Tariff classification of laminating machine turns on whether it produces a new commodity under Heading 84.59.

A machine that pastes layers of sheet and board materials to form rigid laminated board for carton making was treated as a machine designed for the production of a commodity under Heading 84.59(2) of the Customs Tariff. The analysis focused on the transformation from soft or pliable sheets into a new rigid board with distinct utility, even though the underlying materials were already manufactured. On that basis, the tariff definition was read broadly enough to cover the process, and the borderline classification question was resolved in favour of treating the machine as producing a commodity.

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Issues: Whether the imported machine was a machine or mechanical appliance designed for the production of a commodity and therefore classifiable under sub-heading (2) of Heading 84.59 of the Customs Tariff.

Analysis: The machine pasted layers of sheet and board materials together to form a rigid laminated board suitable for carton making. Although the underlying materials were already manufactured, the process resulted in a new rigid board with distinct utility from the original soft or pliable sheets. The definition in the tariff heading was treated as broad enough to cover a machine that produces such a commodity, and the borderline nature of the classification was resolved by preferring the view that production of a commodity had occurred.

Conclusion: The machine was held to produce a commodity and was therefore assessable under sub-heading (2) of Heading 84.59 of the Customs Tariff, in favour of the assessee.

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