Import classification turns on trade meaning: skimmed milk powder treated as distinct from milk powder, with importer-favourable interpretation applied.

Skimmed milk powder was treated as a distinct commodity from milk powder for import control purposes because the policy itself placed them differently: milk powder in the general import list and skimmed milk powder in the canalised items list. The text applies the settled fiscal principle that goods are understood in their popular or commercial sense, and that trade identity determines classification. It also restates that where two views are plausible, the interpretation favourable to the importer should be accepted. On that basis, skimmed milk powder was regarded as separate from milk powder and relief followed.

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Issues: Whether skimmed milk powder and milk powder are the same commodity for the purpose of the import control policy and, if two views are possible, whether the interpretation favourable to the assessee should prevail.

Analysis: The policy documents treated milk powder and skimmed milk powder differently: milk powder appeared in the general import list, while skimmed milk powder was specifically placed in the canalised items list. The decision also applied the settled principle that, in fiscal matters, goods must be understood in their popular or commercial sense and that identity of goods depends on how they are understood in trade. On that basis, skimmed milk powder was treated as a distinct product. Even assuming the contrary view to be possible, the interpretation favourable to the importer was held to deserve acceptance where it was a plausible view.

Conclusion: Skimmed milk powder was held to be distinct from milk powder for the relevant import policy, and the petitioners were entitled to relief.

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