Fortified Soy Protein Not Classifiable as Isolated Soy Protein: CAAR Delhi

In re Solae Company India Pvt Ltd. (CAAR Delhi)

M/s Solae Company India Pvt. Ltd. sought an advance ruling on the classification of its proposed import, Supro® XT 40, under the Customs Tariff Act, 1975. The product is described as an isolated soy protein in light cream-colored powder form, intended for use by manufacturers of juices and acidic beverages to fortify products with protein. Its composition consists of isolated soy protein, calcium phosphate, and less than 2% lecithin. According to the applicant, the product contains more than 90% protein on a moisture- and mineral-free basis and should therefore be classified as isolated soy protein under tariff item 35040091.

The applicant argued that Heading 3504 specifically covers protein isolates and relied on HSN Explanatory Notes, Codex Alimentarius standards, and FSSAI standards to contend that protein content should be calculated on a dry and demineralized basis. The applicant submitted that calcium phosphate is a mineral and should be excluded when determining protein content. It further maintained that the addition of calcium phosphate did not alter the essential character of the product as a protein isolate. The applicant also argued that Heading 2106 is a residuary heading and specifically excludes protein isolates classified under Heading 3504. According to the applicant, the manufacturing process, nutrient profile, and protein content demonstrated that Supro® XT 40 was a protein isolate rather than a protein concentrate.

The jurisdictional Commissionerate disagreed and contended that the product was not merely a protein isolate but a protein-based nutritional preparation. It emphasized that after isolation, calcium phosphate was intentionally added through a patented fortification process to enhance nutritional value and functionality in beverages. The Department argued that the product was marketed and used as a nutritional ingredient for food and beverage fortification and therefore possessed the characteristics of a food preparation. It maintained that Heading 2106 specifically covers protein concentrates, protein hydrolysates, and food preparations intended for human consumption and that Rule 3(a) of the General Rules for Interpretation favored classification under the more specific Heading 2106 rather than Heading 3504.

During the proceedings, the applicant reiterated that the product was an isolated soy protein product and provided examples of customers’ finished products in which isolated soy protein was used as an ingredient. The applicant also submitted that customer specifications referred to the product as an isolate and argued that protein content should be evaluated in accordance with Codex and FSSAI standards.

The Authority examined the product description, composition, manufacturing process, tariff entries, HSN Explanatory Notes, and the submissions of both parties. It noted that Heading 3504 covers protein isolates obtained from vegetable substances and that such isolates generally possess a protein content of not less than 90%. However, the Authority observed that the nutrient profile of the subject product indicated a protein content of only 82% on a dry basis. It further found that the applicant’s reliance on a test report showing protein content above 90% was misplaced because the report related to a different product, namely Supro XT 220 DP, and not Supro® XT 40. Consequently, the Authority held that the subject product could not be satisfactorily classified under Heading 3504.

The Authority also observed that Supro® XT 40 was marketed and used as a nutritional ingredient for incorporation into beverages and food products and that calcium phosphate was deliberately added after the protein isolation process to impart nutritional characteristics. It found that the product was a formulated protein preparation designed for nutritional fortification rather than a protein substance in isolated form. The Authority noted that Chapter Note 5 to Chapter 21 expressly includes protein concentrates and textured protein substances and that Heading 2106 is sufficiently broad to cover protein-based preparations intended for human nutrition.

According to the Authority, the HSN Explanatory Notes to Heading 2106 specifically cover protein concentrates used for protein enrichment of food preparations and preparations used in the manufacture of food products for human consumption. Since the applicant itself stated that the product would be supplied to manufacturers of beverages and nutritional products for protein enrichment, the Authority concluded that the product more closely matched the description of a protein-based food preparation than a protein isolate.

The Authority rejected the applicant’s contention that Heading 2106 was merely a residuary entry. It held that Heading 2106 specifically provides for protein concentrates and food preparations intended for human consumption, whereas Heading 3504 is a more general entry for protein substances. Applying Rule 3(a) of the General Rules for Interpretation, it held that the more specific description under Heading 2106 should prevail. The Authority further held that food standards under Codex Alimentarius and FSSAI may assist in understanding food composition but are not determinative of tariff classification, which must be based on tariff entries, Chapter Notes, GRI provisions, and HSN Explanatory Notes.

The Authority ultimately concluded that Supro® XT 40 could not be regarded as isolated soy protein classifiable under tariff item 35040091 or 35040099. Since the product consisted of isolated soy protein combined with calcium phosphate and was specifically intended for protein enrichment and nutritional fortification of food and beverage products, it was held to be appropriately classifiable under tariff item 21061000 as “Protein concentrates and textured protein substances.” The advance ruling was issued accordingly.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI

M/s Solae Company India Pvt Ltd, 206, 2nd Floor, Neelkanth House, S-524 School Block, Shakarpur, East Delhi, 110092 having IEC No. 0599001780 and PAN- AAACD8906D (the applicant, in short) filed the instant application in Form CAAR-1 before the Customs Authority for Advance Rulings, New Delhi (CAAR, in short) for seeking advance ruling. The complete application was received in the Secretariat of the CAAR, New Delhi on 05.02.2026 along with their enclosures in terms of Section 28-1-1(1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’).

