Graphite classification turns on import condition: semi-manufactured graphite rounds fall under Chapter 38, not finished articles.

Imported extruded graphite rounds, accepted as semi-manufactures of artificial graphite and used as intermediate goods for making moulds, were classified by reference to their condition at the time of import. The tariff structure and Explanatory Notes placed semi-manufactures of graphite in Chapter 38, while finished non-electrical graphite articles fell under Chapter 68. The illustrative list in the Explanatory Notes was not exhaustive, so it did not control against the broader tariff scheme. On that basis, the goods were correctly classifiable under Heading 38.01/19(4) and not under Heading 68.01/16.

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Issues: Whether imported extruded graphite rounds, being semi-manufactures of artificial graphite used as intermediate goods for manufacture of moulds, were classifiable under Heading 38.01/19(4) of the Customs Tariff Act, 1975 or under Heading 68.01/16.

Analysis: The goods were accepted by both sides as semi-manufactures of graphite. The tariff scheme and the Explanatory Notes showed that semi-manufactures of graphite fell within Chapter 38, while finished articles of graphite of the non-electrical category fell under Chapter 68. The Department's objection based on the illustrative list in the Explanatory Notes was rejected because that list was not exhaustive. Since the imported goods were not finished articles but intermediate goods used for further manufacture, their classification had to be determined by their condition at the time of import.

Conclusion: The imported graphite rounds were correctly classifiable under Heading 38.01/19(4) and not under Heading 68.01/16, in favour of the assessee.

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