MEGA FLEX PLASTICS LTD

The Applicant is a manufacturer of Polypropylene Leno Bags.

The Applicant has sought Advance Ruling on Classification of Polypropylene Leno Bags?

Applicant informed that before the implementation of GST PP Leno Bags were cleared under both Tariff Sub-Headings, 39232990 as well as under 63053300, whereas after the implementation of GST the same is being cleared under Tariff Sub-Heading 63053300 in the domestic market which is more specific heading and under Tariff Sub-Heading 39232990 during export because the Advance License issued to the Applicant by DGFT was for export under the Tariff Code 3923 29 90.

Tariff Sub Heading 3923 29 90 under the GST covers articles for the conveyance or packing of goods, of plastics; stoppers, lids, caps and other closures, of plastics, namely, sacks and bags (including cones) made of plastics other than polymers of ethylene but not of poly (vinyl chloride).

Tariff Sub Heading 6305 33 00 under the GST covers sacks and bags, of a kind used for packing of goods, made, not of jute or of other textile fibres of Heading 5303, but of man-made textile materials which are not flexible intermediate bulk containers but are of polyethylene or polypropylene strip or the like.

From the explanatory notes and clarification two factors are to be considered, namely, the width of the tape used in the weaving and whether or not there is a layer/lining in these bags.

Tariff head 6305 33 00 is applicable to only those PP strips and the like are considered as textile materials width of which do not exceed 5 mm. It is not applicable if the sacks made from PP woven fabric are impregnated, coated, covered or laminated with plastics or articles of plastics covered under Chapter 39.

CRUX: ‘PP Leno Bags’, if specifically made from woven Polypropylene fabric using strips or the like of width not exceeding 5 mm and without any impregnation, coating, covering, or lamination with plastics, are to be classified under Tariff Sub Heading 6305 33 00.