Tariff classification of menthol supari: processing did not alter the essential character of areca nuts under Chapter 8.

Menthol-scented supari made from dried betel nut remained classifiable as other areca nuts under CTH 0802 8090 because the cleaning, de-stoning, boiling, drying, cutting, roasting and flavouring processes were treated as preservation, cleaning and presentation-related treatments that did not alter the essential character of the dried nut. Chapter 8 and Note 3 were applied to hold that partial rehydration and similar treatments are permissible so long as the goods retain the character of dried nuts. Although Chapter 21 and the supplementary note refer to betel nut preparation known as supari, the goods had not undergone a transformation sufficient to move them out of Chapter 8.

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Issues: Whether menthol scented supari, obtained by drying, cleaning, cutting, roasting and flavouring betel nut, is classifiable under CTH 2106 9030 as a betel nut preparation known as supari or under CTH 0802 8090 as other areca nuts.

Analysis: The applicable classification had to be determined primarily by the tariff headings, Section and Chapter Notes, and the General Rules for Interpretation. Chapter 8 covers dried nuts, and Note 3 permits partial rehydration and treatments for preservation, stabilisation, or improvement of appearance, provided the goods retain the character of dried nuts. The processes used for the subject goods, namely cleaning, de-stoning, boiling, drying, cutting, roasting and addition of menthol flavour, were found to be in the nature of preservation, cleaning and presentation-related treatment and did not change the essential character of the betel nut. Although Chapter 21 and Supplementary Note 2 refer to betel nut product known as supari, the Authority held that the impugned goods did not undergo such transformation as to move them out of Chapter 8.

Conclusion: The goods are classifiable under CTH 0802 8090 and not under CTH 2106 9030.

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