Tariff classification of imported permanent magnets follows the specific Heading 8505 entry, not machine-part classification when imported separately.

Imported magnet separators are classified by the specific tariff entry for permanent magnets under Heading 8505, not as machine parts under Heading 8437.90, where Note 2(a) of Section XVI requires goods falling within a specific heading in Chapters 84 or 85 to be classified under that heading. The Harmonised System Explanatory Notes indicate that permanent magnets remain in Heading 85.05 regardless of intended use, and the exclusion for magnets presented with machines applies only when they are imported together with the machine of which they form part. Because the magnets were imported separately from the milling machine, the machine-part classification was inapplicable.

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Issues: Whether the imported magnet separator was classifiable as a machine part under Heading 8437.90 or as a permanent magnet under Heading 8505.90, and whether its separate import excluded it from classification with the milling machine.

Analysis: The classification turned on Note 2(a) of Section XVI of the Customs Tariff Act, which required goods falling within a specific heading in Chapters 84 or 85 to be classified under that heading. The impugned goods were admittedly permanent magnets. The Harmonised System Explanatory Notes showed that permanent magnets remain classified under Heading 85.05 regardless of their use, and the exclusion for magnets presented with machines applied only when they were imported along with the machines of which they formed part. Since the magnets were imported separately and not with the milling machine, the exclusion did not apply. The correct tariff position was thus under Heading 8505, more specifically sub-heading 8505.11, though the order under challenge had described them as 8505.90.

Conclusion: The goods were rightly classifiable under Heading 8505 and not under Heading 8437.90, and the revenue's classification prevailed.

Final Conclusion: The appeal failed because the imported magnet separator was treated as a permanent magnet falling within the specific tariff entry for Heading 85.05, with no basis to classify it as a machine part under Heading 84.37.

Ratio Decidendi: Where imported goods are specifically covered by a tariff heading as permanent magnets, they must be classified under that specific heading even if they are intended for use as parts of a machine, unless they are imported together with the machine for which they are designed to form part.

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