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2026 (4) TMI 705
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....nka. 2. Applicant's Submissions: - 2.1 The applicant is a firm in the name and style of M/s AANJAN IMPEX bearing IE code: 3216923266. The Applicant is intending to import "Poultry Feed Premix goods namely, (a). 'LAYVIT PROMAX - Poultry Feed premix', (b) BROVIT PROMAX- Poultry Feed premix', (c) 'Poultry Feed Premix - PBS', (d) 'Poultry Feed Premix -BS', and (e) 'Poultry Feed Premix - BF' from Sri Lanka. As per the present scheme of Classification of commodities under the Customs Tariff Act, 1975 reproduced below, Pro-vitamins, Vitamins and Hormones are classified under the Chapter Heading 2936, while Preparations of a kind used in Animal Feedings are particularly and specifically classified under the Tariff Item 2309. 2.2 The relevant headings and Tariff entries in the first schedule to the Customs Tariff Act of Chapter 2936 and 2309 are extracted as below: - CHAPTER 29 Organic chemicals NOTES: 1. Except where the context otherwise requires, the headings of this Chapter apply only to: (a) separate chemically defined organic compounds, whether or not conta....
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....DING NATURAL CONCENTRATES), DERIVATIVES THEREOF USED PRIMARILY AS VITAMINS, AND INTERMIXTURES OF THE FOREGOING, WHETHER OR NOT IN ANY SOLVENT - Vitamins and their derivatives, unmixed : 2936 21 00 -- Vitamin A and their derivatives kg. 7.5% 10% 2936 22 -- Vitamin B1 and its derivatives : 2936 22 10 --- Vitamin B1 [Thiamine (INN), aneurine] and its salts kg. 7.5% 10% 2936 22 90 --- Other kg. 7.5% 10% 2936 23 -- Vitamin B2 and its derivatives : 2936 23 10 --- Vitamin B2 [Riboflavin(INN), lactoflavin] and its salts kg. 7.5% 10% 2936 23 90 --- Other kg. 7.5% 10% 2936 24 00 -- D- or DL-Pantothenic acid (Vitamin B5) and its derivatives kg. 7.5% 10% 2936 25 00 -- Vitamin B6 and its derivatives kg. 7.5% 10% 2936 26 -- Vitamin B12 and its derivatives : 2936 26 10 --- Vitamin B12 (Cyanocobalamin (INN)) kg. 7.5% 10% 2936 26 90 -....
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....ed feed with organic and inorganic substances (supplementary feed) (c) for use in making complete or supplementary feed like pre-mixes. The poultry feed pre-mix contains vitamins AD3, C, D3, E, K3, B1, B2, B6, B12, H, B5, B9 and B3, pro-vitamins amino-acids like Pantothenic Acid, Folic Acid, Nicotinic Acid, Lysine, DLM (DL-methionine) and stabilizer, anti-oxidants and carriers (may contain either of one or more organic nutritive substances or of inorganic substances) and miners among others as per the requirement of birds/poultry to which they are fed. 4. The applicant further submitted that Vitamins must be administrated to animals in appropriate quantities. Its requirement also differs from animal to animal therefore care must be taken to ensure that the vitamin quantity being given to the animals is good enough to take care of their daily requirements but not in excess quantity which can start causing them harm. 5. The applicant also submitted that direct administration of micro ingredients like vitamins or direct mixing of micro ingredients in the final feed is not recommended for the following reasons a. Micro ingredients are added to feed at a very ....
