Antibiotic classification of 7 ADCA upheld over amine compound heading, with burden of exclusion proof left unmet.

7 ADCA was treated as classifiable under sub-heading 2941.90 as an antibiotic, because the product showed anti-microbial properties and belonged to the cephalosporin beta-lactam group. Its amine function did not, by itself, require classification under sub-heading 2921.00, since compounds with that functional group may still be antibiotics. The Revenue failed to prove the product fell within the exclusionary categories used to deny coverage under heading 2941.90, and the expert opinion and test reports supported classification as an antibiotic despite its use as an intermediate in further manufacture.

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Issues: Whether 7 ADCA was classifiable under sub-heading 2921.00 as an amine function compound or under sub-heading 2941.90 as an antibiotic, and whether the Revenue had established its exclusion from the latter heading.

Analysis: The product was shown to possess anti-microbial properties and to belong to the cephalosporin beta-lactam group of antibiotics. The fact that it is an amine function compound did not by itself determine classification, because compounds with that functional group may still be antibiotics. The Revenue did not discharge the burden of proving that the product fell within the exclusionary categories relied upon to deny coverage under heading 2941.90. The evidence, including expert opinion and test reports, supported treatment of 7 ADCA as an antibiotic, even though it was also used as an intermediate in further manufacture.

Conclusion: 7 ADCA was correctly classifiable as an antibiotic under sub-heading 2941.90, not under sub-heading 2921.00.

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