Tariff classification must follow binding Board circulars when export-country certificates establish the manufacturing condition.

Imported Damar Batu was classified under SH 1301.90 rather than SH 1301.10 because the manufacturer had not used power in production, as evidenced by a certificate from the Government of East Java. The Tribunal held that the departmental authorities were bound by the Board's circular, which permitted reliance on a certificate from the exporting country and provisional assessment pending such proof. As no contrary later view was shown, the earlier foreign-manufacture decision could not override the circular. The classification under SH 1301.10 was rejected and the importer succeeded.

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Issues: Whether imported "Damar Batu" was classifiable under SH 1301.90 or SH 1301.10 of the First Schedule to the Customs Tariff Act, and whether the Board's circular permitting proof from the exporting country had to be followed.

Analysis: Classification under SH 1301.10 required proof that power was used in the manufacture of the goods. The importer produced a certificate from the Government of East Java stating that no power was used. The Board's Circular No. 26/2004-C.X. clarified that such a certificate from the exporting country could be relied on, and that assessment could be kept provisional to permit production of such evidence. The lower authorities had ignored this clarification and relied instead on an earlier decision concerning foreign manufacture, but no later contrary view was shown. The Tribunal held that the departmental authorities ought to have followed the Board's clarification and accepted the certificate.

Conclusion: The goods were held classifiable under SH 1301.90 and not under SH 1301.10, with the result that the importer succeeded.

Final Conclusion: The order of classification was set aside and the appeal was allowed on the basis that the Board's clarification governed the dispute.

Ratio Decidendi: A binding Board circular clarifying the evidentiary basis for tariff classification must be followed by the departmental authorities, and a certificate from the exporting country can establish the relevant manufacturing condition for classification purposes.

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