TaxTMI 
TaxTMI 
2026 (9) TMI 2014
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....incorporated under the provisions of the Companies Act. 2013, having its registered office at 1st floor, SCO-161, Block-B., Motia Plaza. Baddi, Solan, Himachal Pradesh -- 173 205. Copy of certificate of incorporation of the Applicant Company is filed along with this application. 1.3. The Applicant is, inter alia, engaged in the business of trading / distribution of raw materials for pharmaceutical, nutrition and cosmetics viz., APIs (Active pharmaceutical ingredients) and Excipients (inactive ingredients) among others. Proposed import of five (5) grades of AstaReal Astaxanthin: 1.4. The Applicant is proposing to import five (5) grades of AstaReal (Natural Astaxanthin from Haematococcus Pluvialis) namely. AstaReal L10. AstaReal P4AF. AstaReal 50FC. AstaReal Clear 100 and AstaReal CWS25'. These goods are collectively referred to as 'Asta Real Astaxanthin / subject goods'. 1.5. The subject goods are colouring substances/ matter which are obtained from algae namely *Haematococcus Pluvialis'. These goods are also used as raw material in manufacture of dietary supplement. By the present application. the Applicant seeks clarity on the correct classification of ....
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....al and cosmetic industries, and in some countries, it is occasionally used to fortify foods and beverages. This fact, as well as the colouring properties of the pigment, enable food technologists to design a sensorily attractive assortment of functional foods and active packages. 1.10. In nature, Astaxanthin can be found in aquatic environments. It gives pink and red colours to the meat of fish such as Atlantic salmon, rainbow trout, Arctic char and red bream and to the shells of crustaceans such as krill, shrimp and lobster, etc. as well as the feathers of some wading birds, e.g., flamingo, scarlet ibis. In the natural environment, the colour of these animals is the result of bioconcentration of the pigment at consecutive trophic levels in the food chain. 1.11. In the aquatic environment, Astaxanthin can be found in algae, which can synthesize this pigment, as well as in plankton crustaceans, which are capable of Astaxanthin conversion from carotenoid precursors (chiefly from B-carotene and zeaxanthin). Thus, the colour intensity of animal tissues mostly depends on the presence of Astaxanthin in these animals' diets. This fact significantly influences the use of this pig....
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....ater-based solvents. 1.19. The extracted pigment is then stabilized using antioxidants, excipients, emulsifier, carriers, etc., and processed further depending on the final product form: a. Powder form: the extracted pigment is spray dried and sieved to ensure uniformity. b. Oil form: the extracted pigment may or may not be diluted to a specific concentration, filtered, and packaged into food-grade containers. 1.20. Throughout the process, more steps are implemented, including multiple steps of filtration, and storage under controlled conditions to maintain product quality and integrity. The final product is then packed, labelled and released for dispatch. Scope of present Application: 1.21. Vide the present application, the Applicant requests a finding regarding the appropriate classification of the subject goods under the Customs Tariff. APPLICANT'S ELIGIBLITY FOR ADVANCE RULING. 1.22. In order to file an application before the Authority for Advance Ruling, the Applicant must satisfy the conditions prescribed under the Customs Act, 1962 (hereinafter referred to as 'Customs Act'). 1.23. Provisions relating to Advance Ruling are pr....
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.... (a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal, or any Court; (b) the same as in a matter already decided by the Appellate Tribunal or any Court : Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard: Provided also that where the application is rejected, reasons for such rejection shall be given in the order." 1.28. Thus, the conditions set out in Section 28I are satisfied on the following counts: a. the question raised in the present application regarding classification of 'AstaReal Astaxanthin' is not pending in the Applicant's own case before any officer of customs, the Appellate Tribunal, or any Court; b. the question raised in the present application regarding classification of 'AstaReal Astaxanthin' is not a matter already decided by the Appellate Tribunal or any Court. 1.29. Therefore, the Applicant cumulatively satisfies all the criteria required for filing the application for advance ruling, namely: a. The Applicant has been granted a valid Import....
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....al Astaxanthin which is Natural Astaxanthin, a red colour pigment derived from Haematococcus Pluvialis, being a colourant is rightly classifiable under Heading 32.03 which by name covers 'colouring matter of vegetable origin'. 1.33. The Code of Federal Regulations, USFDA, also recognises Astaxanthin as a colour additive which may be added to the fish feed only as a component of a stabilized colour additive mixture. It is used as a colour additive to enhance the pink to orange-red colour of the flesh of salmonid fish. Therefore, Astaxanthin as per the US FDA is a colour additive. 1.34. To further bolster the position that the subject goods merit classification under Heading 32.03, reference is made to the HSN Explanatory Notes to Heading 32.02 extracted hereunder: 1.34.1. "This heading covers the greater part of the products of vegetable or animal origin used mainly as colouring substances. These products are generally extracted from materials of vegetable origin (wood, barks, roots, seeds, flowers, lichens, etc.) or of animal origin, by steeping them in water or in weal acid or ammonia solution or, in the case of certain vegetable materials, by fermentation. ....
