Classification of Decorative Plastic Wall & Ceiling Panels Under Heading 3921: Analysis of In re Pooja Rice Industries (CAAR Delhi)

The ruling in In re Pooja Rice Industries (CAAR Delhi) deals with an important classification dispute under the Customs Tariff relating to decorative interior wall and ceiling products made of plastics. The Customs Authority for Advance Rulings, New Delhi, was asked to determine whether a range of PVC, PS and PU decorative panels and mouldings should be classified as plastic sheets under Heading 3921, or as builders’ ware of plastics under Heading 3925.

This decision is particularly relevant for importers dealing in decorative plastic cladding and interior finishing materials, as it draws a clear line between plastic sheets and panels versus builders’ ware of plastics.

Background of the Application

M/s Pooja Rice Industries, holding IEC No. AATFP9885B, approached the CAAR, New Delhi, under Section 28H(1) of the Customs Act, 1962, to obtain an advance ruling on the tariff classification of various imported goods. The products proposed to be imported from countries such as China included, among others:

  • PS moulding
  • PS wall panel
  • PS L profile
  • PS wall panel sheet
  • PVC panel foam
  • PVC sheet UV
  • PVC panel
  • PVC vinyl sheet
  • PVC panel WPC mould
  • PVC wall panel
  • PU wall panel

These were collectively referred to as the Products or Subject Goods in the ruling.

The assessee intended to trade in these items domestically after import and sought certainty regarding the correct Customs Tariff Heading (CTH) and corresponding duty rates.

Applicant’s Stand: Classification Under Heading 3921

Nature and Features of the Products

The assessee described the Subject Goods as interior decorative materials made of plastics, largely exhibiting a cellular structure, and designed primarily for non-structural decorative use. Their key features, as presented by the applicant, were:

  • Supplied in standard, uniform sizes as panels, mouldings or sheets
  • Either ready for use as imported or not further worked after extrusion, other than permissible cutting
  • May be reinforced or combined with other materials to enhance aesthetics or convenience
  • Lightweight due to their cellular structure, suitable for decorative cladding
  • Once cut, they remain usable as panels/sheets without further modification
  • Used predominantly for interior decoration – wall cladding and ceiling décor in domestic and commercial premises
  • Do not serve any load-bearing or structural role; they are decorative overlays akin to paints or wallpapers

On this basis, the assessee asserted that these products could not reasonably be categorized as “builders’ ware”, which typically refers to items performing structural or construction functions.

Reliance on Chapter Note 10 and Heading 3921

The assessee contended that the correct classification is under Heading 3921, which covers:

“OTHER PLATES, SHEETS, FILM, FOIL AND STRIP, OF PLASTICS.”

Specific sub-headings claimed were:

  • 39211100 – of polymers of styrene (for PS wall panels/sheets/mouldings/L profiles)
  • 39211200 – of polymers of vinyl chloride (for PVC wall panels, PVC wall panel sheets, PVC panel foam, PVC sheet UV, PVC panel, PVC vinyl sheet, PVC panel WPC mould, PVC wall panel)
  • 39211390 – other (for PU wall panels)
  • 39219029 – other (for specified reinforced or composite panels)

The assessee relied heavily on Note 10 to Chapter 39, which defines the scope of “plates, sheets, film, foil and strip” for Headings 3920 and 3921 as including:

Blocks or sheets of regular geometric shape, whether or not printed or otherwise surface worked (e.g. embossed, coloured, merely curved or corrugated), uncut or cut into rectangles (including squares) but not further worked, even if when so cut they become articles ready for use.

According to the assessee:

  1. The goods are essentially plates or sheets of plastics, of regular shapes (rectangular/square).
  2. Surface working – such as embossing, printing, colouring, UV coating, texturing – is explicitly allowed under Note 10.
  3. Interlocking features (e.g. tongue-and-groove type edges) are formed during extrusion itself, not by subsequent machining, and therefore do not amount to “further working” in the sense of Note 10.
  4. Heading 3921 is specifically framed to cover cellular plastic sheets and sheets that are reinforced, laminated or combined with other materials, which fits the Subject Goods exactly.

Rejection of Heading 3925

The assessee strongly opposed classification under Heading 3925 (“Builders’ ware of plastics, not elsewhere specified or included”), arguing:

  • Sub-headings under 3925 (e.g. for reservoirs, doors, windows, shutters, frames) show that it targets distinct building components with specific structural or functional roles, not simple decorative panels.
  • The Subject Goods:
    • Do not enclose, support, or structurally form part of the building
    • Are applied over pre-existing walls/ceilings only for decorative finish
  • By virtue of the phrase “not elsewhere specified or included”, Heading 3925 is residual and cannot override a more specific entry, namely Heading 3921, when the goods are fully covered there.
  • The General Rules for Interpretation (GRI) 3(a) require that the more specific description be preferred over a more general one. Since Heading 3921 precisely covers plastic sheets of cellular/reinforced composition, whereas Heading 3925 is generic builders’ ware, the former must prevail.

“Structural Elements” Argument Refuted

The Department had hinted (based on Explanatory Notes) that wall and ceiling panels might qualify as “structural elements” or “architectural features” under Chapter Note 11 to Chapter 39. The assessee rebutted this by stating:

1.