Tariff classification of ferric oxide coated polyester film turns on whether it is prepared sound recording media or raw material

Imported polyester film coated with ferric oxide was examined for tariff classification and import entitlement. The key issue was whether the goods had reached the stage of prepared media for sound recording or remained polyester film classifiable under Chapter 39. Because the film was only a material intended for later use in making magnetic tape and was not yet a ready-to-use recording medium, it was classified under Heading 39.01/06 rather than Chapter 92. On that basis, the import qualified for the benefit of Notification No. 230/83-Cus., and the additional import licence produced was treated as sufficient for the import.

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Issues: Whether the imported polyester film coated with ferric oxide was classifiable under the customs tariff as prepared media for sound recording or under Chapter 39 as polyester film, and whether it was entitled to the benefit of Notification No. 230/83-Cus. and covered by the additional import licence.

Analysis: The imported goods were polyester films coated on one side with ferric oxide and presented in rolls. The decisive question was whether, in the form imported, they had reached the stage of prepared media for sound recording. The exclusion clause in the relevant tariff framework showed that articles intended for recording but not yet prepared as such remain classifiable in their own chapter. The imported film was found to be only intended for use in making magnetic tapes and had not yet become a fully prepared medium for sound recording. On that basis, it fell under Heading 39.01/06 and not under Chapter 92. As a consequence, the exemption under Notification No. 230/83-Cus. was available, and the additional licence produced was sufficient for import of the goods.

Conclusion: The imported item was classifiable under Chapter 39, was entitled to the notification benefit, and the licence was valid for the import. The decision was in favour of the assessee.

Ratio Decidendi: Where an imported article is only a material intended for eventual use as recording media and has not yet been prepared into a ready-to-use magnetic tape, it remains classifiable under its own tariff heading and is not treated as prepared media for sound recording.

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