1991 (5) TMI 164 - AT - Customs

Tribunal Upholds Classification of Polyurethane Resin:

The Tribunal upheld the Collector (Appeals) decision, confirming that Polyurethane Resin Polytetramethlene Adipate Glycol (PTMAG) is properly classified ... Classification Issues:Classification of Polyurethane Resin Polytetramethlene Adipate Glycol (PTMAG) under Heading 3907.99 as 'other polyesters' or under 2905 as 'other Diols'.Detailed Analysis:The appeal was against the order confirming the classification of PTMAG as 'other polyesters' under Heading 3907.99 instead of 'other Diols' under 2905.39. The Chief Chemist's report stated that PTMAG is a synthetic polymer with more than five monomer units, classifiable under Chapter 39 based on the number of monomer units. The appellants argued that PTMAG is a Diol or glycol, specifically covered under 2905.39. They referred to chemical dictionaries and supplier's literature to support their claim.The Department contended that PTMAG is a polymerized product with more than five monomer units, falling under Chapter 39 as per Chapter Note 3(c). The Chief Chemist's opinion supported this classification. The Department emphasized that the Assistant Collector's decision was based on the Chief Chemist's report, which was not challenged by the appellants. The Department also highlighted the Rule 3(c) of the Rules for Interpretation of the Tariff.The Tribunal considered both parties' submissions and analyzed the classification criteria. It was noted that PTMAG contains an ester chain provided by adipic acid, making it more than a Diol. The General Explanatory Note to the Tariff indicated that products under Heading 29.05 should be sub-classifications of the articles covered by that heading. The Chief Chemist's report, confirming PTMAG as a polymer with more than five monomer units, supported the classification under Chapter 39. Textual authorities also supported the classification of PTMAG as a polyester under Heading 3907.99.The Tribunal upheld the Collector (Appeals) decision, concluding that PTMAG is correctly classified as 'other polyesters' under Heading 3907.99 and not as 'other Diols' under Heading 29.05. The alternate claim for classification under Heading 38.23 was also rejected as PTMAG was not a mixture of glycols. The decision was based on a detailed consideration of textual authorities and HSN Notes, affirming the classification of PTMAG as a raw material for the manufacture of thermoplastic polyurethane under Chapter 39. The appeal was ultimately rejected.