In re Danisco India Private Limted (CAAR Delhi)
The Customs Authority for Advance Rulings, Delhi (CAAR) examined an application filed under Section 28H of the Customs Act, 1962 seeking an advance ruling on the classification of a proposed import product named “Sharp PS®”. The applicant proposed to import the product prior to commencement of importation and sought clarity on whether it was classifiable under Customs Tariff Item (CTI) 2923 2090 of the First Schedule to the Customs Tariff Act, 1975. The Authority found the application to be maintainable, as the applicant held a valid Importer Exporter Code, the issue related to classification of goods prior to import, and the question was neither pending nor previously decided by any customs authority, tribunal, or court.
Sharp PS® was described as phosphatidylserine, a phospholipid derived from soy lecithin, manufactured through enzymatic transphosphatidylation of phosphatidylcholine with L-serine. The product consists predominantly of phospholipids, with silicon dioxide added solely as an anti-caking agent to preserve the product and prevent clumping. The Authority noted that the product has a defined chemical structure, constant elemental composition, and specific chemical formula.
The applicant contended that Sharp PS® qualifies as a separate chemically defined organic compound under Chapter 29 of the Customs Tariff. Reliance was placed on Chapter Note 1 to Chapter 29, which permits the presence of impurities and stabilisers, including anti-caking agents, without disturbing classification. The applicant further argued that phosphatidylserine is a phosphoaminolipid, falling squarely within Heading 2923, which covers “lecithins and other phosphoaminolipids, whether or not chemically defined.” Supporting technical literature, chemical structure, and Harmonized System Explanatory Notes were submitted to demonstrate that phosphatidylserine consists of fatty acids, a glycerophosphate skeleton, and a nitrogen-containing base, thereby meeting the criteria of a phosphoaminolipid.
