Tariff classification of calcium propionate: product held to be an organic chemical under Chapter 29, not a fungicide.

Calcium propionate was held classifiable as an organic chemical under Chapter 29, not as a fungicide under Chapter 38. Classification turned on the tariff description and the product's chemical character as the calcium salt of propionic acid, rather than its end use in preventing fungus in baked goods. The analysis noted that Chapter 38 covered insecticides, fungicides and similar products, while Chapter 29 covered saturated acyclic monocarboxylic acids and their derivatives. On that basis, the product could not be treated as a miscellaneous chemical product under Chapter 38 merely because of its preservative use. The classification issue was decided in favour of the Revenue.

---

---

Issues: Whether calcium propionate was classifiable under Chapter 38 as a fungicide or under Chapter 29 as an organic chemical.

Analysis: The product was described by the chemical report as an organic chemical, namely the calcium salt of propionic acid. The tariff entries for Chapter 38 covered insecticides, fungicides and similar products, while Chapter 29 covered saturated acyclic monocarboxylic acids and their derivatives. The Court found that end use by itself was not decisive for classification and that the product could not be treated as a miscellaneous chemical product under Chapter 38 merely because it was used to prevent fungus in baked goods. On the tariff description and the chemical character of the product, it fell within the scope of organic chemicals under Chapter 29.

Conclusion: Calcium propionate was not classifiable under Chapter 38 and was classifiable under Chapter 29. The appeal was therefore decided in favour of the Revenue.

---