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Excise Board classifies PSF made from PET bottles

27
Jul '10
Central Board of Excise & Customs has considered it necessary for the purposes of uniformity with respect to classification of Polyester Staple Fibre (PSF) manufactured out of PET scrap and waste bottles.

The main reason for the same is that, divergent practices are being adopted in respect of classification of the PSF manufactured out of PET scrap and waste bottles. Whereas in some jurisdictions the said product has been classified under the Chapter 39 as article of plastic, in other jurisdictions the same has been classified under Chapter Heading 55032000.

Normally, Polyester Staple Fibre (PSF) is manufactured by using main inputs like PTA & MEG. The name "polyester" refers to the linkage of several monomers within the fibre. Esters are formed when alcohol reacts with a carboxylic acid. The monomer ester then is polymerized under suitable conditions to obtain polyester.

The other method to produce PSF is from PET bottles. PET bottles are used mainly in soft drink bottles and it is becoming increasingly common to recycle them after use by re-melting the PET and extruding it as fibre.

PET bottles are crushed and converted into PET flakes, which are than charged to extruders where they are melted and molten polymer is passed through spinnerets to obtain tow. The tow is drawn and then cut into different lengths to obtain PSF.

Manmade fibre can be obtained either starting from monomers or from polymers itself. The process of manufacture is not determinative of the classification of the manufactured product. The essential point for determining the classification is the nature of the end product and the market understanding of the said end product.

After studying the issues in depth, the authority came to a conclusion that, PSF manufactured from PET bottles, is nothing but a textile material and will not be considered as an article of plastic under Chapter 39, instead will be classified under Chapter Heading 55032000.

Click here to view the Central Board of Excise & Customs notification.

Fibre2fashion News Desk - India


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