Classification of crayon-making material turns on colouring preparation rules, placing the goods under Chapter 32 rather than Chapter 39.

Imported polyethylene-based material used for crayon manufacture was classified as preparations based on colouring matter rather than as polyethylene under Chapter 39. The goods tested as synthetic resin, wax, fillers and colouring matter, with polyethylene as the predominant constituent, but the HSN notes to Chapter 39 and Note 3 to Chapter 32 treated colouring preparations used to colour materials, and concentrated dispersions of colouring matter in plastics, as falling within Headings 32.03 to 32.06 and outside Chapter 39. The titanium dioxide-based component was also treated as a colouring preparation used as an ingredient in crayons. The correct classification was therefore under Headings 3204.17 and 3206.10.

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Issues: Whether the imported polyethylene-based material used for manufacturing crayons was classifiable under Heading 3901.10 as claimed by the importer, or under Headings 3204.17 and 3206.10 as preparations based on colouring matter and titanium dioxide.

Analysis: The imported goods were found on test to consist of synthetic resin, wax, fillers and colouring matter, with polyethylene as the predominant constituent. The Tribunal relied on the HSN notes to Chapter 39 and Note 3 to Chapter 32, which treat preparations based on colouring matters used for colouring any material or as ingredients in colouring preparations as falling within Headings 32.03 to 32.06 and excluding concentrated dispersions of colouring matter in plastics from Chapter 39. The material was accepted as a preparation used in the manufacture of crayons, and the titanium dioxide-based portion was also treated as a colouring preparation used as an ingredient in crayons.

Conclusion: The goods were correctly classified under Headings 3204.17 and 3206.10 and not under Heading 3901.10.

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