In re Covestro (India) Pvt. Ltd. (CAAR Mumbai)
The Customs Authority for Advance Ruling (CAAR), Mumbai, in the case of In re Covestro (India) Pvt. Ltd., issued an advance ruling regarding the classification of “Makrofol Polycarbonate Film.” Covestro (India) Private Limited sought confirmation that their imported film should be classified under Customs Tariff Item (CTI) 3920 61 90. The company described the product as an extruded polycarbonate film, typically with one gloss and one matte side, used in various applications like automotive interiors and lighting due to its optical and thermal properties. Covestro argued that despite some grades having optical features or co-layers of other plastics, the film’s essential character remained that of a polycarbonate plastic, making CTI 3920 61 90 the appropriate classification. They highlighted that Heading 3920 covers non-cellular, non-reinforced plastic films, and their product fits this description, being imported in rolls or sheets. They contended that an alternative classification under CTI 9001 90 90 (optical elements) was not suitable, as the film is not a finished optical component and Chapter 90 generally excludes general plastic articles classifiable under Chapter 39. The CAAR, after reviewing submissions, technical data, and relevant interpretative rules, agreed with the applicant, affirming that the film’s predominant polycarbonate composition and form fit the specific description under CTI 3920 61 90. The presence of optical properties was deemed insufficient to reclassify it under the broader optical elements heading, reinforcing that the material’s inherent nature, not just its end-use, dictates classification.
