Clear Float Glass with Absorbent layer classifiable under heading 70.05

In re Chandrakala Associates (CAAR Mumbai)

The subject goods for which advance ruling has been sought, their characteristics, manufacturing process, utility etc. are already mentioned in the aforementioned paras. The subject goods are clear float glass, with an absorbent layer, which is fluorescent under UV illumination. The subject goods are not wired, not tinted and not green in colour. The heading 7005 10 covers non-wired glass having an absorbent, reflecting or non-reflecting layer and the headings 7005 21 to 7005 29 deal with non-wired glasses which are body tinted, opacified, flashed etc. Therefore, the subject goods should more appropriately be covered under sub­heading 7005 1090. While prima facie, based on the applicant’s contention about the country of origin and the manufacturer of the subject goods, exemption notification 46/20110-Cus. dated 01.06.2011, appears to be available in teinis of the said notification, in each case of import the applicant would have to produce evidence before the Deputy/Assistant Commissioner of Customs to substantiate the origin of subject goods.

In view of the above discussions, I hold that the subject goods ‘Clear Float Glass’ having an absorbent layer merit classification under heading 70.05 and more specifically, under subheading 70051090 of the first schedule to the Customs Tariff Act, 1975. The said imports shall also be governed by the provisions of Notification No. 37/2020-Customs (ADD), dated 11.11.2020. The benefit of exemption notification 46/20110-Cus. dated 01.06.2011 would be determined in accordance with conditions laid down in the said notification.

FULL TEXT OF ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI

1. M/s Chandrakala Associates (hereinafter referred to as ‘the applicant’, in short) filed an application for advance ruling, before the Authority for Advance Ruling, New Delhi (AAR, in short) on 03.06.2020. The said application was received in the registry/secretariat of the erstwhile AAR on 10.06.2020, but a ruling on the said application had not been given.

2. Subsequently, on h appointment of the Customs Authorities for Advance Rulings (CAAR, in short) at New Delhi and Mumbai w.e.f. 04.01.2021, the aforementioned application has been transferred to the CAAR, Mumbai. On scrutiny of the said transferred application by the Secretary to the CAAR, Mumbai, it appeared that the time limit of three months as provided under the statute was already over when the application was actually received in the secretariat of the CAAR, Mumbai, and therefore, a communication was sent to the applicant to re-submit the application as envisaged under sub-clause (1) of clause (6) of the Customs Authority for Advance Rulings Regulations (CAAR), 2021. The applicant, vide their communication dated 23.07.2021, re-submitted their application which was received on 27.07.2021. Accordingly, the said application is being taken up for decision.

3. The applicant is a proprietorship concern involved in the business of import and trading of glass products. The applicant is also registered under the GST bearing registration no 33AH1PC1374Q1Z6. The applicant is intending to import “Clear Float Glass with Absorbent layer” (herein after referred as subject goods), from Malaysia. The subject goods are used for decorative, industrial or automotive purposes. The subject goods possess an absorbent layer on the side of the glass. The applicant is of the view that the subject goods are classifiable under sub-heading 7005 1090. The applicant is intending to claim the benefit of ‘Nil’ rate of customs duty under exemption notification 46/2011 (Sr. No. 934), dated 01.06.2011. The said notification is issued under ASEAN India Free Trade Area Preferential Tariff, which grants benefit of ‘Nil’ rate of duty for goods specified therein which includes the goods falling under sub-heading 7005 1090, if the same are imported from Malaysia.

4. The applicant has submitted that the subject goods are clear float glass, with an absorbent layer, which is fluorescent under UV illumination. The subject goods are not wired, not tinted and not green in colour. It is submitted that the heading 7005 10 only covers non-wired glasses having an absorbent layer and the sub-headings 7005 21 to 7005 29 deals with non-wired glasses which do not have an absorbent layer. Therefore, the more appropriate classification is 7005 1090. The applicant further submitted that domestic manufacturers of identical products classify the goods under CTH 7005 1090. It is stated that the identical product was imported through the port of Nhava Sheva from Malaysia and after ascertaining that the product had an absorbent layer, customs accepted the importer’s classification under sub-heading 7005 1090. It is also submitted that majority of the imports into India of float glass having absorbent layer have been classified under sub-heading 7005 1090 as evident from the import data collected from the website zauba and planetexim and reliance has been placed upon the said data. In the afore said backdrop rulings with respect to the following has been sought:

(i). The classification of the subject goods.

(ii) The eligibility of the exemption notification 46/20110-Cus. dated 01.06.2011 for the subject goods.

5. The applicant, in their application, have indicated their preference for importing the subject goods through the Chennai port. Accordingly, a copy of the application was sent to the Commissioner of Customs, Chennai II Commissionerate, Custom House, No, 60, Rajaji Salai, Chennai – 600 001, seeking comments on the application for advance ruling. However, no comments have been received from the jurisdictional Principal Commissioner/ Commissioner of Customs, on the impugned subject matter.

6. Sri Hari Radhakrishnan, advocate of the firm M/s. AGOL Associates appeared on behalf of the applicant for the hearing conducted in the virtual mode on dated 14.09.2021. The learned advocate reiterated their submissions made in their application and stated that the proposed import would be made from M/s Kibing Group (M) Sdn. Bhd. and they require advance ruling so that the proposed imports do not face problems. He also drew the attention to the test reports from the Central Glass and Ceramics Research Institute, Kolkata. The applicant in their additional submissions have also submitted the manufacturing process of float glass and copy of a letter from MITT, Malaysia mentioning the non-receipt of any advance ruling confirming correct HS code to be used for export of clear float glass to India.

