TaxTMI 
TaxTMI 
2026 (6) TMI 904
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....997 under the Companies Act, 1956. The Applicant is a market leader in dealing with goods which serve the following markets: i. Food and Beverage ii. Nutritional products (sports nutrition, meal replacements) Health and Wellness. 1.3. The Applicant is now proposing to import the product 'Supro@ XT 40' (hereinafter to be referred to as 'Supro@ XT 40' or 'product'), for the purpose of trading. About Supro(r) XT 40 1.4. Supro@ XT 40 is an isolated soy protein product. It is a product in light cream-colored powder form which is used by manufacturers of juices and other acidic beverages to fortify/add extra nutrients such as protein in their product while meeting consumers' taste and expectations. A picture of the product is as under: 1.5. Composition of the product is as follows: a. Isolated Soy Protein b. Calcium Phosphate, With Less Than 2% Lecithin 1.6. Following is the process undertaken to manufacture Supro(r) XT 40. * Defatted soy flakes are solubilized in water to dissolve protein and separate insoluble carbohydrates. * Protein is precipitated at its isoelectric point for purity and ....
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....oods prior to its importation or exportation; 1.13. 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; 1.14. The present application is being made by the Applicant to confirm classification of the product Supro(r) XT 40. Further, Applicant has not yet commenced import of the said products in India. 1.15. 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. The Application is being made to confirm classification of the product Supro(r) XT 40 proposed to be imported. b. The Applicant have been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; c. Application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962. Non-Applicability ....
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....nd (d) The application is not barred under Section 281 of the Customs Act, 1962. 1.19. Thus, the present application must be allowed to be proceeded with. CLASSIFICATION OF SUPRO(r) XT 40 1.20. The import and export of goods to and from India are governed by the provisions of Customs Act. Section 12 of the Customs Act is the charging section, according to which basic customs duty ("BCD") is payable on all goods imported into India or exported out of India at such rates as may be specified under the Tariff. 1.21. In accordance with Section 2 of the Tariff, the rates at which BCD shall be levied are specified in First and Second Schedules to the Tariff Act. Accordingly, to determine the appropriate rate of BCD on goods imported in India, it is important to determine the classification of the imported goods under First Schedule of the Tariff. 1.22. 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') as set out in the Tariff. 1.23. As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the hea....
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....peptones and casein peptones. They are used in pharmacy, in food preparations, for bacterial cultures, etc. (2) Peptonates are derivatives of peptones. They are used principally in pharmacy; the most important are iron peptonates and manganese peptonates. (B) Other protein substances and their derivatives, not covered by a more specific heading in the Nomenclature, including in particular : (1) Glutelins and prolamins (e.g., gliadins extracted from wheat or rye, and zein extracted from maize), being cercal proteins. (2) Globulins, e.g., lactoglobulins and ovoglobulins (but see exclusion (d) at the end of the Explanatory Note). (3) Glycinin, the main soya protein. (4) Keratins obtained from hair, nails, horns, hoofs, feathers, etc. (5) Nucleoproteids, being proteins combined with nucleic acids, and their derivatives. Nucleoproteids are isolated, for example, from brewer's yeast, and their salts (of iron, copper, etc.) are used mainly in pharmacy. However, nucleoproteids of mercury answering to a description in heading 28.52 are excluded. (6) Protein isolates obtained by extraction from a ve....
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....9;SPP') prepared from soybeans by various separation and extraction processes. As per the standard the protein content in case of soy protein isolate is 90% or more and the same should be calculated on the dry weight basis after excluding vitamins, minerals, amino acids and food additives. The relevant extract from CODEX Standard is reproduced below for ease of reference: CXS 175-1989 3 1. SCOPE This Standard applies to Vegetable Protein Products (VPP) prepared from soybeans (seeds of Glycine Max. L.) by various separation and extraction processes. These products are intended for use in foods requiring further preparation and by the food processing industry. 2. DESCRIPTION Soy Protein Products (SPP) covered by this Standard are food products produced by the reduction or removal from soybeans of certain of the major non-protein constituents (water, oil, carbohydrates) in a manner to achieve a protein (N x 6.25) content of: - in the case of soy protein flour (SPF) 50% or more and less than 65%; - in the case of soy protein concentrate (SPC) 65% or more and less than 90%; - in the case of soy protein ....
