Betel nut classification under Chapter 08 affirmed where processing did not change the essential character of the goods.

Five betel nut products were held to remain classifiable as processed betel nuts under Chapter 08, not as supari preparations under sub-heading 2106 90 30. Applying Note 3 to Chapter 8 and Supplementary Note 2 to Chapter 21, the Authority found that cleaning, cutting, boiling, polishing, sterilising, starch mixing and flavouring did not alter the essential character of the goods, which continued to be dried nuts. Classification rulings relied on by the applicant were considered, but the tariff scheme and the actual nature of the goods supported Chapter 08 classification under sub-heading 0802 80.

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Issues: Whether the five betel nut products, namely Unflavoured Supari, Cutting Supari, API Supari, Chikni Supari and Flavoured Supari, are classifiable under sub-heading 2106 90 30 as betel nut products known as supari or under Chapter 08 as processed betel nuts.

Analysis: The products were examined in the light of Note 3 to Chapter 8 and Supplementary Note 2 to Chapter 21. The relevant inquiry was whether the processes of cleaning, cutting, boiling, polishing, sterilising, mixing of food starch and flavouring changed the substantive character of the betel nut so as to make it a preparation of betel nut, or whether the goods retained the essential character of dried nuts. The Authority held that the processes involved were not substantive enough to alter the original character of the goods and that the five products continued to retain the character of dried nuts. The classification rulings relied upon by the applicant were considered, but the Authority preferred a broader view of the tariff scheme and the actual nature of the goods.

Conclusion: The five products, namely Unflavoured Supari, Cutting Supari, API Supari, Chikni Supari and Flavoured Supari, are classifiable under Chapter 08, more specifically under sub-heading 0802 80, and not under sub-heading 2106 90 30.

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