Tariff classification of cellulose acetate phthalate turned on its status as a cellulose derivative, excluding the residuary heading.

Cellulose acetate phthalate was treated as a chemical derivative of cellulose, produced by reaction of cellulose acetate with phthalic acid, and therefore fell within heading 39.12. Arguments based on its use in bulk drugs, its appearance in pharmacopoeia, and its alleged chemically defined nature were held irrelevant to tariff classification. Because the specific heading covered the product, the residuary heading 29.42 could not apply. The classification was accordingly under heading 39.12 rather than the residuary entry.

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Issues: Whether cellulose acetate phthalate was classifiable under heading 39.12 or under the residuary heading 29.42.

Analysis: Heading 39.12 was held to cover cellulose and its chemical derivatives. The product in question was found to be a chemical derivative of cellulose, obtained by reaction of cellulose acetate with phthalic acid. The grounds relied upon for classification under the residuary entry, including its use in bulk drugs, its appearance in pharmacopoeia, and its alleged chemically defined nature, were treated as irrelevant to the tariff classification exercise. Since heading 39.12 specifically covered the product, the residuary heading could not apply.

Conclusion: The product was classifiable under heading 39.12 and not under heading 29.42, in favour of Revenue.

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