Packing edible oil from tanker into retail packs was not manufacture because the bulk-pack condition under Chapter Note 4 was not met.

Conversion of edible oil received in tanker into retail packs, with labeling, was examined under Chapter Note 4 to Chapter 15, which deems certain packing and labeling activities to be manufacture. The note applies where goods are repacked from bulk packs to retail packs and labeled, or otherwise treated to make them marketable. On the stated facts, oil was received in tanker and then packed and labeled, but a tanker was not treated as a bulk pack for the purpose of the note. As the required combination of repacking from bulk packs to retail packs and labeling was absent, the deeming provision did not apply and the activity was not manufacture.

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Issues: Whether conversion of edible oil received in tanker into retail packs and labeling thereof amounts to manufacture under Chapter Note 4 to Chapter 15.

Analysis: Chapter Note 4 treats labeling or relabeling of containers and packing from bulk packs to retail packs, or any other treatment to render the product marketable to the consumer, as manufacture. The decisive requirement is that packing from bulk packs to retail packs and labeling must coexist in the manner contemplated by the note. On the facts, the edible oil was received in tanker, unloaded, converted into retail packs, and labeled. A tanker is not a bulk pack, so the packing activity did not satisfy the statutory condition of repacking from bulk packs to retail packs. Since the requisite combination of repacking from bulk to retail packs and labeling was absent, the deeming provision was not attracted.

Conclusion: The activity did not amount to manufacture and the demand could not survive.

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