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.... Notes to Heading 32.03 extracted above, it is evident that colourants obtained or extracted from Plants are covered under Heading 32.03. A perfect example of the same is natural indigo obtained from plants of the genus Indigofera (mainly Indigofera tinctoria). Therefore, it is clear that colorants obtained from Plants are also covered under heading 32.03. 1.38. The red pigment is extracted from the algae through specialised process such as supercritical carbon dioxide extraction, which isolates and concentrates the astaxanthin compound from the algae. The extraction process ensures that the final product retains its natural pigmentation properties, making it suitable for use as a colouring substance in various applications, including dietary supplements. The process of extraction and refinement enhances the stability and usage of astaxanthin as a natural colourant while preserving its origin. Further, as it is a raw material, it is imported in bulk. 1.39. In other words, AstaReal Astaxanthin is a colouring matter of plant origin used as a colouring substance resulting from an extraction process. Thus, it can be said that the imported AstaReal Astaxanthin by name and descript....
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....her than synthetic." 1.43. Further, even considering AstaReal Astaxanthin as a colouring preparation, it merits classification under Heading 32.03, in terms of Note 3 to Chapter 32. Note 3 states that Heading 32.03 also applies to preparations based on colouring matter of a kind used for colouring any material or used as ingredients in the manufacture of colouring preparations. The subject goods i.e., AstaReal Astaxanthin - a naturally occurring carotenoid that imprints salmon, crabs, krill, lobsters, and even flamingos with vivid reddish coloration. Astaxanthin is widely used in dietary supplements as a natural colourant, imparting red hue to various products and has major use as a colouring agent in the aquaculture and poultry industries. Therefore, it will be correctly classifiable under Heading 32.03. 1.44. In view of the above, AstaReal Astaxanthin merits classification under Heading 32.03, more specifically under Tariff Item 3203 00 20. ISSUES REQUIRING ADVANCE RULING AND APPLICANT'S UNDERSTANDING. 1.45. In light of the aforementioned submissions, the Applicant's interpretation of the questions raised is as under: Question: Whether the products in....
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....on, i.e., five (5) grades of AstaReal Astaxanthin (Natural Astaxanthin from Haematococcus pluvialis), namely AstaReal L10, AstaReal P4AF, AstaReal 50FC, AstaReal Clear 100 and AstaReal CWS25, in the present application are classifiable under Tariff Item 3203 00 20 of the First Schedule to the Customs Tariff Act, 1975 ('Customs Tariff')? Question 2: If the answer to the above question is in the negative, then what would be the correct classification of the aforementioned products under the Customs Tariff and the applicable customs duties on their import? Applicant's Contentions: The applicant has primarily contended that: * Astaxanthin is a colouring matter. * It is obtained from a plant source, namely Haematococcus pluvialis algae, which belongs to the Plant Kingdom. * Heading 3203 specifically covers colouring matter of vegetable origin. * The HSN Explanatory Notes include preparations based upon colouring matter of vegetable origin under the said Heading. * US Customs, Japanese Customs and German BTI rulings have classified similar products under Heading 3203. * The overseas supplier clas....
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.... AstaReal L10 A high-quality natural 10% astaxanthin oleoresin extracted using solvent-free supercritical CO2 extraction. Appearance: Dark red oil. Astaxanthin content: Not less than 10.0% (measured as free form by HPLC). It is sourced from Haematococcus pluvialis and occurs in its naturally esterified form. Shelf-life: 3 years. Applications: soft gels, liquid capsules, gummies, chocolates, soft chews, functional foods and cosmetics. AstaReal P4AF A high-quality powdered natural astaxanthin extract. Appearance: Red powder. Astaxanthin content: Not less than 4% (measured as free form by HPLC). The natural astaxanthin complex comprises mainly mono-esterified, followed by di-esterified forms. It is obtained by supercritical CO2 extraction followed by spray-drying in Japan to produce a flowable powder suitable for hard capsules and tablets. Shelf-life: 2 years. Applications: hard capsules and tablets. Asta Real 50FC A formulated natural astaxanthin preparation of the AstaReal range, obtained from Haematococcus pluvialis by supercritical CO2 extraction followed by standardisation and formulation. Like the other grades, it is supplied as a b....
