NCS/ARS/CL/10443

You have applied for the tariff classification of the following products:

1. High-Density Polyethylene (HDPE) – imported in 25kg bags.
2. Polyvinyl Chloride (PVC) – imported in 25kg bags.
3. Pigment – imported in 25kg bags.
4. Free-Cutting Steel Wire Rod – 5.5 mm diameter, imported in rolls.

PRODUCT ANALYSIS

1. HIGH-DENSITY POLYETHYLENE (HDPE)

Based on the information and technical documents submitted, High-Density Polyethylene (HDPE) is a thermoplastic polymer produced by the polymerisation of ethylene. The product is Clear to opaque, white to off-white pellets, granule or powder, with a specific gravity ranging from 0.89 to 0.98. It is presented in its primary form for further processing.

HDPE is characterised by its strength, rigidity, moisture resistance and good resistance to various chemicals. Based on your document, the product is used in Thermoplastic resin, extrusion and compounding, plastic moulding, moulded articles, films and coatings etc.

 Based on the Material Safety Data Sheet (MSDS) submitted, the product consists principally of:

• Polyethylene – 98.0% or more;
• Poly(1-butene-co-ethylene); and   
• Ethylene-1-hexene copolymer.

2. POLYVINYL CHLORIDE (PVC)

According to the information and technical documents submitted, Polyvinyl Chloride (PVC) is a synthetic thermoplastic polymer produced by the polymerisation of vinyl chloride monomer. The product is presented in powdered state, in its primary form, and has a specific gravity ranging from 1.1 to 1.6, with a relative vapour density greater than 2.

The product possesses good mechanical strength, durability and resistance to moisture and chemicals. Depending on its formulation and the incorporation of suitable additives, PVC may be processed into rigid or flexible articles. It is commonly used in the manufacture of pipes, pipe fittings, profiles, sheets, flooring, cable insulation and other plastic products.

According to the MSDS submitted, the product consists principally of:

• Polyvinyl chloride polymer – more than 99%; and
• Vinyl chloride – trace amount.

3. PIGMENT – OPTICAL BRIGHTENER OB-1

Based on the MSDS, CAS number (1533-45-5) and other technical documentation submitted, the product is identified as Pigment (Optical Brightener OB-1), with chemical compound 2,2'-(1,2-ethenediyldi-4,1-phenylene) bisbenzoxazole, also known as 4,4'-bis(2-benzoxazolyl) stilbenes.

OB-1 is a high-efficiency fluorescent whitening agent used to mask yellowing and enhance the brightness and whiteness of plastics, synthetic fibers, and polymers. Based on documentation, the product is presented as powder, with a melting point of 357–359°C and a specific gravity of approximately 1.39 g/cm³ at 25°C.

OB-1 is used primarily as an additive in the processing of polymers and engineering plastics, including polyester (PET), nylon, polycarbonate (PC), polypropylene (PP), polyethylene (PE) and Acrylonitrile Butadiene Styrene (ABS).

It is also used in the manufacture of synthetic fibres and polyester masterbatches, where it contributes to achieving a brighter and whiter appearance in textile materials.

4. FREE-CUTTING STEEL WIRE ROD

Based on the information and technical documents submitted, the product is a Free-Cutting Steel Wire Rod of circular cross-section, having a diameter of 5.5 mm and presented in rolls.

According to the submitted documentation, the product is manufactured to SAE 1006 specification and has the following stated chemical composition:

• Carbon (C) – 0.09%;
• Manganese (Mn) – 1.29%;
• Sulphur (S) – 2.35%; and
• Phosphorus (P) – 0.06%.

It is a free-cutting steel specifically designed to facilitate ease of machining, allowing it to be readily cut, turned, drilled, and formed into precision components. It is commonly used as a raw material or feedstock in the manufacture of screws, bolts, nuts, pins, shafts, automotive components, and other precision-machined parts.

TARIFF CLASSIFICATION

1. HIGH-DENSITY POLYETHYLENE (HDPE)

Note 1 to Chapter 39 defines the expression “plastics” as materials of headings 3901 to 3914 which are, or have been, capable, either at the moment of polymerisation or at some subsequent stage, of being formed under external influence—usually heat and pressure, if necessary, with a solvent or plasticiser—by moulding, casting, extruding, rolling or other processes into shapes which are retained upon removal of the external influence.

Furthermore, Note 6(b) to Chapter 39 provides that, in headings 3901 to 3914, the expression “primary forms” applies to “blocks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms.”

The Explanatory Note (EN) to Chapter 39, under the description of primary forms, further explains that powders, granules and flakes in primary forms are generally employed for moulding and other processing operations.

Also, the 2nd paragraph of the Explanatory Note to heading 3901 defines high-density polyethylene (HDPE) as polyethylene having a specific gravity at 20 °C of 0.94 or more.

