Specific tariff rule for platinum group metal alloys governs classification of silver palladium bimetal sheets over the residual silver heading.

Chapter Note 4 to Chapter 71 treats an alloy containing 2% or more by weight of a precious metal as an alloy of precious metal, and deems platinum group metals to be platinum for classification purposes. On that basis, silver palladium bimetal sheets containing palladium, a platinum group metal, fell within the specific rule for platinum group metal alloys under Clause (a). Clause (c) applied only to residual alloys not already covered by Clauses (a) or (b), so it could not displace the specific classification. The goods were therefore classifiable under sub-heading (2), not as an alloy of silver under sub-heading (1).

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Issues: Whether silver palladium bimetal sheets were classifiable under Heading 71.05/11(1) as an alloy of silver or under sub-heading (2) as an alloy of platinum group metals under the First Schedule to the Customs Tariff Act, 1975.

Analysis: Chapter Note 4 to Chapter 71 treats an alloy containing two per cent or more by weight of a precious metal as an alloy of precious metal and directs classification according to the specified clauses. Metals of the platinum group are deemed to be platinum for this purpose. Since palladium is a platinum group metal and the goods contained 30% platinum by weight in the statutory sense, Clause (a) applied. Clause (c) could not govern because it applies only to other alloys, meaning alloys not already covered by Clauses (a) or (b).

Conclusion: The goods were correctly classifiable as an alloy of platinum group metals under sub-heading (2), and not as an alloy of silver under sub-heading (1), in favour of the assessee.

Ratio Decidendi: Where a tariff chapter note contains a specific classification rule for alloys based on the presence of platinum group metals, that specific rule governs and excludes application of the residual silver-based rule.

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