Konica Minolta Business Solutions Australia Pty Ltd and Chief Executive Officer of Customs
[2004] AATA 613
•18 June 2004
Administrative
Appeals
Tribunal
DECISION AND REASONS FOR DECISION [2004] AATA 613
ADMINISTRATIVE APPEALS TRIBUNAL )
) N 2003/767
GENERAL ADMINISTRATIVE DIVISION ) Re KONICA MINOLTA BUSINESS SOLUTIONS AUSTRALIA PTY LTD Applicant
And
CHIEF EXECUTIVE OFFICER OF CUSTOMS
Respondent
DECISION
Tribunal Ms N BELL, Member Date18 June 2004
PlaceSydney
Decision The decision under review is set aside. In substitution therefor the Tribunal decides that the goods should be classified under heading 9009.99.00 of Schedule 3 of the Customs Tariff Act 1995.
[Sgd] Ms N Bell, Member
CATCHWORDS
CUSTOMS DUTIES – customs tariffs – toner cartridges for photocopiers – classification of goods – classified as ‘parts’ of photocopiers – decision set aside
Customs Tariff Act 1995 Schedule 2, Schedule 3
Customs Act 1901 section 163 and 167
Administrative Appeals Tribunal Act 1975 section 37
Epson Australia Pty Ltd v Chief Executive Officer of Customs [2004] AATA 324
Mita Copystar America v United States 160 F 3d 710 (1998)
Re Sharp Corporation of Australia Pty Ltd and Collector of Customs (AAT 8422, 11 December 1992)
Sharp Corporation Australia Pty Ltd v Collector of Customs (1995) 59 FCR 6
Re Transaction Australia Pty Ltd and Collector of Customs 4-ALN N89
Watersheid Australia Pty Ltd v Collector of Customs 7 AAR 555
Deputy Commissioner of Taxation v Polaroid Australia Pty Ltd 46 ALJR 32
National Panasonic (Australia) Pty Ltd and Collector of Customs 7 ALD 647
REASONS FOR DECISION
18 June 2004 MS N BELL 1. On 25 February 2002, Konica Minolta Business Solutions Australia Pty Ltd (“the Applicant”) lodged Tariff Advice 15901800 claiming heading 9009, under Schedule 3 of the Customs Tariff Act 1995 (“the Act”), for goods described as:
“Toner cartridges for photocopying apparatus, comprising a cartridge mechanism filled with toner – Item Numbers: 7075; 1112; 1512; 1312; 1020; 7024; 1012; 7033; 7040; 7020; 7035; 1515 and 7030.”
2. Heading 9009 is “PHOTOCOPYING APPARATUS INCORPORATING AN OPTICAL SYSTEM OR OF THE CONTACT TYPE AND THERMO-COPYING APPARATUS” and the sub headings particularly claimed by the Applicant were 9009.9 – “Parts and Accessories” and 9009.99.00 – “Other”. Classification of the goods under these headings would mean that the goods enter Australia tariff free.
3. On 8 April 2002 Customs (“the Respondent”) classified the goods to heading 3707 which is “CHEMICAL PREPARATIONS FOR PHOTOGRAPHIC USES (OTHER THAN VARNISHES, GLUES, ADHESIVES AND SIMILAR PREPARATIONS); UNMIXED PRODUCTS FOR PHOTOGRAPHIC USES, PUT UP IN MEASURED PORTIONS OR PUT UP FOR RETAIL SALE IN A FORM READY FOR USE” and the sub heading particularly relied upon by the Respondent was 3707.90.00 – “Other”. Classification of the goods under these headings would make them liable for a 5% tariff.
4. I note that heading 3707 comprises two limbs; the first being “chemical preparations for photographic uses” and the second being “unmixed products for photographic uses, put up in measured portions or put up for retail sale in a form ready for use”.
5. The Applicant paid the tariff under protest as provided for in section 167 of the Customs Act 1901 (“the Customs Act”) and challenged the decision. After internal review by the Respondent, the decision was not changed.
6. The Applicant, if successful in this application, may be entitled to a refund of the duty paid under protest (see section 163 of the Customs Act).
Issues
7. The Tribunal must first identify the goods the subject of the application and must then undertake the more complex task of classifying the goods under the appropriate heading and subheading of Schedule 3 of the Act.
Identification
8. As to identification, the principles to be applied are summarised in the Tribunal’s decision in Epson Australia Pty Ltd v Chief Executive Officer of Customs [2004] AATA 324, paragraphs 5 to 8 (Attachment 1).
9. The goods were described by the Respondent in its statement under section 37 of the Administrative Appeals Tribunal Act 1975 as follows:
“The products in question are toner cartridges for photocopying apparatus, comprising a cartridge mechanism filled with toner. The cartridge has mechanical features and acts as a dispensing unit for a copier. Each cartridge is specific to a model. The cartridge is locked into position within the machine and forms part of the mechanics of the photocopier. … In addition, Item 1312 has a cleaning pad.”
10. The evidence of Mr Brett Buckingham, National Service Manager for Konica Minolta Business Solutions Australia Pty Ltd, described the goods and the process of photocopying. In his statement dated 21 November 2003 (Exhibit A1) he said:
“Each of the toner cartridges referred to in paragraph 6 is suitable for use solely with that particular make or model of photocopier as set out in that paragraph. Each toner cartridge is designed to perform a mechanical function within the operation of that specific photocopier only. The toner cartridges are specifically designed for each particular model of photocopier for the following reasons:
i)toner cartridges vary in size, shape and volume due to differences in photocopying capacities of the various machines; and
ii)Konica toner cartridges have a number of design features that fit only with the corresponding photocopying machines. These design features make it impossible for owners of various makes and models of photocopiers referred to in paragraph 6 to buy and use toner cartridges from competitors or manufacturers of counterfeit products. The design features in each case take the form of ridges and grooves on the body of the cartridge known as “keys”. Each key will only lock into the corresponding photocopier model.
8.Each of these cartridges is imported in the form and packaging which is ultimately sold at a retail level. Konica fits and supplies a toner cartridge with every new photocopier sold. Konica toner cartridges may also be purchased separately.
The Operation of Photocopiers
9.The document to be copied is placed on the glass surface and is illuminated by light. The light is absorbed by the black sections of the document and reflected by the white sections onto the photosensitive drum by use of lenses and mirrors.
10.The light on the drum creates an electrostatic image of the original document on the surface of the drum. The white sections of the original document leave no charge on the drum and the black sections leave a charge.
11.Within the photocopier is a receptacle known as developing unit. The developing unit contains a mixture of toner and developer. This mixture of substances enables a toner to be carried through the developing unit and to the photosensitive drum.
12.Particles of toner have the opposite electrostatic charge to that on the drum. Therefore, as the drum rotates past the developing unit, toner is attracted to the drum and creates a toned image of the original document on the surface of the drum.
13.The paper feeding unit synchronises the feeding of copying paper so that the leading edge of the paper coincides exactly with the leading edge of the toned image on the drum.
14.A suitable charge is then applied to the copying paper to enable the transfer of the toned image to the paper and also separate the paper from the drum.
15.The toned image on the paper is then fixed by the application of heat and pressure in the fixing unit of the copier.”
11. Mr Buckingham then described, at paragraphs 17 to 49 of his statement, the particular features of each of the 13 types of toner cartridge comprising the goods. Those features were accurately summarised in the Applicant’s Outline of Submissions in the following terms:
“a) Most have a moulded “collar” with position lugs which is fitted into the photocopier.
b) Each has an orifice from which toner may be dispensed.
c) Most have spiral ridges within the cartridge which serve to
i) transfer the toner to the dispensing orifice, and
ii) agitate the toner to ensure it is evenly spread and to prevent lumps forming.
d)One model (7024) has an internal mechanism to transfer and agitate the toner.
e)Some have a waste toner collection box, which prevents toner from spreading throughout the photocopier.
f)All cartridges, when they are locked into position, have seals preventing the escape of toner.
g)Each toner cartridge may only be used in the photocopier for which it has been designed. The photocopier will not function without the toner cartridge being properly inserted in the photocopier.
h) None of the toner cartridges is able to be refilled.”
12. In cross examination, Mr Buckingham was shown Exhibit R2, a Material Safety Data Sheet for Konica Developer, showing the composition of “carrier”, confirmed by Mr Buckingham as developer and toner. I note that toner was described in the Data Sheet as having six ingredients. Mr Buckingham confirmed that in the process of photocopying the developer becomes mixed with the toner, transfers to a roller and the roller transfers it onto a photosensitive drum which in turn transfers it onto the paper. He said the developer does not leave the developing unit but stays there while the toner is applied to the drum and then to the paper. He confirmed that the toner is dispensed into the developing unit on an as needed basis.
13. Mr Buckingham was also shown Exhibit R1, an explanation of how photocopiers work. He confirmed that, in the process of photocopying, the toner, a fine negatively charged plastic based powder, becomes stuck on to larger positively charged beads which are then rolled over the drum. This process of “sticking” takes place, according to Mr Buckingham, in the developer unit and not within the toner cartridge.
14. I would add to a description of the goods that all cartridges are made of plastic except for Items 1020, 1512 and 1515 which are comprised of a thin cardboard tube with plastic ends.
15. On the basis of the above evidence, I find that the goods may be identified as toner cartridges for photocopying apparatus (photocopiers), comprised of, as one component, toner (a chemical product comprised of six substances as set out in the Material Data Safety Sheet) contained in a plastic or, in the case of Items 1020, 1512 and 1515, plastic and cardboard cartridge, the second component. The toner component of the goods is consumed in the process of photocopying. Each cartridge has the mechanical function of transferring, agitating and dispensing toner within the photocopier, sealing the toner off from the photocopier when not required and, in the case of Items 1020, 1512 and 1515, collecting waste toner and cleaning. The cartridges are locked into position within the photocopier, forming part of its mechanics, with most of the cartridges connected to a drive mechanism in the photocopier. Each type of cartridge is designed for use in a particular model of photocopier. The photocopier will not function without the insertion of the appropriate toner cartridge. The cartridges are not refillable.
Classification
16. As to classification, the primary issue is whether the goods should be classified under heading 9009 or heading 3707. The issues arising from this question become apparent after an examination of the parties’ submissions. In very brief summary, those submissions were as follows.
17. The Applicant submitted that the toner cartridges are parts or accessories of “photocopying apparatus incorporating an optical system or of the contact type and thermo-copying apparatus” within the meaning of heading 9009. The Applicant referred, in this regard, to Note 2(b) of Chapter 90 of Schedule 3 of the Act:
“2.subject to Note 1 above, parts and accessories for machines, apparatus, instruments or articles of this Chapter are to be classified according to the following rules:
…
(b)Other parts and accessories, if suitable for use solely or principally with a particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus of 9010, 9013 or 9031) are to be classified with the machines, instruments or apparatus of that kind; …”
18. In the alternative, the Applicant submitted that, if the toner cartridges are classifiable under both heading 9009 and 3707, the proviso to Rule 3(a) of Schedule 2, the General Rules for the Interpretation of Schedule 3, applies. Rule 3 provides:
“3. When by application of Rule 2(b) or for any other reason, goods are,
prima facie, classifiable under two or more headings, classification
shall be effected as follows:
(a)The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods.
(b)Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3(a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.
(c)When goods cannot be classified by reference to 3(a) or 3(b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration.”
19. Rule 2(b) provides:
“(b)Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall be according to the principles of Rule 3.”
20. The Applicant submitted that both headings are equally specific to the component parts of the goods (toner and part or accessory of a photocopier) and so regard must be had to Rule 3(b) and the essential character of the goods must be determined. The Applicant submitted that the essential character of the goods is “parts of a photocopier” but submitted in the alternative that if the Tribunal concludes that neither “toner” nor “part of a photocopier” is the essential character, Rule 3(c) applies and the goods must be classified under the heading occurring last in numerical order, that is, heading 9009.
21. The Respondent submitted that the goods fall within the second arm of heading 3707, that is, they are “unmixed products for photographic uses, put up in measured portions or put up for retail sale in a form ready for use”. The Respondent referred, in this regard, to the process by which toner is mixed with developer in the photocopier. The Respondent then referred to Note 2 to Section VI of Schedule 3 of the Act which provides:
“2.Subject to Note 1 above, goods classifiable in … 3707 … by reason of being put up in measured doses or for retail sale are to be classified in those headings and in no other heading of this Schedule.”
22. It would flow from this, it was submitted, that, even if the plastic component of the goods were to be classified as a part or accessory of a photocopier, then the above Note 2 would operate to exclude classification of the goods under any heading other than 3707.
23. In the alternative, the Respondent submitted that the goods fall within the first arm of heading 3707 “chemical preparations for photographic use”.
24. While primarily submitting that the goods are not parts or accessories, the Respondent submitted that if the goods are found to be parts or accessories and unmixed product within the meaning of the second arm of heading 3707, then the goods must be classified under heading 3707 because of the operation of Note 2 to Section VI of Schedule 3 of the Act.
25. Finally, the Respondent submitted that if the goods are found to be parts or accessories and chemical preparations for photographic use then they must be classified under heading 9009 because of the operation of Note 2(b) of Chapter 90, Schedule 3 of the Act (see paragraph 17 above). The Applicant ultimately agreed with this analysis.
26. It follows that the initial issue to be determined is whether the toner component of the goods is unmixed product or a chemical preparation. If that component is found to be unmixed product then Note 2 to Section VI of Schedule 3 of the Act would operate to classify the goods exclusively under Heading 3707. If the toner component of the goods is found to be a chemical preparation then issue remains as to whether the goods are parts or accessories.
27. At the outset I conclude, on the basis of my findings in paragraph 15 above, that the goods are prima facie classifiable under both headings – see Rule 2(b) of the General Rules.
Are the Goods, or the Toner Component of the Goods, Unmixed Product or a Chemical Preparation?
28. Mr Gageler, for the Respondent, submitted that as toner is mixed with developer in the developing unit of the photocopier as part of the photographic process of photocopying, then toner is an unmixed product for photographic uses put up in measured portions or put up for retail sale in a form ready for use.
29. Exhibit R2, the Material Safety Data Sheet undermines this submission. That evidence, confirmed by Mr Buckingham and uncontroverted, was that the toner comprises the following six substances:
·Styrene-acrylic resin
·Carbon black
·Polypropylene
·Dye
·Silica (Amorphous)
·Titanium dioxide
30. Therefore the toner, as imported, is mixed in that it is a mixture of the six substances listed above. I do not consider that the further mixing of the toner with developer in the process of photocopying renders the toner an unmixed product prior to that process.
31. Mr Robertson, for the Applicant, also referred me to the decision of the United States Court of Appeals for the Federal Circuit in Mita Copystar America v United States 160 F 3d 710 (1998) which also concerned the classification of toner cartridges for use in photocopiers. I was referred to the following passage:
“Mita’s argument, which the government does not challenge, is persuasive. Note 2 to section VI does not say that all goods classifiable in heading 3707 must be classified in that heading, or even that all goods classified in heading 3707 and put up in measured portions or put up for retail sale must be classified in that heading. Instead, it specifically states that the mandatory classification provision applies only if the merchandise in question is classified in heading 3707 “by reason of” its being put up in measured doses or for retail sale, and the only products under heading 3707 that meet that criterion are “unmixed products for photographic uses,” a category that does not include toner. We therefore agree with Mita that note 2 of section VI does not prohibit the classification of toner cartridges under any other heading.”
32. With respect, I agree with this analysis and conclude that, similarly, Note 2 of Section VI has no application in the classification of the goods the subject of this application.
Are the Goods, or the Cartridge Component of the Goods, Parts or Accessories or Neither?
33. The case for the goods being parts of photocopiers was put by the Applicant in reliance on the decisions by the Tribunal in Re Sharp Corporation of Australia Pty Ltd and Collector of Customs (AAT 8422, 11 December 1992) and of the Full Federal Court in Sharp Corporation of Australia Pty Ltd v Collector of Customs (1995) 59 FCR 6.
34. The Tribunal in Sharp, after discussing the decisions in Re Transaction Australia Pty Ltd and Collector of Customs 4-ALN N89, Waterscheid Australia Pty Ltd v Collector of Customs 7 AAR 555, Deputy Commissioner of Taxation v Polaroid Australia Pty Ltd 46 ALJR 32 and National Panasonic (Australia) Pty Ltd and Collector of Customs 7 ALD 647, decided that a toner cartridge, waste toner collecting container and roller cleaner for use in a laser printer are parts of the laser printer. The Tribunal said at paragraph 18:
“They are necessary to complete the whole, as without them the printer either will not work at all or will work inefficiently.”
35. On appeal from the decision of the Federal Court setting aside the Tribunal’s decision, the Full Federal Court agreed with the Tribunal’s conclusions and said:
“7. The findings of the Tribunal that there were four components to the Toner Kit, that the toner collecting container, the roller cleaner and the cartridge were parts of the laser printer and that the toner was a consumable were findings of fact which were open to the Tribunal.
8. The finding that three of the items were "parts" of the laser printer accorded with the exposition of the term "parts" in Deputy Commissioner of Taxation v Polaroid Australia Pty Ltd (1971) 46 ALJR 32 and in Watersheid Australia Pty Ltd v Collector of Customs (1988) 7 AAR 555.
9. The view of the Tribunal that the toner was to be regarded as a separate element, a consumable, rather than as a component of a "part", the cartridge, was a finding of fact to which a decision-maker could reasonably come. Although the consumable was contained in a "part" when sold, nevertheless on installation it was to be removed therefrom. In this circumstance, it was open to the Tribunal to regard the toner as a separate component, a consumable. Mr S. Gageler, counsel for the Collector of Customs, submitted that, "What it (the Tribunal) did was to take one of the items and break it down and make it two which is not a matter of fact." However, as the toner was to be removed from the cartridge on installation, and was to be used as a consumable, the finding of fact of the Tribunal that the toner was a separate component was one which was reasonably open.
10. On these findings of fact, the Tribunal necessarily found that, if the components were classified separately, the toner would be classified under sub-heading 3707.90 and the parts would be classified under sub-heading 8473.30.”
36. In Polaroid (supra) Gibbs J said:
“Obviously a part is something which with others makes up a whole, …One thing does not become part of another simply because the latter thing cannot be put to proper use without the aid of the former, even if, in use, the two things are fixed together. In my opinion a film is not part of a camera, nor a bullet part of a gun, nor petrol part of a motor vehicle. A Polaroid camera is a different thing from a film pack or a picture roll, and is complete even though it has no pack or roll in it.”
37. In Waterscheid (supra) Davies J, quoting Gibbs J in Polaroid (supra) said:
“The proper test in relation to the word ‘part’ was stated by Gibbs J in the Polaroid Australia case at 34: ‘Obviously a part is something which with others makes up a whole …’.
In one sense, therefore, a part is something which is essential to complete the whole. But that was not the test applied by the Tribunal.
Thus, although the Tribunal’s finding that the PTO shafts were not parts for tractors was correct and has not been challenged, much of the reasoning which led to that conclusion proceeded upon a wrong basis, for it assumed that a PTO shaft would not be a part for a tractor unless it was essential to the functioning of the tractor.”
38. From these authorities, the principle may be drawn that a part, with other things, makes up the whole but that part need not be essential to the functioning of the whole. In any event, I note that in this case there is no dispute that the proper functioning of the photocopier requires the insertion of a toner cartridge. It may also be drawn from the Full Court’s decision in Sharp (supra) that the toner component of the goods may be regarded as a consumable and separate component of the goods.
39. I have found, in identifying the goods, that they perform a range of mechanical functions within the photocopier including agitating, transferring and dispensing toner. Generally, they do so in a way that is integrated into the mechanical operation of the photocopier and by way of connection with a drive shaft contained in the photocopier. As Mr Robertson for the Applicant submitted, the photocopiers do not operate “on” the cartridge as they do on paper or as a camera does on film. The photocopier’s function incorporates and depends on the various found functions of the cartridge. In short, the cartridge operates as a part of the whole, that is, the photocopier. I therefore conclude that the cartridge is a part of the photocopier.
40. Rule 1 of the General Rules for Interpretation of Schedule 3 of the Act, provides:
“The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions:”
41. It follows that Note 2(b) of Chapter 90 of Schedule 3 of the Act applies to the goods and, as parts of photocopiers, they “are to be classified with the machines, instruments or apparatus of that kind.” In accordance with Rule 1 this determines the matter and the goods should be classified under subheading 9009.99.00.
Decision
42. The decision under review is set aside. In substitution therefore the Tribunal decides that the goods should be classified under heading 9009.99.00 of Schedule 3 of the Customs Tariff Act 1995.
I certify that the 42 preceding paragraphs are a true copy of the reasons for the decision herein of Ms N BELL, Member
Signed: A. Krilis Associate
Date/s of Hearing
17 May 2004
Date of Decision 18 June 2004
Counsel for the Applicant Mr. A. Robertson SC
Junior Counsel for the Applicant Mr. M. Leeming
Solicitor for the Applicant Mr. H. Adams
Counsel for the Respondent Mr. S. Gageler SC
Junior Counsel for the Applicant Ms K. Richardson
Solicitor for the Respondent Mr. R. Northcote
Attachment 1
“5. The principles to be applied in resolving this issue emerge from the Act and from decided cases. A leading authority is Re Tridon Pty Ltd and Collector of Customs (1982) 4 ALD 615. The applicant imported windscreen wiper blade refills which consisted of a rubber blade made of unhardened vulcanised rubber, a flexible plastic spine and a metal clip. They were entered for duty under the Customs Tariff Act 1966 (“the 1966 Act”) and classification under paragraph 85.09.9 as parts for windscreen wipers was asserted, the duty being 17.5%. The Collector of Customs considered paragraph 40.14.9 to be the correct heading, “Other goods made of unhardened vulcanised rubber – other”, the duty being 25%. For the tribunal the difficulty was that the goods were clearly windscreen wiper blade refills which had been reidentified in accordance with Note 1(a) under Division XVI of Part II of the First Schedule. Division XVI contained headings “Chapter 84” and “Chapter 85”. Note 1(a) excluded the following goods, amongst others, from Division XVI:
“… goods of unhardened vulcanised rubber falling within item 40.14 that are of a kind used on machinery or mechanical or electrical appliances or for other industrial purposes.”
6. The tribunal held that it was necessary to have regard to the Rules of Interpretation in the First Schedule in ascertaining whether goods fell within an item, sub-item, paragraph or sub-paragraph. Rule 1(2) provided that regard was to be had, subject to rule 1(3), to the terms of items (including sub-items, paragraphs and sub-paragraphs) and of notes to Divisions and Chapters and, except where those terms otherwise require, to rules 2, 3 and 4. An equivalent provision currently appears as rule 1 of the General Rules of Interpretation in Schedule 2 of the Act.
7. The starting point was said to be (page 620) to identify the goods in their condition as imported. The principles with respect to identification of the goods were summarised as:
(a)Identification must be objective, having regard to the characteristics which the goods, on informed inspection, present.
(b)Identification of goods cannot be controlled by the descriptions of goods adopted in the nomenclature of the tariff.
(c)At the same time it is necessary to be aware of the structure of the nomenclature, the basis on which goods are classified and the characteristics of goods which may be relevant to the task of classification.
(d)Knowledge of how those who trade in the goods describe the goods will usually be relevant but not necessarily conclusive.
(e)All the descriptive terms, both specific and generic, by which the goods may fairly be identified may be relevant to the classification of the goods within the tariff.
(f)Descriptive terms may be of varying degrees of specificity (eg windscreen wiper blade refills, parts for a windscreen wiper or parts for a motor vehicle). Generic descriptions may refer to the materials or substances from which the goods are manufactured.
(g)Identification will frequently extend to characterisation of goods by reference to their design features or by reference to their suitability for a particular use emerging from inspection of the goods as imported. The relevance of these characteristics and evidence regarding the use of the goods after importation will depend on the language of the tariff nomenclature.
(h)Composite goods, notwithstanding that they have components which are separately identifiable, may be identifiable in combination as a new entity if the identity of the separate units is subordinated to the identity of the combination.
8. The tribunal applied these principles by finding that the goods were identifiable as (i) specifically as windscreen wiper blade refills, (ii) referring to their use, ie as parts for electrical windscreen wipers; (iii) less specifically by reference to use as parts for a motor vehicle; and (iv) by reference to composition as goods partly of unhardened vulcanised rubber, partly of plastic and partly of metal. The tribunal said (page 621) that the “imported goods are not identifiable simply as articles of unhardened vulcanised rubber. … they are more than that. The rubber squeegee, plastic spine and metal clip in combination, produce a new article of commerce in which the identity of the individual components is subordinated to the identity in combination”.”
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