In re Shakambari Consultancy (CAAR Mumbai)
The application before the Customs Authority for Advance Ruling, Mumbai concerned the classification of an imported product named “CO2 Sustain 2501”, proposed to be imported at Nhava Sheva Port. The applicant sought an advance ruling under Section 28H of the Customs Act, 1962 on whether the product should be classified as an organic surface-active agent under Heading 3402 of the Customs Tariff.
The applicant explained that CO2 Sustain 2501 is an aqueous dispersion containing less than 5% Polysorbate 65, a non-ionic surfactant, with water constituting more than 95% of the composition. The product is used as a processing aid in carbonated beverages to control excessive foaming during filling. Certificates from the foreign manufacturer, independent analysis reports, technical data sheets, and safety data sheets were submitted to establish the nature, composition, and function of the product. The applicant emphasized that the product is approved for food use, though it is not consumed as food itself.
Relying on Chapter Note 3 of Chapter 34, the applicant argued that CO2 Sustain qualifies as an “organic surface-active agent” because, when mixed with water at 0.5% concentration at 20°C and left to stand for one hour, it forms a stable translucent liquid without separation and reduces surface tension below the prescribed threshold of 4.5 × 10⁻² N/m. Test reports demonstrated that at 0.5% concentration, the surface tension measured approximately 4.36 × 10⁻² N/m and that the solution remained stable without sedimentation. On this basis, the applicant sought classification under sub-heading 3402 42 00 as a non-ionic organic surface-active agent. Alternative arguments suggesting classification under Chapters 3907 or 3824 were also briefly raised.