1.1. The applicant’s submissions are as given below:-

1.2. Solae Company India Pvt Ltd (hereinafter referred to as the “Applicant”) is a private limited company incorporated in the year 1997 under the Companies Act, 1956. The Applicant is a market leader in dealing with goods which serve the following markets:

i. Food and Beverage

ii. Nutritional products (sports nutrition, meal replacements) Health and Wellness.

1.3. The Applicant is now proposing to import the product `Supro® XT 40′ (hereinafter to be referred to as `Supro® XT 40′ or `product’), for the purpose of trading.

About Supro® XT 40

1.4. Supro® XT 40 is an isolated soy protein product. It is a product in light cream-colored powder form which is used by manufacturers of juices and other acidic beverages to fortify/add extra nutrients such as protein in their product while meeting consumers’ taste and expectations. A picture of the product is as under:

1.5. Composition of the product is as follows:

a. Isolated Soy Protein

b. Calcium Phosphate, With Less Than 2% Lecithin

1.6. Following is the process undertaken to manufacture Supro® XT 40.

• Defatted soy flakes are solubilized in water to dissolve protein and separate insoluble carbohydrates.
• Protein is precipitated at its isoelectric point for purity and dried to reach 90% protein content.
• Following isolation, a stabilized form of calcium phosphate is incorporated into the product. Patented Fortification Method is performed post-isolation to preserve the integrity of the protein matrix. The patented method ensures mineral fortification without destabilizing the protein structure. With this the highest standard of manufacturing, Quality and food safety is maintained.

1.7. The nutrient profile of the product is as under:

Sr No.	Assay	Specifications
1	Moisture	Maximum 6.0 %
2	Protein, Dry Basis	Minimum 82%
3	Protein on Moisture and Mineral Free basis)	More than 90%
4	Fat, Acid Hydrolysis	Maximum 5.5%
5	Ash	Maximum 13%
6	pH (5% Slurry)	7.2 — 7.6
7	Calcium	Minimum 2.8%
8	Phosphorous	Minimum 2 %
9	Sodium	Maximum 1 %
10	Potassium	Maximum 1.5 %

1.8. The protein content of the product is 90% on demineralised basis. This is evident from the manufacturing process enclosed. On a non-demineralised basis, the product indicates a protein content of 82% because of the calcium phosphate added in the product. The complete protein content in the product is solely from the soy isolate content in the product.

APPLICANT’S ELIGIBLITY FOR ADVANCE RULING:

1.9. 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’).

1.10. Provisions relating to Advance Ruling are prescribed under Chapter VB of the Customs Act.

Clause (c) of Section 28E of the Customs Act defines an “Applicant” as:

In this chapter, unless the context otherwise requires,

(c) “applicant” means-

i. holding a valid Importer-exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);

1.11. The Applicant herein has been granted a valid Importer-Exporter Code Number (IEC) under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. The same is 0599001780.

1.12. Clause (b) of Section 28E of the Customs Act defines ‘advance ruling’ as:

(b) “advance ruling” means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation;

1.13. The questions on which an application for an advance ruling can be made have been provided under Section 28H of the Customs Act. As per the said Section 28H (2) of the Customs Act, an applicant may make an application for advance ruling in respect of questions relating to:

(a) Classification of Roods under the Customs Tariff Act, 1975;

1.14. The present application is being made by the Applicant to confirm classification of the product Supro® XT 40. Further, Applicant has not yet commenced import of the said products in India.

1.15. Therefore, it flows that in the present case, the Applicant is satisfying the following conditions required for filing the application for advance ruling, namely:

a. The Application is being made to confirm classification of the product Supro® XT 40 proposed to be imported.

b. The Applicant have been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992;

c. Application for advance ruling is in relation to clause (a) of Section 281-1 (2) of the Customs Act, 1962.

Non-Applicability of Bar under Section 281

1.16. Section 281 of the Customs Act, 1962 is set out below:

“SECTION 28-1. Procedure on receipt of application. — (1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the [Principal Commissioner of Customs or Commissioner of Customs] and, if necessity, call upon him to furnish the relevant records : Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the [Principal Commissioner of Customs or Commissioner of Customs].

(2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application :

Provided that the Authority shall not allow the application [ * *J where the question raised in the application is –

(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.”

1.17. Thus, the conditions set out in Section 281 are satisfied as:

a. the question raised in the present application regarding classification of the product Supro® XT 40 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 the product Supro® XT 40 has not been decided by the Appellate Tribunal or any Court.

1.18. Therelbre, it flows that in the present case, the Applicant satisfies all the criteria required for filing the application for advance ruling, namely:

a. The Applicant has been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992;

b. The Applicant is filing the Application in respect of goods prior to their importation into India;

c. The application for advance ruling is in relation to clause (a) of Section 281-I (2) of the Custcims Act, 1962; and

d. The application is not barred under Section 281 of the Customs Act, 1962.

1.19. Thus, the present application must be allowed to be proceeded with.

CLASSIFICATION OF SUPRO® XT 40

1.20. The import and export of goods to and from India are governed by the provisions of Customs Act. Section 12 of the Customs Act is the charging section, according to which basic customs duty (“BCD”) is payable on all goods imported into India or exported out of India at such rates as may be specified under the Tariff.

1.21. In accordance with Section 2 of the Tariff, the rates at which BCD shall be levied are specified in First and Second Schedules to the Tariff Act. Accordingly, to determine the appropriate rate of BCD on goods imported in India, it is important to determine the classification of the imported goods under First Schedule of the Tariff.

