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Regarding Central Excise - Classification of Photo Identity Cards and
Holograms
Circular
No. 141 dated 14th August 1995
I
am directed to say that certain doubts have been expressed regarding the correct
classification of Photo Identity Cards and Holograms - whether these should be
classified under Chapter 39 as articles of plastics or under 49 as products to
printing industry.
2.
The production of photo-identity cards involves videography of the
person, computerised capture of the video graphed image, merging of the image
with the data of the person already entered in the computer and the computerised
printing out of the merged data and the image through a laser printer. This
print out is verified, validated and pasted with the Holograms of the State
emblem and then cut, folded and laminated before issue to the person.
3.
The Board has carefully considered the matter. It is felt that
Photo-Identity cards get their distinctive character and identity because of the
data imprinted on them and not because of the material they are made of or
because of their shape and size. Thus, Photo-Identity cards are a distinct
product as compared to other identifiable articles of plastic.
4.
Section note (2) of Section VII of Central Excise Tariff also clearly
excludes Photo-identity cards from the purview of Chapter 39 and places them
squarely under Chapter 49.
5.
On the other hand, Chapter note (2) of Chapter 49 states that printed
also means reproduced by means of a duplicating machine, produced under the
control of a computer, embossed, photographed, photocopied, thermo copied or
typewritten. Further, as per general explanatory notes to HSN- page 691, with
the few exceptions as referred to in these notes, Chapter 49 covers all printed
matter of which the essential nature and use is determined by the fact of its
being printed with motifs, characters or pictorial representations.
6.
Keeping in view the distinctive character, process of manufacture,
relevant tariff headings Section notes, Chapter noted and HSN notes, the Board
is of the view that Photo-Identity Cards and Holograms merit classification
under Sub-Heading 4901.90 of the Schedule to the Central Excise & Tariff
Act, 1985.
7.
All pending disputes may be finalized in view of the above guidelines.
Field formations and trade may be informed accordingly.
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