Tariff classification of Nomex Aramid Paper turned on its condition as imported, not its potential use as an insulator.

Nomex Aramid Paper imported in sheet form was classified on its condition as presented and its essential character, not on its possible end use after further processing. The goods were found to be only sheets in running length that required lamination with plastic film before they could function as insulators. Distinguishing insulating materials from finished insulators, the tribunal rejected classification under heading 85.46 and upheld classification under chapter 39. The original adjudication was restored in favour of Revenue, on the basis that materials capable of being converted into insulating goods do not become insulators for tariff purposes merely because of that potential.

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Issues: Whether Nomex Aramid Paper, as imported in sheet form, was classifiable under heading 85.46 as insulators or under chapter 39 on the basis of its material composition.

Analysis: The goods were found to be merely sheets in running length requiring further processing, including lamination with plastic film, before they could be used as insulators. A distinction was drawn between insulating materials and insulators made from such materials. On that basis, the goods, as presented for customs assessment, were held not to be insulators falling under heading 85.46.

Conclusion: The classification under heading 85.46 was rejected and the original classification under chapter 39 was upheld in favour of Revenue.

Final Conclusion: The appeal succeeded and the order in appeal was set aside, restoring the original adjudication.

Ratio Decidendi: Goods must be classified on the basis of their condition as presented and their essential character, and insulating materials do not become insulators for tariff purposes merely because they are capable of further processing into insulating goods.

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