2005 (5) TMI 218 - AT - Customs

Tribunal classifies Aloe Vera products as juices, not preparations

The tribunal classified ALOE VERA GEL, ALOE VERA BERRY NECTAR, and ALOE VERA FOREVER FREEDOM under Chapter Heading 20.09 of the Customs Tariff Act as ... Aloe juice Issues:Classification under the Customs Tariff Act Schedule - ALOE VERA GEL, ALOE VERA BERRY NECTAR, ALOE VERA FOREVER FREEDOM.Analysis:(a) Classification Dispute:The issue in this case revolves around the classification of ALOE VERA GEL, ALOE VERA BERRY NECTAR, and ALOE VERA FOREVER FREEDOM under the Customs Tariff Act Schedule. The importers claim these entities to fall under Chapter Heading 20.09.80 and 20.09.90, while the Revenue argues for classification under 2106.(b) Interpretation of Entities:The original order highlights the constituents of the entities, emphasizing that they consist of Aloe Vera sap/juice and may include mixtures of fruit and vegetable juices with additives like apple, cranberry, and orange juices. The classification hinges on whether the entities are considered juices under Chapter 20.09 or preparations under Heading 2106.(c) Compounding and Classification:The discussion delves into the distinction between juices and preparations based on the processing methods and additives used. It is acknowledged that the entities are standardized with added preservatives but not compounded with chemicals like tartaric acid. Both parties agree that the entities are not intended to be diluted to make beverages, supporting their classification under Chapter Heading 20.09.(d) Botanical Interpretation:The argument extends to the botanical definition of vegetable juice, emphasizing that juices can be derived from any plant part, including fleshy leaves like those of the Aloe Vera plant. The lower authorities' contrary findings are challenged, asserting that the entities should be classified as juices unless compounding is established.(e) Food Supplement Classification:The entities' classification as 'Food Supplements' is disputed, as they do not meet the criteria of being protein, fat, or carbohydrate-based supplements. The absence of compounding and the nature of the products being consumed in small quantities without specific nutritional recommendations further support their classification as juices.(f) Vitamin Content and Classification:The presence of vitamins in the entities does not disqualify them from being classified as juices under Heading 20.09, contrary to the department's argument.(g) Food Preparation Classification:The distinction between 'Food Preparation' under Heading 2106 and 'juice of vegetables and preparation thereof' under Heading 2009 is crucial. The entities do not align with the definition of 'food preparation,' reinforcing their classification as juices.(h) Advisory Dismissal and Classification:The lower authority's dismissal of the WCO advisory for classification under a different heading is noted, with the focus remaining on the disputed classification between 2106.90 or 2009.80 and 2009.90. The judgment aligns with previous apex court decisions and classifies the products under 2009.80/2009.90, allowing the appeal based on the findings.In conclusion, the tribunal's detailed analysis and interpretation of the entities' composition, processing methods, and intended use lead to the classification of ALOE VERA GEL, ALOE VERA BERRY NECTAR, and ALOE VERA FOREVER FREEDOM under Chapter Heading 20.09, emphasizing their nature as juices rather than preparations under Heading 2106.