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OFFICE OF THE
COMMISSIONER OF CUSTOMS, |
PUBLIC NOTICE NO.110 /
2001
Sub:
Classification of mixture of hydrocarbons - Fluoron-II and Fluoron-12 - regarding.
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Government
of India, Ministry of Finance, Department of Revenue, New Delhi, Circular No.574/11/2001-CX, vide F.No.104/1/2001-CX.3 dated
12.04.2001, is reproduced below for the guidance of the Importers, Clearing
Agents, and Trading Public.
C11/37/2001-AP (PORT) (S.
SANKARAVADIVELU)
CUSTOM HOUSE, CHENNAI-1. DY. COMMR. OF CUSTOMS (APPG.)
DATE :11.06.2001
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CIRCULAR
NO.574/11/2001-CX
F.NO.104/1/2001-CX.3
DATED 12.04.2001
A doubt has been raised
as to whether mixture of hydrocarbons-Fluro-11 & Fluoron-12 are classifiable
under chapter heading 3823.00 or under chapter heading 2903.10 as halogenated
derivatives of hydrocarbons.
2. A Divisional Assistant Commissioner had passed an order in
original dated 16.2.1993 classifying the product in question under sub-heading
No.3823.00 on the grounds that mixtures of Fluoron-11 and Fluoron-12 are not
separate chemically defined organic compounds. The Audit objected the
classification on the grounds that the product are classified under sub-heading
No.2903.10 as on mixing of these two compounds, no chemical change occurs and
therefore, the mixtures of these two compounds also needed to be classified
under sub-heading No.2903.10.
3. The matter has been examined. The product in question is a
mixture of halogenated derivatives of acyclic hydrocarbons. Fluoron 11 is
trichloro-monofluromethane & Fluoron 12 is di-chloro-di-fluoro methane.
These gases are ordinarily used as refrigerants and can also separately be used
as blowing agents or propellants. Heading 29.03 of CET covers halogenated
derivatives of hydrocarbons. Sub-heading 2903.10 covers chloro-fluoro
hydrocarbons of methane or ethane. General note 1(a) to chapter 29 reads as
under :-
“Except
where the context otherwise requires, the headings of this chapter apply only
to: -
(a) Separate
chemically defined organic compounds, whether or not containing impurities.”
4. General note 1 (a) to Chapter 29 of HSN indicates that
“separate chemically defined compounds” does not necessarily exclude mixtures
of “separate chemically defined compounds.’ For instance, the note specifically
includes “separate chemically defined compounds” dissolved in water,
non-aqueous solutions and also compounds (or their solutions) with added
stabilizers, anti-dusting agents or colouring substances.
5. Rule 3 (b) of the interpretative rules specifically provides
that mixtures, composite goods consisting of different materials or made up of
different components, and goods put up in sets, shall be classified as if they
consisted of the material or components which gives them their essential
character. The subject product consists of a mixture of two halogenated
hydrocarbons. Both the hydrocarbons are in themselves “separate chemically
defined hydrocarbons.” Also there appears to be no material difference in the chemical
properties of Fluoron 11 and Fluoron 12 when kept separately and mixed
together, although some physical properties might change by mixing two gases.
6. Rule 3 (a) of the interpretative rules encourages
classification under more specific description rather than a general
description. From this angle also, the subject mixture appears more
appropriately classifiable under heading 2903.10. Accordingly, it is felt that
the goods are classifiable under heading 2903.10 and not under sub-heading
3823.00. Audit objection has also been admitted by the department that the
subject goods are classifiable under sub-heading 2903.10.
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