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....his method ensures that the protein concentration reflect the true and functional protein value, without any interference arising from mineral, ash, or other inorganic element which do not contribute to actual protein component of the product. The purpose of adopting this demineralised dry basis calculation is to provide an accurate, standardized and represent the true value of protein available in the product. 1.34. In the product in question, calcium phosphate is present along with soy protein isolate. Calcium phosphate is nothing but a mineral. This is evident from the following understanding of calcium phosphate from various sources: Sr. No. Source and extract from source 1 https://www.medicalnewstoday.com/articles/calcium-phosphate "Calcium phosphate is a compound that contains both calcium and phosphorus. It is a naturally occurring mineral that is a large component of bones and teeth." 2 https://www.sciencedirect.com/topics/chemical-engineering/calcium- phosphate "Calcium phosphate is the inorganic mineral of hard tissues such as bone and teeth. " 3 https://www.chemicalbook.com/article/calcium-phosphate-physical-properties-synthesis-and-biolo....
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....4. 1.40. Heading 3504 does not restrict the classification merely because the product contains incidental component. Accordingly, the presence of calcium phosphate does not alter the nature or functionality of protein in any manner disqualify the product from being classified under Heading 3504. Protein products continue to fall within the scope of Heading 3504 so long the essential and the predominant component remains the protein itself. This is supported by Rule 2(b) of the GRI: 2(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 be according to the principles of Rule 3. 1.41. The relevant portion from HSN Explanatory Notes to Rule 2(b) of GRI is extracted below: RULE 2 (b) (Mixtures and combinations of materials or substances) (X) Rule 2 (b) concerns mixtures and combina....
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....eous edible preparations' under Section XIV which covers "Prepared foodstuffs, beverages, spirits and vinegar, tobacco and manufactured tobacco substitutes". 1.45. At the outset it is submitted that the product Supro(r) XT 40 in question is not classifiable under Heading 2106 i.e., 'Food preparations not elsewhere specified or included', for the reasons mentioned infra. Heading 2106 is extracted below: Tariff Item Description 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED 21061000 - Protein concentrates and textured protein substances 210690 - Other --- Soft drink concentrates: 21069011 --- Sharbat 21069019 --- Other 21069020 --- Pan masala 21069030 --- Betel nut product known as "Supari" 21069040 --- Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup 21069050 --- Compound preparations for making non-alcoholic beverages 21069060 --- Food flavouring material 21069070 --- Churna for pan 21069080 --- Custard powder --- Other: 21069091 --- Diabe....
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....teristics (appearance, keeping qualities, etc.) (see the General Explanatory Note to Chapter 38). However, the heading does not cover enzymatic preparations containing foodstuffs (e.g., meat tenderisers consisting of a proteolytic enzyme with added dextrose or other foodstuffs). Such preparations fall in heading 35.07 provided that they are not covered by a more specific heading in the Nomenclature. The heading includes, inter alia : (1) Powders for table creams, jellies, ice creams or similar preparations, whether or not sweetened.: Powders based on flour, meal, starch, malt extract or goods of headings 04.01 to 04.04, whether or not containing added cocoa, fall in heading 18.06 or 19.01 according to their cocoa content (see the General Explanatory Note to Chapter 19). The other powders are classified in heading 18.06 if they contain cocoa. Powders which have the character of flavoured or coloured sugars used as sweetener fall in heading 17.01 or 17.02 as the case may be. (2) Flavouring powders for making beverages, whether or not sweetened, with a basis of sodium bicarbonate and glycyrrhizin or liquorice extract (sold as "Cocoa-powder"....
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....cessing to reach 90% pure and dry protein content. This is further supported by the manufacturing process enclosed as Exhibit-3. Thus, the product in question cannot be equated with protein concentrates. 1.52. Further, the product in question is not a soya-bean flour and other protein substances, textured. The same is evident from the brochure of the product enclosed as Exhibit-2. Thus, the product does not fall under the category of protein classifiable under Heading 2106. Thus, the product is correctly, classifiable under Heading 3504. 1.53. It is also submitted that Heading 2106 has specific category of protein covered under it and if a protein does not fall under the category of Heading 2106 it will fall under Heading 3504 which provides 'other protein substances and their derivatives, not elsewhere specified or included'. 1.54. Further, from the above, it appears that Note 5(a) to Chapter 21 includes protein concentrates and textured protein substances. Further, from the HSN Explanatory Notes to Heading 2106 it is clear that Heading 2106 specifically exclude protein isolates classified under Heading 3504. The product in question is a protein isolate and not....
