Tariff classification of hydroquinone cream depends on therapeutic use, supporting medicament treatment over cosmetic classification.

Tariff classification of the product "Eukroma" turned on whether it was a medicament under heading 3003.10 or a cosmetic under heading 33.04. The product's hydroquinone content, recognition of that ingredient in the United States Pharmacopoeia, and evidence that it was sold on prescription for specific skin conditions supported treatment as a medicament. The Tribunal also relied on an earlier decision involving the same active ingredient, noting that the pendency of an appeal against that decision did not remove its persuasive force. In classification disputes where the tariff description requires consideration of the product's nature and use, therapeutic use remains material. The product was therefore classifiable as a medicament, not a cosmetic.

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Issues: Whether the product "Eukroma" was classifiable as a medicament under heading 3003.10 or as a cosmetic under heading 33.04.

Analysis: The product contained hydroquinone, an ingredient recognised in the United States Pharmacopoeia and used as a depigmentation agent. The classification adopted by the Commissioner (Appeals) was supported by technical material, affidavits indicating prescription-based sale for specific skin conditions, and the prior Tribunal decision treating a cream containing the same active ingredient as a medicament. The fact that an appeal had been preferred against the earlier decision did not detract from its binding force. Where tariff classification turns on the nature and use of the product, such use was relevant to the determination.

Conclusion: The product was correctly classified as a medicament under heading 3003.10 and not as a cosmetic under heading 33.04.

Final Conclusion: The departmental challenge to the classification failed and the dismissal of the appeal followed.

Ratio Decidendi: In tariff classification of a product, its active ingredient and intended therapeutic use are material where the tariff description requires consideration of the product's use; a product shown to be used for specific medical conditions may be classified as a medicament rather than a cosmetic.

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