Import classification of ribotide food additive turned on whether it was a chemically defined compound needing a licence.

Imported ribotide/food additive was examined for import policy classification and licence requirements. Chapter 29 could apply only to a separate chemically defined organic compound not classified elsewhere; because the product was a composition of more than one compound and no demonstrable chemically defined formula was shown, it did not qualify under Chapter 29. It was therefore treated as a consumer good under the relevant ITC classification, making a licence necessary. Earlier clearances did not create any right to continue importing without licence. Confiscation, redemption fine and penalty were upheld as within permissible limits.

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Issues: Whether the imported ribotide/food additive was correctly treated as a restricted consumer good requiring a licence, and whether confiscation, redemption fine and penalty were sustainable.

Analysis: The imported product was declared as a food additive and had already been classified for customs purposes under Chapter 38 at the time of clearance. For import policy purposes, the Tribunal held that Chapter 29 could apply only if the item was a separate chemically defined organic compound not classified elsewhere. On the record, the product was a composition of more than one compound, without a demonstrable chemically defined formula, and the appellants could not show that it satisfied Chapter 29. It was therefore treated as a consumer good under the relevant ITC classification, requiring a licence. The Tribunal also held that earlier clearances did not create a right to continue importing without licence, and the redemption fine and penalty were within permissible limits.

Conclusion: The classification under Chapter 29 was rejected, the licence requirement was upheld, and confiscation with redemption fine and penalty was sustained.

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