Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: cpt :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: form 3cd :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: empanelment :: TDS :: due date for vat payment
 
 
« Latest Circulars »
 RBI proposes fresh Regulations under Foreign Exchange Management Act, 1999 for Cross Border Mergers: Invites comments from stakeholders
 Decrease in Foreign Investment limit/ceiling under the PIS in Indian Companies from 49% to 47% - M/s Ujjivan Financial Services Limited
 RBI launches the May 2017 Round of Inflation Expectations Survey of Households
  RBI announces auction of a 15-days Government of India Cash Management Bill
 Auction of Government of India Dated Securities April 24, 2017
 RBI- Compliance with Ghosh Committee Recommendations
 RBI announces auction of a 15-days Government of India Cash Management Bill
  Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended
 Minutes of the Monetary Policy Committee Meeting April 5-6, 2017
 Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS), 2016 - Amended
 RBI-Professor Willem H. Buiter, Global Chief Economist, Citigroup, delivers the Sixteenth C.D. Deshmukh Memorial Lecture titled ‘The Good and the Bad Fiscal Theory of the Price Level’

Customs Circular No. 2 / 2011
January, 07th 2011

Circular No. 2 / 2011-Customs

 

F.No.528/56/2010-STO (TU)

Government of India

Ministry of Finance

Department of Revenue

Central Board of Excise & Customs

Tariff Unit

 

 229A, North Block, New Delhi -110001,

4th  January, 2011.

To

 

All Chief Commissioners of Customs / Customs (Prev.),

All Chief Commissioners of Customs & Central Excise,

All Commissioners of Customs / Customs (Prev.),

All Commissioners of Customs & Central Excise,

All Director Generals under CBEC.

 

 

                 Subject:-  Classification of Polyester Bonded Fabrics and other Bonded Fabrics Regarding.

 

Sir / Madam,

 

                        References have been received that divergent practices are being followed by field formations regarding classification of polyester bonded fabrics and that classification disputes of polyester bonded fabrics are pending at various fora. The issue was also discussed in the Chief Commissioners Conference on Tariff and Allied Matters held on 29.10.2010 at New Delhi where it was decided that the Board may issue a circular clarifying the issue.

 

2.   The issue has been examined by the Board.  Accordingly, it is clarified that,-

 

(i)             Classification of a fabric produced by mixing two or more textile materials prior to spinning or during spinning or twisting or weaving should be determined on the basis of principles contained in Note (2) to Section XI and the relative Explanatory Notes.

 

(ii)            Classification of bonded fabrics produced, after weaving or knitting, by assembling two or more layers of textile fabrics of different composition by sewing or gumming etc. should be determined by application of Rule 3 of the General Interpretative Rules. However, where it is necessary to determine the textile material that predominates by weight for the purpose of deciding classification of each layer of fabric, before determining the classification of the bonded fabric as a whole, the principles contained in Note (2) to Section XI should be applied and the examples provided in the relative Explanatory Notes should be taken as a guideline.

 

(iii)           Laminated fabrics of heading 5903 or covered fabrics of heading 5907  should not be confused with the fabrics mentioned at Para 2 (ii) above, by relying upon dictionary meanings or other technical opinions. In this context it is clarified that the terms of headings and any relative Section or Chapter Notes are paramount i.e., they are the first consideration in determining classification. Further, Explanatory Notes being the official interpretation of the Harmonized System take precedence over dictionary meanings or other technical opinions. Therefore, as clarified by  Explanatory Note (I) (A) to Section XI, classification of fabrics consisting of two or more layers of fabrics of different composition, bonded by plastic or other adhesive should be determined by application of Rule 3 of the General Interpretative Rules.

 

(iv)          Another type of bonded fabrics are those defined in Note 9 to Section XI. These are fabrics consisting of layers of textile yarns superimposed on each other at acute or right angles. The essential character of these fabrics is that the yarns are not interlaced as in a conventional weaving, but are held in place by bonding at the intersections with an adhesive or by a process of thermal bonding. Although this kind of fabrics are not woven in the conventional way, these fabrics are to be classified  in the same manner the normal non bonded woven fabrics are classified, in chapters 50 to 55 depending on the composition, by application of the principles contained in Note (2) to section XI.

 

(v)           There are also some bonded fabrics that are stitch bonded. Stitch bonded knitted fabrics are those that have undergone a type of warp knitting technique in which an extra yarn runs through the loops to bind two or more layers of fabric as they are being knitted.  These types of stitch bonded fabrics are classified in chapter 60. Further, there are some stitch-bonded fabrics classifiable under 5602. The essential feature of these fabrics is that they consist of a web of textile fibres, the cohesion of which is enhanced by picking up fibres from the web itself, and not by means of textile yarns. The fibres are drawn by needles through the web, and form on the surface rows of chain stitches. Some of these fabrics may have a pile surface (whether or not cut) and may be reinforced by a ground of textile or other material.

 

3.   Hence it is clarified that bonded fabrics should be classified depending on type of textile material and the nature of bonding as explained above.

                                   

4.   All pending assessments, if any, may be finalized accordingly.

                

5.    Difficulty faced, if any, may be brought to notice of the Board.

Yours faithfully,

  

(B.Timothy)  

Senior Technical Officer (Tariff Unit)

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Customer relationship management software CRM software Operational CRM Collaborative CRM

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions