Classification of pre-cured tread rubber as further worked goods placed them under the residuary heading, not the exemption-linked entry.

Pre-cured tread rubber plates, sheets and strips used for resoling, repairing or retreading tyres were treated as products further worked after extrusion because the material was pressed in a hydraulic press to form grooved tread. As Chapter Note 9 to Chapter 40 covered plates, sheets and strips only when of regular geometric shape and not cut to shape or further worked, the goods did not fall under sub-heading 4008.21. The proper classification was under residuary sub-heading 4016.99, and the exemption under Notification No. 47/76-C.E. linked to the former classification was not available.

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Issues: Whether pre-cured tread rubber plates, sheets and strips used for resoling, repairing or retreading tyres were classifiable under sub-heading 4008.21 or under sub-heading 4016.99, and whether the exemption under Notification No. 47/76-C.E. was available.

Analysis: Chapter Note 9 to Chapter 40, as it stood during the relevant period, covered plates, sheets and strips only if they were of regular geometric shape and were not otherwise cut to shape or further worked. The manufacturing process showed that after extrusion the material was subjected to pressing in a hydraulic press to produce grooved pre-cured tread, which was a further working of the material and not merely surface working. On that basis, the products did not answer the description of plates, sheets and strips falling under sub-heading 4008.21, and the residuary heading 4016.99 was the proper classification.

Conclusion: The goods were not classifiable under sub-heading 4008.21 and the exemption linked to that classification was not available; the department's classification under sub-heading 4016.99 was upheld.

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