Textile lubricating preparation exemption depends on product composition, use, and a clear fit with the notification entry.

Eligibility for exemption turned on whether "Lomafinish 45" was a textile lubricating preparation. The product was analysed as mainly an organic surface-active agent with a small quantity of mineral oil, and the exemption entry was noted to cover lubricating preparations used for oil and grease treatment of textiles and leather. The tariff note also referred to water-dispersible textile lubricating preparations containing surface-active agents, mineral oils and other chemicals. The appellate reasoning was found internally inconsistent because it accepted the product as a lubricating preparation yet treated it as one used for oil treatment without clear basis. The order was set aside and the matter remitted for fresh examination of composition, use and notification eligibility.

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Issues: Whether the product "Lomafinish 45" was a textile lubricating preparation eligible for exemption under the relevant notification.

Analysis: The product was tested as consisting mainly of an organic surface-active agent with a small quantity of mineral oil. The exemption entry covered lubricating preparations, including preparations used for the oil and grease treatment of textiles and leather. The explanatory material for the tariff heading also referred to water-dispersible textile lubricating preparations containing surface-active agents with mineral oils and other chemicals. The appellate finding was internally inconsistent, because it accepted the product as a lubricating preparation yet treated it as one used for oil treatment without clear reasoning.

Conclusion: The impugned order was set aside and the matter was remitted for fresh examination of the product's composition and use and for a fresh decision on eligibility to the notification.

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