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2024 (10) TMI 1788
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....ompounds. It is recommended for use in pig and poultry diets. It is supplied as a fine white agglomerated powder of spicy, aromatic smell on a maltodextrin carrier. The product brochure is enclosed as Exhibit-B. A.4. Enviva offers the following benefits: i. Improves gut microbiota ii. Improves efficiency of the immune system iii. Inhibits salmonella in feed iv. Improves performance v. Boosting Feed Intake: Enviva combines the two potent components (thymol and cinnamaldehyde) to stimulate palatability in animal feed. When added to the diet, it encourages animals, especially young ones like piglets, to consume more feed. vi. Nutribiotic State: By creating a favourable nutribiotic state, Enviva promotes a harmonious balance between nutrition, the gut microbiome, and immune function. This synergy contributes to overall animal health and growth. A.5. The composition of Enviva is as follows: Sr No. Ingredients Quantum (weight concentration) Role/purpose 1 Thymol 16-24% Active ingredient- Important dietary constituent as it has antimicrobial, anti- inflammatory and antioxidant properties 2 Cinnamalde....
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.... exportation; 1.5 The questions on which an application for an advance ruling can be made have been provided under Section 28H of the Customs Act. As per the said Section 28H (2) of the Customs Act, an applicant may make an application for advance ruling in respect of questions relating to: (a) Classification of goods under the Customs Tariff Act, 1975; 1.6 The present application is being made by the Applicant to confirm classification of Enviva. 1.7 Therefore, it flows that in the present case, the Applicant is satisfying the following conditions required for filing the application for advance ruling, namely: a. have been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; b. Application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962. Non-Applicability of Bar under Section 28I 1.8 Section 28I of the Customs Act, 1962 is set out below: "SECTION 28-I. Procedure on receipt of application. - (1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the [Principal Commissioner of....
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....ion ('WCO'). It has been held by the Hon'ble Supreme Court in the case of Collector of Customs, Bombay Vs. Business Forms - 2002 (142) ELT 18 that the HSN Explanatory Notes aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. 2.2 The classification of the goods imported into India is to be determined based on the General Rules of Interpretation (hereinafter referred to as the "GRI") set out in the Tariff. As per Rule 1 of the GRI, classification of the imported products 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, according to the remaining Rules of the GRI. 2.3 The product in question i.e., Enviva is a preparation used in animal feed. Such products are specifically covered under Heading 23.09. Thus, this Heading may be examined at the outset. Classification under Heading 23.09 2.4 The relevant extract of Heading 2309 is extracted hereunder: Tariff Item Description of goods 2309 PREPARATIONS OF A KIND USED IN ANIMAL FEEDING 23091000 - Dog or cat food, put up for retail sale: ....
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.... (A) PREPARATIONS DESIGNED TO PROVIDE THE ANIMAL WITH ALL THE NUTRIENT ELEMENTS REQUIRED TO ENSURE A RATIONALAND BALANCED DAILY DIET (COMPLETE FEEDS) The characteristic feature of these preparations is that they contain products from each of the three groups of nutrients described below: (1) "Energy" nutrients, consisting of high-carbohydrate (high-calorie) substances such as starch, sugar, cellulose, and fats, which are "burned up" by the animal organism to produce the energy necessary for life and to attain the breeders' aims. Examples of such substances include cereals, half-sugar mangolds, tallow, straw. (2) "Body-building" protein-rich nutrients or minerals. Unlike energy nutrients, these nutrients are not "burned up" by the animal organism but contribute to the formation of animal tissues and of the various animal products (milk, eggs, etc.). They consist mainly of proteins or minerals. Examples of the protein-rich substances used for this purpose are seeds of leguminous vegetables, brewing dregs, oil-cake, dairy by- products. The minerals serve mainly for building up bones and, in the case of poultry, making egg-shells. The most common....
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....ntil consumption by the animal such as stabilisers, anti-oxidants, etc. (3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soya flour or meal, middling's, yeast, various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates). The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogeneous dispersion and mixing of these substances in the compound feeds to which the preparations are added. Provided they are of a kind used in animal feeding, this group also includes: (a) Preparations consisting of several mineral substances. (b) Preparations consisting of an active substance of the type described in (1) above with a carrier, for example products of the antibiotics manufacturing process obtained by simply drying the mass, i.e. the entire contents of the fermentation vessel (essentially mycelium, the culture medium and the antibiotic). The resulting dry substance, whether or not standardised by adding organic or inorganic substan....