1.22. The classification of the goods imported into India is to be determined based on the General Rules of Interpretation (hereinafter referred to as the ‘GRI’) as set out in the Tariff.

1.23. As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI.

1.24. The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (hereinafter referred to as `HSN’) issued by the World Customs Organization (hereinafter referred to as `WC0′). It has been held by the Hon’ ble Supreme Court in the case of Collector of Customs, Bombay vs. Business Forms — 2002 (142) ELT 18 that the HSN Explanatory Notes aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same.

1.25. Therefore, HSN Explanatory Notes are an important and dependable aid to determine the scope and the meaning of tariff entries, for the purpose of classification of the imported goods in the First Schedule of the Tariff.

1.26. Protein isolates are specifically covered under Heading 3504. Thus, classification under this Heading may be examined.

Classification under Heading 3504

1.27. Supro.14 XT 40 is classifiable under Heading 3504 of the Tariff. The relevant extract of Heading 3504, from the Tariff is set out below:

Tariff Item	Description of goods
3504	PEPTONES AND THEIR DERIVATIVES; OTHER PROTEIN SUBSTANCES AND THEIR DERIVATIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED; HIDE POWDER, WHETHER OR NOT CHROMED
350400	– Peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed:
350400	— Peptones
	— Other:
35040091	— Isolated soya protein
35040099	— Other

1.28. The relevant extract to HSN Explanatory Note to Chapter 3504 is reproduced below:

The product in question is rightly classifiable under Heading 3504 as protein isolate.

1.29. The product in question very clearly mentions that it is a protein isolate product. As per the HSN Explanatory Notes to Heading 3504, for a product to be classified as protein isolate, the protein content in the product is generally not less than 90%. However, the HSN Explanatory Notes does not mention on what basis this 90% is to be calculated.

1.30. It is submitted that universally, protein isolates are products which have a minimum of 90% protein content. Therefore, the requirement in HSN appears to be aligned with the generally understanding of protein isolates in trade. Thus, reference can be made to established food standards like Codex Alimentarius Commission (CAC) and Food Safety and Standards Authority of India(FSSA I) to understand how this 90% must be calculated.

1.31. The Codex Alimentarius Commission is a collection of internationally recognized standards, codes of practice, guidelines, and other recommendations published by the Food and Agriculture Organization and World Health Organization of the United Nations relating to food, food production, food labelling, and food safety. Codex Alimentarius International Food Standard (`CODEX Standard’), CXS 175-1989 sets out the Standard that applies to Soya Protein Products (`SPP’) prepared ^.from soybeans by various separation and extraction processes. As per the standard the protein content in case of soy protein isolate is 90% or more and the same should be calculated on the dry weight basis after excluding vitamins, minerals, amino acids and food additives. The relevant extract from CODEX Standard is reproduced below for ease of reference:

CXS 175-1989

1. SCOPE

This Standard applies to Vegetable Protein Products (VPP) prepared from soybeans (seeds of Glycine Max. L.) by various separation and extraction processes. These products are intended for use in foods requiring further preparation and by the food processing industry.

2. DESCRIPTION

Soy Protein Products (SPP) covered by this Standard are food products produced by the reduction or removal from soybeans of certain of the major non-protein constituents (water, oil, carbohydrates) in a manner to achieve a protein (N x 6.25) content of:

– in the case of soy protein flour (SPF) 50% or more and less than 65%;

– in the case of soy protein concentrate (SPC) 65% or more and less than 90%;

– in the case of soy protein isolate (SPI) 90% or more.

The protein content is calculated on a dry weight basis excluding added vitamins, minerals, amino acids and food additives.

1.32. Further, Food Safety and Standard Authority of India (`FSSAI’) has issued Food Safety and Standards (Food Products Standards and Food Additives) Regulation, 2011 which prescribes standard for various categories of product. Chapter 2.4 of the Regulation covers Cereals and Cereals Product and Para 2.4.20 covers Soy Protein Products. As per Para 2.4.20 the protein content in isolated soy protein should be more than 90% on dry basis. The protein content is calculated on dry mass basis excluding added vitamins, mineral, amino acids and food additives. The relevant extract of standard is reproduced below for ease of reference:

2.4.20. Soy Protein Products

(1) Soy Protein Products (SPP) means the food products obtained by the reduction or removal from soybeans of the major non-protein constituents (water, oil, carbohydrates), which shall be clean, sound, mature and dry seeds. The Soy Protein Products so obtained shall be of following three types, namely;-

(a) Soy Protein Flour (SPF);

(b) Soy Protein Concentrate (SPC); and

(c) Soy Protein Isolate (SPI).

Optional Ingredients (which are standardised in various regulations under Food Safety and Standards Act, 2006(34 of 2006):-

(a) Carbohydrates. including sugars;

(b)Edible fats and oils;

(c) Other protein products;

(d) Vitamins and minerals;

(e) Salt: and

(f) Herbs and spices.

(g) The product shall conform to the follow standards, namely:-

Parameters:	Limits
	SPF	SPC	SPI
Moisture (per cent. by mass). Maximum	10.0	10.0	10.0
Crude. Protein (per cent. on dry mass basis).	more than 50.0 and less than 65.0	more titan 65.0 and less than 90.0	More than 90.0
Total Ash (per cent. on dry mass basis). Maximum	8.0	8.0	8.0
Crude Fibre (per cent. on dry mass basis), Maximum	5.0	6.0	0.50

Note:- me protein content is calculated on dry mass basis excluding added vitamins, mineral. amino acids and food additives.

