In re G.C. Chemie Pharmie Limited (CAAR Mumbai)
The Customs Authority for Advance Ruling Mumbai considered an application filed under the Customs Act, 1962 seeking an advance ruling on the classification of “Pelaforce EMA 1170,” a powdered extract derived from the root of the plant Pelargonium Sidoides. The applicant proposed to import the product in bulk from South Africa for use as a raw material in manufacturing tablets, capsules, and syrups intended for prevention and treatment of viral colds, flu, and respiratory tract infections.
The applicant contended that the product should be classified under Customs Tariff Heading 1302 as a vegetable extract. It was submitted that the product contains 70% native plant extract and 30% maltodextrin as a carrier, and is obtained through hydro-ethanolic extraction. Relying on the Harmonized System of Nomenclature (HSN) Explanatory Notes and judicial precedents, the applicant argued that addition of inert substances like maltodextrin does not affect classification under Heading 1302. The applicant further claimed eligibility for concessional customs duty under Notification No. 45/2025-Cus.
The Authority examined the product composition, manufacturing process, intended use, and relevant tariff provisions. It noted that Heading 1302 covers vegetable saps and extracts generally used as raw materials, provided they are not highly refined, purified, or transformed into preparations having the character of food or medicaments. The HSN Notes also exclude products that undergo additional extraction cycles or purification processes beyond initial extraction, or those having therapeutic or prophylactic characteristics as medicaments.