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....under alkaline conditions using sodium hydroxide and other alkaline substances approved for food used) so that the protein and the oligosaccharides can dissolve into the solution. The protein solution is then separated from the insoluble residue by centrifugation, (2) the supernatant containing the protein and sugars is then acidified to isoelectric (where the solubility of proteins is minimal), using hydrochloric acid (HCI). This leads to the precipitation of protein as curd, (3) the solubility of the precipitated protein is restored by neutralizing to alkaline pH. 1.58. The procedure discussed above is very much akin to the procedure undertaken by Applicant in present case. Further, the broad difference protein isolates and protein concentrate is as under: Particular Protein Isolate Protein Concentrate Present Product Processing Requires high processing which results in removal of oil, solvent, extraction etc. and obtain a high-quality protein. Requires less processing in overall sense structure remains the same. As is evident from the manufacturing process, the processing in present case is high as required for protein isolates. Nutrient content ....
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.... schedule. Whereas, as proved in the foregoing paras, the product Supro@ XT 40 in the present case squarely fall under Heading 3504. 1.62. The Hon'ble Supreme Court in Hindustan Poles Corpn. v. Commissioner of Central Excise, Calcutta, 2006 (196) E.L.T. 400 (S.C.), held that residuary Entry is made to cover only those categories of goods which clearly fall outside the ambit of the main Entry. Unless the Revenue can establish that the goods in question can by no conceivable process of reasoning be brought under any of the tariff items, resort cannot be made to the residuary Entry. 1.63. The Hon'ble Supreme Court in Collector of Central Excise, Shillong v. Wood Craft Products Ltd., 1995 (77) E.L.T. 23 (S.C.), ruled that resort can be made to a residuary heading only when by liberal construction the specific Entry cannot cover the goods in question. 1.64. In light of the above-mentioned decisions, it is submitted that resort to residuary Heading of 2106 can be made only when the imported goods do not fall under Heading 3504 even by liberal interpretation of it. 1.65. Even on applying Rule 3 of the GRI, the product in question will be classifiable under Heading 3504....
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....n is not an isolated soy protein product even then the product would continue to be classifiable under Heading 3504 and more specifically under Heading 35040099 as 'Others' on application of Rule 3 (a) of GRI.) 1.70. Even if is assumed that Rule 3 (a) is not applicable in the present case, the product Supro(r) XT 40 is rightly classifiable under Tariff Item 35040091 on application of Rule 3 (b) of GRI. 1.71. Rule 3(b) of GRI read as under: Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. 1.72. The relevant portion of the HSN Explanatory Notes to Rule 3(b) of GRI is extracted below: RULE 3 (b) (VI) This second method relates only to : (i) Mixtures, (ii) Composite goods consisting of different materials. (iii) Composite goods consisting of different components. (iv) Goods put up in sets for retail sales. It applie....
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....even if it is assumed that there is no specific heading, and Rule 3(a) is inapplicable even then the product in question is correctly classifiable under Heading 3504. The same has been discussed in detail in subsequent paragraphs. 1.75. Rule 3(b) mandates that the classification shall be determined on the basis of the essential character of the good that is the material or the component which imparts the good their principle identity or the predominant nature. 1.76. In the present case, the essential component of the product is protein isolate. The addition of calcium phosphate during the manufacturing process does not alter the nature, functionality or essential character of the product and product continues to be a protein source. Therefore, by applying Rule 3(b) of the GRI, the product retains the character of isolated soy protein and thus, the same is appropriately classifiable under Heading 3504 and more specifically under Tariff Item 35040091. 1.77. It is submitted that even on the application of Rule 3(c) of the GRI, the product in question will be classifiable under Heading 3504. Rule 3 (c) of the GRI provides that if after applying Rule 3(a) and Rule 3(b), the pro....