1.33. As per the Food Standards such as CODEX Alimentarius Commission and FSSAI, the protein content is required to be calculated on demineralized basis. This method ensures that the protein concentration reflect the true and functional protein value, without any interference arising from mineral, ash, or other inorganic element which do not contribute to actual protein component of the product. The purpose of adopting this demineralised dry basis calculation is to provide an accurate, standardized and represent the true value of protein available in the product.

1.34. In the product in question, calcium phosphate is present along with soy protein isolate. Calcium phosphate is nothing but a mineral. This is evident from the following understanding of calcium phosphate from various sources:

Sr. No.	Source and extract from source
1.	https://www.medicalnewstoday.com/articles/calcium-phosphate “Calcium phosphate is a compound that contains both calcium and phosphorus. It is a naturally occurring mineral that is a large component of bones and teeth.”
2.	https://www.sciencedirect.com/topics/chemical-engineering/calcium- phosphate “Calcium phosphate is the inorganic mineral of hard tissues such as bone and
3.	https://www.chemicalbook.comfarticle/calcium-phosphate-physical-properties-synthesis-and-biological-response.htm “Calcium phosphate, also known as tricalcium phosphate, is a type qf mineral. It is a compound containing calcium and phosphorus, or phosphoric acid”
4.	https://pmc.ncbi.nlm.nih.gov/articles/PMC9693044/ “Calcium phosphate is a common mineral in geolospi. Furthermore, it is the inorganic mineral in mammalian bone and teeth, also in humans. “

1.35. Further, even the FSSAI Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011 regards calcium phosphate to be source of minerals. The relevant extracts evidencing the same is extracted below:

2.1.19 Foods for infant nutrition

Infant Milk Substitutes

1. Infant Milk Food means the product prepared by spray drying qf the milk of cow or buffalo or a mixture thereof. The milk may be modified by the partial removal/substitution of different milk solids; carbohydrates, such as sucrose, dextrose and dextrins/maltodextrin, maltose and lactose; salts like phosphates and citrates; vitamins A, D, E, B Group, Vitamin C and other vitamins; and minerals like iron, copper, zinc and iodine. The source of Mineral Salts and Vitamin Compounds may be used from:- I. Calcium (Ca) – Calcium carbonate, Calcium chloride, Calcium citrate, Calcium phosphate monobasic, Calcium phosphate dibasic, Calcium phosphate tribasic;

1.36. Thus, it is clear that Calcium Phosphate is a mineral.

1.37. Thus, by applying the principles of protein calculation present in CODEX Standards and FSSAI Regulations as set out above, it is evident that the protein context must be calculated by excluding calcium phosphate.

1.38. The test report enclosed clearly indicates that protein on moisture and phosphate free basis is 91.62 g/ 100g.

1.39. Therefore, the subject goods is rightly calculated in Heading 3504 as a protein isolate (under Tariff Item 35040091) because:

i. The product’s technical documents clearly demonstrate that it is a protein isolate;

ii. The technical documents also make it clear that the protein content in the product is above 90% when calculated on a dry, non-mineralised basis.

There is no such bar under Heading 3504 that the product must consist of protein in absolute purity or that it cannot contain minor additives. On applying Rule 2(b) the imported product is rightly classifiable as Protein Isolate under Heading 3504.

1.40. Heading 3504 does not restrict the classification merely because the product contains incidental component. Accordingly, the presence of calcium phosphate does not alter the nature or functionality of protein in any manner disqualify the product from being classified under Heading 3504. Protein products continue to fall within the scope of Heading 3504 so long the essential and the predominant component remains the protein itself. This is supported by Rule 2(b) of the GRI:

2(b) Any reference in a heading to a material or substance shall be taken to include a reference to mixtures or combinations of that material or substance with other materials or substances. Any reference to goods 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.

1.41. The relevant portion from HSN Explanatory Notes to Rule 2(b) of GRI is extracted below:

RULE 2 (b)
(Mixtures and combinations of materials or substances)

(X) Rule 2 (b) concerns mixtures and combinations of materials or substances, and goods consisting of two or more materials or substances. The headings to which it relent are headings in which there is a reference to a material or substance (e.g., heading 05.07 ­ivory), and headings in which there is a reference to goods of a given material or substance (e.g., heading 45.03 – articles of natural cork). it will be noted that the Rule applies only if the headings or the Section or Chapter Notes do not otherwise require (e.g., heading 15.03 – lard oil, not … mixed).

Mixtures being preparations described as such in a Section or Chapter Note or in a heading text are to be classified under the provisions of Rule 1.

(XI) The effect of the Rule is to extend any heading referring to a material or substance to include mixtures or combinations of that material or substance with other materials or substances. The effect of the Rule is also to extend any heading referring to goods of a given material or substance to include goods consisting partly of that material or substance.

(XII) It does not, however, widen the heading so as to cover goods which cannot be regarded. as required under Rule 1, as answering the description in the heading; this occurs where the addition of another material or substance deprives the goods of the character of goods of the kind mentioned in the heading.

