AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (12) TMI 1748
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....eca nut (Split)" in India. The applicant submitted as under: 1.1. That the applicant is in the process of setting up its business of trading/Export of Provisionally Preserved Areca Nut (Whole) and provisionally preserved Areca Nut (Split) from Myanmar, Thailand, Indonesia, Vietnam, Sri Lanka, UAE, Cambodia, Laos & Singapore to India. 1.2. That therefore the applicant is approaching this Hon'ble Authority, seeking advance ruling qua the subject goods as mentioned in the following paras of this application as the applicant intends to import the same into India and hence would like to have a proper understanding and clarification as to whether the goods being imported shall be covered under a particular classification or the other. The nomenclature and details of the goods being sought to be imported by the applicant is Provisionally Preserved Areca Nut (Whole) and Provisionally Preserved Areca Nut (Split)". 1.3. That Areca Nut is a tropical plant found all over South-East Asia. The tree belongs to the palm tree species and is from the Arecaceae family. The fruit (nut) of this tree is popularly known as betel nut or "supari" in India. The Areca nut is an important comm....
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....nd are classifiable under CTH 0812 90 90 of the Customs Tariff Act, 1975. Chapter 8 covers edible fruit and nuts, peels of citrus fruits or melons. Chapter note (3) to chapter 8 reads as follow -: "3. Dried fruits or dried nuts of this Chapter may be partially rehydrated, or treated for the following purposes: (a) for additional preservation or stabilization (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate) (b) to improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), provided that they retain the character of dried fruit or dried nut" Again, Chapter note (4) reads as follow :- (a) Heading 0812 applies to fruit and nuts which have been treated solely to ensure their provisional preservation during transport or storage prior to use (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), provided they remain unsuitable for immediate consumption in that state." 1.8. That Heading 0812 covers fruits and nuts provisionally preserved but unsuitable in that state for immediate consum....
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....ading 0812 90 90 of the First Schedule to the Customs Tariff Act, 1975". 1.13. That on the matter of interpretation of law of facts, the applicant most respectfully submits that as per their best knowledge and belief the items are classified under classification heading no. given in Custom Tariff heading 0812 9090. The said entry in Customs Tariff Act, 1975 reads as under :- Tariff Item Description of Goods Unit 0812 10 00 - Cherries Kg's (Kilograms) 0812 90 - Other 0812 90 10 - Mango Slices in brine 0812 90 90 - Other Chapter 8 covers edible fruit and nuts, peels of citrus fruits or melons. Chapter note (3) to chapter 8 reads as follow -: 3. Dried Fruits or dried nuts of this Chapter may be partially rehydrated or treated for the following purposes: (c) For additional preservation or stabilization (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate) (d) To improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), Provided that they retain the character of dried fruit or dried nut"....
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....) and Provisionally Preserved Areca Nut (Split)" are classifiable under Customs Tariff Heading 0812 90 90 of the First Schedule to the Customs Tariff Act, 1975" c. That the items are classified under classification heading no. given in Custom Tariff heading 0812 9090. The said entry in Customs Tariff Act, 1975 reads as under :- Tariff Item Description of Goods Unit 0812 10 00 - Cherries Kg's (Kilograms) 0812 90 - Other 0812 90 10 - Mango Slices in brine 0812 90 90 - Other Chapter 8 covers edible fruit and nuts, peels of citrus fruits or melons. Chapter note (3) to chapter 8 reads as follow -: 3. Dried Fruits or dried nuts of this Chapter may be partially rehydrated or treated for the following purposes: (c) For additional preservation or stabilization (for example, by moderate heat treatment, sulphuring, the addition of sorbic acid or potassium sorbate) (d) To improve or maintain their appearance (for example, by the addition of vegetable oil or small quantities of glucose syrup), Provided that they retain the character of dried fruit or dried nut". Again Chapter note (4) reads as....