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....tions, which is the process contemplated by the HSN Explanatory Notes to Heading 32.03 for classical colouring extracts of vegetable origin. (iv) Post-extraction formulation: The extracted oil is further processed through specialised formulation technologies including: * Standardisation to a declared, commercially required astaxanthin concentration; * Addition of antioxidants/stabilisers (mixed tocopherols / Vitamin E and triglycerides) solely to prevent oxidative degradation during storage and transport and to preserve shelf-life; * Emulsification and micro-encapsulation (for Clear 100 / CLEAR100-C(S) and CWS25 / CWS25-G) performed in Japan by Fuji Chemical Industries to achieve water-dispersibility, cold-water dispersibility and high clarity; * Spray-drying (for P4AF) to produce a flowable powder suitable for capsule and tablet manufacture; * Stabilisation for compatibility with food and beverage matrices. These post-extraction operations are sophisticated manufacturing processes directed at imparting functional characteristics of dispersibility, stability, bioavailability and compatibility with food/beverage matrices....
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....aded and used as colouring matter (or preparations based thereon). The mere presence of a chromophore does not by itself attract Heading 3203. (d) Consequently, the fact that Astaxanthin is a coloured carotenoid is relevant but not determinative. What must still be examined is whether the imported formulations, in the condition in which they are presented for importation, possess the commercial identity and essential character of colouring preparations contemplated by Heading 3203 read with Note 3 to Chapter 32, or whether they have acquired the character of specialised food/nutraceutical ingredient systems classifiable under Heading 2106. B. Relevant Tariff Entries - Full Text and Legislative Scheme The relevant entries of the First Schedule to the Customs Tariff Act, 1975 that are pertinent to the present application are reproduced hereunder: Heading / Sub-heading /Tariff Item Description 3203 COLOURING MATTER OF VEGETABLE OR ANIMAL ORIGIN (INCLUDING DYEING EXTRACTS BUT EXCLUDING ANIMAL BLACK), WHETHER OR NOT CHEMICALLY DEFINED; PREPARATIONS AS SPECIFIED IN NOTE 3 TO THIS CHAPTER BASED ON COLOURING MATTER OF VEGETABLE OR ANIMAL ORIGIN 320....
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....colouring any material or used as ingredients in the manufacture of colouring preparations." The operative test under Note 3 is therefore the kind/use of the preparation, not the mere chemical presence of a chromophore in one of its ingredients. A preparation that is not, by its kind, used for colouring any material and is not used as an ingredient of a colouring preparation does not answer Note 3, however intensely coloured it may be. B.3. HSN Explanatory Notes to Heading 32.03 - Use, not mere colour, is decisive The Harmonized System Explanatory Notes (HSEN) to Heading 32.03 state that the Heading covers colouring matter of vegetable or animal origin and preparations based upon such colouring matter. The Notes describe the traditional vegetable colouring extracts covered by the Heading as products obtained from plant materials by physical extraction processes. In particular, dyeing extracts of vegetable origin are classically obtained by steeping the plant materials in water, weak acid or ammonia solutions, followed by concentration or drying. The illustrative examples cited in the Notes - chlorophyll, turmeric colouring matter, saffron colouring matter, annatto....
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....te 16 covering preparations often referred to as food supplements or dietary supplements, consisting of, or based on, one or more vitamins, minerals, amino acids, concentrates, extracts, isolates or the like of substances found within foods (or synthetic versions of such substances), put up as a supplement to the normal diet. The Notes expressly state that such products remain within the Heading "whether or not also containing sweeteners, colours, flavours, odoriferous substances, carriers, fillers, stabilisers or other technical aids," and that they are "often put up in packaging with indications that they maintain general health or well-being, improve athletic performance, prevent possible nutritional deficiencies or correct sub-optimal levels of nutrients." This description matches the subject goods precisely. Astaxanthin is a substance found within Algae, salmon, trout, shrimp, krill; the five AstaReal grades are concentrates/extracts of that substance, standardised to a declared potency, stabilised with tocopherols/triglycerides and, in two grades, formulated into dispersible delivery systems, for use as an ingredient/supplement to the normal diet through incorporatio....
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..../GRAS framework from a separate use as a colour additive. Consequently, the reliance upon NDI recognition for dietary-supplement use and GRAS recognition for food and beverage use constitutes relevant corroborative evidence of the commercial identity and intended use of the subject AstaReal products as nutritional/nutraceutical ingredients. * The individual product specifications identify the respective grades for dietary-supplement / food / nutraceutical applications. In particular, the specifications at application pages 43, 70, 93, 146 and 190 describe AstaReal Oil 50FC, AstaReal CLEAR100-C(S), AstaReal CWS25, AstaReal L10 and AstaReal P4AF respectively as products for dietary supplements, food or nutraceutical applications. The corresponding Safety Data Sheets at pages 44, 71, 94, 147 and 191 provide further manufacturer- issued use information. The regulatory information in the product literature is likewise directed principally to dietary/food uses rather than to any colour- additive status. * The AstaReal "Quality of Life" whitepaper is devoted in its entirety to the antioxidant, anti- inflammatory, skin, eye, muscle, mitochondrial and immune-system propert....
