Tariff classification of hook and loop tapes remanded for laboratory verification before final duty determination.

Hook and loop tapes were disputed as either narrow woven fabrics under heading 5806.10 or snap fasteners under heading 9606.90. Classification was to be determined from the tariff headings read with the relevant Chapter Notes, and the decisive question was whether the finished tapes met the definition of narrow woven fabrics under Chapter Note 6 to Chapter 58, including selvedges on both edges and other prescribed parameters. As no laboratory verification was available on that factual point, the existing classification finding was not treated as conclusive. The matter was remanded for de novo adjudication with directions to obtain laboratory opinion, reconsider classification after that report, hear the assessee, and levy interest if duty is ultimately confirmed under a heading other than 5806.10.

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Issues: Whether the hook and loop tapes manufactured by the assessee were classifiable under heading 5806.10 as narrow woven fabrics or under heading 9606.90 as snap fasteners, and whether the matter required fresh factual verification before final classification.

Analysis: Classification under the Central Excise Tariff had to be determined from the wording of the headings read with the relevant Chapter Notes. The crucial factual question was whether the finished tapes satisfied the definition of narrow woven fabrics under Chapter Note 6 to Chapter 58, particularly whether they had selvedges on both edges and met the other prescribed parameters. The record did not contain a laboratory verification on this point, and the dispute turned on a factual aspect that could be objectively tested by drawing samples and obtaining the Central Revenue Control Laboratory opinion. In these circumstances, the existing finding on classification was not treated as conclusive.

Conclusion: The impugned order was set aside and the matter was remanded for de novo adjudication, with directions to obtain laboratory opinion, reconsider classification after examining that report and hearing the assessee, and to levy interest if duty is ultimately confirmed under a heading other than 5806.10.

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