Bituminised kraft paper is not a new excisable commodity where coating only improves durability without changing its essential identity.

Coating or bonding kraft paper with bitumin to improve strength and durability did not create a new commodity with a distinct name, character or use. The essential identity and packaging use of the paper remained unchanged, and mere enhancement in durability was insufficient to amount to manufacture. Because Tariff Item 17(2) already covered paper subjected to such treatments, the bituminised waterproof paper could not be treated as a separately specified excisable product or moved to the residuary item.

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Issues: Whether bituminised waterproof paper produced by coating or bonding kraft paper with bitumin is a new commodity liable to excise duty as a manufactured product under Tariff Item 17(2).

Analysis: The process involved coating one side of kraft paper with bitumin or bonding two sheets of kraft paper with bitumin to make the paper stronger and more durable for packaging. The essential character and use of the kraft paper remained the same, and the process did not bring into existence a new and different article having a distinctive name, character, or use. Mere improvement in strength or durability did not amount to manufacture. Item 17(2) itself covered paper and other kinds of paper subjected to treatments such as coating, and the product could not be treated as a separately specified commodity or placed in the residuary item.

Conclusion: The process did not amount to manufacture and the bituminised waterproof paper was not liable to duty as a new excisable commodity.

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