CBIC issues Circular on Classification of Laboratory Chemicals w.r.t. Notification 62/2024 [Read Circular]

The Central Board of Indirect Taxes and Customs ( CBIC ) has issued a circular no. 18/2024 providing clarification on the classification of laboratory chemicals following the implementation of Notification No. 62/2024-Customs (N.T.), dated September 19, 2024.

This notification amends Note 3 of Chapter 98 in the First Schedule of the Customs Tariff Act, 1975. The revised note, effective from September 19, 2024, introduces specific criteria for classifying chemicals under Heading 9802.

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According to the amendment, the term "laboratory chemicals" refers to all chemicals, whether organic or inorganic, that are either chemically defined or undefined, imported solely for the importer’s own use (i.e. other than purposes of trade and sale).

Read More: CBIC notifies revised Definition of Laboratory Chemicals under Customs Tariff Act

It also added that the chemicals must be in packaging that does not exceed 500 grams or 500 millilitres and must have markings or features indicating they are intended for exclusive use in laboratories, rather than for trading or resale. Thus, in order to classify goods under heading 9802, the goods have to be imported and intended only for own use (i.e. other than purposes like trading, further sale etc.).

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According to this circular, laboratory chemicals that do not meet these conditions—such as those imported for trading or resale purposes, or those in larger packaging—are excluded from Heading 9802 and must be classified under the appropriate chapters or headings in the First Schedule of the Customs Tariff Act.

The circular states that only chemicals imported in limited quantities for personal use in laboratories qualify under this heading, and those intended for commercial activities ( which exceeds 500gms or 500 mm) are subject to different tariff classifications under first schedule based on their properties and use.

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The CBIC has directed the officials to issue public notices for proper understanding and implementation of this classification, and has requested that any challenges or uncertainties faced by stakeholders in implementing the circular be promptly communicated to the Board for further clarification.

To Read the full text of the Circular CLICK HERE

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