Clarification of classification code

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2016 Dear Sir,

This is the technical point and I need your help.

We are the manufacturer and our finished product is "Air Dunnage Bags" under Chapter 48193000 and we are using the raw material in this product are sacks and bags and LDPE.

As per current budget there is no any changes in Chapter 41 to 53 but duty rate change of Chapter 39 as 15% our confusion is that which duty rate applicable for our finished products. please see the below points.

1) We are using raw material in our finished products is - 1. Sacks and bags 2. Paper LDPE 65% and PP woven sacks 35%, 3. PP Woven sacks & LDPE Tubing 100%, 4. Paper laminated with woven sacks 25% and LDPE 75%.

2) The base of chapter 48193000 - Sacks and bags having a base of a width of 40cm or more - No change in this budget.

3) The base of chapter 39 - Sacks and bags of polymers of any plastic - Change duty rate as 15% in current budget.

4) Before this budget the duty rate of both chapter is same 12.5%, so we applied the rate was 12.5%. but in this budget Chapter 39 rate is change as 15%. So on the base of above my question is that as per current budget which duty rate is applicable for our finished products either 15% or 12.5%? Please suggest as early as possible and clear the matter at your end urgently.

NOTE : 1) Raw material contains in Chapter 39
2) Finished product contain in Chapter 48

Arun Kumar Singh

Arun Kumar Singh (Expert)
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04 March 2016 If your final product will fall other than 39 then you need to pay 12.5% excise duty. Only for chapter heading 39 rate of duty has been changed.

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