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....he application provide direct and product-specific evidence regarding the intended/relevant use of each of the five grades. The product specification at application page 43, relating to AstaReal Oil 50FC, expressly describes the product as "Natural Astaxanthin Complex for Dietary Supplements" and further describes it as a nutraceutical preparation. This establishes that the product is commercially presented as a nutraceutical ingredient for dietary- supplement applications and not as a food-colouring preparation. The product specification at application page 70 relating to AstaReal CLEAR100-C(S) describes the product as "Water Soluble Natural Astaxanthin Complex for Food or Dietary Supplements" and identifies applications including beverages and liquid nutraceutical/supplement applications. The water- soluble/dispersible character of this grade is therefore a functional formulation feature designed to facilitate incorporation into nutritional products. At application page 93, the product specification for AstaReal CWS25 describes the product as a "Natural Astaxanthin Complex 2.5% Powder" and specifically states that it is ideal for dietary supple....
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....ted goods. It is therefore material that, in the product specifications for all five grades, the manufacturer expressly associates the products with dietary supplements, food, beverages and nutraceutical applications, whereas none of these product-specific documents describes the goods as a "food colour", "colouring agent","colourant", "dye" or "colouring preparation". The corresponding Safety Data Sheets substantially corroborate the same commercial use. Accordingly, the manufacturer's own product-specific documentation supports the conclusion that the goods are commercially supplied as natural astaxanthin/nutraceutical ingredients for incorporation into dietary supplements and food/beverage products, and not as preparations whose commercial purpose is to impart colour to any material. D. Essential Character and Principal Function It is well settled that where a heading is an Eo-nomine entry defined by reference to the commercial category of goods (here, "colouring matter"), the enquiry is into the essential character and principal commercial use of the goods as imported, not merely into the physical/chemical properties of one constituent. O....
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....ction. They are attributes selected to facilitate incorporation of astaxanthin into particular nutritional delivery systems. The manufacturer's own product specifications and Safety Data Sheets therefore provide contemporaneous evidence that the essential commercial function of the goods is as a nutritional/nutraceutical ingredient, while the colour inherent in astaxanthin is incidental to that commercial function. E. Examination of Competing Headings and Comparison E.1. Heading 3203 (Colouring matter of vegetable or animal origin) - Not attracted For the cumulative reasons set out in Sections B.2 to D above: (a) Note 3 to Chapter 32 requires the preparation to be "of a kind used for colouring any material or used as ingredients in the manufacture of colouring preparations" -- a qualifying condition the subject goods do not meet; (b) The HSN Explanatory Notes to 32.03 exclude substances that are not, in practice, used for their dyeing properties, and confirm that trade use as a colourant, not mere chemical colour, is decisive; (c) The manufacturer's own product-specific documentation provides direct evidence of the comme....
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....er 12 is therefore inapplicable. E.4. Heading 2309 / Chapter 23 (Residues and waste from the food industries; prepared animal fodder) - Not attracted Although astaxanthin as a molecule is widely documented in scientific literature as a pigment used in aquaculture and poultry feed for colouring the flesh of salmon, trout and shrimp and the yolks/skin of poultry, the specific AstaReal grades proposed to be imported by the present applicant are marketed and intended exclusively for human dietary-supplement and functional-food applications (capsules, gummies, beverages, powder mixes, etc.). The manufacturer's applications brochure, product datasheets and regulatory recognitions on record (US NDI notification permitting long-term human use up to 12 mg/day, FDA-notified and self-affirmed GRAS status for food and beverage use, and NASC preferred-ingredient status for companion-animal supplements) are directed to human nutritional use, not to animal-feed pigmentation. Heading 2309 covers prepared animal fodder; it does not cover formulated human nutraceutical ingredients. The applicant's own stated end-use - manufacture of human dietary supplements - further confi....
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....plicable. F. International Classification Practice - Persuasive Value Only The applicant has placed reliance upon certain foreign classification rulings in support of classification under Heading 3203. These are examined below. * US Cross Ruling No. NY J85262 dated 26.06.2003 (concerning AstaXin(r), a dried yeast product which is a natural source of astaxanthin, held classifiable under Heading 32.03); * Nagoya Customs Department, Japan (Advance Ruling Registration No. 114004824 dated 05.09.2014) (Haematococcus pluvialis extract with tocopherol, held under Heading 32.03); * German BTI Rulings No. DEBT116915/24-1 and DEBT116513/25-1 (Natural Astaxanthin produced by extraction from Haematococcus pluvialis held to be a colouring agent under Heading 32.03). (i) Foreign rulings are not binding on Indian Customs authorities. At their highest they possess only persuasive value, and that too only where the goods under consideration, the record before the foreign authority, and the precise legal questions decided are shown to be the same as, or closely comparable to, the goods and the record presently before this Authority. (ii) ....
