Classification of sweetened condensed milk in barrels turned on actual quantity billed, not unit-container treatment.

Sweetened condensed milk packed in barrels was held not to fall under Chapter Heading 0401.14 because the decisive test was whether each container represented a standard unit quantity ordinarily intended for sale. The invoices showed billing on actual quantity in each barrel, and the quantity varied from barrel to barrel, so the goods were not treated as unit containers for classification purposes. The Tribunal's earlier ruling on the same issue, including the appellant's prior barrel-sale case, supported this view. The proper classification was Chapter Heading 0401.19, and the demand and penalty were not sustainable.

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Issues: Whether sweetened condensed milk packed in barrels was classifiable under Chapter Heading 0401.14 as concentrated milk put up in unit containers and ordinarily intended for sale, or under Chapter Heading 0401.19 as other goods.

Analysis: The decisive test was whether the goods were sold on the basis of a standard unit quantity contained in each container, so that no individual ascertainment of quantity was required. The barrels were filled to capacity, but the sales invoices showed that billing was made on the basis of the actual quantity in each barrel and the quantities varied from barrel to barrel. On that footing, the transaction was not one of sale of goods put up in unit containers and ordinarily intended for sale. The earlier decision of the Tribunal on the same issue, and the appellant's own earlier case involving barrel sales, supported this view.

Conclusion: The goods were not classifiable under Chapter Heading 0401.14. The correct classification was under Chapter Heading 0401.19, and the demand and penalty could not be sustained.

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