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....stances or substances (such as catalyst) with whose presence some elements or group is transferred from one command to another. As per the reference book of "principle of animal nutrition and feed technology" carrier is an edible material to which ingredients are added to facilitate uniform incorporation of such ingredients into the feed. Therefore, carrier absorbs or coats the micro ingredients in order to physically carry the micro ingredients, thereby facilitating the uniform mixing of the product into the feed. 10. M/s. Best-Glow (Pvt) Ltd., Sri Lanka manufacture the proposed imported goods, viz., (a). 'LAYVIT PROMAX - Poultry Feed premix', (b) BROVIT PROMAX- Poultry Feed premix', (c) 'Poultry Feed Premix - PBS', (d) 'Poultry Feed Premix - BS', and (e) 'Poultry Feed Premix - BF' for the applicant. 11. (i) LAYVIT PROMAX - Poultry Feed premix is a customised vitamin premix to be mixed with Bulk feed for Layer Birds. (ii) BROVIT PROMAX- Poultry Feed premix is a customised Vitamin premix to be mixed with Bulk feed for Broiler Birds. (iii) Poultry Feed Premix - PBS is a customised vitamin pr....
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....hapters are provided for ease of reference only; 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, according to the following provisions: 2. (a) Any reference in a heading to an article shall be taken to include a reference to that article incomplete or unfinished, provided that, as presented, the incomplete or unfinished articles has the essential character of the complete or finished article. It shall also be taken to include a reference to that article complete or finished (or falling to be classified as complete or finished by virtue of this rule), presented unassembled or disassembled. (b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods of a given material or substance shall be taken to include a reference to goods consisting wholly or partly of such material or substance. The classification of goods consisting of more than one material or substance shall....
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.... For legal purposes, the classification of goods in the sub-headings of a heading shall be determined according to the terms of those sub headings and any related sub headings Notes and, mutatis mutandis, to the above rules, on the understanding that only sub headings at the same level are comparable. For the purposes of this rule the relative Section and Chapter Notes also apply, unless the context otherwise requires. 13.2 THE GENERAL EXPLANATORY NOTES TO IMPORT TARIFF 1. Where in column (2) of this Schedule, the description of an article or group of articles under a heading is preceded by "-", the said article or group of articles shall be taken to be a sub-classification of the article or group of articles covered by the said heading. Where, however, the description of an article or group of articles is preceded by "-- ", the said article or group of articles shall be taken to be a sub-classification of the immediately preceding description of the article or group of articles which has "-". where the description of an article or group of articles is preceded by " --- " or " ---- ", the said article or group of articles shall be taken to be a sub-classification of the....
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....of headings / sub-headings, related Section Notes, Chapter Notes and the General Rules for the Interpretation (GIR) of the First Schedule to the Customs Tariff Act, 1975. Rule 1 of the GIR provides that the classification of goods shall be determined according to the terms of the headings of the tariff and any relative Section notes or Chapter notes and thus, gives precedence to this while classifying a product. Rules 2 to 6 provide the general guidelines for classification of goods under the appropriate sub-heading. In the event of the goods cannot be classified solely on the basis of GIR 1, and if the headings and legal notes do not otherwise require, the remaining Rules 2 to 6 may then be applied in sequential order. Further, while classifying goods, the foremost consideration is the 'statutory definition', if any, provided in the Customs Tariff Act. In the absence of any statutory definition, or any guideline provided by HS explanatory notes, the trade parlance theory is to be adopted for ascertaining as to how the goods are known in the common trade parlance for the purpose of dealing between the parties. 15. The applicant further submitted that from the relevant he....
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....9;, (d)'Poultry Feed Premix - BS', and (e) 'Poultry Feed Premix -BF'. From the formulae for the aforestated proposed imported goods, it is apparent that said goods contain vitamins and pro- vitamins at varying percentages. 18. The Applicant submitted that the Harmonized Commodity Description and Coding System generally referred to as the "Harmonized System" or simply "HS" is a multipurpose international product nomenclature developed by the World Customs Organization (WCO). The official interpretation of the HS is given in the Explanatory Notes published by the WCO and offers a safe guide to interpret and classify the commodity under consideration. "Harmonized Commodity Description and Coding System Tariff Item Description of goods Unit Rate of Duty Standard Preferential Areas (1) (2) (3) (4) (5) 2309 PREPARATIONS OF A KIND USED IN ANIMAL FEEDING 2309 10 00 - Dog or cat food, put up for retail sale kg. 20% - 2309 90 - Other : 2309 90 10 --- Compounded animal fee....
