Copolymer classification by predominant monomer decided under Chapter 39, preserving exemption for the imported polymer.

A modified PVC polymer copolymer was classifiable under CTH 39029000 because, for Chapter 39, copolymers are classified by the co-monomer unit predominating by weight over each other single co-monomer unit. The record showed butadiene as the predominant constituent, and as an olefin the product fell within the heading for polymers of other olefins in primary forms. The department relied mainly on the product description and did not conduct chemical testing, so its reliance on acrylic ester nomenclature was not supported. On that basis, classification under CTH 39069090 was rejected and the exemption under Notification No. 46/2011-Cus remained admissible.

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Issues: Whether the imported product, a modified PVC polymer, was correctly classifiable under CTH 39029000 as claimed by the importer or under CTH 39069090 as held by the department, and whether the exemption under Notification No. 46/2011-Cus was consequently admissible.

Analysis: The product was a copolymer containing multiple monomer units, none contributing 95% or more by weight. For Chapter 39, copolymers are to be classified according to the co-monomer unit which predominates by weight over every other single co-monomer unit. The record showed butadiene as the predominant constituent. The department did not conduct any chemical test and proceeded mainly on nomenclature by isolating the expression acrylic ester from the product description. Since butadiene is an olefin, the product fell within the heading covering polymers of other olefins in primary forms, not acrylic polymers.

Conclusion: The goods were correctly classifiable under CTH 39029000 and not under CTH 39069090. The denial of exemption could not be sustained.

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