TaxTMI 
TaxTMI 
2022 (4) TMI 1495
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....the implementation of the Harticohl project in India, (b) Light Feed Oil (LFO) and Heavy Feed Oil (HFO) are both by-products from the Omega 3 oil industry and are major raw materials for the Harticohl project, (c) The raw materials of the Harticohl project comprises of by-product residues from the industrial Omega 3 oil refining process. LFO is produced as a by-product residue from the industrial oil refining process by hydrolytic splitting of oils and distillation. LFO is obtained as distilled fatty acids, (d) LFO is mainly composed of a mixture of monocarboxylic fatty acids and its composition is as under :- (a) Distilled fatty acids: Industrial monocarboxylic fatty acids (b) Mono-ethyl esters of long chain fatty acids (c) Cholesterol Percentage range of constituents of LFO :- Chemical Product Typical range CAS# Monocarboxylic fatty acids 20-90% 68002-88-0 Mono-ethyl esters of long chain fatty acids 0-60% 111-62-6 Cholesterol 5-15% 57-88-5 (e) LFO's main components are monocarboxylic fatty acids obtained....
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....g of triglycerides into fatty acids and glycerol. The fatty acids are removed by distillation to yield distilled fatty acids, which can be used in industrial applications, among others. Tallow is fat obtained mainly from the belly fat of cattle, primarily made up of triglycerides, (c) This technology is unique and the applicant is the only company to use this technology in India. The main objective of the Harticohl project is production of cholesterol concentrates from by-products streams of the Omega 3 industry. The Omega 3 industry processes fish oil to obtain concentrates of Omega 3 fatty acids, mainly EPA (eicosapentaenoic acid) and DHA (docosahexaenoic acid), in the form of ethyl esters (mono-alkyl esters) and others. The main fish species used is anchovy. Other sources of fish oil are sardine, mackerel, pollock and menhaden. In the process of producing fish oil and fish meal, some of the fatty acids from the triglycerides are released by hydrolytic splitting. The average composition of fish oil is as below :- Triglycerides (main product) 96% Free Fatty Acids (from hydrolytic splitting, impurity) 3% Cholesterol (impurity) 1% (d)&n....
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....roducts, viz., LFO or Distilled Fatty Acid and HFO or Fatty Substance Mixture from Harting SA, Chile and are seeking classification of the same. They are proposing the Customs Tariff Headings 3824 for HFO and 3823 for LFO. 5.1 The applicant has described the processes carried out on fish oil/tallow to obtain LFO and HFO. The first step in the process is distillation during which LFO is generated as a by-product. Further processes of trans-esterification and distillation result in the final product Omega 3 concentrates and the by-products of these processes, one of which is the HFO. It is the by-products of these processes which the applicant intends to import and describes as LFO and HFO, for whose appropriate classification entries, advance rulings have been sought. 5.2 I first take up the classification of the LFO. The classification of goods for customs is governed by the principles set forth in the General Rules of Interpretation (GIR). Rule 1 of GIR provides that for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes and, provided such headings or notes do not otherwise require, ac....
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....ractions of fish, other than liver oils. In the matter under consideration, LFO or distilled fatty acid as named by the applicant, is a by-product of the process of distillation/refining the fish oil. It is fat derived from fish oil. It has not been chemically modified and is essentially a part of the fish oil. Therefore, it merits classification under sub-heading 1504 20 90 as "Others". 5.3.3 Before forming the aforementioned opinion, I have given due consideration to the proposal of the applicant that the proposed classification for LFO would be Heading 3823. Chapter 38 deals with "Miscellaneous chemicals products". The title itself denotes that it is a grouping of residuary headings for those goods which cannot be more appropriately classified elsewhere. Further, Heading 3823 deals with "Industrial monocarboxylic fatty acids; and oils from refining; industrial fatty alcohols." The product LFO which is derived from fish oil does not appear merit classification under this heading because of the available specific classification Entry 1504 20 and there is nothing in the relevant mandate of the said chapter or section notes of Chapter 15 entries to take it out of the purview....