Specific classification for fully hydrogenated palm-based food emulsifier product under Heading 1516, not residual Heading 2106.

GRINDSTED PS 101-M was classified as a wholly hydrogenated palm-based triglyceride in bead form used in the food industry as an emulsifier. Applying Rule 1 and Rule 6 of the General Rules for Interpretation, along with Chapter 15 notes and the HSN Explanatory Notes to Heading 1516, the product was treated as an animal, vegetable or microbial fat or oil that is wholly hydrogenated and not further prepared. It was therefore placed under Heading 1516, specifically Tariff Item 1516 20 91 for an edible-grade vegetable fat or oil product. Heading 2106 was rejected because it is a residual heading and the product was more specifically described elsewhere.

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Issues: (i) Whether the imported product, GRINDSTED PS 101-M, is classifiable under Tariff Item 1516 20 91; (ii) Whether the product falls outside Heading 2106 and is instead covered by Heading 1516 as a vegetable fat/oil product of edible grade.

Analysis: The product was found to be a fully hydrogenated palm-based triglyceride in bead form, intended for use in the food industry as an emulsifier and not further prepared beyond the stated physical processes. Applying Rule 1 and Rule 6 of the General Rules for the Interpretation of the First Schedule to the Customs Tariff Act, 1975, together with the Chapter 15 notes and the HSN Explanatory Notes to Heading 1516, the product was treated as an animal, vegetable or microbial fat or oil that is wholly hydrogenated and not further prepared. Within Heading 1516, it was considered to fall under the vegetable fats and oils entry and, as an edible-grade product, under the specific sub-entry 1516 20 91. Heading 2106 was rejected because it is a residual heading for food preparations not elsewhere specified, whereas the product was held to be more specifically described by Heading 1516. The principle of specific description prevailing over a general or residual description was applied.

Conclusion: The product is classifiable under Tariff Item 1516 20 91 and not under Heading 2106.

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