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.... Therapeutic Applications - PMC (nih.gov)] Whereas the ingredient Cinnamaldehyde naturally occurs in the bark of cinnamon trees, specifically the species Cinnamomum cassia and Cinnamomum verum and is extracted through a process known as steam distillation. [Cinnamaldehyde | Formula, Properties & Application (material-properties.org)] 2.15 Therefore, the aforesaid ingredients are extracted from plants i.e., vegetable material. The vegetable material is processed to such an extent that the essential characteristic of the original material has been lost. III. Products which are not specified or included elsewhere 2.16 Enviva is a mixture of the following two active ingredients: a. Thymol b. Cinnamaldehyde 2.17 Individually, Thymol is a Phenol, covered under Heading 2907 and more specifically under Tariff Item 29071930. The relevant extract of the Heading 2907 is as follows: Tariff Item Description of goods 2907 PHENOLS; PHENOL-ALCOHOLS - Monophenols: 290711 -- Phenol (hydroxybenzene) and its salts : **** 290712 --- Cresols and their salts : **** 290715 -- Naphthols and their sal....
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....eliberately added during or after their manufacture (including purification) are excluded from this Chapter." 2.24 On an examination of the above-mentioned HSN Explanatory Note and Chapter Note 1 to Chapter 29 of the Customs Tariff, it is clear that in order to be classifiable under Chapter 29, the product needs to be a separate chemically defined organic compound, and mixtures are clearly excluded. 2.25 As mentioned above, Enviva is a mixture of 'thymol' and 'cinnamaldehyde', alongwith numerous other ingredients. Therefore, Enviva not being a chemically pure product/separate chemical compound, but a mixture, are excluded from Chapter 29. 2.26 There is no other Heading that aptly or more specifically covers the product now in question i.e., Enviva. 2.27 Thus, all conditions to be classified under Heading 23.09 are met. In view of the above, it is clear that Enviva is classifiable under Heading 2309 more specifically under Tariff Item 23099090. is not specified or included elsewhere. 3. ISSUES REQUIRING ADVANCE RULING AND APPLICANT'S UNDERSTANDING a. In light of the aforementioned submissions, the Applicant's interpretation of the questions ....
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....23.09.2024, Commissioner of Customs, Nhava Sheva has provided comments on the applicability of proviso (1) of section 28-I (2) of the Customs Act, 1962 (Act). The comment is extracted below: Point 3 ii) Applicability of proviso (1) of section 28-I (2) of the Customs Act, 1962 regarding the question raised in the application. - As per available records, SCN No. 396/2023-24/Commr/NS- I/CAC/JNCH dated 22.05.2023 was issued by the Commissioner of Customs, NS-I, JNCH, to M/s Danisco India Pvt. Ltd., wherein the importer was asked to show cause as to why the import of item Enviva Pro 201 BA under CTH 30029030 be rejected and re-classified under CTH 23099000. It has been checked with the concerned adjudication cell and found that above mentioned SCN has not been adjudicated yet. Department's Comments on Merits of Application A.2 Further, it is important to note that on merits, the response of the Respondent is "No Comments". The same is extracted below: Point 3 iv) Comments on the merits of the question raised in the application, along with all materials in support thereof. -No Comments. This is issued with the approval of Commissione....
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....and immune function. A.7 The product brochure/data sheet of Enviva Pro 201BA is enclosed as Annexure-2. A.8 From the above table, it is evident that the composition of the product covered in the SCN vis a vis the composition of the product covered in the present application are different. Further, the purposes of the products too are different: while Enviva Pro is for the birds to achieve better nutrition from the feed, Enviva EO 101G is for encouraging feed intake in young animals such as piglets and also creating a balance in gastrointestinal tract. A.9 Thus, as both products are different in terms of composition as well as use, the bar under Section 28-I (2) will not apply. A.10 The Relevant extract form the Customs Act is as follows: SECTION 28-I. Procedure on receipt of application. - (1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the 1[Principal Commissioner of Customs or] Commissioner of Customs and, if necessary, call upon him to furnish the relevant records : Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be retu....