(XIII) As a consequence of this Rule, mixtures and combinations of materials or substances, and goods consisting of more than one material or substance, if prima facie classifiable under two or more headings, must therefore be classified according to the principles of Rule 3.

1.42. Rule 2(b) applies to mixture and combination of material and substances. Rule 2(b) says any reference to a material would include reference to mixtures or combinations of that material or substance with other materials or substances.

1.43. Since there is no bar under Heading 3504 to include additives. Upon applying Rule 2(b) in the present case, the product in question would still classify under Heading 3504 as the reference to Heading 3504 specifically Tariff Item 35040091 would include isolated soya protein and its additives. Thus, the product in question is rightly classifiable under Tariff Item 35040091.

The product in question is not classifiable under Heading 2106

1.44. Chapter 21 covers ‘Miscellaneous edible preparations’ under Section XIV which covers “Prepared foodstuffs, beverages, spirits and vinegar, tobacco and manufactured tobacco substitutes”.

1.45. At the outset it is submitted that the product Supro® XT 40 in question is not classifiable under Heading 2106 i.e., ‘Food preparations not elsewhere specified or included’, for the reasons mentioned infra. Heading 2106 is extracted below:

Tariff Item	Description
2106	FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED
21061000	– Protein concentrates and textured protein substances
210690	– Other
	— Soft drink concentrates:
21069011	— Sharbat
21069019	— Other
21069020	— Pan masala
21069030	— Betel nut product known as “Supari”
21069040	— Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrin syrup
21069050	— Compound preparations for making non-alcoholic beverages
21069060	— Food flavouring material
21069070	— Churna for pan
21069080	— Custard powder
	— Other:
21069091	— Diabetic foods
21069092	— Sterilized or pasteurized millstone
21069099	— Other

1.46. It is also pertinent to reflect on Note 5 to Chapter 21 of the First Schedule to the Tariff:

“5. Heading 2106 (except tariff items 2106 90 20 and 2106 90 30), inter alia, includes:

(a) protein concentrates and textured protein substances;

(b) preparations for use, either directly or after processing (such as cooking; dissolving or boiling in water, milk or other liquids), for human consumption;

(c) preparations consisting wholly or partly of foodstuffs, used in the making of beverages of food preparations for human consumption;

(d) powders for table creams, jellies, ice-creams and similar preparations, whether or not sweetened;

(e), flavouring powders for making beverages, whether or not sweetened;

(f) preparations consisting of tea or coffee and milk powder, sugar and any other added ingredients;

(g) preparations (for example, tablets) consisting of saccharin and lbodstuff such as lactose, used for sweetening purposes;

(h) pre-cooked rice, cooked either fully or partially and their dehydrates; and

(i) preparations for lemonades or other beverages, consisting, for example, of flavoured or coloured syrups, syrup _.flavoured with an added concentrated extract, syrup_. flavoured with fruit juices and concentrated fruit juice with added ingredients.”

1.47. The relevant extract from HSN Explanatory Notes to Heading 2106 is reproduced below for ease of reference:

21.06 – Food preparations not elsewhere specified or included.

2106.10 – Protein concentrates and textured protein substances

2106.90 – Other

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 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 pmteolytic enzyme with added dextrose or other foodstuffs). Such preparations fall in heading 35.07 provided that they arc not covered by a more specific heading in the Nomenclature.

The heading includes, inter Win :

(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 sweetened, with a basis of sodium bicarbonate and glycyrrhizin or liquor ice extract (sold as “Cocoa-powder”).

(3) Preparations based on butter or other fats or oils derived from milk and used, e.g., in bakers’ wares.

(4) Pastes based on sugar, containing added fat in a relatively large proportion and, sometimes, milk or nuts, not suitable for transformation directly into sugar confectionery but used as fillings, etc.. for chocolates, fancy biscuits, pies, cakes, etc.

(5) Natural honey enriched with bees’ royal jelly.

(6) Protein hydrolysates consisting mainly of a mixture of amino-acids and sodium chloride, used in food preparations (e.g., for flavouring); protein concentrates obtained by the elimination of certain constituents of defatted soya-bean flour, used for protein-enrichment of food preparations; soya-bean flour and other protein substances, textured. However, the heading excludes non-textured deflated soya-bean flour, whether or not lit for human consumption (heading 23.04) and protein isolates (heading 35.04).

1.48. From the HSN Explanatory Notes to Heading 2106, it appears that Heading 2106 includes the following proteins :

a. Protein hydrolysates consisting mainly of a mixture of amino-acids and sodium chloride, used in food preparations (e.g., for flavouring);

b. protein concentrates obtained by the elimination of certain constituents of defatted soya-bean flour, used for protein-enrichment of food preparations

c. soya-bean flour and other protein substances, textured.

1.49. Heading 2106 specifically excludes protein isolates covered under Heading 3504.

1.50. The product in question is not a protein hydrolysate consisting mainly of a mixture of amino-acids and sodium chloride, used in food preparations (e.g., for flavouring). The product in question consists mainly of protein and Calcium Phosphate, With Less Than 2% Lecithin. The product is question is not used in food preparation for the purpose like flavouring etc. It is rather used by manufacturers to add nutrients in their product. Thus, the product in question cannot be equated with protein hydrolysate.

