Plastic products in India are classified under Chapter 39 of the Customs Tariff Act. Polyethylene is classified under HSN 3901, polypropylene under 3902, PVC under 3904, plastic packaging under 3923, and other plastic articles under 3926. Basic Customs Duty (BCD) ranges from 5% to 15%, while GST is 18% for most plastic products.
What is the HSN code for plastic in India?
Chapter 39 is dedicated to plastics and articles of plastics. The classification follows a specific hierarchy based on the level of processing:
- Primary Forms (3901–3914): Covers polymers in their initial raw state, such as granules or pellets.
- Semi-Manufactured (3916–3921): Covers intermediate products like tubes, pipes, sheets, and film.
- Finished Articles (3922–3926): Covers items ready for use, such as packaging materials, tableware, and household articles.
It is important to note that if a plastic article is specifically classified in another chapter (for example, plastic toys in Chapter 95), that specific classification takes priority over Chapter 39.
How are plastic raw materials and finished products classified differently?
The duty structure in India follows an "inverted" pattern where raw materials often have lower duties compared to finished products to protect domestic manufacturers.
| Plastic Product | HSN Code | BCD (%) | IGST (%) | Notes |
|---|---|---|---|---|
| Polyethylene (LDPE/HDPE) | 3901 | 7.5% | 18% | Raw material granules |
| Polypropylene | 3902 | 7.5% | 18% | Raw material granules |
| PVC (resin) | 3904 | 7.5% | 18% | ADD applicable from China |
| Polyester (PET) | 3907 | 7.5% | 18% | Raw material |
| Plastic tubes/pipes | 3917 | 10% | 18% | Semi-finished |
| Plastic floor covering | 3918 | 10% | 18% | Semi-finished |
| Plastic packaging (bags) | 3923 | 15% | 18% | Finished product |
| Plastic tableware | 3924 | 15% | 18% | Finished product |
| Other plastic articles | 3926 | 15% | 18% | Catch-all heading |
Figure 1: HSN code hierarchy for plastics under India's Customs Tariff — Chapter 39
What customs duty applies to plastic imports in India?
Importing plastics into India involves several duty components:
- Basic Customs Duty (BCD): Ranges from 7.5% for raw polymers to 15% for finished articles.
- Anti-Dumping Duty (ADD): India has imposed ADD on several plastic products from China, including PVC resin and certain polyester films.
- Social Welfare Surcharge (SWS): Calculated at 10% of the BCD.
- Integrated GST (IGST): Standard rate of 18% applies to almost all items in this chapter.
For example, importing 20 MT of HDPE pellets (HSN 3901) would typically attract a 7.5% BCD, 10% SWS on that BCD, and an 18% IGST on the combined value.
What are common plastic HSN misclassification errors?
Misclassification can lead to delays or penalties. Common errors include:
- Plastic Toys: These belong in Chapter 95 (HSN 9503), not Chapter 39.
- Spectacle Frames: Plastic frames are classified under Chapter 90 (HSN 9003 11).
- Printed Packaging: Even if food packaging has extensive branding, it remains under HSN 3923 and is not considered "printed matter" under Chapter 49.
- Composite Materials: For materials combining plastic with textiles, classification is determined by the predominant material by weight or character.
Frequently Asked Questions
What is the HSN code for polyethylene (HDPE/LDPE)?
Polyethylene in primary forms is classified under HSN 3901. LDPE is 3901 10, LLDPE is 3901 40, and HDPE is 3901 20. These are raw material codes for plastic granules/pellets. The standard BCD is 7.5% and GST is 18%.
What is the HSN code for plastic bags and packaging?
Plastic bags, pouches, and packaging fall under HSN 3923. Specifically, bags and sacks (including cones) are under 3923 21 (ethylene polymers) or 3923 29 (other plastics). Plastic boxes and cases are 3923 10. These finished products attract a 15% BCD and 18% GST.
What is the GST rate on plastic — 12% or 18%?
The majority of plastic products attract 18% GST. There are very few exceptions, such as plastic bangles (which are nil-rated), PVC raincoats (12%), and specific agricultural plastic items (12%). Plastic raw materials in primary forms (headings 3901-3914) are strictly at 18%.
What is the difference between Chapter 39 and other chapters for plastic products?
While Chapter 39 covers plastics and articles thereof, many items are classified by their final use. For instance, plastic kitchenware is in Chapter 39 (3924), but plastic medical devices are in Chapter 90. The general rule is: if an item is specifically described in another chapter, that chapter takes precedence.
Is anti-dumping duty applicable on plastic imports from China?
Yes, India has active anti-dumping duties on several plastic products imported from China, notably PVC resin, certain polyester films, and melamine. Importers should always check the latest DGTR active list to ensure compliance.
Chapter 39 contains over 100 sub-headings. Eximoz helps you classify your plastic product — from raw resin to finished article — and calculates the complete landed cost including any anti-dumping duties. Visit eximoz.com to simplify your compliance.
