Tariff classification of bare copper wire less than 2 mm favoured sub-heading 7405.90 on trade understanding and board guidance.

Bare copper wire of less than 2 mm thickness was held to fall under sub-heading 7405.90, not sub-heading 7405.10 as electric wire, because the trade treatment and the Board's direction in Trade Notice No. 15/86-C.E. indicated that such wire was not regarded as electric copper wire. The classification issue turned on tariff interpretation and trade understanding of the product description. On that basis, the Tribunal accepted classification under sub-heading 7405.90 attracting nil duty, and the department's appeal was rejected.

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Issues: Whether bare copper wire of thickness less than 2 mm was classifiable under sub-heading 7405.90 attracting nil rate of duty or under sub-heading 7405.10 as electric wire attracting duty.

Analysis: The dispute turned on the proper tariff classification of bare copper wire. The earlier decision in the same dispute had relied on the Board's direction reflected in Trade Notice No. 15/86-C.E., dated 7-8-1986, and other materials to hold that bare copper wire less than 2 mm in thickness was not treated by trade as electric copper wire. Following that view, the Tribunal accepted the classification under sub-heading 7405.90.

Conclusion: Bare copper wire less than 2 mm in thickness was correctly classified under sub-heading 7405.90 and not under sub-heading 7405.10; the department's appeal was rejected.

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