Animal feed classification of squid liver powder affirmed under the tariff heading for feed preparations, not fish meal.

Squid liver powder was treated as a preparation used in animal feeding and classified under Heading 2309 90 90 rather than as fish or aquatic invertebrate flour, meal or pellets under Heading 2301 20 11. The tariff notes and HSN guidance were applied to show that Heading 2309 covers feed preparations and feed ingredients used in complete or supplementary animal feed. Because classification was resolved on the plain tariff heading and HSN reading, Rule 3(b) on essential character for mixtures was not invoked. The departmental classification was therefore sustained and the alternative classification rejected.

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Issues: (i) Whether squid liver powder was correctly classifiable under Heading 2309 90 90 of the Customs Tariff Act, 1975 or under Heading 2301 20 11 of the Customs Tariff Act, 1975; (ii) Whether, being a mixture, the goods had to be classified by applying Rule 3(b) on the basis of essential character.

Issue (i): Whether squid liver powder was correctly classifiable under Heading 2309 90 90 of the Customs Tariff Act, 1975 or under Heading 2301 20 11 of the Customs Tariff Act, 1975.

Analysis: The product was found to be a preparation used in animal feeding and not a product falling within the narrower heading for flours, meals and pellets of fish or aquatic invertebrates. Its composition included both animal-origin and plant-origin ingredients, and the tariff notes and HSN guidance showed that Heading 2309 covers preparations used in animal feeding, including feed ingredients used in making complete or supplementary feeds. On that basis, the goods were held to fall under Heading 2309 90 90.

Conclusion: The classification under Heading 2309 90 90 was upheld and the claim for classification under Heading 2301 20 11 was rejected, in favour of Revenue.

Issue (ii): Whether, being a mixture, the goods had to be classified by applying Rule 3(b) on the basis of essential character.

Analysis: The rule of essential character under Rule 3(b) applies only when classification cannot be determined under Rule 1. Since the goods were held to be classifiable under Heading 2309 on a plain reading of the tariff and the HSN, recourse to Rule 3(b) was unnecessary.

Conclusion: Rule 3(b) was held inapplicable.

Final Conclusion: The appeal failed on the classification dispute, and the departmental classification of the imported squid liver powder was sustained.

Ratio Decidendi: For classification under the Customs Tariff, the tariff heading and HSN notes must be applied first, and the essential character test under Rule 3(b) is attracted only if classification cannot be resolved under the primary heading rules.

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