KARACHI: MCC Appraisement West has issued an Assessment Alert into the effect that correction pens/correction fluid pens are correctly classifiable under PCT 3824.9050. Duty structure for PCT heading 3824.9050 is custom duty 15 percent (5.0 percent under Pak-China FTA) and sales tax of 17 percent.

During scrutiny of clearance data of “Correction Pens” it has been observed that the item is being cleared under two different PCT headings by various Collectorates, i.e. 9608.3000: “Fountain pens, stylograph pens and other pens” and 3824.9050: “Stencil correctors and other correcting fluids”.

Duty structure for PCT heading 3824.9050 is custom duty 15 percent (5.0 percent under Pak-China FTA) and sales tax of 17 percent, and for PCT heading 9608.3000 custom duty 20 percent (15 percent under Pak-China FTA) while sales tax is exempted under the 6th Schedule to the Sales Tax Act, 1990.

Assessment of “Correction Pens” under two different duty structure is contrary to law, and creates unwarranted ambiguity and room for manipulation.

The classification issue has been examined in detail, in light of relevant Chapter Notes and Explanatory Notes to the Harmonized System , which states that heading 38.24 includes “Stencil correctors and other correcting fluids and correction tapes (other than those of heading 96.12), put up in packing for retail sale”. Correcting fluids put up in packings for retail sale are opaque (white or otherwise coloured) fluids consisting essentially of pigments, binders, and solvents, used for masking errors or other unwanted marks in typescripts, manuscripts, photocopies, offset printing masters or the like. They are usually put up in small bottles (the cap of which is usually provided with a small brush), in tins or in the form of pens”.

As per the afore-stated position, it is clear that “Correction Pens/Correction Fluid Pens” are correctly classifiable under PCT heading 3824.9050. C