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....nnot be transplanted onto the present goods without examining whether those goods satisfy the statutory conditions of Heading 3203 and Note 3 to Chapter 32 as they stand under Indian law. Note 3 requires the preparation to be "of a kind used for colouring any material or used as ingredients in the manufacture of colouring preparations." The manufacturer's own literature on the present record does not describe the subject grades as being of that kind; it describes them as nutraceutical/antioxidant ingredients for dietary supplements, beverages, gummies and related food applications. The foreign rulings therefore do not relieve this Authority of the obligation to apply Note 3 to the facts of this case. (v) Accordingly, the international rulings relied upon by the applicant, while noted, are distinguishable on facts and on the commercial identity of the goods. They cannot override the independent examination required by GRI 1, the terms of Heading 3203, Note 3 to Chapter 32, the HSN Explanatory Notes, and the manufacturer's own contemporaneous literature placed on the present record. On that examination, the subject goods do not answer the description of colouring mat....
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....n Section E above). Consequently, the subject goods are appropriately classifiable under Heading 2106 of the First Schedule to the Customs Tariff Act. 1975. as "Food preparations not elsewhere specified or included," falling, in the absence of any more specific sub-entry applicable to the goods, under residuary Tariff Item 2106 90 99 ("Other"). H. Departmental Analysis and Conclusion * Having examined the product literature, manufacturing process, product specifications, the relevant Chapter and Section Notes, the HSN Explanatory Notes to Headings 32.03 and 21.06. the competing tariff entries, and the international rulings relied upon by the applicant, the following analysis is offered: * AstaReal Astaxanthin, in each of its five proposed grades (AstaReal L10, AstaReal P4AF, AstaReal 50FC, AstaReal Clear 100 and AstaReal CWS25), is a naturally occurring carotenoid * extracted from Haematococcus pluvialis by supercritical CO2 extraction (and not by the * traditional steeping process in water, weak acid or ammonia solutions that characterises classical vegetable dyeing extracts under the HSN Explanatory Notes to Heading 32.03) and....
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....ption that precisely fits the subject goods. In view of the above, it is the considered view of this office that the subject goods, i.e., the five (5) grades of AstaReal Astaxanthin (Natural Astaxanthin from Haematococcus pluvialis) - AstaReal L10, AstaReal P4AF, AstaReal 50FC, AstaReal Clear 100 and AstaReal CWS25 - do not answer the description of colouring matter of vegetable origin, or of preparations based on colouring matter, under Heading 3203, and that the answer to Question 1 is in the negative. On Question 2, the subject goods, being formulated and standardised preparations of natural astaxanthin, supplied as bulk ingredients specifically identified by the manufacturer for incorporation into dietary supplements, foods and beverages, and not being more specifically covered under any other Heading of the Customs Tariff for the reasons discussed above, are appropriately classifiable under Heading 2106 of the First Schedule to the Customs Tariff Act, 1975, as "Food preparations not elsewhere specified or included" - falling, in the absence of any more specific sub-entry applicable to the goods, under residuary Tariff Item 2106 90 99 ("Other"). (V) W....
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....e presented for clearance. The subject goods, in their as imported condition, possess colorant properties. Their end use as ingredients in dietary supplements cannot be the basis for determining their classification, as attempted by the department. In any case, the customs department has accepted that these goods are used in multiple industries including cosmetics, animal feed etc. If the understanding of the customs department is accepted, then turmeric powder which is by name covered under Heading 32.03 will equally fall under Heading 21.06 as it is used in foods preparations. This is incorrect especially when Heading by name and description covers 'coloring matters', without any further qualification. B.2 Customs department has relied on Note 3 to Heading 32.03 while completely disregarding the Heading itself. Heading 32.03 not only covers preparations but also coloring matter' without any qualification. Note 3 states that Headings 32.03, 32.04 & 32.05 apply also to preparations based on colouring matter. Therefore, Heading 32.03 covers 'Colouring matter of vegetable or animal origin' which aptly describes the subject goods the Customs Departme....
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.... mentioned that various extracts obtained from different types of algae which are used as food colorants. One such example is 'Spirulina' which is obtained from the cultivation and harvesting of Arthrospira platensis, a type of blue-green algae. It is an FDA-approved natural colour additive for general use in foods and beverages, exempt from certification, with specific safety and labelling requirements. However, no response has been provided to these submissions. Apart from Spirulina, beta carotene was another example cited by us which is obtained from algae which is highly used as a 'food colorant'. This shows that there are various items obtained from different algae which are used as food colorants. C & C.1 The comments received from customs department suggesting classifying the subject goods under Heading 21.06 are entirely and purely based on the commercial identity & end use of the subject goods as ingredients in dietary supplements. Even after noting that these goods are used in various industries other than food such as cosmetics, the customs department has concluded that the commercial identity of the subject goods is that of ingredient of dietary su....