1.51. Further, the product in question is not a protein concentrates rather is a protein isolate. Protein concentrates are the product which contains 60% – 80% protein and requires less processing. Protein concentrates contain some amount of fat and carbohydrates. The product in question undergoes an intense processing to reach 90% pure and dry protein content. This is further supported by the manufacturing process enclosed as Exhibit-3. Thus, the product in question cannot be equated with protein concentrates.

1.52. Further, the product in question is not a soya-bean flour and other protein substances, textured. The same is evident from the brochure of the product enclosed as Exhibit-2. Thus, the product does not fall under the category of protein classifiable under Heading 2106. Thus, the product is correctly, classifiable under Heading 3504.

1.53. It is also submitted that Heading 2106 has specific category of protein covered under it and if a protein does not fall under the category of Heading 2106 it will fall under Heading 3504 which provides ‘other protein substances and their derivatives, not elsewhere specified or included’.

1.54. Further, from the above, it appears that Note 5(a) to Chapter 21 includes protein concentrates and textured protein substances. Further, from the HSN Explanatory Notes to Heading 2106 it is clear that Heading 2106 specifically exclude protein isolates classified under Heading 3504.

The product in question is a protein isolate and not a protein concentrate as covered under Note 5(a) to Heading 2106

1.55. Protein isolate is more refined and will have 90% or more protein, whereas protein concentrate will only have 60-80% protein with more Insoluble Carbohydrates(fiber) and fat.

1.56. A research paper on Protein Isolates: product, Functional Properties and Application published at ResearchGate mentions that Isolates are the most refined form of protein products containing the greatest concentration of protein but unlike flour and concentrates contains no dietary fibre. Isolates are very digestible and easily incorporated into decent food products. Protein isolates are believed to have played a major role in the development of new class of formulated foods. It is high concentration of protein with the advantage of colour, flavour and functional properties make it an ideal raw ingredient for used in beverages, infant foods and children milk food, textured protein products. The product in question is too a raw ingredient which will be used in juices and acidic beverages to give it a nutritious value.

1.57. Further, the research paper on Protein Isolates: product, Functional Properties and Application also discuss the process of manufacturing of soy protein. The relevant extract of the same is reproduced below:

Soy protein is made out of defatted soy meal by removing most of the fat and carbohydrates. Soybean is crushed into oil and defatted meal. The meal is usually used as animal feed, while smaller amount is further processed into food ingredients including soy flour, protein concentrate, protein isolates and textured protein. Soy protein isolate is usually combined with other Pod ingredients such as vitamins, minerals and flavour in preparation of soy protein shake powder. Advance in Pod technology resulted in the development of a variety of soy product such as concentrates, isolate and extruded-expanded products, this consequently leads to increased utilisation by technically developed regions of the world. The production of soy protein isolate involves solubilising the protein and carbohydrate at neutral or alkaline pH and the recovery of the solubilised protein, by separation and optionally washing and neutralization before drying (Moure et al. 2006). Three steps involved in the processing of soy protein isolates (S7’1) are (1)The soy flakes are slurried with water under alkaline conditions using sodium hydroxide and other alkaline substances approved for food used) so that the protein and the oligosaccharides can dissolve into the solution. The protein solution is then separated from the insoluble residue by centrifugation, (2) the supernatant containing the protein and sugars is then acidified to isoelectric (where the solubility of proteins is minimal), using hydrochloric acid (HC1). This leads to the precipitation of protein as curd, (3) the solubility of the precipitated protein is restored by neutralizing to alkaline ph.

1.58. The procedure discussed above is very much akin to the procedure undertaken by Applicant in present case. Further, the broad difference protein isolates and protein concentrate is as under:

Particular	Protein Isolate	Protein Concentrate	Present Product
Processing	Requires high processing which results in removal of oil, solvent, extraction etc. and obtain a high-quality protein.	Requires less processing in overall sense structure remains the same.	As is evident from the manufacturing process, the processing in present case is high as required for protein isolates.
Nutrient content	Contains less carbs, lactose and fat in the amounts of 0.5%-1%	Contains more carb and fat in the amounts of 1%-2%	The product in question contains less carbs, lactose and fat as that of Protein Isolates.
Method of manufacture	In order to obtain protein isolates, isolation involves solubilization and precipitation techniques based on their physicochemical properties. One of the most used techniques in protein extraction is aqueous-alkaline extraction followed by precipitation, in which the proteins are solubilized at elevated alkaline pH and precipitate at pH near to their isoelectric point.	Protein concentrates are obtained when non-protein components such as soluble carbohydrates, minerals, antinutritional factors and some low molecular weight nitrogenous compounds are eliminated from food and removed using aqueous-alcoholic solutions (ethanol, 1-butanol, isopropyl alcohol, etc.), acidic or basic solutions.	The process undertaken in present case is more akin to process undertaken for protein isolates as in this process too Defatted soy flakes are solubilized in water to dissolve protein and separate insoluble carbohydrates. Protein is precipitated at its isoelectric point in order to reach purity of 90% protein content.
Concentration	Contains 60%-80% protein	Contains 90% protein	As is evident from nutrient profile, test report and manufacturing process discussed above, the protein content in the product is more than 90% and therefore the same qualify as protein isolates.

1.59. Thus, it is evident from the above that protein concentrates and protein isolates are not differentiated merely on protein content. Protein concentrate is less processed, has a much higher fat and carbohydrate content.

