Vessel classification under Tariff Heading 89.06 prevails for a navigable hull despite intended floating hotel use.

A completely assembled hull was treated as a vessel under Tariff Heading 89.06 because Chapter 89 distinguishes vessels from floating structures, and the records showed the goods were navigable and formed part of a vessel. The intended use as a floating hotel did not change their character into an other floating structure under Heading 89.07. As the goods did not fall within the specific floating-structure heading, they were classified under the residuary vessel heading in favour of the assessee.

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Issues: (i) Whether the imported completely assembled hull was classifiable as a vessel under Tariff Heading 89.06 or as an other floating structure under Tariff Heading 89.07.

Analysis: Chapter 89 distinguishes between ships, boats and other vessels on the one hand, and floating structures on the other. The imported goods were supported by certificates and other records indicating that they were navigable and constituted a hull, which is part of a vessel. The mere fact that the goods were intended to be used as a floating hotel did not convert them into a floating structure of the kind contemplated by Heading 89.07. The goods did not fit within the specific headings for vessels and, being a hull, were covered by the residuary vessel heading.

Conclusion: The goods were classifiable under Tariff Heading 89.06 and not under Tariff Heading 89.07, in favour of the assessee.

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