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....vant extract of the same is follows: Table 1 (continued) Source Bioactive constituent Food application Health benefits References Henna (Lawsonia inermis) extract Catechin acid Methyl gallate Ellagic acid Coumaric acid High antibacterial efficacy against Bacillus cereus, E. coli, and Pseudomonas aeruginosa on yoghurt during 15 days of storage Maintains beneficial probiotic concentrations at optimal levels Ghazy et al. (2023) Essential oils (EOs) Cinnamon EOs Clove EOs White thyme EOs Cinnamic aldehyde Thymol Eugenol Extended food products' shelf life Anti-inflammatory properties Immunomodulatory activities Valdivieso- Ugarte et al. (2021) B.4. Further, the said book 'Sustainable use of feed additives in livestock', also provides a list of essential oils obtained from their respective plant, which contribute towards antibacterial-antifungal activity and thymol and cinnamaldehyde are covered thereunder. Relevant extracts of the same are as follows: Table 1 Chemical composition of various essential oils and their antibacterial-antifungal activity against pathogens Plant Chemical compoun....
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.... showed that oregano essential oil reduced the levels of pro-inflammatory cytokines and increased the levels of anti- inflammatory cytokines in the intestine. This indicates that the essential oil of oregano can reduce inflammation in the small intestine of broiler chickens. The anti-inflammatory effect of essential oils can benefit animals by improving their gut health and reducing the risk of inflammation-related diseases. The use of essential oils as feed additives has become increasingly popular due to their many beneficial effects on animal health and performance. B.5. The said book 'Sustainable use of feed additives in livestock', also specifically explains how a combination of thymol and cinnamaldehyde have an impact of gut microbia and together they bear actions in gastrointestinal tract to raise food palatability, promote digestive fluid production etc. Relevant extract of the same is below: Most of the studies focused on the growth-promoting features, such as feed intake, weight gain, and feed conversion ratio. The effects of essential oils on feed intake of pigs showed promising results. In the review by Franz et al. (2010), the change in feed intake ....
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....mulsifiers, pelleting agents are used to meet the demands of feed manufacturers while antioxidants, fungistatic agents and fermentation inhibitors ensure proper shelf-life of feed. 2. Improve animal performance: Feed additives are mixed with feeds in nontherapeutic quantities for the purpose of promoting animal growth, lowering feed consumption, protecting the animal against all sorts of harmful environmental influences (stresses). 3. Improve the final product: Addition of antioxidants to diets produce grades of meat in which the fat does not rancidify or does so more slowly. The use of additives also makes end products more homogenous and of better quality. 4. Economise the cost of animal protein: Low levels of additives, mainly of antibiotics or other growth promoters and related compounds in animal feed contribute to increased production of animal proteins for human consumption. Feeding antibiotics and other additives lower the cost of meat, milk and egg production. B.8. Further, the book 'Sustainable use of feed additives in livestock", provides information of the effects of feed additives on the immune system of poul....
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....y roles, including immune functions, elimination of waste products, and endocrine effects. B.16. Thus, from the above it is evident that it is essential to increase the palatability of the feed, which encourages feed intake in young animals and also create a proper balance in the gastrointestinal tract. Premix under Heading 2309 B.17. As elaborated in the present application dated 25.06.2024, Heading 2309 covers three kinds of preparations: a. complete feeds (Para (II) (A) of the Explanatory Notes) b. Feed supplements (Para (II) (B) of the Explanatory Notes) and c. Preparations (i.e. premixes) for use in making the complete feed or feed supplements. (Para (II) (C) of the Explanatory Notes) B.18. Relevant extracts from HSN Explanatory Notes pertaining to the Premix category is as follows: "(C) PREPARATIONS FOR USE IN MAKING THE COMPLETE FEEDS OR SUPPLEMNTARY FEEDS DESCRIBED IN (A) AND (B) ABOVE These preparations, known in trade as "premixes", are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal producti....
