TaxTMI 
TaxTMI 
2026 (7) TMI 1286
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....lowing documents related to the product are produced as below: i. Product Data Sheet: ii. Process Description and Flow Diagram: iii. Certificate of Analysis: iv. Product Generic Label: v. Safety Data Sheet: 2.2 The applicant stated that Vistacell H is derived from non-genetically modified Saccharomyces cerevisiae strain, i.e. yeast cream collected from fermentation tanks of sugarcane bioethanol plants. The manufacturing process of the product in question is extracted below for ready reference: 2.3 The brief explanation of the aforementioned manufacturing process is as follows: i) Pre-treatment of yeast cream: The yeast cream, used in the production of the product in question, is subjected to pre-treatment such as washing, centrifugation etc. ii) Hydrolysis: The pH and dry mass content of the pre-treated yeast cream is adjusted to optimal conditions, pursuant to which the yeast is hydrolysed using a processing aid. This mixture of yeast and processing aid is stirred and the temperature of the same is controlled. The hydrolysis results in separation and break down of the cell wall of the yeast into yeast cell fracti....
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.... etc. 3) Shrimps: Support in survival rate of shrimps infected with Vibrio parahaemolyticus. 2.7 The applicant argued that the product is specifically covered under Heading 2309. Thus, classification under this Heading may be examined. Heading 2309 covers 'PREPARATIONS OF A KIND USED IN ANIMAL FEEDING'. The relevant extract of Heading 2309 is reproduced below: Heading/ Sub- Heading/ Tariff Item Description 2309 PREPARATIONS OF A KIND USED IN ANIMAL FEEDING 2309 10 00 - Dog or cat food, put up for retail sale 2309 90 - Other : 2309 90 10 --- Compounded animal feed *** 2309 90 90 --- Other 2.8 It is evident on perusal of Heading 2309, that various preparations used in animal feedings are covered therein. Further, as per Chapter Note 1 to Chapter 23, Heading 2309 covers products used in animal feeding which are not specified or included elsewhere in the Tariff and obtained from processing vegetable or animal materials to such an extent that they have lost their essential characteristics. Chapter Note 1 to Chapter 23 is extracted below for ready reference: ....
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.... various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates). ****" As seen from the above, heading 2309 covers feed additives which are added to the animal feed to safeguard the animal's health and enhance certain nutrients. 2.11 The applicant further stated that the product is added to the animal feed for poultry, swine, horse, aquatic species etc. The product in question comprises of yeast cell fractions which are a source rich in peptides and amino acids. It also assists in stimulation and improvement of gut health of animals. Therefore, the product in question is a feed additive. 2.12 Further, the product is exclusively intended for use as feed additive in animal feed and the same is evident from: a. The Product Data Sheet clearly states that the product in question, i.e. Vistacell H is a feed material/feed ingredient. b. Both the Product Data Sheet and Product Label state the required dosage of the product in question for different animal species such as poultry, swine, horse, aquatic species etc. 2.13 Furthermore, the product is known in the trade as feed additive. Thi....
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....em Description 2102 YEASTS (ACTIVE OR INACTIVE); OTHER SINGLE CELL MICRO-ORGANISMS, DEAD (BUT NOT INCLUDING VACCINES OF HEADING 3002); PREPARED BAKING POWDERS 2102 10 - Active yeasts : *** 2102 20 00 - Inactive yeasts, other single-cell microorganisms, dead * HSN Explanatory Notes to Heading 2102 are extracted below for ready reference: "21.02 YEAST (ACTIVE OR INACTIVE); OTHIER SINGLE CELL MICRO- ORGANISMS, DEAD (BUT NOT INCLUDING VACCINES OF HEADING 3002); PREPARED BAKING POWDERS A) YEASTS The yeasts of this heading may be in the active or inactive state: Active yeasts generally provoke fermentation. They consist essentially of certain micro- organisms (almost exclusively of the genus Saccharomyces), which multiply during alcoholic fermentation. Yeasts may also be produced by partial or total prevention of fermentation, according to the aeration process. The active yeasts include: ... (3) Bakers' yeast, produced by the propagation under special conditions of specially cultured strains of yeast in a carbohydrate medium such as molasses. ....