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....detract from their character as colouring matter. The mere fact that the subject goods possess additional properties does not detract from their character as colouring matter .. Copy of the Agency Response Letter GRAS Notice No. GRN 000294 is attached to the email. Further, the customs department has conveniently ignored the fact that as per Code of Federal Regulations. USA. Astaxanthin is a colour additive which may be added to the fish feed only as a component of a stabilized colour additive mixture. It is used as a colour additive to enhance the pink to orange-red colour of the flesh of salmonid fish. Even though the subject goods in various places are marketed as ingredients for nutraceuticals, it nowhere says that they are not used as colorants in those dietary supplements. Hence, it is merely an assumption of the customs department that these goods are not used as colorants that too after recording multiple times that they are also used in cosmetics. The customs department has incorrectly stated that the subject goods are nowhere in any documents mentioned or called as colorants. The product brochure of Astareal as page nos. 220-23 1 clearly shows the colorant propertie....
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.... mean that the issuing authority did not examine those aspects. US Cross Rulings and BTI Rulings are quite precise; however, they are all issued after proper examination by the authority. G. Heading 21.06 is a residuary heading, which covers miscellaneous edible food preparations, that are not covered elsewhere in the Nomenclature. In order for goods to fall under Heading 21.06, the following two conditions should be satisfied; (a) That the goods are not covered elsewhere; and (b) That the goods are food preparation which are covered under the ambit of Heading 21.06. In the present case, both these conditions are not met as goods are classifiable under Heading 32.03 and they are not 'food preparations' as defined in Note 5 of Chapter 21. Further, as per HSN Explanatory Notes to Heading 21.06, goods are classifiable herein, if they are preparations for use, either directly or after processing (such as cooking. dissolving or boiling in water, milk, etc.), for human consumption. The subject goods are neither preparations nor can be consumed by humans directly or by simply dissolving or boiling in water or milk. The customs department has again and again only ....
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....reiterate that the subject goods being 'colorant / coloring matter' are rightly classifiable under I leading 32.03. more specifically under Tariff Item 3203 00 20 of the Customs Tariff. 5. Discussion, Findings & Conclusion: 5.1. Having examined the CAAR-I application, the comments received from the jurisdictional Customs Commissionerate, rebuttal filed by the applicant, the record of personal hearing and the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I, therefore, allow the application and proceed to determine the classification of the proposed goods on the basis of the information on record. 5.2. I have taken into consideration of all the materials placed on the record of application in Form CAAR-I together with all annexures, the comments of the jurisdictional Principal Commissioner of Customs, Air Cargo Complex (Import), New Delhi, the written rebuttal filed by the applicant, the submissions advanced at the personal hearing, the relevant Section Notes and Chapter Notes of the First Schedule to the Customs Tariff Act, 1975, the General Rules for the Interpretation of the Import ....
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....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. Rule 3: When by application of Rule 2 (b) or for any other reason, goods are, prima facie, classifiable under two or more headings, classification shall be effected as follows : (a) The heading which provides the most specific description shall be preferred to headings providing a more general description. However, when two or more headings each refer to part only of the materials or substances contained in mixed or composite goods or to part only of the items in a set put up for retail sale, those headings are to be regarded as equally specific in relation to those goods, even if one of them gives a more complete or precise description of the goods. (b) 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 ....
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....dis, to the preceding Rules, on the understanding that only sub-headings at the same level are comparable. 5.7. The applicant has claimed classification of the said goods under tariff item 32030020. The jurisdictional Commissionerate has proposed the classification of said goods under heading 2106. The dispute therefore lies, whether the said goods are classifiable under 3203 or 2106. thereafter, at the sub-heading and tariff item level within whichever heading is found to apply. The rate of basic customs duty will follow from that determination. 5.8. The correct classification of any article must proceed from a precise understanding of what the article is. The applicant in its Application has submitted that AstaReal Astaxanthin is a colouring matter; it majorly contains Natural Astaxanthin i.e., Astaxanthin obtained from natural sources namely Haematococcus pluvialis; Apart from Astaxanthin, the subject product (AstaReal Astaxanthin) contains small amount of other carotenoids which are byproducts of the extraction process, and triglycerides as well as vitamin E (mixed tocopherols) are added as diluents / stabilizers to prevent oxidation of the product. 5.9. The applicant ....
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....ttention is invited to Note 3 to Chapter 32, and is reproduced below: "3. Headings 3203, 3204, 3205 and 3206 apply also to preparations based on colouring matter (including, in the case of heading 3206, colouring pigments of heading 2530 or Chapter 28, metal flakes and metal powders), of a kind used for colouring any material or used as ingredients in the manufacture of colouring preparations. The headings do not apply, however, to pigments dispersed in non-aqueous media, in liquid or paste form, of a kind used in the manufacture of paints, including enamels (heading 3212), or to other preparations of heading 3207, 3208, 3209, 3210, 3212, 3213 or 3215." 5.14. The Explanatory notes to Tariff Heading 3203 are reproduced below :- "32.03- Colouring matter of vegetable or animal origin (including dyeing extracts but excluding animal black), whether or not chemically defined; preparations as specified in Note 3 to this Chapter based on colouring matter of vegetable or animal origin. This heading covers the greater part of the products of vegetable or animal origin used mainly as colouring substances. These products are generally extracted from materials of v....
