Tariff classification of used lubricating oil residue favoured Heading 34.03 as a lubricating preparation, not petroleum oil residue.

Imported waste oil consisting of used lubricating oil residue was held classifiable as a lubricating preparation under sub-heading 3403.19, because the material was not a residue produced by the processes contemplated under Heading 27.13. The analysis compared the competing tariff entries with the HSN Explanatory Notes and found that the goods arose from the use of lubricating oil in industrial and transport machinery, bringing them within Heading 34.03 rather than as petroleum oil residue under sub-heading 2713.90. The prior classification view treating this type of waste oil under Heading 34.03 was followed, and the goods were excluded from Heading 27.13.

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Issues: Whether imported waste oil, being used lubricating oil residue, was classifiable under sub-heading 3403.19 as a lubricating preparation or under sub-heading 2713.90 as a residue of petroleum oils.

Analysis: The competing tariff entries were examined along with the HSN Explanatory Notes. The material on record showed that the imported goods were residue left after use of lubricating oil in industrial and transport machinery, not a by-product arising from the treatment of shale oils, bituminous minerals, or other processes described for residues under Heading 27.13. The prior classification view that waste oil of this kind falls under Heading 34.03 was followed, and the goods were treated as a lubricating preparation falling within the exclusionary structure of Heading 34.03 rather than as residue under Heading 27.13.

Conclusion: The waste oil was correctly classifiable under sub-heading 3403.19 of the First Schedule to the Customs Tariff Act, and not under sub-heading 2713.90.

Ratio Decidendi: Used lubricating oil residue, not produced as a residue of the processes contemplated by Heading 27.13, is classifiable as a lubricating preparation under Heading 34.03 when its characteristics and use bring it within that heading.

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