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....f 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 substances, has an antibiotic content ranging generally between 8% and 16%and is used as basic material in preparing, in particular, "premixes ". The preparations of this group should not, however, be confused with certain preparations for veterinary uses. The latter are generally identifiable by the medicinal nature and much higher concentration of the active substance, and are often put up in a different way. ............... The heading excludes: ............... (e) Vitamins, whether or not chemically defined or intermixed, whether or not put up in any solvent or stabilised by the addition of antioxidants or anticaking agents, by adsorption on a substrate or by applying a protective coating of, for example, gelatin, waxes, fats, etc., provided, that the quantity of such additives, substrate or coating does not exceed that required for preservation or transport a....
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....yl oleate, propane-1,2-diol, ethanediol, vegetable oils). (e) The products of this heading may be stabilised for the purposes of preservation or transport: - by adding antioxidants - by adding anti-caking agents (e.g., carbohydrates), - by coating with appropriate substance (e.g., gelatine, waxes or fats), whether or not plasticised, or - by adsorbing on appropriate substances (e.g., silicic acid), provided that the quantity added or the processing in no case exceeds that necessary for their preservation or transport and that the addition or processing does not alter the character of the basic product and render it particularly suitable for specific use rather than for general use. 21. Applicant further submitted that from the above HSN explanatory notes, we understand that heading 2936 covers under its scope (i) vitamins (ii) pro-vitamins and (iii) derivatives and in the mixtures of the above (i) and (ii). Vitamins are described as active agents, usually of complex chemical composition, which are obtained from outside sources and are essential for proper functioning of human or other animal orga....
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....; (b) stabilizers, antioxidants etc., for the purpose of preserving the feeding stuffs and the consumption by the animal; (c) organic nutritive substances such as manioc or soya flour or meal, middlings, Yeast, various residues of the food industries, inorganic substances such as magnesite, Chak, kaolin, salt, phosphates, with serve as carriers. The concentration of the substances and the nature of carrier substance is determined for ensuring homogeneous dispersion and mixing of these substances in the compound feeds to which the preparations are added. 22. The Applicant further submits that the relevant portion of the HSN Explanatory Notes to Heading 2309 (Para II C) expresses 'Provided they are a kind used in animal feeding', that this group also includes: (a) Preparations containing of several mineral substances (b) Preparations containing an active substance of the types 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 content of the fermentation vessel (essentially mycelium the culture medium and the antibiotic). th....
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....riers. The objective of the process is to ensure accurate dosing, homogeneous blending, stability and safe packing of the final premix as per requirement of Birds/Poultry 2. Raw Materials 2.1 Active Ingredients (Vitamins) Each vitamin is supplied in stabilized or coated forms. Examples include Vitamin A, D3. C, E, K3, B-Complex, H etc. 2.2 Carriers Common carriers: Rice bran, Antioxidant met-medium chain coconut triglyceride etc. 3. Equipment Required Precision balance, SS pans, Ribbon/Paddle blender, packing machine, PP bags, Sealing unit. 4. Manufacturing Process 4.1 Step 1: Individual Weighing of Vitamins Each vitamin is weighed separately according to the batch sheet to ensure accuracy and prevent cross-contamination. 4.2 Step 2: Weighing of Carriers Carriers are weighed separately as per the batch formulation to achieve the final required weight. 4.3 Step 3: Consolidation and Batch Verification All ingredients are combined and cumulative weight is confirmed to match the batch requirement. 4.4 Step 4: Blending Operation The consolidated....
