Essential character test governs tariff classification of glass fibre reinforced plastic composite goods as articles of plastic.

Glass fibre reinforced plastics made by impregnating glass fibre mat with resin were treated as composite goods for tariff classification. Applying Rule 3(b) of the Rules for Interpretation of Tariff Entries, the product had to be classified according to the component that gave it its essential character. Because the plastic component imparted the stiffness and functional utility needed for use in roofs, partitions and similar applications, the essential character was held to lie in plastic rather than glass fibre. The article was therefore classified under Heading 39.20 as an article of plastic, and not under Heading 70.14 as glass fibres.

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Issues: Whether glass fibre reinforced plastics, made by impregnating glass fibre mat with resin and other , were classifiable under Heading 70.14 as glass fibres or under Heading 39.20 as plastics and articles thereof.

Analysis: The product was held to be a composite article. On the process described, the glass fibre mat acquired stiffness and functional utility only after impregnation with plastic materials, and that stiffness was the feature that enabled its use in roofs, partitions and similar applications. Applying Rule 3(b) of the Rules for the Interpretation of Tariff Entries, composite goods are to be classified according to the material or component that gives them their essential character. Since the essential character of the goods was derived from the plastic component, the product was treated as an article of plastic rather than as a glass fibre article.

Conclusion: The classification under Heading 39.20 was upheld and the assessee's plea for Heading 70.14 was rejected.

Final Conclusion: The decision affirms classification of the composite product by reference to its essential character, resulting in rejection of the assessee's claim and acceptance of the Revenue's stand in the connected matter.

Ratio Decidendi: Composite goods must be classified under the tariff entry corresponding to the component that imparts their essential character.

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