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Issues:
1. Classification of imported goods under the Customs Tariff Act. 2. Applicability of Chapter Note 1(f) to Chapter 48 CTA. 3. Interpretation of Chapter Note 6 of Chapter 39 CTA for classification purposes. Analysis: Issue 1: Classification of imported goods under the Customs Tariff Act The case involved the classification of imported paste coated paper under the Customs Tariff Act. The Department sought to recover short-levied duty by classifying the goods under Heading 39.12 CTA, covering cellulose and its chemical derivatives not elsewhere specified in primary forms. However, the goods were initially assessed under sub-heading 4811.39, which covers paper coated with plastics. The Tribunal examined the nature of the goods, described as film laminate/paste coated paper, and concluded that they were correctly classified under Chapter 48 CTA, which covers impregnated or coated paper. The decision was based on the specific description and function of the goods, as well as previous Tribunal rulings on similar products. Issue 2: Applicability of Chapter Note 1(f) to Chapter 48 CTA The Department relied on Chapter Note 1(f) to Chapter 48 CTA to support its classification argument. However, the Tribunal found that this note, which excludes paper coated with a layer of plastics where plastics constitute more than half the total thickness, was not applicable in this case. The goods imported were not in layers, and the thickness criterion was not met. Therefore, the predominance of constituent material based on thickness, as indicated in the chemical test report, did not align with the requirements of Chapter Note 1(f). Issue 3: Interpretation of Chapter Note 6 of Chapter 39 CTA for classification purposes The respondents argued that the goods imported could not be classified under Heading 39.12 because they did not meet the criteria of primary form as defined in Chapter Note 6 of Chapter 39 CTA. The goods were in the form of sheets, not lumps or blocks as required for primary form classification. The Tribunal also considered previous decisions where film laminates were classified under Chapter 48 CTA, supporting the classification of the present goods under the same chapter. Additionally, the Tribunal highlighted that the imported goods did not match the primary forms specified in Chapter Note 6 of Chapter 39 CTA, further justifying their classification under Chapter 48 CTA. In conclusion, the Tribunal upheld the classification of the imported paste coated paper/film laminate under Chapter 48 CTA, rejecting the Department's argument for classification under Chapter 39.12 CTA. The decision was based on the specific nature of the goods and their alignment with the criteria set forth in the Customs Tariff Act.
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