Tariff classification of coated polyester film turned on whether it was audio magnetic tape or metallised film, requiring remand.

Imported polyester film coated with ferric oxide could not be treated as non-metallised merely on that basis, as the classification issue turned on the actual character and processing of the goods. The record also raised a further question whether the film had undergone leadering, slitting and degaussing so as to make it suitable for use as audio magnetic tape. Because the Tribunal had not examined that aspect and proper classification depended on whether the goods were audio magnetic tape in jumbo rolls or metallised polyester film requiring further processing, the matter was remanded for fresh determination of the correct tariff classification.

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Issues: Whether the imported polyester film was to be treated as metallised polyester film or as audio magnetic tape, and whether the matter required remand for fresh classification.

Analysis: The imported film was coated with ferric oxide and, on that basis, the finding that it was not metallised polyester film was held to be erroneous. The record also showed a dispute as to whether the film had undergone processes such as leadering, slitting and degaussing so as to make it suitable for use as audio magnetic tape. Since the Tribunal had not dealt with that aspect and the correct classification depended on whether the goods were audio magnetic tape in jumbo rolls or metallised polyester film requiring further processing, the matter had to be sent back for determination of the proper classification.

Conclusion: The appeal was allowed, the impugned judgment and order were set aside, and the matter was remanded to the Tribunal for fresh decision on classification.

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