Acrylic polymer classification supports exemption where "based on" is read broadly under the notification wording.

A copolymer predominantly composed of acrylic monomer and partly of styrene monomer was treated as classifiable under heading 3906.90 as an acrylic polymer, and that classification supported exemption eligibility under Notification No. 14/92. The phrase "based on" in the exemption entry was held not to mean "consisting of", so the absence of any vinyl monomer did not by itself defeat relief where the goods otherwise matched the notified description and tariff heading. On that basis, the copolymer qualified as a copolymer resin emulsion based on acrylic and/or vinyl monomer, and the exemption was allowed.

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Issues: Whether a copolymer composed predominantly of acrylic monomer and partly of styrene monomer was entitled to exemption under entry 5 of Notification No. 14/92 as a copolymer resin emulsion based on acrylic and/or vinyl monomer, and whether its classification under heading 3906.90 supported that entitlement.

Analysis: The exemption was available only if the goods satisfied both the description in the notification and the tariff heading specified therein. The expression "based on" in the notification could not be read as "consisting of", and the scope of the relevant tariff heading had to be considered. Since the acrylic component predominated by weight, the goods were classifiable as an acrylic polymer under heading 3906.90. In that situation, the absence of any vinyl monomer did not defeat the exemption, because the notification covered copolymer resin emulsion based on acrylic and/or vinyl monomer.

Conclusion: The copolymer was eligible for the exemption and the department's challenge failed.

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