2026 (1) TMI 1360 - AAR - Customs

Mukhwas (Mouth Freshener) classification finds it a mixture and assigns it to the residual food preparations tariff entry 2106 90 99.

Mukhwas (mouth freshener) comprising multiple ingredients was classed as a mixture and not a betel nut product because sugar-coated fennel seeds (50%) ... Classification of goods under Customs Tariff food preparations not elsewhere specified or included - classification of Mukhwas (Mouth Freshener) - Application of General Rules of Interpretation Rule 1 and Rule 3(b) (essential character of a mixture) - Use of trade or common commercial parlance in classification - Advance Ruling by Customs Authority for Advance Rulings (CAAR) - Whether the goods sought to be imported, viz. “Mukhwas (Mouth Freshener) containing the following ingredients such as Raw Betel Nuts pcs (12kg) (Diamond cut - each nut 8 pieces), Sugar Crystal (2 kg), Sugar Coated Fennel Seeds (25 kg), Dry Coconut pcs (1kg) and Mixed Seeds of Sunflower & Pumpkin (with/without skin) (10kg)” in 50 kg bags will be classified under Customs Tariff Item (CTI) 21069099 of the First Schedule to the Customs Tariff Act, of 1975. HELD THAT:- The issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act. The quantity of betel nut in the subject is only 24%(approx.) and not pre- dominant. The quantity of Sugar-Coated Fennel Seeds is 50% (approx.) in the subject goods. The quantity of Sugar-Coated Fennel Seeds is more than double the quantity of betel nut in subject good. Also, subject good contain Mixed Seeds of Sunflower & Pumpkin (with/without skin), which are 20% in quantity and are almost equal to the quantity of betel nut. The subject goods also contain some quantity of Crystal Sugar and Dry Coconut pcs as ingredient. Accordingly, on analysis of quantity of different ingredients in the subject goods, Observe that betel nut is not the predominant constituent of the subject goods providing essential character to the subject good. The highest or major component of the subject goods is Sugar Coated Fennel Seeds (50% approx.). The goods are mixture containing 05 ingredients as mentioned above. Thus, the subject goods does not merit classification under the Tariff entry 2106 90 30 which covers item Betel nut product known as -Supari. As discussed the subject good i.e. ‘Mukhwas (Mouth Freshener)’ is preparation/mixture of different ingredients is not covered by tariff items 2106 90 20 - ‘Pan masala’ and 2106 90 30 -Betel nut product known as -Supari. Instead, it can reasonably and logically be classified under residual entry to CTH 2106 “FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED” and more specifically under CTI 2106 90 99 as other. It is evident from the composition of the subject goods ‘Mukhwas (Mouth Freshener)’ that it is a mixture containing different ingredients. Therefore, the subject goods being a mixture a kind of food preparation not included or specified elsewhere in the Customs tariff item, will fall under the tariff item 2106 90 99 in terms GRI 1 read with Note 6 to chapter 21 of the Customs Tariff Act. Thus, the subject goods ‘Mukhwas (Mouth Freshener)’ containing said ingredients as mentioned in the para 17.1 above is classifiable under CTH 2106, and more specifically under Tariff item 2106 90 99 as others, of the first schedule to the Customs Tariff Act. 1975, as amended. Accordingly, the request of the applicant to protect commercially confidential information is approved by keeping the ruling confidential. Issues: Whether the goods described as 'Mukhwas (Mouth Freshener)' containing Raw Betel Nuts (12 kg), Sugar Coated Fennel Seeds (25 kg), Crystal Sugar (2 kg), Dry Coconut pcs (1 kg) and Mixed Seeds of Sunflower & Pumpkin (10 kg) in 50 kg bags are classifiable under Tariff Item 2106 90 99 of the First Schedule to the Customs Tariff Act, 1975.Analysis: The product is a composite food preparation (mixture) comprising five edible ingredients and is known in trade parlance as 'Mukhwas'. Classification must follow the General Rules of Interpretation (GIR), applying Section/Chapter notes and supplementary notes to Chapter 21. Heading 2106 covers 'Food preparations not elsewhere specified or included' and includes a residual sub-heading 2106 90 99 for other preparations and mixtures (Note 6 to Chapter 21). Supplementary Note 1 (pan masala) requires presence of lime, katha or tobacco, which are absent here; Supplementary Note 2 (supari) contemplates preparations in which betel nut is the predominant constituent. Under Rule 3(b) GRI, mixtures are classified by the material giving them their essential character. The recorded composition shows sugar-coated fennel seeds as ~50% of the product while betel nut is ~24%; betel nut is therefore not predominant and does not impart the essential character. The product is not identified in trade parlance as 'supari' or 'pan masala' but as 'Mukhwas', a mixed after-meal snack. In absence of a specific heading applicable to this composite preparation, the residual entry in Heading 2106 applies.Conclusion: The goods 'Mukhwas (Mouth Freshener)' described above are classifiable under Heading 2106 of the Customs Tariff Act, 1975 and specifically under Tariff Item 2106 90 99 (other).