Essential character governs tariff classification of laminated sheets used in electrical applications as electrical insulators.

Paper-based decorative laminated sheets used for electrical purposes are treated as electrical insulators under Heading 85.46 where their function and essential character, rather than material alone, determine classification. Goods identifiable and traded as insulators do not lose that character merely because they require cutting or punching before use. Chapter 39 is excluded by Note 2(n) when the goods answer to the description of electrical insulators, so classification follows the essential nature of the article and not its plastic laminate composition.

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Issues: Whether paper based decorative laminated sheets manufactured for electrical use were classifiable as electrical insulators under Heading 85.46 or as plastic laminated sheets under Heading 39.20.

Analysis: The majority held that Heading 85.46 covers electrical insulators of any material, provided the goods are identifiable and traded as insulators, and that the heading is concerned with the function and character of the article rather than the material alone. Reliance was placed on the view that goods having the essential character of insulators do not cease to be so merely because they require cutting or punching before use. The majority also accepted that Chapter 39 is excluded by Note 2(n) where the goods answer to the description of electrical insulators, and that the interpretative rule supports classification according to essential character. On that basis, the product was treated as an electrical insulator and not as a mere plastic laminated sheet.

Conclusion: The goods were correctly classifiable under Heading 85.46, and the departmental appeal was rejected.

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