZMBT) 2930.20 155-04-4 19.0 Polybutene 3902.2 9003-29-6 5.0 Total 100% Accelerator converts sulphur into a compound that reacts more rapidly with rubber than does sulphur itself or the Accelerator reacts first with rubber changing it into a form that combines rapidly with sulphur. 2.2 The Customs tariff code 3812 1000 covers....
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.... Accelerators have been specifically listed under Chapter 3812 1000 and gives them their essential character, it needs to be classified as such. For ease of reference, the relevant portions of CTH 3812 1000 and 3812 3920 were reproduced by the applicant with the CAAR-1 application. 3. A personal hearing in the matter was conducted on 29.07.2024 in the office of CAAR, Mumbai. During the personal hearing the authorised representatives of M/s JMF Performance Materials Private Limited, Shri. Rajesh Gosalia and Shri. Anil Bhuwalka reiterated the submissions made in the application and contended that the subject goods 'Sanceler EM-2' is prepared rubber accelerators used in the rubber industry as vulcanisation etc. and merit classification under CTI-3812 1000. The subject goods dominantly is a mixture of MBTS, ZEPC, TMTD, CMBT, ZMBT, and Polybutene. They submitted that the department's contention is that due to the presence of TMTD it should fall under CTH 3808. They submitted that as per literature provided by the supplier the HSN Explanatory note (A) to the chapter heading 3812 prepared rubber accelerators may clearly fall under CTH 3812 more particularly under CTI 3812 1....
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....artly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of rule 3". Rule 3 of the GRI: 3. When by application of rule 2(b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows: (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified as if they consisted of the material or component which gives them their essential character, in so far as this criteri....
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....IONS AND OTHER COMPOUND STABILISERS FOR RUBBER OR PLASTICS". Further, under this heading, CTI 3812 1000 specifically covers "Prepared Rubber Accelerators". 9. The Customs Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature ('HSN') issued by the World Customs Organization ('WCO'). The HSN Explanatory Notes released by the WCO aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. It has been held so by the Supreme Court in the case of Collector of Customs, Bombay v. Business Forms Ltd. Thr. O.L., 2002 (142) E.L.T. 18 (S.C.). Explanatory notes to heading 3812 explains that the "Prepared Rubber accelerators cover products which are added to rubber prior to vulcanisation to give the vulcanised articles better physical properties and reduce the time and temperature required for the vulcanising process. They sometimes also serve as plasticisers. This heading covers only such products which are mixtures. These preparations are generally based on organic products (diphenylguanidine, dithiocarbamates, thiuram sulphides, hexamethylenetetramine, mercaptobenzothiazole, etc.) o....
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....nd provide specific curing characteristics. It provides additional cross-linking and can improve the stability and mechanical properties of the rubber. ZMBT is a zinc salt of mercaptobenzothiazole and acts as a secondary accelerator. It is used to improve the efficiency of vulcanization and enhance the properties of the rubber. It works well with other accelerators to improve the overall cure rate and rubber quality. Polybutene is a polymer used as a processing aid and plasticizer in rubber formulations. It can improve the workability and processability of the rubber compound. It acts as a plasticizer to enhance flexibility and processability. It can also influence the final properties of the rubber by modifying its viscosity and flow characteristics during processing. Polybutene functions as a binder that hold together the ingredients. Combining accelerators like TMTD (for fast curing) with MBTS and ZEPC can achieve a very rapid vulcanization process. This allows for faster production cycles and improved processing efficiency. MBTS and CMBT provide good scorch safety, helping to prevent premature curing during processing. This is crucial for maintaining control over the vulcani....