Zinc dross classification turned on whether electrolytic process material was residue or waste and scrap under tariff rules.

Zinc dross with high zinc content was held not to fall within Chapter Heading 26.02 as a residue, because that heading covers material emerging from ore or concentrate processing and typically with relatively lower metallic concentration. The goods arose instead from the electrolytic galvanising process, and the Tribunal treated the supporting classification material for non-ferrous scrap as consistent with scrap treatment rather than residue. On that basis, the goods were correctly classified under Tariff Heading 79.01 and the claim for classification under Chapter Heading 26.02 was rejected.

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Issues: Whether zinc dross with high zinc content was classifiable as residue under Chapter Heading 26.02 or as waste and scrap under Tariff Heading 79.01.

Analysis: Chapter 26 covers metal ores, slag, ash and residue, and the residue contemplated thereunder is of a kind emerging from the processing of ores or concentrates with relatively lower metallic concentration. The goods in question were not obtained from ore processing but arose in the electrolytic galvanising process. The Tribunal also treated the relied-upon non-ferrous scrap classification material as supporting the characterisation of the goods as scrap rather than residue. On that basis, the goods were not brought within Chapter Heading 26.02.

Conclusion: The goods were correctly classified under Tariff Heading 79.01 and the assessee's claim under Chapter Heading 26.02 was rejected.

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