Tariff classification of knitted cotton fabrics turned on binding chapter notes and section notes, supporting sub-heading 6002.92.

Knitted cotton fabrics containing elastomeric yarn were examined for classification under competing tariff sub-headings 6002.92 and 6002.30. The interpretative issue was whether the tariff headings could be read independently or had to be applied with the relevant section notes and chapter notes. The Tribunal treated those notes as statutory and binding, giving them overriding effect in determining the proper classification. Applying that approach, the goods were placed under sub-heading 6002.92 rather than the heading favoured by the department, and the assessee succeeded.

---

---

Issues: Whether knitted cotton fabrics containing elastomeric yarn were classifiable under sub-heading 6002.92 or sub-heading 6002.30, and whether section notes and chapter notes governed the classification over the competing tariff headings.

Analysis: The classification dispute turned on the interaction between the tariff headings and the section and chapter notes. The applicable interpretative rule required classification to be determined according to the terms of the sub-headings together with the relevant chapter and section notes. The Tribunal treated the notes as statutory and binding, and held that they could override or control the scope of the headings. On the facts, the product was held to fall within the classification supported by the tariff notes rather than the more specific heading relied on by the department.

Conclusion: The goods were correctly classifiable under sub-heading 6002.92, and the assessee succeeded.

Ratio Decidendi: In tariff classification, section notes and chapter notes have binding and overriding effect, and they must be applied to determine the proper heading or sub-heading where the tariff entry cannot be read in isolation.

---