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....in a medium consisting of water or a mixture of water and a water-soluble solvent. This product is sometimes called "pearl essence" and is used in the manufacture of aqueous coating or cosmetic preparations. However, the preparations referred to in the last sentence of Note 3 to this Chapter are excluded. This heading also excludes : (a) Carbon black (heading 28.03). (b) Substances which in practice are not used for their dyeing properties such as morin, haematin and haemin(Chapter 29). (c) Synthetic organic colouring matter (heading 32.04). (d) Colour lakes obtained by fixation of a natural colour of animal or vegetable origin on to a base (e.g., carmine lake, logwood lake, yellow wood, redwood lakes) (heading 32.05). (c) Dyes and other colouring matter put up in forms or packings for retail sale (heading 32.12). (f) Ivory black and other animal black (heading 38.02). 5.15. In the Explanatory Notes, emphasis has been placed on the word "mainly". This points to the fact that products of vegetable or animal origin should be used predominantly as colouring substances. Thus, the mere presence of a substance of ....
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....0FC (Spec. p. 43; SDS p. 44) Dark red oil Not less than 5.0% (as free form by HPLC) Natural Astaxanthin Complex for Dietary Supplements- AstaReal Oil 50FC is a nutraceutical preparation containing natural Astaxanthin Ideal for blending as well as stand-alone formulations. Natural Astaxanthin complex comprises of mainly mono- esterified, followed by di- esterified and free forms. Dietary supplements AstaReal CLEAR100- C(S) (Spec. p. 70; SDS p. 71) Dark red liquid Not less than 1.00% (as free form by HPLC) Water Soluble Natural Astaxanthin Complex for Food or Dietary Supplements- AstaReal Clear100-C(S) is a high quality water-soluble astaxanthin that gives high clarity. It is ideal for beverages, liquid nutraceutical supplements or similar aqueous application. Natural Astaxanthin complex comprises of mainly mono- esterified, followed by di- esterified and free forms. Food or Dietary supplements AstaReal CWS25 (Spec. p. 93; SDS p. 94) Red powder Not less than 2.5% (free form, by HPLC) Natural Astaxanthin Complex 2.5% Powder- Astareal CWS25 is a high quality powderized astaxanthin extract exhibiting excellent solubility in cold or hot water. AstaR....
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....xanthin as a nootropic ingredient that supports memory and cognitive function, and promotes its use in formulations aimed at combating mental fatigue and improving brain performance. As per Article dated 17.03.2022 "AstaReal Natural Astaxanthin, the anti-aging solution" discusses common age-related health conditions - skin ageing, deteriorating vision, muscle loss and immune weakening - and positions AstaReal natural astaxanthin as helping rebalance the body's antioxidant status to ease these symptoms. 5.21. The applicant in its application has contended that Astaxanthin together with canthaxanthin is the most important and the most expensive pigment used in aquaculture for pigmentation of salmon, trout and shrimp meat (these animals do not synthesize astaxanthin de novo) which affects consumers 'preferences around the world; Astaxanthin is a necessary component of the feed for aquarium fish as well as large ornamental fish and Scientific research has shown that the pigment has a positive influence on the colour of egg yolk as well as the skin and meat tissue of broiler chicken carcasses. I find that the applicant is not importing a fish-feed pigment. The Applicant is im....
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....ct goods are formulated and standardised preparations intended principally for dietary supplements, food, beverages and nutraceutical applications. The Commissionerate has further noted that Note 3 to Chapter 32 requires a preparation to be of a kind used for colouring any material or as an ingredient in the manufacture of colouring preparations, a requirement which, according to the Commissionerate, is not met by the subject goods. The product- specific literature and Safety Data Sheets do not identify the goods as food colours, colouring agents, dyes or colouring preparations. The Commissionerate has accordingly considered the nutritional/functional character of the goods to be their principal commercial character, with any colouring effect being incidental. Therefore, the subject goods are not classifiable under Heading 3203. 5.25. In view of the foregoing. I find that the subject goods are not classifiable under Heading 3203. The Heading, read with the HSN Explanatory Notes, covers products of vegetable or animal origin used mainly as colouring substances, and exclusion (b) of the HSN Explanatory notes to Tariff Heading 3203 confirms that even chemically colouring compounds ....
