Classification of machine cloth pieces as machine parts exempted them from countervailing duty and additional customs duty.

Imported machine cloth pieces cut to size for direct fitting to machinery were treated as machine parts rather than textile fabrics for general use. On that classification, the proper tariff treatment for additional duty of customs followed the entry applicable to goods of that nature, and the goods were brought under Tariff Item 68 for countervailing duty purposes. Because no countervailing duty existed for Tariff Item 68 at the relevant time, the goods were not liable to countervailing duty or additional duty of customs.

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Issues: Whether the imported machine cloth pieces were correctly classified for the purpose of additional duty of customs and whether any countervailing duty was leviable on them.

Analysis: The imported goods were described and accepted as pieces of machine cloth cut to size for direct fitting to machinery, and not as textile fabrics for general use. On that basis, the proper treatment for additional duty was under the tariff entry applicable to goods of the nature of machine parts rather than under the entries adopted by the lower authorities. The goods were held to fall under Tariff Item 68 for the purpose of countervailing duty, and it was noted that at the relevant time no countervailing duty existed for that item.

Conclusion: The goods were not liable to countervailing duty or additional duty of customs, and the appeal succeeded.

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