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.... low levels. Dispersion of such low concentrations of active ingredients presents a challenge to the manufacturers of the compound feed. This challenge can be met by the premix-the dilution of an active component with a suitable carrier. Physical characteristics of micro-ingredients such as particle size, particle shape, specific weight, hygroscopicity, susceptibility to electrostatic charges, adhesiveness of the particles due to physical properties, such as rough surfaces or additions of adhesives such as oils influence mixing them with the other feed ingredients. Micro-ingredients have a very small particle size and high density compared to other feed ingredients. A significant uptake of moisture by a micro-ingredient can seriously hamper its. ability to distribute and mix well. A hygroscopic ingredient can affect the chemical stability of any moisture sensitive component. This problem may be dealt with during formulations by. complexation or through a coating that acts as a moisture barrier. During intensive grinding to reduce particle size, a pure crystalline compound frequently develops a static charge and hence the individual particles repel one another whic....
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....FEFAC), What is a premix?, available at: https://fefac.eu/about- our-industry/what-is-a-premix/] which states that in order to ensure that micro- ingredients are mixed with macro-ingredients (in a homogeneous way), an intermediate dilution step is required via a 'premix'. The relevant portion is extracted below: What is a premix? Premixes are complex mixtures of vitamins, minerals, trace elements and other feed additives that are incorporated at levels between 0.2 and 0.5% in the compound feed. Adequate nutrition requires feed compositions consisting of macro ingredients and micro ingredients, sometimes incorporated at ppm levels (e.g. vitamins). To secure that these micro-ingredients are mixed with macro-ingredients in an homogeneous way, an intermediate dilution step is required via a so-called premixture. Premixtures are legally defined as mixtures of feed additives or mixtures of one or more feed additives with feed materials or water used as carriers, not intended for direct feeding to animals (Regulation (EC) No 1831/2003). This premixture is incorporated at levels typically between 0.2 to 0.5% in the compound feed. The manufacturing of prem....
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....necessary digestion and absorption of feed b. Maltodextrin is essential as it is non-reactive with other ingredients. Water helps transport products like metabolites, hormones and gases throughout the body. c. While maltodextrin enhances pellet quality and stability, water aids in elimination of waste products, through urine and faeces d. Maltodextrin holds ingredients for uniform distribution and water provides the ion balance B.27. A carrier is usually an inactive accessory substance (vehicle) or a substance (such as a catalyst) by whose agency some element or group is transferred from one compound to another. Therefore, the carrier absorbs or coats the micro-ingredient in order to physically carry the micro-ingredient, thereby facilitating the uniform mixing of the product into the feed. B.28 Maltodextrin is a renowned carrier for animal feed. It not only acts as a carrier for supplying the essential nutrient /active ingredient, but being a complex carbohydrate, maltodextrin is quickly absorbed by the gut and can provide fast and readily absorbable energy. Maltodextrin provides a steady release of energy so that the body can begin to break down f....
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.... 2 Cinnamaldehyde 04-09% Active ingredient- Important dietary constituent as it has antimicrobial, anti- inflammatory and antioxidant properties 3 Purity gum/modified starch 04-08% Stabilizer 4 Maltodextrin 60-70% Carrier 5 Water 04-10% Carrier 7.3 Enviva can be used in following manner: i. In case of Broilers: It has to be used at a rate of 0.1 kg/tonne (0.01%) of finished feed, included either directly or via a premix. ii. In case of Piglets (weaned): It has to be used at a rate of up to 0.15 kg/tonne (0.015%) of finished feed, included either directly or via a premix. 7.4 Provisions relating to Advance Ruling are prescribed under Chapter VB of the Customs Act. The present application is being made by the Applicant to confirm classification of Enviva. The Applicant is satisfying the following conditions required for filing the application for advance ruling, namely: a) have been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992. b) Application for advance ruling is in relation to clause (a) of Section 28H (2) of the....
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....under Heading 2309 the following requirements have to be met: a. It must be of a kind used in animal feeding; b. It must be obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, c. It must be other than vegetable waste, vegetable residues and by-products of such processing; d. It must not be specified or included elsewhere. 7.6.2 Relevant extracts from the HSN explanatory notes to Heading 23.09 is as under - 23.09 - Preparations of a kind used in animal feeding. 2309.10 - Dog or cat food, put up for retail sale 2309.90 - Other This heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed: (1) to provide the animal with a rational and balanced daily diet (complete feed); (2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed); or (3) for use in making complete or supplementary feeds. The heading includes products of a kind used in anima....
