In re Pooja Rice Industries (CAAR Delhi)
The Customs Authority for Advance Rulings (CAAR), New Delhi examined an application seeking classification of various imported interior decorative plastic products. The items included PS mouldings, PS wall panels, PS L-profiles, PVC foam panels, PVC UV sheets, PVC vinyl sheets, WPC mould panels, PVC wall panels and PU wall panels. These goods were described as lightweight, cellular plastic sheets or panels used for interior wall and ceiling decoration.
Applicant’s Position
The applicant contended that the goods are classifiable under Customs Tariff Heading (CTH) 3921, which covers “other plates, sheets, film, foil and strip, of plastics,” including cellular and reinforced sheets.
According to the applicant:
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The goods are supplied in sheet or panel form of regular geometric shape.
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Surface features such as embossing, printing, colouring and UV coating amount only to permitted surface working under Chapter Note 10 to Chapter 39.
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Interlocking edges, where present, are formed during the extrusion process and do not amount to “further working” that would remove the goods from the scope of sheets.
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The products serve only decorative functions and do not provide structural support or constructional roles in buildings.
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Heading 3925 (builders’ ware of plastics) applies only to specific construction articles such as doors, windows, tanks, structural elements and defined architectural features, which these products are not.
The applicant relied on judicial and advance ruling precedents which, according to them, supported classification of similar decorative cellular plastic panels under Heading 3921.
Department’s Position
The jurisdictional customs authority opposed classification under Heading 3921 and proposed classification under CTH 3925 as “builders’ ware of plastics.”
The department argued that:
