Tariff classification of processed betel nut products under Heading 0802 turns on essential character and limited processing.

Processed betel nut products described as API supari, chikni supari, unflavoured supari and flavoured supari were analysed for tariff classification between Heading 0802 and sub-heading 2106 90 30. Cleaning, boiling, cutting, polishing, roasting and sterilising were treated as preservation, stabilization and improvement of appearance within Chapter Note 3 to Chapter 8, without changing the essential character of betel nut. For flavoured supari, the addition of flavouring agents was also found insufficient to convert the goods into a betel nut preparation under Chapter 21. All four products were therefore classified under Heading 0802 of the Customs Tariff.

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Issues: Whether processed betel nut products described as API supari, chikni supari, unflavoured supari and flavoured supari are classifiable under Heading 0802 of the Customs Tariff or as betel nut products known as supari under sub-heading 2106 90 30.

Analysis: The products were found to originate from raw betel nut and to undergo processes such as cleaning, boiling, cutting, polishing, roasting, sterilising and, in the case of flavoured supari, addition of flavouring agents. For API supari, chikni supari and unflavoured supari, these processes were treated as those contemplated by Chapter Note 3 to Chapter 8, namely preservation, stabilization and improvement of appearance, and were held not to alter the essential character of the betel nut. For flavoured supari, the addition of flavouring agents was also held insufficient to convert the goods into preparations of betel nut, in light of the Chapter 21 note and the reasoning that the goods continued to retain the character of betel nut.

Conclusion: All four goods were held classifiable under Heading 0802 of the Customs Tariff and not under sub-heading 2106 90 30.

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