Medicament classification for cracked-heel product upheld over skin-care treatment, making the duty demand unsustainable.

Heel Guard was treated as a medicated barrier cream because salicylic acid gave it medicinal significance and the product was marketed for treatment of cracked heels. The moisturizing and protective effects were held to be ancillary to its curative use, so the primary function and intended use pointed to a medicament rather than a skin-care preparation. Applying the distinction between cosmetics and medicaments, and noting support from the drug licence issued by the State Drug Controller, the product was classified as a Patent and Proprietary Medicament under Heading 3003.10 and not under Heading 3304.00. The duty demand based on the contrary classification was therefore unsustainable.

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Issues: Whether the product marketed as Heel Guard was classifiable as a medicament under Heading 3003.10 or as a skin-care preparation under Heading 3304.00, and whether the duty demand based on the latter classification could be sustained.

Analysis: The product was held to contain salicylic acid of medicinal significance and to be marketed for treatment of cracked heels, with moisturising and protective effects being ancillary to the curative purpose. The reasoning treated the preparation as a medicated barrier cream, and applied the distinction between cosmetics and medicaments by examining the primary function of the ingredients and the intended use. The classification was supported by the drug licence issued by the State Drug Controller and by the settled approach that medicated barrier creams fall within Chapter 30 rather than Chapter 33.

Conclusion: The product was held classifiable as a Patent and Proprietary Medicament under Heading 3003.10 and not as a skin-care preparation under Heading 3304.00; the duty demand based on the contrary classification was unsustainable.

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