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Circular No. 929 / 19 /2010-CX
F.No.55/1/2010-CX.1
Government of India
Ministry of Finance
Department of Revenue
New Delhi the, June 29
th
2010
Order under section 37 B of Central Excise Act, 1944.
Subject :- Classification of Polyester Staple Fibre manufactured out of PET scrap and waste bottles.
In exercise of powers conferred under section 37B of the Central Excise Act, 1944 Central Board of Excise & Customs
considers it necessary, for the purposes of uniformity with respect to classification of "Polyester Staple Fibre" manufactured
out of PET scrap and waste bottles, to issue the following instructions.
2. It has been brought to the notice of the Board that divergent practices are being adopted in respect of classification of
the "Polyester Staple Fibre" 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.
3 The matter has been examined. Polyester is "Long-chain polymers chemically composed of at least 85 percent by weight of
an ester and a dihydric alcohol and a terephthalic acid." Federal Trade Commission defines Polyester Fibre: A
manufactured fibre in which the fibre forming substance is any long-chain synthetic polymer composed of at least 85% by
weight of an ester of a substituted aromatic carboxylic acid, including but not restricted to substituted terephthalic units, p(-R-O-
CO- C
6 H
4 -CO-O-)
x and parasubstituted hydroxy-benzoate units, p(-R-O-CO-C
6 H
4 -O-)
x .
4. Normally PSF is manufactured by using main inputs like PTA & MEG. The name "polyester" refers to the linkage of several
monomers (esters) within the fiber. Esters are formed when alcohol reacts with a carboxylic acid. The monomer ester then is
polymerized under suitable conditions to obtain polyester.
5. The most common polyester for polyester staple fibre purposes is poly (ethylene terephthalate), or simply PET. This is
also the polymer used for many soft drink bottles and it is becoming increasingly common to recycle them after use by re-
melting the PET and extruding it as fibre. To manufacture Polyester staple fibre, used PET bottles are taken as inputs. They are
crushed and converted into PET flakes. These PET flakes are then 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.
6. As per Chapter Note 1 to Chapter 54,
1. Throughout this Schedule, the term "man-made fibres" means staple fibres and filaments of organic polymers produced
by manufacturing processes, either:
(a) by polymerisation of organic monomers to produce polymers such as polyamides, polyesters polyolefins or
polyurethanes, or by chemical modification of polymers produced by this process [for example, poly (vinyl alcohol)
prepared by the hydrolysis of poly (vinyl acetate)]; or
(b) by dissolution or chemical treatment of natural organic polymers (for example, cellulose) to produce polymers such as
cuprammonium rayon (cupro) or viscose rayon, or by chemical modification of natural organic polymers (for example,
cellulose, casein and other proteins, or alginic acid), to produce polymers such as cellulose acetate or alginates.
The terms "synthetic" and "artificial", used in relation to fibres, mean: synthetic: fibres as defined at (a); artificial: fibres as
defined at (b). Strip and the like of heading 5404 or 5405 are not considered to be man-made fibres.
The terms "man-made", "synthetic" and "artificial" shall have the same meanings when used in relation to "textile
materials" .
7. Thus 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. What is essential for determining the
classification is the nature of the end product and the market understanding of the said end product. In the present case there
appears to be no dispute with regard to the nature and commercial understanding of the product viz Polyester Staple Fibre.
8. As per technical literature uses of Polyester Fibre are as follows
Apparel: Every form of clothing
Home Furnishings: Carpets, curtains, draperies, sheets and pillow cases, wall coverings, and upholstery

Other Uses: hoses, power belting, ropes and nets, thread, tire cord, auto upholstery, sails, floppy disk liners, and fibrefill for
various products including pillows and furniture
9. From the above facts it is quite evident that the product under consideration is nothing but a textile material and hence
will be classified as textile material under Section XI and not as article of plastic in Chapter 39.
10. Tribunal decision in case of GPL Polyfils Ltd [2005 (183) ELT 27 (T)] would be relevant to the particular facts as in the
said case and hence cannot have binding precedents in other matters.
11. To ensure uniformity in the manner of classification of the Polyester Staple Fibre obtained from PET scrap and waste
bottles it is clarified that this product is correctly classifiable under heading 55032000.
12. Based on the above clarification pending cases may be disposed of.
13. Receipt of this order may please be acknowledged.
14. Hindi version will follow.
(Madan Mohan)
Under Secretary to the Government of India