Customs classification of odoriferous chemical in solvent form: product held outside Chapter 29 and within Heading 33.02.

An odoriferous chemical sold in solvent form for a specific industrial use was held classifiable under Heading 33.02 as a mixture based on an odoriferous substance, because the solvent was necessary to make and keep it suitable for that use. Note 1(e) to Chapter 29 did not preserve classification under Chapter 29 where dissolution restricted the product to a particular use rather than general use. The customs classification adopted by the authorities was restored, and the Tribunal's contrary view was set aside.

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Issues: Whether the imported product "Abbalide" was classifiable as an organic chemical under Chapter 29 of the Customs Tariff Act, 1975, or as a mixture of odoriferous substances under Heading 33.02 of Chapter 33.

Analysis: The product was found to be an odoriferous substance dissolved in Diethyl phthalate, a non-odoriferous solvent. Heading 33.02 covers mixtures of odoriferous substances and mixtures with a basis of one or more such substances used as raw materials in industry. The product was used as a perfume raw material, and the solvent was necessary not merely for transport or storage but also to retain suitability for use. In those circumstances, Note 1(e) to Chapter 29 did not preserve classification under Chapter 29, because the dissolution rendered the product suitable only for a specific use rather than for general use.

Conclusion: The product was classifiable under Heading 33.02 of Chapter 33 and not under Chapter 29; the Revenue's contention succeeded.

Final Conclusion: The Tribunal's view was set aside and the classification adopted by the customs authorities was restored, with the respondents' appeals before the Tribunal dismissed.

Ratio Decidendi: Where an odoriferous chemical is sold in solvent form for a particular industrial use and the solvent is necessary to make and keep the product suitable for that specific use, the product falls outside Chapter 29 by virtue of Note 1(e) and is classifiable under Heading 33.02 as a mixture with a basis of an odoriferous substance.

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