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....ne 0.1579 157.9 DLM 0.3579 357.9 Vit. AD3 (10L:2L IU/g) 0.0017 1.7 Vitamin D3 Pure (5L IU/g) 0.0004 0.4 Vitamin E 0.0111 11.1 Vitamin K3 0.0011 1.1 Vitamin B1 0.0006 0.6 Vitamin B2 0.0014 1.4 Vitamin B6 0.0007 0.7 Vitamin B12 0.0003 0.3 Biotin 0.0022 2.2 Pantothenic Acid (B5) 0.0022 2.2 Folic Acid (B9) 0.0003 0.3 Niacin (B3) 0.0077 7.7 Vit C (Coated) 0.0116 11.6 Carrier 0.0 calcium carbonate 0.0300 30.0 rice bran 0.0400 40.0 antioxidant mct- medium chain coconut triglyceride 0.0362 36.2 Total 1.0000 1000.0 BS BROILER STARTER CONTAINS FOLLOWING MATERIALS. Ingredient BS GRAMS PER KG Lysine 0.3333 333.3 Threonine 0.1556 155.6 DLM 0.3667 366.7 Vit. AD3 (10L:2L IU/g) 0.0018 1.8 Vitamin D3 Pure (5L IU/g) 0.0005 0.5 Vitamin E 0.0117 11.7 Vitamin K3 0.0011 1.1 Vitamin B1 0.0006 0.6 Vitamin B2 0.0015 1.5 Vitamin B6 0.0007 0.7 Vitamin B12 0.0004 0.4 Biotin 0.0023 2.3 ....
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....spersion, stability and safe handling of micro-ingredients such as vitamins and amino acids. Carriers do not perform any independent nutritional function. Typical carriers include rice bran, calcium carbonate and vegetable or MCT oil. In the present case, these materials alone act as carriers. Amino acids, being nutritionally functional and high-value ingredients, are never used as inert diluents or carriers in commercial practice. 26.3 No Requirement of Predominant Carrier Neither the Customs Tariff Act, 1975 nor the HSN Explanatory Notes prescribe any requirement that the carrier must be predominant by weight in a feed premix. Classification is governed by the essential character of the product and its intended use, not by quantitative predominance of individual constituents. The HSN Explanatory Notes to Heading 2309 clarify that feed premixes may contain a relatively high proportion of active substances such as vitamins or amino acids and need not be directly consumable as feed. 26.4 Essential Character and Intended Use The subject goods are scientifically formulated poultry feed premixes containing amino acids, vitamins and approved carriers, manufactured through co....
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....lassification of poultry feed premix products proposed to be imported by the applicant. The applicant has sought advance ruling on the classification of the following goods: a) LAYVIT PROMAX - Poultry Feed Premix b) BROVIT PROMAX - Poultry Feed Premix c) Poultry Feed Premix - PBS d) Poultry Feed Premix - BS e) Poultry Feed Premix - BF The competing tariff entries for classification are Heading 2309, which covers "Preparations of a kind used in animal feeding", and Heading 2936, which covers "Provitamins and vitamins, natural or reproduced by synthesis". 29.3 At the outset, I find that the issue raised by the applicant squarely falls within the ambit of Section 28H(2)(a) of the Customs Act, 1962, as it relates to the classification of goods under the Customs Tariff Act, 1975. 29.4 Classification of goods under the Customs Tariff Act is governed by the General Rules for Interpretation (GIR). Rule 1 of the GIR provides that classification shall be determined according to the terms of the headings and any relevant Section or Chapter Notes. Only when classification cannot be determined under Rule 1 do the subsequent rules become appl....
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.... complete or supplementary animal feeds, are classifiable under Heading 2309 as preparations of a kind used in animal feeding. In the present case, the addition of carriers is not merely for preservation or transport but to render the products particularly suitable for specific use in poultry feeding. Therefore, the products acquire the character of animal feed premixes. 29.8 Further, I find that heading 2309 of the HSN Explanatory Notes excludes those vitamins which contain additives necessary for preservation and transportation of the vitamin itself and are suitable for general use. Those vitamins fall under Heading 2936. The relevant portion of the HSN Explanatory Notes to Heading 2309 states that vitamins remain classifiable under Heading 2936 only when additives are added solely for preservation or transport and do not render the product suitable for specific use. 29.9 The same principle is also reflected in the HSN Explanatory Notes to Heading 2936, which clarify that vitamins may be stabilised with antioxidants or anti-caking agents provided such additions do not alter the character of the vitamin or render it suitable for specific use. 29.10 In th....