CAAR Mumbai rules imported orthodontic sheets are plastic materials, not dental appliances, affecting duty rates and GST classification.
Orthodontic Sheets Are Plastic Material: CAAR Mumbai
In a classification ruling with cross-tax implications, the Customs Advisory Authority for Rulings (CAAR), Mumbai, held that imported orthodontic sheets — used in fabricating dental aligners — are correctly classified as plastic sheets under HSN 3920, not as dental appliances under HSN 9018.
The decision turns on the principle of 'commercial reality' and intended use. The Authority found that these sheets are not ready-to-use medical devices but intermediate materials requiring further fabrication. As such, they fall under general plastic categories, attracting lower customs and GST rates.
"The essential character of the product is that of a polymer sheet, not a healthcare instrument,"
the ruling stated. This classification may impact importers of dental and orthodontic materials, particularly those relying on duty exemption schemes for medical devices.