1.60. Upon review of the product specifications, it is evident that the composition, manufacturing process, and nutrient profile correspond to those of a protein isolate rather than a protein concentrate. Accordingly, the product does not fall within the scope of Heading 2106 and is excluded therefrom. Heading 2106 is a residuary heading. As the product Supro® XT 40 is aptly covered under Heading 3504 the same is automatically excluded fi-om Heading 2106

1.61. From a perusal of Heading 2106, it is evident that the same is a residual entry, which would only include goods which cannot be covered under any other Entry in the schedule. Whereas, as proved in the foregoing paras, the product Supro® XT 40 in the present case squarely fall under Heading 3504.

1.62. The Hon’ble Supreme Court in Hindustan Poles Corpn. v. Commissioner of Central Excise, Calcutta, 2006 (196) E.L.T. 400 (S.C.), held that residuary Entry is made to cover only those categories of goods which clearly fall outside the ambit of the main Entry. Unless the Revenue can establish that the goods in question can by no conceivable process of reasoning be brought under any of the tariff items, resort cannot be made to the residuary Entry.

1.63. The Hon’ble Supreme Court in Collector of Central Excise, Shillong v. Wood Craft Products Ltd., 1995 (77) E.L.T. 23 (S.C.), ruled that resort can be made to a residuary heading only when by liberal construction the specific Entry cannot cover the goods in question.

1.64. In light of the above-mentioned decisions, it is submitted that resort to residuary Heading of 2106 can be made only when the imported goods do not fall under Heading 3504 even by liberal interpretation of it.

1.65. Even on applying Rule 3 of the GRI, the product in question will be classifiable under Heading

3504:

Rule 3 of GRI is extracted below:

1.66. The relevant headings are as below:

2106	3504
Food preparations not elsewhere specified or included	Peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed

1.67. From a perusal of Heading 2106, it is evident that the same is a residual entry for “food preparations”, which would only include goods which cannot be covered under any other Entry in the schedule. Whereas, Heading 3504 covers “other protein substances and their derivatives, not elsewhere specified or included”.

1.68. The product in question is more aptly described as a protein substance and not as a food preparation. Thus, even on applying Rule 3(a) of GRI, Heading 3504 will prevail.

1.69. Thus, even on the application of Rule3 (a) i.e., specific heading prevails of general heading the product in question is specifically covered under Heading 3504. Thus, the product is correctly classifiable under Heading 3504 and more specifically under Heading 35040091. (Even if it is assumed that the product in question is not an isolated soy protein product even then the product would continue to be classifiable under Heading 3504 and more specifically under Heading 35040099 as ‘Others’ on application of Rule 3 (a) of GRI.)

1.70. Even if is assumed that Rule 3 (a) is not applicable in the present case, the product Supro0 XT 40 is rightly classifiable under Tariff Item 35040091 on application of Rule 3 (1)) of GRI.

1.71. Rule 3(b) of GRI read as under:

Mixtures, composite goods consisting of different materials or made up of different components, and goods put up in sets far retail sale, which cannot be classified by reference to 3 (a), shall be classified as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable.

I.72. The relevant portion of the HSN Explanatory Notes to Rule 3(b) of GRI is extracted below:

1.73. From a perusal of the HSN Explanatory Notes the following points are to be noted for applying Rule 3(b):

• The product in question is a mixture, composite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale;
• The product contain component which gives them their essential character;
• The goods cannot be classified by reference of Rule 3(a) of GRI;

1.74. To proceed with application of Rule 3(b), it is necessary that the Rule 3(a) is inapplicable. Rule 3(a) provides that specific heading shall prevail over the general heading as discussed above. However, even if it is assumed that there is no specific heading, and Rule 3(a) is inapplicable even then the product in question is correctly classifiable under Heading 3504. The same has been discussed in detail in subsequent paragraphs.

1.75. Rule 3(b) mandates that the classification shall be determined on the basis of the essential character of the good that is the material or the component which imparts the good their principle identity or the predominant nature.

1.76. In the present case, the essential component of the product is protein isolate. The addition of calcium phosphate during the manufacturing process does not alter the nature, functionality or essential character of the product and product continues to be a protein source. Therefore, by applying Rule 3(b) of the GRI, the product retains the character of isolated soy protein and thus, the same is appropriately classifiable under Heading 3504 and more specifically under Tariff Item 35040091.

1.77. It is submitted that even on the application of Rule 3(c) of the GRI, the product in question will be classifiable under Heading 3504. Rule 3 (c) of the GRI provides that if after applying Rule 3(a) and Rule 3(b), the product still appears to be classifiable under two or more heading in such case the classification should be under the Heading which occurs last in numeric order among those that equally merit the classification.

1.78. In the present Heading 3505 is the Heading which occur after Heading 2106. Thus, even on application of Rule 3(c) of GRI, the product in question will be classifiable under Heading 3504.

ISSUES REQUIRING ADVANCE RULING AND APPLICANT’S UNDERSTANDING

1.79. In light of the aforementioned submissions, the Applicant’s interpretation of the questions raised will be as under:

a) Question: Whether the product in question i.e., Supro® XT 40 in the present application is classifiable under Tariff Item 35040091 or 35040099 of the First Schedule to the Customs Tariff Act, 1975 (hereinafter referred to as “the Tariff’)?