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....ation seeking rulings for classification of the goods in question under CTH 08129090 in the instant matter. The comments of the port authority in the instant matter, are under: 2.1. The applicant i.e. M/s Lujee International Company Ltd., Soi Nang Linchi 6 Lane, 1 Nang Linchi RD, Thungmahamek, Sathan, Bangkok- 10120, Thailand, filed an application (CAAR-I) for advance ruling before the Customs Authority for advance ruling, Delhi (CAAR in short). The said application was received on 27.08.2024 along with its enclosures in terms of Section 28I (1) of the Customs Act, 1962 (hereinafter referred to as the "Act" also). The applicant was seeking advance ruling on the classification of "Provisionally preserved Areca Nut (Whole/Split)" for imports through the Port of Mundra. 2.2. The applicant sought that, since the impugned goods has undergone preservation, what would be there proper classification? 2.3. In this regard, it is submitted that from the plain reading of the of the explanatory notes of chapter 8, In 08.02 Other nuts, fresh or dried, whether or not shelled or peeled Chapter note3 of chapter 8 mentions that dried fruits or dried nuts of this chapter may be partially ....
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....rt Policy as on date 1 080280 100% 100% 5% Prohibited but free if CIF value is Rs. 351/- or above per Kg. Tariff Value is US $ 6242 PMT (as per Notification No. 53/2024-Customs (N.T.) dt. 31.07.2024) 2 08129090 30% 30% 5% Free 2.5. Therefore, in view of the above, the Areca Nut (Whole/Half/Split/Cut) provisionally preserved with slacked lime or Sulphur Di-Oxide or Sodium Benzoate Solution or Bordeaux should be rightly classified under CTH 08028010. Records of the personal hearing in the matter: - 3. In the instant case, the personal hearing could not be conducted as the applicant vide email dated 22.12.2024 informed that the applicant do not want any further personal hearing in the matter. The port authority also not requested for personal hearing in the matter. However, the A.R. of the applicant in his email dated 22.12.2024 forwarded additional submission in the matter. 4. The additional submission of the A.R. of the applicant, are, as under: i. This has reference to the above mentioned Applications for Advance Ruling under Section 28H of the Customs Act, 1962 filed by the applicant Lujee International Company Limited (here....
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.... c. Treatment with Sulphur di-oxide or Sodium Benzoate solution having antibacterial and antifungal properties. d. The preservatives can be removed before use of the Areca Nuts through simple processes. In case of treatment with lime or slacked lime, the traces thereof on Areca Nuts can be removed by subjecting it to water treatment (thorough washing). e. In case of treatment with 1% Bordeaux solution, the Areca Nuts can be made suitable for human consumption by subjecting it to water treatment (thorough washing). f. In case of preservation carried out with Sodium Benzoate solution, the Areca Nuts can be treated with Sodium bi-carbonate and when washed with plain water the excess Benzoic Acid will get removed. In this process, by way of neutralisation and after getting dissolved in water the benzoic acid gets removed. g. In cases where the Areca Nuts is preserved with Sulphur di-oxide, these can be treated with Hydrogen Peroxide by which the Sulphur di-oxide is oxidized to sulphate and during the process addition of sodium bi carbonate and water will remove the excess peroxides. v. It is submitted that after carrying out the abov....
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....its and nuts provisionally preserved but unsuitable in that state for immediate consumption. Following are the four sub-headings under the Heading 0812: 0812 10 00 - Cherries 0812 90 - Other: 0812 90 10 --- Mango slices in brine 0812 90 90 --- Other The Note appearing below Heading 0812 of HSN Explanatory reads as under: "This heading applies to fruit and nuts (whether or not blanched or scalded) which have been treated solely to ensure their provisional preservation during transport or storage prior to (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), provided they remain unsuitable for immediate consumption in that state." Such provisionally preserved areca nuts are not classifiable under Tariff Heading 0802. The relevant portion of Heading 0802 is as under: 0802 Other nuts, fresh or dried, whether or not shelled or peeled 080880 - Areca nuts: 08028010 ---Whole 08028020 --- split 08028030 --- Ground 08028090 --- Other ix. It is submitted that even though Areca Nut is separately mentioned under Heading 0802, the Areca Nuts covered unde....
