Customs classification of imported Isocyanate turned on set composition and exclusion for separate chemically defined compounds.

Imported Isocyanate was treated by the majority as a constituent of a set imported with Polyol for manufacture of Polyurethane, so the goods fell within Heading 3909.50 under the Chapter 39 classification rules. The majority held that the conditions in Note 1 to Section VII were satisfied and that no convincing material showed the item was a separate chemically defined compound excluded by Note 2(b) of Chapter 39. The dissent took the opposite view, treating Isocyanate as a separate chemically defined organic compound classifiable under Heading 2929.10 and finding the Chapter 39 notes inapplicable.

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Issues: Whether imported Isocyanate was classifiable under Heading 2929.10 or under Heading 3909.50 of the Customs Tariff Act in view of the notes governing goods put up in sets intended to be mixed together for obtaining a product of Section VI or VII.

Analysis: The majority found that the goods were imported together with Polyol in the same container for manufacture of Polyurethane and that the conditions in Note 1 to Section VII were satisfied. On that basis, Isocyanate was treated as a constituent of the set and classifiable with the product under Chapter 39. The majority also held that no convincing material had been produced to show that the item was a separate chemically defined compound excluded by Note 2(b) of Chapter 39. The dissent held that Isocyanate was a separate chemically defined organic compound specifically covered by Heading 2929.10 and that the process of manufacture involved more than mere mixing, so the conditions for Chapter 39 classification were not met.

Conclusion: The majority held that Isocyanate was classifiable under Heading 3909.50 and not under Heading 2929.10, and the appeals failed.

Dissenting Opinion: S.L. Peeran, Member (J), held that Isocyanate was a separate chemically defined compound falling under Heading 2929.10 and that the Chapter 39 notes were not attracted because the goods were not merely mixed together to obtain the final product.

Ratio Decidendi: Where goods are presented together as complementary constituents intended to be used together for obtaining a product of Section VI or VII, they may be classified under the heading appropriate to that product unless the importer establishes that the item is specifically excluded as a separate chemically defined compound.

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