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....Other: kg. 20.00 20.00 - 18.00 2.00 43.960 Free --- Other: 3504 00 91 --- Isolated Soya Protein kg 20.00 20.00 - 18.00 2.00 43.960 Free 3504 00 99 --- Other kg. 20.00 20.00 - 18.00 2.00 43.960 Free Explanatory Notes to Heading 35.04 - 35.04 -PEPTONES AND THEIR DERIVATIVES; OTHER PROTEIN SUBSTANCES AND THEIR DERIVATIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED. HIDE POWDER, WHETHER OR NOT CHROMED. This heading covers: (A) Peptones and their derivatives. (1) Peptones are soluble substances obtained when proteins are hydrolysed or submitted to the action of certain enzymes (pepsin, papain, pancreatin, etc.). They are usually white or yellowish powder and being very hygroscopic, they are normally packed in airtight container. Peptone may also be in solution. The main varieties are meat peptones, yeast peptones, blood peptones and casein peptones. They are used in pharmacy. in food preparations, for bacterial cultures, etc. (2) Pept....
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....02). (e) Product described in this heading when put up as medicaments (heading 30.03 or 30.04). (f) Enzyme (heading 35.07). (g) Hardened proteins (heading 39.13). Tariff Entry for 2106- Explanatory Notes to Heading 21.06 21.06 * FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED. 2106.10 * Protein concentrates and textured protein substances 2106.90 * Other Provided that they are not covered by any other heading of the Nomenclature, this heading covers: (A) Preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk, etc.), for human consumption. (B) Preparations consisting wholly or partly of foodstuffs, used in the making of beverages or food preparations for human consumption. The heading includes preparations consisting of mixtures of chemicals (organic acids, calcium salts, etc.) with foodstuffs (flour, sugar, milk powder, etc.), for incorporation in food preparations either as ingredients or to improve some of their characteristics (appearance, keeping qualities, etc.) (see the General Explanatory Note to Chapter 38). ....
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....d, phosphoric acid, preserving agents, foaming agents, fruit juices, etc. The preparations contain (in whole or in part) the flavouring ingredients which characterize a particular beverage. As a result, the beverage in question can usually be obtained simply by diluting the preparation with water, wine or alcohol, with or without the addition, for example, of sugar or carbon dioxide gas. Some of these products are specially prepared for domestic use; they are also widely used in industry in order to avoid the unnecessary transport of large quantities of water, alcohol, etc. As presented, these preparations are not intended for consumption as beverages and thus can be distinguished from the beverages of Chapter 22. The heading excludes preparations of a kind used for the manufacture of beverages, based on one or more odoriferous substances (beading 33.02). (8) Edible tablets with a basis of natural or artificial perfumes (e.g., vanillin). (9) Sweets, gums and the like (for diabetics, in particular) containing synthetic sweetening agents (e.g., sorbitol) instead of sugar. (10) Preparations (e.g., tablets) consisting of saccharin and a foodstuff, su....
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....s or contribute to general health and well-being. The heading excludes products where an infusion constitutes a therapeutic or prophylactic dose of an active ingredient specific to a particular ailment (heading 30.03 or 30.04). The heading also excludes such products classifiable in heading 08.13 or Chapter 9. (15) Mixtures of plants, parts of plants, seeds or fruit (whole, cut, crushed, ground or powdered) of species falling in different Chapters (e.g., Chapters 7, 9, 11, 12) or of different species falling in heading 12.11, not consumed as such, but of a kind used either directly for flavouring beverages or for preparing extracts for the manufacture of beverages. However, products of this type whose essential character is given by their content of species falling within Chapter 9 are excluded (Chapter 9) (16) Preparations, often referred to as food supplements, based on extracts from plants, fruit concentrates, honey, fructose, etc. and containing added vitamins and sometimes minute quantities of iron compounds. These preparations are often put up in packagings with indications that they maintain general health or well-being. Similar p....