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....ehyde which are phytogenic compounds in their nature identical form. The said two ingredients are phytogenic compounds in their nature identical form. While, thymol is a natural compound found in thyme, and possesses antimicrobial properties contributing to overall gut health, cinnamaldehyde which is derived from cinnamon, also exhibits antimicrobial effects aiding in digestive well-being. The aforesaid ingredients are extracted from plants i.e., vegetable material. The vegetable material is processed to such an extent that the essential characteristic of the original material has been lost. 7.6.5 Individually, Thymol is a Phenol, covered under Heading 2907 and more specifically under Tariff Item 29071930. The relevant extract of the Heading 2907 is as follows: Tariff Item Description of goods 2907 PHENOLS; PHENOL-ALCOHOLS - Monophenols: 290711 -- Phenol (hydroxybenzene) and its salts : **** 290712 --- Cresols and their salts : **** 290715 -- Naphthols and their salts : **** 290719 -- Other : **** 29071930 --- Thymol Further, Cinnamaldehyde is an aldehyde,....
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....A Enviva EO 101G Active strain/ ingredient 1. Dried Bacillus amyloliquefaciens 1. Thymol 2. Cinnamaldehyde Purpose of product as per brochure A 3-strain probiotic was developed using Danisco's CSI platform technology ensuring high efficacy under modern poultry production challenges. Enviva Pro has been proven under challenging commercial conditions to effectively support the management of the gut microbiota balance. Probiotic beneficial effects on gut morphology and balance help support a more efficient nutrient utilization and better flock health status leading to an improved economic return. 1 It is an animal feed supplement. It is a nature identical essential oils blend of cinnamaldehyde and thymol that boosts feed intake in poultry and swine. This assists in creating a favorable Nutri-biotic state in the animal.2 Difference in function / use of products Product is to ensure better nutrient absorption by the birds. It helps to strengthen gut of the birds. Product stimulates palatability in animal feed. Further, it also promotes a harmonial balance between nutrition, gut microbiome, and immune function. 7.9 The product Enviva EO 101G is a natu....
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....tics manufacturing process obtained by simply drying the mass, i.e. the entire contents of the fermentation vessel (essentially mycelium, the culture medium and the antibiotic. 7.12 The reference drawn to the European Feed Manufacturers' Federation (FEFAC)'s article titled 'What is a premix?' which states that in order to ensure that micro-ingredients are mixed with macro-ingredients (in a homogeneous way), an intermediate dilution step is required via a 'premix' has been relied too. From the extracts, it is evident that for undertaking such supplements for poultry litter management, the micro-ingredients like bacillus are first prepared into the form of premix, and the premix is then added to animal feed. Thus, such supplementation is necessarily done through a two-step process: 1) preparing of the premixes and 2) addition of premix to animal feed. Thus, "premixes" are an essential and an indispensable necessity for mixing micronutrients in animal feed. 7.13 In view of the above, it is evident that the product in question as a premix i.e., being combination of active ingredients with carrier is essential to be added to the poultry....
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....se in the annual production of food is necessary. and in parallel with this increase in production, the least pressure should be placed on the environment. To achieve such goals, it is absolutely necessary to optimize feedstuff with the help of various feed additives in order to improve health, increase the bioavailability of nutrients, and improve animal performance. The main key to achieving these goals is only by having productive birds in terms of innate and acquired immunity during the breeding period. The use of feed additives in poultry nutrition can be considered as an effective solution to strengthen body immunity and a reassuring and economical proposal. Knowledge and proper understanding of the characteristics and use of additives and their effects in poultry nutrition are the goals of many researchers' studies in recent years. Many researches have shown that feed additives can increase the bioavailability and digestibility of nutrients without negatively affecting the nutrient balance of poultry dicts, and at the same ume leading to the improvement 498 A. Seidavi et al. of the health of the digestive system, and the quality and quantity of manufactured products ha....