Based on the foregoing provisions and the product characteristics, the product falls under heading 3901 – Polymers of ethylene, in primary forms, and properly classified under tariff subheading 3901.20.00.00 – Polyethylene having a specific gravity of 0.94 or more, at a 5% rate of duty, 7.5% VAT and 5% Import Adjustment Tax (IAT), in accordance with the ECOWAS Common External Tariff (CET) 2022–2027, Note 1, 6(b), and the EN to Chapter 39, Paragraph 2 of the EN to heading 3901)

2. POLYVINYL CHLORIDE (PVC)

Based on the Technical Data Sheet submitted, the product consists of approximately 99% polyvinyl chloride polymer, with a trace amount of residual vinyl chloride. The product is presented in powder form and is not mixed with any other substance.

Note 6(b) to Chapter 39 provides that the expression “primary forms” applies to “blocks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms.”

In view of the above, the product, being polyvinyl chloride resin presented in powder form and not mixed with any other substance, falls within heading 3904 – Polymers of vinyl chloride or of other halogenated olefins, in primary forms.

Accordingly, the product is properly classified under tariff subheading 3904.10.00.00 – Poly (vinyl chloride), not mixed with any other substances, at a 5% rate of duty and 7.5% VAT, in accordance with the ECOWAS Common External Tariff (CET) 2022–2027 and Note 6(b) to Chapter 39. 

3. PIGMENT – OPTICAL BRIGHTENER OB-1

Based on the product analysis, Optical Brightener OB-1 is a synthetic organic colouring matter of the stilbene type, used principally as a fluorescent brightening agent.

Note 3 to Chapter 32 provides that “Headings 32.03, 32.04, 32.05 and 32.06 apply also to preparations based on colouring matter (including, in the case of heading 32.06, colouring pigments of heading 25.30 or Chapter 28, metal flakes and metal powders), of a kind used for colouring any material or used as ingredients in the manufacture of colouring preparations. 

Furthermore, Item l(e)(3) of the Explanatory Note to Chapter 32 includes stilbenes among the various types of synthetic organic colouring matter classified in heading 3204, whether as dyes or pigments. Also, the last paragraph of the Explanatory Note to heading 3204 specifically included fluorescent brightening agents to subheading 3204.20.

In view of the foregoing, Optical Brightener OB-1 is properly classified under tariff subheading 3204.20.00.00 – Synthetic organic products of a kind used as fluorescent brightening agents, at a 5% rate of duty and 7.5% VAT, in accordance with the ECOWAS Common External Tariff (CET) 2022–2027, Note 3 and item l(e)(3) of the EN to Chapter 32, last paragraph of the EN to heading 3204.

4. FREE-CUTTING STEEL WIRE ROD

Based on the Technical Data Sheet submitted, the product is a steel product of circular cross-section, measuring 5.5 mm in diameter and presented in rolls. It is described as free-cutting steel and is intended for machining into precision components.

Note 1(l) to Chapter 72 defines “bars and rods, hot-rolled, in irregularly wound coils” as hot-rolled products in irregularly wound coils which have a solid cross-section in the shape of circles, segments of circles, ovals, rectangles, including squares, triangles or other convex polygons.

Furthermore, Subheading Note 1(b) to Chapter 72 defines non-alloy free-cutting steel as non-alloy steel containing, by weight, one or more of the following elements in the specified proportions:

• 0.08% or more of sulphur;
• 0.1% or more of lead;
• more than 0.05% of selenium;
• more than 0.01% of tellurium; or
• more than 0.05% of bismuth.

The product in view contains 2.35% sulphur (S) by weight, which exceeds the minimum sulphur content specified under Subheading Note 1(b) to Chapter 72. The product therefore meets the definition of non-alloy free-cutting steel.

Given its circular cross-section, diameter of 5.5 mm, presentation in irregularly wound coils, and free-cutting steel characteristics, the product falls under heading 7213 – Bars and rods, hot-rolled, in irregularly wound coils, of iron or non-alloy steel.

Accordingly, the product is properly classified under tariff subheading 7213.20.10.00 – Other, of free-cutting steel: Of circular cross-section measuring less than or equal to 5.5 mm in diameter, at a 5% rate of duty and 7.5% VAT, in accordance with the ECOWAS Common External Tariff (CET) 2022–2027, Note 1(l) and Subheading Note 1(b) to Chapter 72.

Summary

LEGAL JUSTIFICATION

• GIR 1& 6
• Note 1, 6(b) to Chapter 39
• Explanatory Note (EN) to Chapter 39
• Paragraph 2 of the EN to heading 3901
• Note 3 and l(e)(3) of the EN to Chapter 32
• Last paragraph of the EN to heading 3204
• Note 1(l) and Subheading Note 1(b) to Chapter 72