Tariff classification of terpene oil turns on retail or measured-dose packing, not therapeutic use alone.

Terpene oil BP/BPC was analysed for tariff classification under Chapter 30 and Chapter 29. The product was treated as an unmixed product suitable for therapeutic or prophylactic use, but it was cleared in bulk for further manufacture and was not put up in measured doses or in retail or hospital packings. On that basis, it could not qualify as a medicament under Chapter 30. It was therefore classifiable as a cyclic alcohol under Heading 29.06, specifically sub-heading 2906.90, rather than sub-heading 3003.30.

---

---

Issues: Whether terpene oil BP/BPC is classifiable as a medicament under sub-heading 3003.30 or as a cyclic alcohol under sub-heading 2906.90.

Analysis: The product was held to be a cyclic alcohol covered by Heading 29.06. Chapter Note 2 to Chapter 30 limits medicaments to goods that either comprise mixed or compounded products for therapeutic or prophylactic use, or unmixed products suitable for such use but put up in measured doses or in retail or hospital packings. Although the product was treated as an unmixed product suitable for therapeutic or prophylactic use, it was cleared in bulk for further manufacture and was not put up in measured doses or in packings for retail sale or hospital use. It therefore could not fall under Chapter 30.

Conclusion: The product is classifiable under sub-heading 2906.90 and not under sub-heading 3003.30.

Final Conclusion: The Revenue's classification claim succeeded and the assessee's claim to medicament classification failed.

Ratio Decidendi: An unmixed product suitable for therapeutic or prophylactic use is classifiable as a medicament under Chapter 30 only if it is put up in measured doses or in packings for retail sale or for use in hospitals; otherwise, classification must be determined under the heading appropriate to its chemical character.

---