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....as been standardised to a stated astaxanthin strength. That much appears from every specification, each of which guarantees a declared minimum potency on assay. As to dilution and stabilisation, the specification for Oil 50FC names medium chain triglycerides and Vitamin E, and that for L10 names natural mixed tocopherols; and the applicant has stated generally at paragraph 5 of the statement of relevant facts, without limiting itself to any grade, that triglycerides and mixed tocopherols "are added as diluents / stabilizers". On top of that, CLEAR100- C(S) and CWS25 have been emulsified and coated so that they will disperse in water or in cold water, and P4AF has been spray-dried and sieved into a flowing powder suited to hard capsules and tablet pressing. These are not crude extracts as they come out of the extractor. They are engineered delivery systems, and they have become food preparations. Heading 1302 therefore does not apply to any of the five grades. 5.27.2. (b) Heading 1212 - seaweeds and other algae. The goods are not algae. They are an extract of an alga which has then been made up further. The algal material itself does not enter the imported product. This hea....
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.... in fish and poultry feed. But these goods, going by the manufacturer's documents and the applicant's own stated use, are meant for human dietary supplements and health foods. There is nothing on record to show that any of the five grades is presented as, or supplied for, an animal feed preparation. The Safety Data Sheet for AstaReal L10 does mention further processing into extracts for food, feed and cosmetic preparations, but that single mention is not enough to place the grade in the class of feed preparations, particularly when the specification for the very same grade is titled "for Dietary Supplements". Chapter 23 does not apply. 5.28. I therefore find that, having regard to the condition of the goods as imported and after examining the headings which could potentially apply to them, the subject goods are not specified or included elsewhere in the First Schedule to the Customs Tariff Act, 1975. The first condition for consideration under Heading 2106 i.e. "The goods must not be specified or included anywhere else in the First Schedule" is accordingly satisfied. It remains to be examined whether the goods, on their own characteristics and intended use, answer the de....
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....ur, 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) 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 ....
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....sented for importation, the goods have acquired the character of finished, formulated ingredient preparations rather than raw botanical or algal extracts. 5.34. On perusal of Table-1 in Para 5.17, it is evident that all five grades are described and presented by the manufacturer as natural astaxanthin complexes intended for dietary supplements, nutraceutical preparations, foods and beverages. AstaReal L10, AstaReal P4AF and AstaReal Oil 50FC are each titled "Natural Astaxanthin Complex for Dietary Supplements". AstaRealClear100-C(S) as a water-soluble Natural Astaxanthin complex for Food or dietary supplement, while AstaReal CWS25 as a Natural Astaxanthin comples powder for intended use in dietary-supplement sachets and for direct addition to foods and beverages. 5.35. The Safety Data Sheets corroborate the intended use for the other four grades, each identifying the product for dietary supplement and/or food application, and none identifying it as a colouring agent or colouring preparation. 5.36. Further, every element of Entry (16) of the HSN Explanatory notes of CTH 2106 is met. The goods are based on a concentrate or extract of astaxanthin, a substance found within foo....
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....ation the record establishes. 5.39. Under the Food Safety and Standards (Health Supplements, Nutraceuticals, Food for Special Dietary Use, Food for Special Medical Purpose, Functional Food and Novel Food) First Amendment Regulations, 2021. Schedule VI titled "List of ingredients as nutraceuticals", Serial No. 2 of Part A of that Schedule lists "Astaxanthin (from Haematococcus pluvalis), powder or oleoresin", with the purity criterion "Astaxanthin content" and a permitted range of "2 - 12 mg/day. Max". Three features of the entry are material. First, astaxanthin is listed expressly as an ingredient "as nutraceutical". Secondly, the entry is confined to Astaxanthin (from Haematococcus pluvialis), which is the source of the goods before me. Thirdly, it describes the permitted article as "powder or oleoresin" - the very forms in which the goods are presented. The food law of this country thus recognises Astaxanthin derived from Haematococcus pluvialis as an ingredient of nutraceuticals- that is, as a food. 5.40. In its rebuttal submission dated 15.09.2026 the applicant contended that Heading 21.06 is a residuary heading, which covers miscellaneous edible food preparations, that a....
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....ingredients for human dietary supplements and health foods, not to the class of colouring matter or colouring preparations. 5.43. From the above discussions, I find that both conditions of Heading 2106 are satisfied. Therefore, I hold that these goods are classifiable under CTH 2106 under Rule 1 of the General Rules for the Interpretation (GRI). 5.44. For arriving at 8 digit classification, Rule 6 of General Rules for the Interpretation (GRI) is resorted. Applying Rule 6 of GRI, the goods fall under sub-heading 2106.90, covering "Other". Since none of the specific tariff items under this sub-heading specifically covers a preparation of this kind, the goods are appropriately classified under the residual Tariff Item 2106 90 99. 6. For the reasons recorded in the foregoing discussion and findings, the answers to the questions raised by the applicant are as follows: - Question 1: Whether the products in question i.e., five (5) grades of AstaReal (Natural Astaxanthin from Haematococcus Pluvialis) namely, 'AstaReal L10, AstaReal P4AF, AstaReal 50FC, AstaReal Clear 100 and AstaReal CWS25' in the present application are classifiable under Tariff Item 3203 00 20 o....