22nd February, 2002.
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
Sub: Mis-declaration of constitution of textile fabrics and classification thereof – evasion of duty. – Reg.
I am directed to invite your attention to the subject mentioned above and to say that a case of misdeclaration of classification has been reported to the Board. The modus operandi is as follows.
2. CTH 5407.61 covers other woven fabrics containing 85% or more by weight of non textured polyester filaments whereas CTH 5407.69 covers woven fabrics other than those that fall under CTH 5407.61. Depending upon whether such fabrics are for upholstery or otherwise they are leviable to concessional duty under notification No.23/2001-Cus., dated 1.3.2001. The intelligence indicated that the importers were mis-classifying the fabrics imported by them under CTH 5407.61 even though the polyester non textured monofilament yarn was found to be less than 85%. When the representative samples were sent to CRCL for testing, the test reports confirmed the intelligence.
3The Custom Houses may, therefore, keep a watch over such imports and to ensure that the goods, namely, polyester woven fabrics are classified correctly and charged to duty accordingly.
4. Please acknowledge receipt of this Circular.