Tariff classification of cooking cream: product held outside edible fat mixtures and placed under residual food preparation heading.

Cooking cream containing water, hydrogenated palm kernel oil, milk solids, sugar, emulsifiers and stabilizers was held not to fall within Heading 1517 because its composition went beyond an edible mixture or preparation of fats or oils and it was not a true substitute for margarine. Applying the product's name, character and use, together with the tariff scheme and HSN Explanatory Notes, the residual Heading 2106 was found apt for this new and distinct food preparation not elsewhere specified or included. The advance ruling on classification was therefore upheld.

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Issues: Whether the product "cooking cream" is classifiable under Heading 1517 as an edible mixture or preparation of vegetable fats or oils, or under Heading 2106 as a food preparation not elsewhere specified or included.

Analysis: The product consisted of water, hydrogenated palm kernel oil, milk solids, sugar, emulsifiers and stabilizers, and was sold as a non-dairy cooking cream. In determining classification, the decisive factors were the product's name, character and use, together with the tariff scheme and the HSN Explanatory Notes. Heading 1517 covers margarine and other edible mixtures or preparations of animal or vegetable fats or oils, including products worked by emulsification, churning or texturation, but the composition of the present product included sugar and other ingredients going beyond the scope of that heading. The product was also found not to be a true substitute or imitation of margarine on account of its composition and fat content. Once Heading 1517 was found inapplicable, the product was properly examined under Heading 2106, which is a residual heading for food preparations not elsewhere specified or included. The product was held to be a new and distinct preparation falling within that residuary description.

Conclusion: The product is not classifiable under Heading 1517 and is classifiable under Heading 2106.

Final Conclusion: The appellate authority found no infirmity in the advance ruling and upheld the classification under Heading 2106, with the appeal failing accordingly.

Ratio Decidendi: Where a composite food product containing vegetable fat is further prepared with additional ingredients and does not fit the specific tariff description for mixtures or preparations of fats or oils under Heading 1517, it falls to be classified under the residual heading for unspecified food preparations in Heading 2106.

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