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....3(a) is particularly relevant, which provides that when goods are prima facie classifiable under two or more headings, the heading which provides the most specific description shall be preferred over a heading providing a more general description. In this context, heading 3504 is a generic entry covering protein substances, whereas CTH 2106 10 00 specifically covers "protein concentrates and textured protein substances", which directly corresponds to the nature of the subject goods. Therefore, the specific entry under Heading 2106 prevails over the general entry under Heading 3504. Further, classification must be determined based on the essential character, composition and intended use of the product, all of which support classification under Heading 2106. Accordingly, applying the provisions of GRI, the subject goods are rightly classifiable under Heading 2106. 2.6. Trade Parlance The product "Supro@ XT 40" is commercially known and traded as a protein ingredient / nutritional preparation used in food formulations such as beverages, dietary supplements and fortified foods. In common trade and commercial parlance, such products are not regarded as chemically pure protein subs....
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....esentatives of the applicant appeared for the personal hearing conducted in virtual mode on 25.05.2026 and reiterated the submissions made in the application. The authority directed the applicant to furnish a copy of the contract entered in to with its customers, specifically the requirement to deliver a stipulate percentage of protein in the protein isolate. The applicant sought time to submit the same. No authorized representative appeared on behalf of the Department at the time of the personal hearing. 3.2 In connection to PH held on 25.05.2026, the applicant filed submission vide mail dated 27.05.2026, which are stated as under: 3.2.1 The present submission is being filed in connection with the Personal Hearing held on 25.05.2026 in the above-mentioned Advance Ruling Application filed before the Ld. Customs Authority for Advance Ruling. At the outset, Applicant is grateful for the patient hearing granted to them on 25.05.2026. 3.2.2 The present Application has been filed seeking correct classification of 'Supro(r) XT 40 i.e., Isolated Soy Protein Product'. 3.2.3 As submitted during the course of the hearing, as per the Applicant the products are correctly cl....
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....icant's customer, it is submitted that complete details cannot be disclosed due to confidentiality constraints. Accordingly, the relevant extracts from the Customer's Order document (which lists out the specifications) are set out below: Customer 1 Specification DESCRIPTION : Creamy beige powder, high in protein having milli characteristic flavor and aroma of soy. LONG PRODUCT NAME : Soy Protein Isolate IP SHORT PRODUCT NAME : Soy Protein Isolate IP REGULATORY STATUS CODE : F - Food inspection and storage requirements apply. PHYSICAL FORM: p - Powder SAMPLE DESCRIPTION: 2x120ml Nonsterile + (2x375g + 1x120ml) Aseptic COMPOSITION LIST : Lecithin, Calcium Phosphate, Isolated Spy Protein CHEMICAL Customer2Specification 6. PHYSICO-CHEMICAL CHARACTERISTICS Type Unit Min Target Max Method Analysis pH (5% Slurry) 7,2 7,6 PH METER YES certificate Type Min Target Max Method Analysis Ash 11 %(m) 12,5 %(m) 14 %(m) MUFFLE FURNACE AT 550°C YES certificate ....
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....lation of protein after eliminating moisture iii. Moisture free and mineral matter free basis: calculation of protein after eliminating moisture, minerals etc. 3.2.9 As stated in the Application, the HSN Explanatory Notes do not say in what basis the protein must be calculated. Thus, in absence of such a direction, we must resort to laws governing such protein isolates i.e. Codex Alimentarius and FSSAI. If these standards are adopted, the protein in the product is to be calculated after excluding the moisture, minerals etc. When so calculated, the protein content in the products is above 90% as evident from the 3rd party test report enclosed in page 72 of the Application. The product in question on undergoes an intense processing to reach 90% protein content and thus is rightly classifiable as an isolate. The addition of calcium phosphate does not change the product's characteristics and the product continues to be a protein source (as evident from its name and brochure) and thus is rightly classifiable under Heading 3504. 3.2.10 Thus, for the reasons mentioned above, it may be ruled that the products are classifiable under Heading 3504, specifically under Tariff....
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....ed, the sequence is intended to support better dispersion during beverage applications (i.e., reduce the likelihood of mineral settling). It is submitted that the subject goods cannot be consumed directly in the as imported state and the same is further sold to manufacturers of beverages. As per the HSN Explanatory Notes to Heading 3504, for a product to be classified as protein isolate, the protein content in the product is generally not less than 90%. However, the HSN Explanatory Notes does not mention on what basis this 90% is to be calculated. It is submitted that universally, soy protein isolates are products which have a minimum of 90% protein content. Therefore, the requirement in HSN appears to be aligned with the general understanding of protein isolates in trade. Thus, reference can be made to established food standards like Codex Alimentarius Commission (CAC) and Food Safety and Standards Authority of India (FSSAI) to understand how this 90% must be calculated. Codex Alimentarius International Food Standard ('CODEX Standard'), CXS 175-1989 sets out the Standard that applies to Soya Protein Products ('SPP') prepared from soybeans by various sep....