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....lity, before entering the manufacturer plant. Once authorised by the quality department to receive it, the yeast cream is collected form the fermentation tanks of the bioethanol plants and taken to the manufacturing plant. The yeast cream is then washed and centrifuged. before being hydrolysed. 2. Manufacturing Process a) Hydrolysis The pH and dry mass content of the yeast cream is adjusted to optimal conditions for the process. The yeast is then hydrolysed using a processing aid whilst the mixture is stirred, and the temperature controlled. b) Spray-Drying The resulting hydrolysed (inactivated) yeast cream goes to the spray-drier and is dried to the target moisture content. The dried material is transferred to a silo for storage. c) Sieving The product is sieved as it leaves the silo before packaging. As is evident from the above manufacturing process, the starting material of the product i.e. the yeast cream is washed, centrifuged and hydrolysed and then spray-dried, sieved, packed etc. The product undergoes several processes and not just the process of spray-drying. 3.4 While the product is an....
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....y used in the food industry, are covered under Heading 2106. Heading 2106 covers 'FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED'. The relevant extract of Heading 2106 is reproduced below: Heading/Sub-Heading/Tariff Item Description 2106 FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED 2106 10 00 - Protein concentrates and textured protein substances 2106 90 - Other: --- Soft drink concentrates: *** --- Other: *** 2106 90 99 ---- Other * HSN Explanatory Notes to Heading 21.06 are extracted below for ready reference: "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 aci....
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.... * HSN Explanatory Notes to Heading 3507 is reproduced below for ready reference: "Enzymes are organic substances produced by living cells; they have the property of causing and regulating specific chemical reactions inside or outside living cells, without themselves undergoing any change in their chemical structure. Enzymes may be referred to as follows: (I) According to their chemical constitution, e.g. : (a) Enzymes in which the molecule consists solely of a protein (e.g., pepsin, trypsin, urease). (b) Enzymes in which the molecule consists of a protein combined with a non- protein compound of low molecular weight, acting as a cofactor. The cofactor may be either a metal ion (e.g., copper in ascorbate oxidase, zinc in human placental alkaline phosphatase) or a complex organic molecule called a coenzyme (e.g., thiamine diphosphate in pyruvate decarboxylase, pyridoxal phosphate in glutamine-oxo-acid aminotransferase). Sometimes both are required. (II) According to : (a) their chemical activity as oxidoreductases, transferases, hydrolases, lyases, isomerases, ligases; or (b) their biological activity as am....
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....rom either aqueous or solvent extracts of animal organs, plants, micro-organisms or culture-broths. c. Prepared enzymes not elsewhere specified or included which are obtained from dilution of enzyme concentrates. The product is not capable of causing chemical reactions and is not an enzyme as envisioned by the HSN Explanatory Notes to Heading 3507. Further, the product is not an enzyme concentrate or prepared enzyme. Therefore, the product is not classifiable under Heading 3507. 4. In light of the above, the product is not covered specifically elsewhere i.e. under the Headings 2102, 2106 or 3507. The product is a preparation of a kind for use in animal feed not elsewhere specified or included and therefore, classifiable under Heading 2309. 5. Port of Import and reply from jurisdictional Commissionerate, The applicant in their CAAR-I indicated that they intend to import the subject goods from the jurisdiction of Office of the Commissioner of Customs, NS-I, Nhava Sheva, JNCH, Uran, Distt. Raigad. The applications were forwarded to the Office of the Commissioner of Customs, NS-I, Nhava Sheva, JNCHI, Uran for their comments on 02.03.2026, 20.03.2026. 10.04.2026 and....
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....applicant has submitted the documents in support of the application i.e. (i) Product Data Sheet; (ii) Process Description and Flow Diagram; (iii) Certificate of Analysis; (iv) Product Generic Label; and (v) Safety Data Sheet. 8. 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 applicable. Therefore, in the present case, it becomes necessary to examine the scope and coverage of Chapter 21 or Chapter 23 or any other competing tariff entry, along with the relevant HSN Explanatory Notes. 9. In order to ascertain the exact nature, composition and classification of the impugned goods, Mails was done on 09.06.2026 and 11.06.2026 to the applicant seeking additional information, including confirmation regarding the composition of the finished product, details of the processing aid used during manufacture, whether any carriers or other additi....
