Tariff classification of methyl cellulose: cellulose ether placed under Heading 39.01/06, despite pharmaceutical use.

Methyl cellulose, being a chemical derivative of cellulose with a wide range of molecular weights, was treated as a cellulose ether and not as a separate chemically defined organic compound. It was therefore excluded from Chapter 29 by Chapter Note 1(a) and classified under Heading 39.01/06 as a cellulose ether. Chapter Note 2 to Chapter 39 was read as governing only the polymer products described in that note, not as excluding specifically covered cellulose ethers. Its use in the pharmaceutical industry did not alter tariff classification, and the argument based on isomers was rejected because isomers must have the same molecular weight.

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Issues: Whether methyl cellulose was classifiable under Heading 39.01/06 of the First Schedule to the Customs Tariff Act, 1975 or under Heading 29.01/45(13) as a pharmaceutical chemical.

Analysis: Methyl cellulose was found to be a chemical derivative of cellulose with a wide range of molecular weights and therefore not a separate chemically defined organic compound. On that basis it was excluded from Chapter 29 by Chapter Note 1(a). The product was held to be a cellulose ether specifically covered by Heading 39.01/06. Chapter Note 2 to Chapter 39 was held to regulate only the polymer products described in that note and not to exclude separately specified cellulose ethers. The fact that the product found use in the pharmaceutical industry did not change its tariff classification. The contention that it consisted of isomers was rejected because isomers necessarily have the same molecular weight, which methyl cellulose did not.

Conclusion: Methyl cellulose was correctly classified under Heading 39.01/06 and not under Heading 29.01/45(13).

Ratio Decidendi: A product that is a cellulose ether and a chemical derivative of cellulose falls under the specific tariff heading covering cellulose ethers, and it cannot be placed in Chapter 29 unless it is a separate chemically defined organic compound.

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