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....reparations. The product is more aptly described as a source of protein, rather than a "food preparation" made by blending multiple ingredients for culinary use. It is not the type of protein hydrolysate contemplated under Heading 2106 (i.e., a mixture mainly of amino acids and sodium chloride used for flavouring/food preparations); instead, it consists mainly of isolated soy protein and is supplied as a protein isolate-based ingredient for nutritional use. Accordingly, since Heading 2106 specifically excludes protein isolates covered under: Heading 3504, the product being a protein ingredient and not a food preparation as envisaged under Heading 2106-is not classifiable under Heading 2106. Heading 2106, provides for residual entry for "food preparations", which would only include goods which cannot be covered under any other Entry in the schedule. Whereas, Heading 3504 covers "other protein substances and their derivatives, not elsewhere specified or included". The product in question is more aptly described as a protein substance and not as a food preparation. Thus, even on applying Rule 3(a) of GRI, Heading 3504 will prevail. Similarly, even on applying Rule 3(b) or Rul....
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....t". This fact is evident from the following documents: a. Product brochure enclosed as Exhibit 2 to CAAR Application filed; b. Nutrient Profile of the product enclosed as Exhibit 3 to CAAR Application; Thus, even on application of test of commercial / trade parlance the product will be regarded specifically as protein isolate and protein source and not as general food preparation meant for consumption. Further, it is submitted that the product in question cannot be used directly for consumption or after processing such as cooking, dissolving or boiling in water, milk, etc. It is not consumed as such, like ordinary food products. Thus, the product is not classifiable under Heading 2106. e Revenue Implication Classification under Heading 35.04 attracts a significantly lower duty burden (approximately 43.96%), whereas classification under Heading 21.06 attracts a substantially higher duty (approximately 70% to 92%). Therefore, incorrect classification under Heading 35.04 would result in substantial loss of legitimate revenue to the exchequer. It is submitted that the classification of the product is not determined on the basis of rate of duty. Reliance....
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....pro@ XT 40" under the First Schedule to the Customs Tariff Act, 1975, and in particular whether the goods merit classification under CTH 35040091 or 35040099 as claimed by the applicant or under CTH 2106 10 00 as claimed by the Jurisdictional Commissionerate. 5.6. It is a well-settled principle of law that the classification of goods under the Customs Tariff Act, 1975 is governed by the General Rules for the Interpretation of the Import Tariff (GRI). Rule 1 of the WCO's General Rules of Interpretation states that customs classification is based on the terms of headings and relevant Section or Chapter Notes, not on titles, which serve only as reference and have no legal standing. Rule 1 of GRI is as under: "Rule 1: The titles of Sections, Chapters and sub-Chapters 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." 5.7. I observe that as per Rule 1 of GRI, the subject products under consideration should be classified in accordance with the ....
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....Globulins, e.g., lactoglobulins and ovoglobulins (but see exclusion (d) at the end of the Explanatory Note). (3) Glycinin, the main soya protein. (4) Keratins obtained from hair, nails, horns hoofs, feathers, etc. (5) Nucleoproteids, being proteins combined with nucleic acids, and their derivatives. Nucleoproteids are isolated, for example, from brewer's yeast, and their salt (of iron, copper, mercury, etc.) are used mainly in pharmacy. (6) Protein isolates obtained by extraction from a vegetable substance (e.g., defatted soya bean flour) and consisting of a mixture of proteins contained therein. The protein content of these isolates is generally not less than 90 %. 35.04 The heading does not include: (a) Protein hydrolysates consisting mainly of a mixture of amino-acids and sodium chloride, and concentrates obtained by the elimination of certain constituents of defatted soya-bean flour, used as additives in food preparations (heading 21.06). (b) Precious metal proteinates (heading 28.43) or proteinates or headings 28.44 lo 28.46. (c) Nucleic acid and its salts (nucleates) (heading 29.34). ....
