Branded packing materials of plastic - plastic containers and plastic bottles are allowed SSI exemption but with a rider

By TIOL News Service

NEW DELHI, FEB 28, 2010: THE Central Government issued a notification 47/2008-CE, dated 01.09.2008 inserting the following clause 4(e) in notification 8/2003-CE which is as under

“4. The exemption contained in this notification shall not apply to specified goods bearing a brand name or trade name, whether registered or not, of another person, except in the following cases : -

(e) Where the specified goods are in the nature of packing materials, namely, printed cartons of paper or paper board, metal containers, HDPE woven sacks, adhesive tapes, stickers, PP caps, crown corks, metal labels .

A netizen had asked us through our DDT [1029] as to why only metal labels were covered and not paper labels .  We could not answer and expected the Board to clarify but to no avail.

This clause ‘e' saw a further amendment by notification 2/2009-CE dated 11.02.2009 inasmuch as for the letters and words, "PP caps, crown corks, metal labels", the letters and words, "PP caps, crown corks, metal labels , plastic bags ", were substituted.

Not content with this addition, the Central government issued another notification 9/2009-CE dated 07.07.2009 substituting the letters and words "PP caps, crown corks, metal labels, plastic bags", the letters and words, " PP caps, crown corks, metal labels, plastic bags , printed laminated rolls ."

Now, there is another amendment made to this clause by notification 4/2010-CE dated 27.02.2010 issued on Budget day.

In clause (e) for the letters and words “ PP caps, crown corks, metal labels, plastic bags, printed laminated rolls ”, the words “ PP caps, crown corks, metal labels, plastic bags, printed laminated rolls, plastic containers and plastic bottles ” shall be substituted.

So, the fact of the matter is that the relaxation of brand name restriction under the general SSI exemption scheme has been extended to plastic bottles and plastic containers used as packing material.

But, there is a rider to this exemption and that is – “ Provided that in respect of plastic containers and plastic bottles, the exemption under this notification shall apply only where such plastic containers or plastic bottles are meant for use as packing materials by the person whose brand name such goods bear .”

We are certain that this proviso clause is going to generate a lot of controversy but for the moment it is better to bask in the halo of exemption.

What say, “sun” & “pearl” pets!