Circular No. 6/89-Classification of certain printed products of plastic paper etc.

Circular No. 6/89 Dated 16-1-1989

Classification of certain printed products of plastic paper etc.- 1. Printed labels of paper in roll form as well as cut whether coated/waxed or not;

2. Printed waxed wrapping paper

3. Printed plastic films/sheets and printed plastic films/sheets laminated with another plastic sheet/Film;

4. Printed plastic sheets (printing on plastic sheet) laminated with paper;

5. Printed paper sheets (printing on paper) laminated with plastics;

6. Printed plastic/paper sheets laminated with aluminium foil, printing being on either one; and

7. Pouches made of material mentioned at 2 to 6 above.

2. The above issues were discussed in the West Zone Tariff Conference of Collectors of Central Excise held at Porbandar on 28th and 29th November, 1988. The Conference observed that the difficulties which had been encountered in the classification of the above products were mainly due to the different possible interpretations of note 2 under Section VII of the Central Excise Tariff Act, 1985. (The (sic) not envisages that except for the goods of heading No. 39.18 and 39.19, plastics and articles thereof, printed with motifs, character of pictorial representation, which are not merely incidental to the primary use of the goods fall in Chapter 49.). It also took note of the divergence in assessment as a result of the said note. The trade is claiming these products as the products of printing industry meriting classification under Chapter 49 of the Schedule to the Central Excise Tariff Act, 1985.

3. The samples of all these products were examined. It was observed that the primary use of the products with motifs and pictorial representation, falling under S. Nos. 2 to 6 at para 1, is for packing of goods although, on them, may be printed names, trade marks, directions for use and other information about the products. These are merely incidental to the primary use. The Conference placed reliance on para (3) of General notes (B) under, the heading “Coloured or Printed paper and paper board” of Chapter 48 of HSN. It has been clearly stated that notwithstanding the printing of names, trade marks and devices, directions for use of merchandise, the printed paper (such as wrapping papers etc.) would fall under Chapter 48 only. This concept could be applied in the case of printed plastic sheets also. Moreover, the goods described under Chapter 49 as the products of printing industry are the products wherein the printing has a definite purpose to serve by itself. Products, like printed plastic sheets, printed paper sheets and aluminium foil and their various combinations which are primarily meant for packing of the goods, even by taking the inference from Chapter 49 of HSN, could not be classified under- Chapter 49 as the products of printing industry. The Conference, therefore, decided that products falling at S.No. 2 to 6 at para 1 cannot be considered as products of printing industry. The Conference arrived at the following decisions:-

(a) Printed labels of paper - in roll form as well cut-whether coated/waxed or not, but not meant for packing of the goods:

The Conference felt that there was a separate entry for printed labels of paper meriting classification under H. No. 48.21 by virtue of note 8 of Chapter 48. All these labels will, therefore, fall under heading No. 48.21 (Prior to 1-3-1988, they would be covered by 4818.90). Since these are not the products of the printing industry, it was decided that the appropriate classification of such products would be under 48.21 only. (These are exempted by virtue of notification No. 228/86-C.E., dated 3-4-1986, as amended).

(b) Printed waxed wrapping paper :-

The simple printed wrapping paper would not doubt fall under Chapter 48. The question of classification printed waxed wrapping paper would be examined further and instructions issued separately.

Since printed plastic films/sheets are not the products of printing industry those will merit classification only under Chapter 39 after 1-3-1987 in view of what has been stated at para (2) and (3) above. In any case, these were not classifiable under Chapter 49 even before 1-3-1987 as this chapter encompassed within its ambit only the products of paper printing industry. Similarly, plastic film laminated with another plastic film would merit classification under Chapter 39 only as other material is not used at all necessitating the examination of its classification under other Chapters.

(d) Printed plastic sheets (printing on plastic sheet) laminated with Paper :-

Since the combination is of paper and plastic the Conference took note of Note 1(f) of Chapter 48 and decided that if the thickness of paper is more than half of the total thickness then it would merit classification under Chapter 48 only. If more than half of the thickness is of plastic then the same would merit classification under Chapter 39.

(e) Printed paper sheets (printing on paper) laminated with plastic :-

The Conference decided that the same yardstick would apply as in the case of (d) above.

(f) Printed plastic/paper laminated with Aluminium Foil printing being on either one :

The Conference took note of the description of H. No. 76.07 of the Schedule to the Central Excise Tariff Act, 1985 and found that aluminium foil (whether or not printed or backed with paper, paper board, plastics or similar backing material) of a thickness (excluding any backing) not exceeding 0.2 mm falls under this sub-heading. It was, therefore, felt that if the thickness of aluminium foil is not exceeding 0.2 mm the same would fall under H.No. 76.07 only irrespective of whether it is laminated with plastic or paper. In other cases, the classification would depend upon the predominancy of paper or plastic. In such cases, the rules of interpretation would have to be applied, it was suggested. This would apply with effect from 1-3-1988. As regards the classification of such products before 1-3-1988, the Conference felt that no such difficulty had been reported. If any problem exists, then that could be taken up separately.

(g) Classification of pouches :

The Conference felt that the classification of the pouches would depend upon the classification of the material from which such pouches were being manufactured. For example, if pouches have been manufactured out of printed plastic sheets which have been held to be classifiable under Chapter 39 of the Schedule to the Central Excise Tariff Act, 1988, then such pouches would also merit classification under Chapter 39. The same yardstick would apply for the classification of pouches made of paper and aluminium.

4. The Board concurs with the above decisions of the Conference.

5. The above guidelines may be brought to the notice of lower field formations and the trade interests may also be suitably advised.

6. All pending assessments may be finalised on the above basis.

[F. No. 93/5/89-CX.3]