Customs classification of automatic soap dispenser turns on dispersing liquid soap versus spraying liquid under tariff headings.

Classification of a sensor-based automatic soap dispenser turned on whether its essential function was to disperse liquid soap or to spray liquid. The analysis treated Chapter Heading 8424 as covering mechanical appliances for dispersing liquids, while Chapter Heading 9616 was regarded as covering sprays, including toiletry sprays, with the HSN notes to Chapter 9616 excluding appliances falling under Chapter 8424. On that reasoning, the product was classified under Customs Tariff Item 8424 89 90 and not under Customs Tariff Item 9616 10 20, making the Department's classification incorrect.

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Issues: Whether the imported automatic soap dispenser was classifiable under Customs Tariff Item 8424 89 90 or under Customs Tariff Item 9616 10 20.

Analysis: The imported product operated as a sensor-based automatic dispenser that detected a hand and discharged foam by mixing air and soap. Its essential function was to disperse liquid soap, not to spray liquid. Chapter Heading 8424 covers mechanical appliances for dispersing liquids, whereas Chapter Heading 9616 concerns sprays, including toiletry sprays. The distinction between dispersing and spraying was material, and the HSN notes to Chapter 9616 specifically exclude appliances covered under Chapter 8424.

Conclusion: The automatic soap dispenser was classifiable under Customs Tariff Item 8424 89 90 and not under Customs Tariff Item 9616 10 20. The classification adopted by the Department was held to be incorrect and the assessee succeeded.

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