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....102 10 90 --- Other kg. 30% - 2102 20 00 - Inactive yeasts, other single-cell micro-organisms, dead kg. 30% - 2102 30 00 - Prepared baking powders kg. 30% - * Relevant portion of Explanatory Note as under :- (A) YEASTS The HSN Explanatory Notes to Heading 2102 provide that inactive yeasts obtained by drying are generally brewery, distillery or bakers' yeasts and are used for human consumption or for feeding animals. The Explanatory Notes further clarify that such dried yeasts are increasingly produced directly from specially prepared active yeasts. I also note that the HSN expressly contemplates the use of inactive yeasts for feeding animals while retaining classification under Heading 2102. Therefore, animal-feeding use is not, by itself, a ground for exclusion from Heading 2102. The documents submitted by the Applicant establish that the product is derived entirely from Saccharomyces cerevisiae. The manufacturing process involves hydrolysis, spray-drying and sieving. The imported goods consist solely of hydrolysed inactive yeast. No carriers or feed ingredients have been incorporated. The product has not been stan....
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.... 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). 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) Autolysed yeast and other yeast extracts, products obtained by the hydrolysis of yeast. These products cannot provoke fermentation and they have a high protein value. They are used mainly in the food industry (e.g., for the preparation of certain seasonings). The HSN Explanatory Notes to Heading 2106 clarify that the heading is a residual entry covering food preparations not elsewher....
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....ng 2309 covers "Preparations of a kind used in animal feeding." The applicant has stated that the product is used as a feed additive and performs nutritional, prebiotic and postbiotic functions. However, classification cannot be determined solely on the basis of end use. The HSN Explanatory Notes to Heading 2309 generally cover complete feeds, supplementary feeds, premixes and preparations consisting of mixtures of substances used in animal feeding. In the present case, the evidence on record establishes that the product is a single ingredient hydrolysed yeast product without carriers or added ingredients. The product is not shown to be a premix, compound feed or preparation consisting of multiple substances. It is simply processed yeast and single ingredient products generally remain under their own heading. Therefore, heading 2309 is not found to be the most appropriate classification. 11.4 I further observed that classification under Heading 3507 is not appropriate. Heading 3507 covers enzymes and prepared enzymes. The impugned goods are not enzymes but a hydrolysed inactive yeast product obtained from Saccharomyces cerevisiae. Although a processing aid may be used during the....
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....ve yeast of Heading 2102. However, the facts of the present case are distinguishable. The manufacturing process of Vistacell II indicates hydrolysis of yeast followed by spray-drying and sieving, without any subsequent separation or removal of the intracellular (cytoplasmic) fraction. The Certificate of Analysis also indicates the presence of protein, amino acids and peptides derived from the yeast cell contents. Accordingly, Vistacell H remains a hydrolysed whole yeast product containing both cell wall and intracellular fractions and cannot be equated with the isolated yeast cell wall products considered in the aforesaid Brazilian BTI decisions. Therefore, the said decisions are distinguishable on facts and do not affect the classification of the present product under Heading 2102. 15. I further note that the Central Board of Indirect Taxes and Customs (CBIC), vide Instruction No. 34/2022-Customs, F. No. 401/92/2022-Cus-III dated 30.12.2022, referred to the Consolidated List of Animal Feed Additives/Premix/Supplements issued by the Department of Animal Husbandry and Dairying (DAHD) and instructed field formations to appropriately regulate imports of such products. The said inst....
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....ost exclusively of the genus, Saccharomyces, which multiply during alcoholic fermentation. Yeasts may also be produced by partial or total prevention of femation, according to the aeration process. The netrne veusts inchide : (1) Brewery yeast. This forms in beer fermentation vats. It is presented as a yellowish-broom paste or solid generally with the bitter flavour of hops and the odour of beer. 12) Distillery yeast. This is produced during the fermemation, of, e.g. grain, potatoes er fruit, in distilleries. It is a firm cream-coloured paste varying in odethr according to the product used in the distillation. Bakers' yeast. produced by the propagation under special conditions of specially cultuns! strains of yeast in a carbohydrate medium such as molasses. It is generally marketed in the forn of pressed yellowish-grey cakes (pressed yeast) which sometienes have an alcohole odour 11 is, however, also marketed in the dried form ;usually in grains i or as hond year Culture yeast. a pure strain of yeast prepared umier laboratory conditions, it may be suspended in distilled water or in gelatin or agar-agar. It is usually marketed in measured quantities put up in sca....