Povidone Iodine classification turned on chemical identity, not therapeutic use, so Chapter 29 exemption was denied.

Povidone Iodine was treated as an adduct or complex of polyvinylpyrrolidone and iodine, not as a separate chemically defined organic compound under Chapter 29. Because polyvinylpyrrolidone is a polymer with variable molecular weight and the iodine content was present in a range rather than a fixed proportion, the product did not satisfy the tariff concept of a single defined compound. The therapeutic use of the product did not alter its tariff classification, and a Chapter 29 exemption could not be claimed unless the goods first fell within that chapter. The result was that the product remained outside Chapter 29 and the notification benefit was unavailable.

---

---

Issues: Whether Povidone Iodine was classifiable as a separate chemically defined organic compound under Chapter 29 of the Customs Tariff Act, 1975 and entitled to the benefit of Notification No. 77/86-Cus., or whether it remained a polymer classifiable outside Chapter 29.

Analysis: The imported goods were found to be an adduct or complex of polyvinylpyrrolidone with iodine. The material on record showed that polyvinylpyrrolidone is a polymer with varying molecular weights and is not a single chemical compound of fixed and immutable structure. The product also contained iodine in a range rather than in a fixed proportion, which was inconsistent with the concept of a separate chemically defined compound. Since the exemption notification was restricted to pharmaceutical chemicals falling under Chapter 29, the mere therapeutic use of the product did not bring it within the notification if its tariff classification did not satisfy Chapter 29.

Conclusion: The product was not classifiable under Chapter 29 and the benefit of Notification No. 77/86-Cus. was not available; the appeal failed.

---