Essential character test directs classification of PVC-coated nonwoven fabrics into Chapter 39, not textile chapters.

Composite non-woven coated fabrics with PVC are analysed under the Customs Tariff by reference to their essential character and the relevant chapter notes. Where PVC forms the predominant component and the textile layer serves mainly as reinforcement, Rule 3(b) of the General Rules for Interpretation applies and the goods are classified by the PVC component in Chapter 39. The notes to Section XI and Chapter 56 exclude nonwovens impregnated, coated, covered or laminated with plastics from textile classification, while Chapter 50 is inapplicable to goods unrelated to silk products. On that basis, the text states that the goods fall in Chapter 39, with end-use specific tariff items identified there.

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Issues: Whether non-woven coated fabrics coated, laminated or impregnated with PVC are classifiable under tariff item 56031400, and if not, whether they fall under chapter 50 or chapter 39 of the Customs Tariff.

Analysis: The product was found to be a composite of nonwoven fabric, adhesive coat and PVC sheet, with PVC forming the major constituent and the nonwoven forming only a smaller part of the total composition. Note 1(h) of Section XI excludes woven, knitted or crocheted fabrics, felt or nonwovens, impregnated, coated, covered or laminated with plastics, or articles thereof, of Chapter 39. The notes to Chapter 56 further exclude nonwovens that are fully or substantially covered with plastics or where the textile material is present merely for reinforcing purposes, and the product was held not to derive its essential character from the nonwoven component. Chapter 50 was found inapplicable because it covers silk and related silk products, which bore no relation to the goods in question. Applying Rule 3(b) of the General Rules for the Interpretation of the First Schedule to the Customs Tariff Act, the goods were treated as consisting of the component giving them their essential character, namely PVC, and therefore fell under Chapter 39. For the specified end uses such as table covers, television covers and washing machine covers, tariff item 392690 was held applicable, while bags were held classifiable under tariff item 3923, both attracting GST at 18%.

Conclusion: The classification claim under tariff item 56031400 was rejected, chapter 50 was excluded, and the goods were held classifiable under chapter 39, with the stated end products falling under the identified tariff items in chapter 39.

Ratio Decidendi: A composite good is classified according to the component that gives it its essential character, and a textile article impregnated or coated with plastics may be excluded from textile chapters where the plastic component predominates and the relevant chapter notes so provide.

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