Metallised polyester film not prepared audio tape: further processing was required, so OGL applied and confiscation failed.

Imported polyester film coated with ferric oxide was treated as metallised polyester film rather than prepared audio magnetic tape for import-control purposes because the goods still required further processing, including slitting and conversion steps, before use as sound recording media. The Department did not establish that the goods were fully prepared for recording or that mis-declaration was proved. On that basis, the goods fell within the OGL item, and confiscation and penalty were not sustained.

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Issues: Whether the imported polyester film coated with ferric oxide was to be treated as metallised polyester film or as audio magnetic tapes in jumbo rolls for import control purposes, and whether confiscation and penalty could be sustained.

Analysis: The imported goods were described in the documents as polyester film coated with ferric oxide. The controlling question was whether the goods were already prepared audio magnetic tapes or whether they were only metallised polyester films requiring further processing before they could be used as sound recording media. The Tribunal applied the earlier reasoning in the appellants' own case and noted that such goods undergo further physical processes, including slitting and related conversion steps, before becoming audio magnetic tapes. The Department did not establish that the goods were fully prepared for recording or that the allegation of mis-declaration was proved. On that basis, the goods were treated as metallised polyester film falling within the OGL item.

Conclusion: The imported goods were held to be metallised polyester film and not audio magnetic tapes in jumbo rolls. The import was covered by OGL, and the confiscation and penalty were set aside.

Ratio Decidendi: Goods imported as metallised polyester film, which require further processing before conversion into audio magnetic tape, are not to be treated as prepared audio recording media for import-control purposes.

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