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.... The relevant portion of Heading 2008 is as under: 2008 Fruit, nuts and other edible parts of plants, otherwise prepared or preserved, whether or not containing added sugar or other sweetening matter or spirit not elsewhere specified or included. 20081930 Other nuts, otherwise prepared or preserved. The Note appearing below the Heading 2008 states that this heading covers fruit, nuts and other edible parts of plants, whether whole, in pieces or crushed, including mixtures thereof, prepared or preserved otherwise than by any of the processes specified in other Chapters or in preceding headings of this Chapter. The products of this heading are generally put up in cans, jars or airtight containers, or in casks, barrels or similar containers. Hence, it can be seen that if Areca Nuts are provisionally preserved and hence are unfit for immediate consumption, it would find classification under Heading 0812 and contrary to that if the Areca Nuts are even though subjected to preservation process, but still not rendered unfit for immediate consumption, it would find classification under Heading 2008. Further, the Areca Nuts are intended to be imported packed in b....
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....or Bordeaux solution sprayed on the original form of Areca Nuts either in whole or split form, is only for the purpose of provisional preservation during storage and transport, and not with the intention to make Pan Masala or Supari preparation. xv. Moreover, such preservative chemicals are required to be removed by simple process of water washing or treating with Sodium bi-carbonate or Hydrogen Peroxide, before actual consumption of such provisionally preserved areca nuts into its edible form/preparation. Reliance is placed on ruling in the matter of Hi-Tech Print Systems - Ruling No. CAAR/Mum/ARC/42/2023, . The relevant portion of the said ruling is extracted as under: "6.4 From the submission of the applicant I find that the subject product is treated with sulphurdi-oxide gas or sodium benzoate solution before packing and export for preservation. The said preservatives can be removed before consumption through simple processes, as explained at para 2 above, to make the product suitable for human consumption. It is observed that the subject goods remain unsuitable for immediate consumption in that state and need to be processed further to remove the preservative....
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....cant do not want any further personal hearing in this matter and most humbly prayed that this Hon'ble Advance Ruling Authority may kindly take the aforesaid additional submissions on record along with the Advance Ruling passed by the Authority of Advance Ruling New Delhi and Mumbai, into consideration while passing orders in the interest of justice. Findings, Discussion and Conclusion 5.1 I have taken into consideration of all the materials placed on record in respect of the subject goods including the submissions made by the applicant vide e-mail dated 22.12.2024. I have gone through the response from the Customs Port Commissionerate. I proceed to decide the present application regarding classification of Provisionally preserved Areca nut (whole) and Provisionally preserved Areca nut (split) on the basis of the information on record as well as the existing legal framework having bearing on the classification of the Provisionally preserved Areca nut (whole) and Provisionally preserved Areca nut (split) under the first schedule of the Customs Tariff Act, 1975. 5.2. Chapter 8 covers fruit, nuts and peel of citrus fruit or melons (including watermelons), generally intende....
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....in brine 0812 90 90 - Other In view of the process carried out by the applicant reproduced in para 1.11 and para 4(e) supra, I find that the conditions of Chapter Note (4) as mentioned above are duly fulfilled and hence the said goods come within the ambit of Customs Heading 0812. 5.5. The Heading 0812 applies to fruit and nuts (whether or not blanched or scalded) which have been treated solely to ensure their provisional preservation during transport or storage prior to use (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), provided they remain unsuitable for immediate consumption in that state. Though areca nuts are separately mentioned under 0802, nuts provisionally preserved but unsuitable in that state for immediate consumption, as the areca nuts in the present case, will get covered under Heading 0812 which occurs later in the schedule and accordingly, the nuts that are provisionally preserved and not fit for immediate consumption need to be classified more specifically under the CTH 08129090. 5.6. Further, reliance has also been placed upon on the following rulings -: i. Ruling No. CAAR/Mum/ARC/42/202....