Countervailing duty on imported yarn must be assessed on the goods as imported, not after later texturising.

Countervailing duty on imported partially oriented yarn is determined by the condition of the goods as imported, not by the yarn after a proposed texturising process. The customs rate therefore follows the imported description, here partially oriented yarn of 115 deniers, and cannot be increased by reference to the later process or to the duty applicable to texturised yarn. Any excise liability on the end product or on the texturising process is a separate matter for excise authorities and does not alter the customs duty on import.

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Issues: Whether countervailing duty on imported partially oriented yarn was to be determined on the basis of the goods as imported or on the basis of the yarn after the intended texturising process.

Analysis: Countervailing duty is levied on the imported goods in the form in which they enter the country. The imported goods were partially oriented yarn of 115 deniers, and the applicable rate for that description under the tariff was the rate fixed for yarn of 100 deniers and above. The subsequent texturising process could not be used by the Customs authorities to alter the rate of duty on the imported goods, even if excise duty on the end product or on the process of texturising might separately be leviable by the excise authorities.

Conclusion: The duty had to be levied on the imported partially oriented yarn as such, and the higher rate applicable to texturised yarn of 75 deniers could not be applied.

Final Conclusion: The petition succeeded and the refund-related relief was granted, with no order as to costs.

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