Functional tariff classification of valves rejected as isolating valves where the goods did not themselves isolate flow.

Classification of hydraulic gate valves and hot gas valves turned on function, not on their use at particular stages of the gas generation cycle. Valves covered by Heading 84.61(2) must themselves perform the function of isolating a section, whereas Heading 84.61(1) is the residuary entry for valves and similar appliances not elsewhere specified. On the facts, the imported goods were complete gate valves and hot gas valves fitted in pipelines and chimneys, hydraulically controlled to open and close flow, but they did not operate as isolating valves in the tariff sense. They were therefore correctly classified under the residuary heading and not as isolating valves.

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Issues: Whether the imported hydraulic gate valves and hot gas valves were classifiable as isolating valves under Heading 84.61(2), or as valves and similar appliances not elsewhere specified under Heading 84.61(1).

Analysis: Heading 84.61(2) covered isolating valves and certain specified types of valves, while Heading 84.61(1) was the residuary entry for valves and similar appliances not elsewhere specified. The determining factor was the function performed by the goods. On the facts, the imported valves were complete gate valves and hot gas valves fitted in pipelines and chimneys, hydraulically controlled, and used to open and close flow during the gas generation cycle. They did not themselves perform the function of isolating a section in the manner required of an isolating valve. The mere use of the valves to stop flow at particular stages did not make them isolating valves for tariff purposes.

Conclusion: The goods were correctly classified under Heading 84.61(1) and not under Heading 84.61(2); the classification adopted by the department was upheld.

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