7. The issue for which the subject advance rulings have been sought can be summarized as:-

(i) Classification of Clear Float Glass having absorbent layer

(ii) Eligibility of exemption notification 46/20110-Cus. dated 01.06.2011

The notes to chapter 70 (Glass and glassware) provide that —

1. this chapter……..

2. For the purposes of headings 7003, 7004 and 7005:

(a) glass is not regarded as “worked” by reason of any process it has undergone before annealing;

(b) cutting to shape does not affect the classification of glass in sheets;

(c) the expression “absorbent, reflecting or non-reflecting , layer” means a microscopically thin coating of metal or of a chemical compound (for example, metal oxide) which absorbs, for example, infra-red light or improves the reflecting qualities of the glass while still allowing it to retain a degree of transparency or translucency; or which prevents light from being reflected on the surface of the glass.

In the chapter 70, the heading 7005 is described as:-

Float glass and surface ground or polished glass, in sheets, whether or not having an absorbent, reflecting or non-reflecting layer, but not otherwise worked.

7005.10  – Non-wired glass, having an absorbent, reflecting or non-reflecting layer

7005 10 10 — Tinted…………………………

7005 10 90 — Other………………………….
– Other non-wired glass:

7005 21    — Coloured throughout the mass (body tinted), °pacified, flashed or merely surface ground

7005 29    — Other:

7005 30  – Wired Glass

The heading 70.05 covers float glass in sheets. Its raw materials are melted in a furnace.

The manufacturing process of float glass involves common glass-making raw materials, typically consisting of sand, soda ash (sodium carbonate), dolomite, limestone, and salt cake (sodium sulphate) etc. Other materials may be used as colourants, refining agents or to adjust the physical and chemical properties of the glass. The molten glass leaves the furnace and is fed on to a float bath of molten metal. On the float bath, the glass acquires the flatness of a liquid pool and later retains the smooth finish of liquid surfaces. Before it reaches the end of the bath, it is cooled to a temperature at which it is hard enough to be passed over rollers without being marked or distorted. From the float bath the glass moves through an annealing lehr, at the end of which it is cooled and can be cut. This glass is not surface ground or polished: it is perfectly flat as a result of the manufacturing process.

8. notification 46/20110-Cus. dated 01.06.2011 prescribes the effective rate of duty for specified goods imported from Malaysia, Singapore, Thailand, Vietnam, Myanmar, Indonesia, Brunei Darussalam, Laos, Philippines and Cambodia (ASEAN). The said Notification makes provision to exempt goods of the description as specified in column (3) of the table appended thereto and falling under the chapter, heading, sub-heading or tariff item of the first schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the appended table, from so much of the duty of customs leviable thereon as is in excess of the amount calculated at the rate specified, provided the importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of the said exemption is claimed are of the origin of the countries as mentioned in Appendix-I, in accordance with provisions of the Customs Tariff [Determination of Origin of Goods under the Preferential Trade Agreement between the Governments of Member States of the Association of Southeast Asian Nations (ASEAN) and the Republic of India] Rules, 2009, published in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 189/2009-Customs (N.T.), dated the 31st December 2009. Sr. No. 922 of the notification (and not Sr. No. 934 claimed by the applicant) lists products falling under sub-headings 7001020 to 70051090.

9. Notification No. 37/2020-Customs (ADD), dated 11.11.2020 seeks to impose definitive anti-dumping duty on Clear Float Glass, falling under Chapter 70 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from Malaysia and imported into India. The designated authority has recommended imposition of definitive anti­dumping duty on the imports of subject goods, originating in or exported from the subject country and imported into India, in order to remove injury to the domestic industry.

10. I have considered all the materials placed before me for the subject goods. I have gone through the submissions made by the applicant during personal hearing. In the absence of any comment from the jurisdictional Principal Commissioner/ Commissioner of Customs, on the impugned subject matter, I proceed to render an advance ruling based on materials available on record. The subject goods for which advance ruling has been sought, their characteristics, manufacturing process, utility etc. are already mentioned in the aforementioned paras. The subject goods are clear float glass, with an absorbent layer, which is fluorescent under UV illumination. The subject goods are not wired, not tinted and not green in colour. The heading 7005 10 covers non-wired glass having an absorbent, reflecting or non-reflecting layer and the headings 7005 21 to 7005 29 deal with non-wired glasses which are body tinted, opacified, flashed etc. Therefore, the subject goods should more appropriately be covered under sub­heading 7005 1090. While prima facie, based on the applicant’s contention about the country of origin and the manufacturer of the subject goods, exemption notification 46/20110-Cus. dated 01.06.2011, appears to be available in teinis of the said notification, in each case of import the applicant would have to produce evidence before the Deputy/Assistant Commissioner of Customs to substantiate the origin of subject goods.

11. In view of the above discussions, I hold that the subject goods ‘Clear Float Glass’ having an absorbent layer merit classification under heading 70.05 and more specifically, under subheading 70051090 of the first schedule to the Customs Tariff Act, 1975. The said imports shall also be governed by the provisions of Notification No. 37/2020-Customs (ADD), dated 11.11.2020. The benefit of exemption notification 46/20110-Cus. dated 01.06.2011 would be determined in accordance with conditions laid down in the said notification.

I rule accordingly.