Essential character test governs classification of composite missile containers; predominant plastic content placed them under Chapter 39.

Composite missile containers made mainly of plastic and glass fibre were classified by reference to the material giving them their essential character, because no specific tariff entry covered them. Rule 3(b) of the Tariff Interpretation Rules required classification of composite goods according to the predominant component, and the analysis showed plastic to be the dominant ingredient. Classification could not be determined by end use. The containers were therefore classifiable under Chapter 39 rather than Chapter 70, consistent with earlier precedent on essential character.

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Issues: Whether the missile containers, being composite goods made of plastic and glass fibre, were classifiable under Chapter 39 of the Central Excise Tariff Act, 1985 or under Chapter 70, and whether classification could be determined on the basis of end use.

Analysis: The goods were found to be made mainly of plastic and glass fibre, with plastic constituting the predominant ingredient. For composite goods, classification depends on the material or component giving the goods their essential character. The tariff contained no specific entry for missile containers, and therefore the classification had to follow the predominant material used in manufacture rather than the end use of the product. Applying the principle under Rule 3(b) of the Rules for the Interpretation of Tariff, the predominant character of the goods was held to be plastic. The earlier precedent relied upon supported classification of similar composite goods on the basis of essential character.

Conclusion: The missile containers were correctly classifiable under Chapter 39 and not under Chapter 70. The appeal was dismissed and the Revenue's classification was upheld.

Ratio Decidendi: Composite goods without a specific tariff entry are classified according to the material or component that imparts their essential character, and not by end use.

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