Actual nature of imported goods governs classification, and unsupported reports cannot prove complete toys in SKD condition.

Imported goods cannot be treated as complete toys in SKD condition merely because the bill of entry or tariff heading describes them under Heading 9503.50. Their true character must be established from the goods themselves and on evidence, and components of toys may also fall within that heading under Note 3 to Chapter 95. An unsupported departmental assertion and an examination report that did not reliably show the goods were complete toys were insufficient, and packaging was immaterial to completeness. The goods were not proved to be complete toys, so the order dropping the proceedings was upheld.

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Issues: Whether the imported consignments were complete toys in SKD condition so as to attract the import restriction and confiscation proposed by the department.

Analysis: The description in the bill of entry was not conclusive by itself, and the actual nature of the goods had to be determined from the goods themselves. Classification under Heading 9503.50 did not establish that complete toys had been imported, because components of toys also fall within that heading under Note 3 to Chapter 95. The department's assertion that the additional parts needed for completion were unnecessary was unsupported by evidence. The examination report also did not reliably establish that the goods were complete toys, nor was it shown that the examining officer had the expertise to reach that conclusion. Packaging was immaterial to whether the toy was complete.

Conclusion: The imported goods were not proved to be complete toys in SKD condition, and the order dropping the proceedings was upheld.

Ratio Decidendi: Classification and import consequences must be determined from the actual nature of the goods on evidence, and not merely from the description in the invoice, the tariff heading, or an unsupported examination report.

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