Essential character governs classification of aluminium composite panels; functional attributes outweighed plastic content.

Aluminium composite panels consisting of aluminium sheets and polyethylene layers were analysed for tariff classification by their essential character under Rule 3(b) of the General Rules for the Interpretation of the First Schedule. Their use as external building panels and the product literature showed that key functional attributes such as thermal resistance, fire resistance, sound transmission control and durability were primarily attributable to the aluminium component, so a mechanical comparison of plastic content was rejected. Classification under Heading 39.20 was therefore held incorrect, and the goods were to be classified by reference to aluminium.

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Issues: Whether aluminium composite panels were classifiable under Heading 76.10 as goods having the essential character of aluminium, or under Heading 39.20 as plastics by reference to the percentage of plastic content.

Analysis: The imported goods were composite articles consisting of aluminium sheets and polyethylene layers. Their use as external building panels, together with the manufacturer's literature, showed that the relevant functional properties such as thermal resistance, fire resistance, sound transmission and durability were attributable primarily to the aluminium component. Classification of composite goods had to follow their essential character under Rule 3(b) of the General Rules for the Interpretation of the First Schedule, and not a mechanical comparison of component percentages. The reliance placed by the lower authorities on the plastic content and on two isolated properties was therefore misplaced.

Conclusion: The goods were required to be classified by reference to the essential character of aluminium, and the classification under Heading 39.20 was incorrect.

Final Conclusion: The assessment was set aside and the appeal was allowed, with consequential relief following the reclassification of the goods.

Ratio Decidendi: Composite goods must be classified under the tariff entry corresponding to the material that gives them their essential character, as determined from their functional attributes and not merely from the percentage composition of their constituent materials.

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