Circular No. 18/90-CX.3 Dated 29-3-1990

Central Excise - Classification of procured synthetic tread material for retreading/resoling of tyres consequent on amendment to Note 9 of tyres consequent on amendment to Note 9 of Chapter 40 - Clarification regarding.- Attention is invited to the instructions contained in F. No. 99/18/89- CX.3 (Cir. 61/89), dated 10-11-1989 regarding the appropriate classification of procured synthetic tread material of rubber for retreading/resoling of tyres under sub-heading 4016.99 of CET and to say that these instructions would not hold good after the presentation of Finance Bill, 1990. In the Finance Bill 1990 an amendment has been carried out in Note 9 under Chapter 40. A paragraph has been inserted at the end of Note 9 which reads ‘sub-heading No. 4008.21 shall also apply to “plates”, “sheets” and “strips” whether or not cut to shape and surface worked or further worked so as to render them fit for resoling or repairing or retreading of rubber tyres’. As a result of this change in Note 9, the product ‘precured synthetic tread material of rubber for retreading/resoling of tyres obtained by further working of ‘plates, sheets and strips, for resoling or retreading rubber tyres" would merit classification under sub-heading 4008.21. The instructions may kindly be treated as modified to this extent.

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

[F. No. 99/18/89-CX.3(PT)]