Prepared adhesives classification sustained for seven products; composition and prior rulings defeated the proposed alternative tariff headings.

Seven manufactured products were classified under Heading 35.06 as prepared glues and other prepared adhesives because their composition and character matched earlier adhesive and mastic decisions. The first six products were aqueous dispersions with only about 10 to 15 per cent rubber content, so the Chemical Examiner's report was not sufficient to bring them under Heading 40.05. The seventh product, a free-flowing liquid of natural resin in volatile organic solvent, was also treated as a prepared adhesive product rather than goods under Heading 38.23. The contrary departmental classification was rejected.

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Issues: Whether the seven products manufactured by the appellants were classifiable under Heading 35.06 as prepared glues and other prepared adhesives, or under Heading 40.05 and Heading 38.23 as proposed by the Department.

Analysis: The products were examined on the basis of their composition. The first six items were found to be aqueous dispersions containing synthetic rubber, natural rubber, zinc oxide, fillers and other ingredients, but the Tribunal found that the rubber content was only about 10 to 15 per cent and that the products were more akin to the goods considered in earlier decisions on prepared adhesives and mastics. The Chemical Examiner's report, relied upon by the Department, was held insufficient to justify classification under Heading 40.05. The seventh item was a free flowing liquid composed essentially of natural resin in volatile organic solvent, and was also considered to fall with the same class of prepared adhesive products rather than under Heading 38.23.

Conclusion: All seven products were held classifiable under Heading 35.06 of the Central Excise Tariff, and the contrary classification under Heading 40.05 and Heading 38.23 was rejected.

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