Classification of Carotenoid Products for Animal Feed under Customs Tariff Act

The ruling concluded that the carotenoid products Lucantin Red 10% NXT, Lucantin Yellow 10% NXT, and Lucantin Pink are classifiable under heading 2309 and specifically under subheading 23099090 of the Customs Tariff Act. The products were determined to be used exclusively in animal feed to enhance pigmentation in animals and eggs, containing active ingredients for this purpose. The evidence provided, including certificates and test reports, supported this classification over an alternative classification as synthetic carotenoids under a different heading.

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Issues Involved:
1. Classification of carotenoid products Lucantin Red 10% NXT, Lucantin Yellow 10% NXT, and Lucantin Pink.
2. Determination of appropriate Customs Tariff Act heading for the products.
3. Consideration of the products' specific use in animal feed.

Detailed Analysis:

1. Classification of Carotenoid Products:
M/s BASF India Limited sought advance rulings on the classification of carotenoid products, specifically Lucantin Red 10% NXT, Lucantin Yellow 10% NXT, and Lucantin Pink. These products are used in animal feed to enhance pigmentation in animals and eggs, and they contain active ingredients like canthaxanthin, C-30 ester, and astaxanthin. The applicant argued that these products should be classified under heading 2309 of the Customs Tariff Act, 1975, which pertains to preparations used in animal feeding.

2. Determination of Appropriate Customs Tariff Act Heading:
The applicant provided several supporting documents, including Circular No. 80/54/2018-GST and Circular No. 188/22/95-CX, which clarify the classification of animal feed supplements. The applicant also referred to certificates from the German Government's certifying agency and test reports from Doctors Analytical Laboratories Pvt. Ltd., which confirmed that the products are feed supplements and of animal grade. The applicant suggested an alternative classification under subheading 32042090 if the products were considered synthetic carotenoids.

3. Consideration of the Products' Specific Use in Animal Feed:
The ruling emphasized that the products are used exclusively in animal feed and have no other use. The HSN explanatory notes to heading 2309 describe premixes as compound compositions containing active substances and carriers designed to improve animal health and product quality. The products in question fit this description as they are premixes containing active ingredients, preservatives, antioxidants, and carriers.

The ruling also referenced the decision in Tetragon Chemie (P) Ltd. vs. Commissioner of Central Excise, Bangalore, which highlighted the importance of end-use in determining the classification of goods under heading 2302 of CETA, 1985, akin to heading 2309 of the Customs Tariff Act, 1975. The products were found to be commonly known in the trade as specific use in animal feeding, supported by technical literature, end-use certificates, and Board circulars.

Conclusion:
Based on the detailed analysis and the evidence provided, the ruling concluded that Lucantin Red 10% NXT, Lucantin Yellow 10% NXT, and Lucantin Pink are classifiable under heading 2309 and more specifically, under subheading 23099090 of the Customs Tariff Act. The products did not merit classification under heading 3204, as they are not used for their dyeing properties but as animal feed additives to improve the quality of eggs and skin pigmentation.

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