Tariff classification of isocyanate prepolymers: product classified under Chapter 29, not Chapter 39, on chapter note analysis.

The classification dispute concerned whether Desmodur L-67 fell under Tariff Heading 2929.10 or 3909.50. The analysis treated the product as an isocyanate prepolymer used for urethane coatings, foams and adhesives, and relied on the relevant chapter notes and prior Tribunal rulings. On that basis, the objection under Chapter 39 and Chapter Note 3(e) was rejected, and the product was classified under Heading 2929.10 rather than 3909.50.

---

---

Issues: Whether Desmodur L-67 was classifiable under Tariff Heading 2929.10 or under Tariff Heading 3909.50.

Analysis: The classification dispute turned on the description of the product and the effect of the chapter notes. The product had earlier been considered by the Tribunal in decisions relied upon by the assessee, and those decisions had taken into account the relevant chapter notes. The product was described as a trade mark for a group of isocyanates and isocyanate prepolymers used for urethane coatings, foams and adhesives. Even though it was a prepolymer, the reasoning accepted that it fell within Chapter 29 rather than Chapter 39, and the objection based on Chapter Note 3(e) was rejected.

Conclusion: The product was held classifiable under Tariff Heading 2929.10 and not under Tariff Heading 3909.50, in favour of the assessee.

Ratio Decidendi: A product described as an isocyanate prepolymer remains classifiable under Chapter 29 where the relevant tariff notes and prior classification rulings support that classification, notwithstanding an objection under Chapter 39.

---