Rubber-content test governs tariff classification of latex adhesive, not end use as a footwear glue.

Classification of a latex-based adhesive depends on its composition rather than its end use. Where the product retained more than 90% rubber content and preserved the essential character of rubber as a raw material, Note 5(b) to Chapter 40 supported classification under tariff heading 40.01 despite sale as an adhesive to footwear manufacturers. The product was therefore correctly classified under heading 40.01 and not under heading 35.06.

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Issues: Whether latex-based adhesive manufactured by the assessee was classifiable under tariff heading 35.06 as prepared glues and other prepared adhesives, or under tariff heading 40.01 as natural rubber / rubber-based material.

Analysis: The classification turned on the composition of the product rather than its end use. Note 5(b) to Chapter 40 preserved classification under heading 40.01 where rubber or a rubber mixture retained its essential character as a raw material, notwithstanding certain additives. The product was found to contain more than 90% rubber content, and the fact that it was sold as an adhesive to footwear manufacturers did not displace the composition-based classification.

Conclusion: The product was correctly classifiable under tariff heading 40.01 and not under heading 35.06, in favour of the assessee.

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