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....of a mixture of amino-acids and sodium chloride, and concentrates obtained by the elimination of certain constituents of defatted soya-bean flour, used as additives in food preparations (heading 21.06)." 5.12. The Explanatory Notes to Chapter 3504 stipulate that protein isolates generally possess a protein content of not less than 90%. In the present case, the applicant's submissions and the nutrient profile of the subject goods, as detailed in paragraph 1.7 above, indicate a protein content of only 82% on dry basis. Therefore, the subject goods do not meet the generally accepted protein content criterion applicable to protein isolates and are consequently at variance with the definition of protein isolates contemplated under Chapter 3504. I further find that the claim of the applicant that protein on moisture and phosphate free basis is 91.62g/100g is based on test report issued by Eurofins to Danisco (India) Pvt. Ltd. and for the product Supro XT 220 DP. In the present application, the subject product is 'Supro@ XT 40'. Thus, the test report, as relied upon by the applicant, is irrelevant in the present case. Therefore, I find that the subject product cannot be sat....
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....c heading in the Nomenclature, The heading includes, inter alia : (1) Powders for table creams, jellies, ice creams or similar preparations, whether or not sweetened. Powders based on flour, meal, starch, malt extract of goods of headings 04.01 to 04.04, whether or not containing added cocoa, fall in heading 18.06 or 19.01 according to their cocoa content (see the General Explanatory Note to Chapter 19). The other powders are classified in heading 18.06 if they contain cocoa. Powders which have the character of flavoured or coloured sugars used as sweetener fall in heading 17.01 or 17.02 as the case may be. (2) Flavouring powders for making beverages, whether or not sweetened, with a basis of sodium bicarbonate and glycyrrhizin or liquorice extract (sold as "Cocoa-powder"). (3) Preparations based on butter or other fats or oils derived from milk and used, e.g., in bakers' wares. (4) Pastes based on sugar, containing added fat in a relatively large proportion and, sometimes. milk or nuts, not suitable for transformation directly into sugar confectionery but used as fillings, etc., for chocolates, fancy biscuits, pies, cakes, ....
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....ups, syrup flavoured with an added concentrated extract, syrup flavoured with fruit juices and concentrated fruit juice with added ingredients." I find that Chapter Note 5 to Chapter 21 expressly provides that Heading 2106 includes protein concentrates and textured protein substances. The scope of the Heading is therefore sufficiently wide to cover protein-based preparations intended for human nutrition. The subject product is marketed, traded and used as a nutritional ingredient for incorporation into food and beverage products and not as a chemically defined protein substance. The commercial identity and functional use of the product are therefore consistent with classification under Heading 2106. 5.17. I note that the HSN Explanatory Notes to Heading 21.06 specifically cover protein concentrates obtained from defatted soya bean flour and used for protein enrichment of food preparations. The Explanatory Notes also cover preparations consisting wholly or partly of foodstuffs used in the manufacture of food preparations for human consumption. The applicant has itself stated that the subject goods are intended to be supplied to manufacturers of beverages, nutritional products ....
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....lassifiable under tariff item 3504 00 91. Equally, it does not merit classification under tariff item 3504 00 99. The goods are a formulated protein-based preparation containing isolated soy protein together with added calcium phosphate and are specifically intended for protein enrichment and nutritional fortification of food and beverage products. Accordingly, the product is appropriately classifiable under tariff item 2106 10 00 as "Protein concentrates and textured protein substances." 5.22. In light of the above discussion and findings, I find that the product "Supro@ XT 40" is correctly classifiable under 2106 10 00 as "Protein concentrates and textured protein substances.". 6. I rule accordingly. ============= Document 1Document 2 2106 2106 10 00 Toed preparations not else where specified or Included Protein concentrates and fev- kÄ…. 40.00 40.00 tured protein substances NSO All goods (excluding compound alcoholic preparations of a kind used for the manufacture of bew. erases, of an alcoholic strength by volume exceeding 0.5% by vol- umse. determined at a tempera- ture of 20 degrees centigrade) 18.00 4.00 49.920 5.00 82.000 Fire Nith 43/2018ON ....