Tariff classification of lyophilized yeast turned on trade understanding, with stabilising lactose not converting it into a medicament.

Imported lyophilized Saccharomyces boulardii with lactose stabilisation was classified as yeast under Chapter 21, not as a medicament under Chapter 30 or as goods of Chapter 29. The product was treated as bulk yeast, and the added lactose was only an auxiliary for lyophilization, not a feature changing its essential character. Trade understanding and product literature showed it as yeast raw material, and there was no evidence that it was sold or ordinarily understood as medicine. Chapter Note 1(f) to Chapter 21 did not apply because the goods were not shown to be put up as a medicament or otherwise brought within Chapter 30.

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Issues: Whether the imported goods, described as lyophilized Saccharomyces Boulardii with lactose used for stabilisation, were classifiable as a medicament under Chapter 30 or as yeast under Chapter 21 of the Customs Tariff Act, 1975.

Analysis: The imported product was found to be yeast in bulk form, with lactose added only as an auxiliary for lyophilization and not as a constituent converting the product into a medicament. The decisive question was not whether the product could be used therapeutically in some contexts, but whether it was known and understood in the market as a medicament. The product literature and supplier materials described it as yeast raw material, and the evidence did not establish that it was sold or ordinarily treated in trade as medicine. Chapter Note 1(f) to Chapter 21 excludes yeast put up as a medicament or products of heading 3003 or 3004, but that exclusion did not apply because the goods were neither shown to be put up as a medicament nor brought within Chapter 30. The Tribunal also applied the specific classification principle, holding that yeast expressly covered by Chapter 21 could not be shifted to Chapter 29 or Chapter 30 on the basis of intended use alone.

Conclusion: The imported goods were correctly classified under Chapter 21 as yeast and not as a medicament or as goods of Chapter 29. The classification adopted by the Revenue was upheld.

Ratio Decidendi: Where a product is specifically covered as yeast under Chapter 21, the addition of a stabilizing auxiliary does not alter its essential character unless it is shown, by trade understanding and evidence, to be a medicament or a product of Chapter 30.

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