Yarn classification turns on the textile meaning of staple fibre; synthetic waste alone does not attract the higher heading.

Classification of yarn depended on whether the input material was synthetic staple fibre or merely synthetic waste. The tribunal held that "staple fibre" must be understood in its textile sense as fibre of uniform length, while the samples showed cut ends, knots and varying fibre lengths consistent with waste rather than staple fibre. Chemical reports were rejected because they proceeded on a misconception of that technical meaning, and the tariff structure and HSN notes also distinguished staple fibres from waste. The yarn was therefore not classifiable under Heading 55.06 and was correctly classified under Heading 55.05.

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Issues: Whether the disputed yarn, manufactured from artificial staple fibre blended with synthetic staple fibre waste, was classifiable under Heading 55.06 as yarn containing synthetic staple fibre or under Heading 55.05 as yarn not falling under the former heading.

Analysis: The classification turned on the meaning of "staple fibre" and whether the material used in manufacture was synthetic staple fibre or synthetic waste. The evidence showed that several samples of the raw material were described as waste, with varying fibre lengths, cut ends, knots and other features consistent with waste rather than staple fibre of uniform length. The chemical reports on the yarn samples were found to rest on a misconception of the textile meaning of staple fibre, and the Revenue did not produce any material beyond those reports to show that the yarn contained synthetic staple fibre in the relevant sense. The tariff scheme and the HSN notes also distinguished staple fibres from waste material, supporting the view that the presence of synthetic waste did not by itself attract Heading 55.06.

Conclusion: The yarn was not classifiable under Heading 55.06 and was rightly classified under Heading 55.05. The Revenue's case failed.

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