Waste from lead alloy manufacture classified as metal scrap, not ash or residues, under the tariff heading applied.

Scrap oxide lump grades arising during manufacture of lead alloy were classifiable as waste and scrap of lead under Heading 78.02 because Section XV treats metal to include alloys and defines waste and scrap as metal waste from manufacture or mechanical working. Chapter 26 was inapplicable because Heading 26.20 is limited to ash and residues used for extraction of metals or for making metal compounds, and the goods were generated in alloy manufacture, not from ores or the processes contemplated by that heading. The tariff classification under Heading 78.02 was therefore upheld.

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Issues: Whether scrap oxide lump grades B-80.14% and C-74% arising during manufacture of lead alloy were classifiable under Heading No. 78.02 as waste and scrap of lead, or under Heading No. 26.20 as ash and residues.

Analysis: The goods arose during manufacture of lead alloy in which lead predominated by weight. Section Note 4 of Section XV treats a reference to metal as including alloys, and Section Note 6 defines waste and scrap as metal waste and scrap from the manufacture or mechanical working of metals. Chapter 26, on the other hand, covers ores, slag and ash, and Chapter Note 3 confines Heading No. 26.20 to ash and residues used for extraction of metals or for manufacture of chemical compounds of metals. The goods in question were generated during the manufacturing process of alloy and not from the treatment of ores or from processes of the kind contemplated by Heading No. 26.20.

Conclusion: The goods were correctly classifiable under Heading No. 78.02 and not under Heading No. 26.20.

Final Conclusion: The appeal failed on the classification dispute and the departmental view on tariff classification was upheld.

Ratio Decidendi: Waste generated during manufacture of a metal alloy is classifiable as waste and scrap under Section XV, and not as ash and residues under Chapter 26 unless it answers the specific tariff description in that heading.

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