Marketability governs excisability of waste and scrap from magnetic tape manufacture, with tariff entry alone held insufficient.

Waste and scrap arising in the manufacture of audio-video magnetic tape was treated as excisable only if marketability was established. The Department relied on the tariff entry and a reference to similar clearances by another manufacturer, but no material on record proved that the waste and scrap was marketable. The lower appellate finding of non-marketability was left unrebutted, and the tariff entry alone was found insufficient to fasten duty liability. The marketability criterion therefore remained determinative, and the non-marketable character of the waste and scrap was upheld.

---

---

Issues: Whether waste and scrap arising in the manufacture of audio video magnetic tape was excisable in the absence of proof of marketability.

Analysis: The Department relied on the tariff entry and on a reference to similar clearances by another manufacturer, but the record did not contain material establishing that the waste and scrap of audio/video magnetic tape was marketable. The lower appellate finding that the item was not marketable remained unrebutted, and the tariff entry by itself was held insufficient to fasten duty liability.

Conclusion: The marketability criterion was held to be relevant, and the finding that the waste and scrap was not marketable was upheld; the appeal was rejected.

---