Customs classification of stainless steel goods depends on both trade recognition and chromium content under the governing notice.

Imported stainless steel rolled special blade sections were classified by applying Public Notice No. 56/78, which required alloy steel to be known in trade as stainless steel and to contain more than 11% chromium. The notice used both conditions cumulatively, so trade recognition alone was insufficient. Even if the goods were understood in the trade as stainless steel, they failed the chromium-content requirement and could not fall within Tariff Heading 73.15(2). They were therefore classified under Tariff Heading 73.15(1), with the issue resolved in favour of the assessee.

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Issues: Whether imported stainless steel rolled special blade sections were classifiable under Tariff Heading 73.15(1) or Tariff Heading 73.15(2) in the light of Public Notice No. 56/78 dated July 19, 1978.

Analysis: The governing public notice required that alloy steel be known in the trade as stainless steel and also contain more than 11% chromium before it could be treated as stainless steel for customs classification. The use of the word "and" made both conditions cumulative, and the notice could not be read as covering two separate categories merely because one of them was trade understanding and the other chromium content. On the facts found, even assuming trade recognition as stainless steel, the imported goods did not satisfy the chromium-content condition.

Conclusion: The goods were not classifiable as stainless steel under Tariff Heading 73.15(2) and fell under Tariff Heading 73.15(1); the issue was decided in favour of the assessee.

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