PCT Committee rejects M/s ICI application to reclassify Wannate 8019

KARACHI: The Classification Committee of Customs (PCT Committee) has dismissed the reference application of M/s ICI to redefine the classification of Wannate 8019, as the case does not call for consideration by the Classification committee.

Now, all the ICI’s consignment of above mentioned item would be assessed at the existing PCT heading and the company is liable to pay duty/tax accordingly.

PCT committee headed by Zeba Bashir Ahmed observed that Wannate 8019 as per the Material Safety Data Sheet provided by M/S ICl comprise; Diphenylmethane-diisocyrtate—50-40%. Polymeric MDI 40-20 % and Prepolymer of MDI and polyether polyol 110-30%. It also indicates that the product is a mixture of MDI and Prepolymer of MDI and Polyether polyol meaning thereby that the product does not fall within the domain of PCT heading 3909.5000 as “Polyurethane”.

On the contrary the literature provided by M/S ICI indicates that the impugned item is a “component of polyurethane in its application. The HEJ Laboratory Test Report available on record also supports the view of the Collectorate, which provided in the light of tests carried out, the given sample “Wannate 8019 (Polyurethane) was analyzed by chromatographic technique and identified by Fourier Transform infrared Spectroscopy (FTIR) and found to be a mixture of Polyol-modified Diphenylmethane Di-isocynate and polyphenylmethane polyisocynate. It is also coiled Modified MDI. The impugned item qualifies PCT heading 3824.9091, which is an indigenous four dash heading specifically created for the item/product i.e. “Diphenylmethane Di-isocynate (MDI).

It is pertinent to mention that the issue cropped up in the year 2010 and an Assessment Alert was also circulated by Model Custom Collectorate (PaCCS), Karachi about classification of modified MDI. The issue again came to surface on 26.12.2013 when the Assessment Group III took initiative and after detailed deliberations concluded that the product “Wannate 8019“ is rightly classifiable under PCT heading 3824.9091 being Polymeric MDI and Prepolymer of MDI.

Moreover, perusal of the assessment data as provided during the meeting vividly suggests that Polymeric MDI and Polyurethane Prepolymer are classifiable in PCT heading 3824.9091.

The committee observed that it was not understood as to why the dispute over classification arose and why there was a departure from correct practice.

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