Circular No. 950 /11/2011-CX
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
New Delhi dated the 01st August, 2011
All Chief Commissioners of Central Excise
All Chief Commissioners of Central Excise and Customs
All Directors Generals under CBEC
Subject: Classification of Chloroparaffins /Chlorinated Paraffins -reg.
References were received that divergent practices were being followed by field formations regarding classification of Chlorinated Paraffins/Chloroparaffins. It was stated that against the long and & existing practice of classification of the said goods under Chapter 38 of Central Excise Tariff, some field officers were classifying them under Chapter 27 during the period prior to Budget 2010.
2. The matter has been examined by the Board. The term ‘Paraffins’ usually denotes a group of hydrocarbons containing carbon atoms ranging from 1 to 30. As the carbon atom number increases, paraffins change from gaseous to liquid to solid forms. To illustrate, the lowest of paraffins, ‘methane’ which has one carbon atom, is a gas at room temperature; ‘octane’ which has eight carbon atoms is a liquid. Further, as the carbon atom number reaches 19 and till 30 they are solid with wax like characteristics.
3. Chlorinated Paraffins/ Chloroparaffins on the other hand, are chemicals obtained by chemical modification i.e. chlorination of a number of different straight chain paraffins and paraffin waxes upto a range of 40% to 70% depending on the feed stock and end use.
4. Regarding classification of Chlorinated Paraffins/Chloroparaffins ( in liquid form), the HSN Explanatory Notes (B) (9) under Heading 38.24 clarifies that chloroparaffins in liquid form are covered under the heading 3824.
5. Regarding classification of Chlorinated Paraffin waxes (in solid form), the HSN Explanatory Note (B)(a) to Heading 27.12 of CETH clarifies that artificial waxes obtained by the chemical modification of lignite wax or other mineral waxes are classified in Heading 34.04. In the Budget, 2010, the specific sub headings 27122010 covering Chlorinated Paraffin Waxes has been deleted from the tariff. This item is therefore, classifiable under 3404.90 of Central Excise Tariff.
6. Accordingly it is clarified that :
(a) Chlorinated Paraffins/Chloroparaffins (liquid form) are classifiable under subheading 3824 90 of Central Excise Tariff Act.
(b) Chlorinated Paraffin Waxes( in solid form) are classifiable under sub-heading 3404.90 of Central Excise Tariff Act, after the Budget, 2010.
7. Trade and field formations may be suitably informed.
8. Receipt of the Circular may be acknowledged.
9. Hindi version will follow.
(Dr. Ravindra J Dange)
Under Secretary (CX-3)