Manufacture and tariff classification of refined pig fat supported waiver of pre-deposit and stay of recovery.

Refining and deodorising crude pig fat was treated as prima facie capable of amounting to manufacture because the resulting product was fit for a distinct use as textile sizing material, while the crude fat itself was impure and unsuitable for that use. At the same time, the departmental classification was found prima facie incorrect because Note 1(a) to Chapter 15 excluded pig fat, and the product was considered prima facie classifiable under Heading 05.01 as an animal-origin product not elsewhere specified, carrying nil duty. Waiver of pre-deposit of duty and penalty was therefore granted, and recovery was stayed.

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Issues: Whether the applicant was entitled to waiver of pre-deposit and stay of recovery in a dispute concerning classification of refined and deodorised pig fat and the prima facie view on manufacture and tariff classification.

Analysis: The process of refining and deodorising crude pig fat was not accepted as clearly outside the scope of manufacture at the prima facie stage, because the resulting product was fit for a distinct use as textile sizing material, whereas the crude fat obtained from butchers contained impurities and could not be so used. At the same time, the departmental classification was found prima facie incorrect because Note 1(a) to Chapter 15 excluded pig fat. The product was therefore prima facie classifiable under Heading 05.01 as a product of animal origin not elsewhere specified, and the duty attached to that heading was nil.

Conclusion: Waiver of deposit of duty and penalty was granted and recovery was stayed.

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