The Central Board of Indirect Taxes and Customs (CBIC) issued Circular No. 18/2024-Customs on 23rd September 2024, providing clarification on the classification of laboratory chemicals under the Customs Tariff. The circular refers to Notification No. 62/2024-Customs (N.T.) dated 19th September 2024, which amended Note 3 of Chapter 98 in the First Schedule to the Customs Tariff Act, 1975. According to the revised note, laboratory chemicals—both organic and inorganic—are classified under Heading 9802 if they are imported solely for personal use (i.e., not for trading or resale) in packages not exceeding 500 grams or 500 milliliters. The chemicals must also be identifiable by their purity, markings, or other features as meant for laboratory use only. Laboratory chemicals imported for trading or resale purposes, or those in larger packaging sizes, must be classified under their respective chapters or headings in the First Schedule. The circular advises customs officials to issue public notices for guidance and invites feedback on any challenges faced during the implementation of this classification rule.
F.No. 528/05/2024-STO(TU)
Government of India
Ministry of Finance, Department of Revenue
(Central Board of Indirect Taxes & Customs)
Circular No. 18/2024-Customs | Dated: 23rd of September, 2024
To
All Principal Chief Commissioners/Chief Commissioners of Customs/Customs (Preventive)
All Principal Chief Commissioners/Chief Commissioners of Customs & Central Tax
All Principal Commissioners/Commissioners of Customs/Customs (Preventive)
All Principal Director Generals/ Director Generals under CBIC
Subject: Classification of laboratory chemicals — reg.
Madam/Sir,
Reference is drawn to the Notification No.62/2024-Customs (N.T.) dated 19.09.2024 notifying amendment in note 3 of chapter 98 of the First Schedule to the Customs Tariff Act, 1975. The notification has come into force with effect from 19.09.2024.
2. After the coming into force of the said notification, note 3 of chapter 98 reads as under:
“3. For the purpose of Heading 9802, “laboratory chemicals” means all chemicals, organic or inorganic, whether or not chemically defined, imported and intended only for own use (i.e. other than purposes like trading, further sale etc.) in packings not exceeding 500 gms or 500 millilitres and which can be identified with reference to the purity, markings or other features to show them to be meant for use solely as laboratory chemicals.”
3. Consequent to the above amendment, in order to classify goods under heading 9802, the goods have to be imported and intended only for own use (i.e. other than purposes like trading, further sale etc.). On the other hand, laboratory chemicals imported for purposes like trading, further sale, etc. are out of the scope of heading 9802 irrespective of the quantity/volume and packing size and thus, are classifiable under their appropriate chapter/heading in the First Schedule. Further, in case of packings exceeding 500 gms or 500 millilitres, the goods will be classifiable under their appropriate chapter/heading in the First Schedule.
4. Suitable Public Notice etc. may kindly be issued for guidance. Any difficulties faced or doubts arising in the implementation of this Circular may please be brought to the notice of Board.
The Hindi version follows.
Yours faithfully,
(R. Ananth)
Director (Customs)