Applicant’s Understanding: Yes.

b) Question: If the product mentioned above is not classifiable under the Tariff Items as mentioned above, then what would be the correct classification of the above product under the Tariff?

Applicant’s Understanding: Not Applicable

2. Comments of the Port Commissionerate:

2.1. As per the provision of CAAR Regulation, 2021, the complete application of the applicant was provided to the concerned Custom Port, and requested to furnish the requisite comments in the instant matter. The port authority vide letter dated 13.04.2026 furnished its comments, as follows:-

2.2. In this regard, the applicant has submitted that they propose to import the product namely “Supro® XT 40”, and have claimed classification under CTH 3504. The comments are as under: –

Relevant Tariff Entries along with Duty Structure and Explanatory Notes to Heading concerned are as below: –

Tariff Entry for 3504-

Explanatory Note of Heading 35.04-

35.04 PEPTONES AND THEIR DERIVATIVES; OTHER PROTEIN SUBSTANCES AND THEIR DERIVATIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED• HIDE POWDER, WHETHER OR NOT CHROMED.

This heading covers:

(A) Peptones and their derivatives.

(I) Peptones are soluble substances obtained when proteins are hydrolysed or submitted to the action of cel tain enzymes (pepsin, papain, pancreatic, etc.). They are usually white or yellowish powder and being very hygroscopic, they are normally packed in airtight container. Peptone may also be in solution. The main varieties are meat peptones, yeast peptones, blood peptones and casein peptones.

They are used in pharmacy, in food preparations, for bacterial cultures, etc.

(2) Peptonates are derivatives of peptones. They are used principally in pharmacy; the most important are iron Peptonates and manganese Peptonates.

(B) Other protein substances and their derivatives, not covered by a more specific heading in the Nomenclature, including in particular:

(1) Glutclins and prolamins (e.g., gliadins extracted from wheat or rye, and Zain extracted from maize), being cereal proteins.

(2) Globulins, e.g., lactoglobulin ins and ovoglobulins (hut see exclusion (d) at the end of the Explanatory Note).

(3) Glycinin, the main soya protein.

(4) Keratins obtained from hair, nails, horns hoofs, feathers, etc.

(5) Nucleoproteins, being proteins combined with nucleic acids, and their derivatives. Nucleoproteins are isolated, for example, from brewer’s yeast, and their salt (of iron, copper, mercury, etc.) are used mainly in pharmacy.

(6) Protein isolates obtained by extraction from a vegetable substance (e.g., defatted soya bean flour) and consisting of a mixture of proteins contained therein. The protein content of these isolates is generally not less than 90 %.

(C) Hide powder, whether or not chromed. Hide powder is used for the determination of tannin in natural tanning material and in vegetable tanning extract. It is virtually pure collagen and is obtained by careful preparation from fresh kin. The powder may contain a small quantity of added chrome alum (chromed hide powder), or it may be presented uncharmed requiring addition of the chrome alum immediately prior to use. Hide powder so treated must not be confused with chrome leather dust, powder and flour of heading 41.15 which are not suitable for the determination of tannin and are of less value.

The heading does not include:

(a) Protein hydrolysates consisting mainly of a mixture of amino-acids and sodium chloride, and concentrates obtained by the elimination of certain constituents of defatted soya-bean flour, used as additives in food preparations (heading 21.06).

(b) Precious metal proteinases (heading 28.43) or proteinases or headings 28.44 lo 28.46

(c) Nucleic acid and its salts (nucleates) (heading 29.34).

(d) Fibrinogen, fibrin, blood globulins and scrum globulins, human normal immunoglobulin and antisera (specific immunoglobulins) and other blood fractions (heading 30.02).

(e) Product described in this heading when put up as medicaments (heading 30.03 or 30.04).

(f) Enzyme (heading 35.07).

(g) Hardened proteins (heading 39.13).

Tariff Entry for 2106-

Explanatory Notes to Heading 21.06

21.06 • FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED.

2106.10 • Protein concentrates and textured protein substances

2106.90 • Other

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 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) 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 ,for the preparation of lemonade and the like fall in heading 17.01 or 17.02 as the case may be.

(2) Flavouring powders for making beverages, whether or not sweetened, with a basis of sodium bicarbonate and glycyrrhizin or liquor ice extract (sold as ” Cocoa powder “).

(3) Preparations based on butter or other fats or oils derived from milk and used, e.g., in bakers’ wares.

(4) Pastes based on sugar, containing added fat in a relatively large proportion and, sometimes, milk or nuts, not suitable for transformation directly into sugar confectionery but used as fillings, etc. for chocolates, fancy biscuits, pies, cakes, etc.

(5) Natural honey enriched with bees’ royal jelly.

(6) Protein hydrolysates consisting mainly of a mixture of amino acids and sodium chloride, used in food preparations (e.g., for flavouring); protein concentrates obtained by the elimination of certain constituents of defatted soya bean flour, used for protein enrichment of food preparations; soya bean flour and other protein substances, textured. However, the heading excludes non-textured defatted soya bean flour, whether or not fit for human consumption (heading 23.04) and protein isolates (heading 35.04).

(7) Non-alcoholic or alcoholic preparations (not based on odoriferous substances) of a kind used in the manufacture of various non-alcoholic or alcoholic beverages. These preparations can be obtained by compounding vegetable extracts of heading 13.02 with lactic acid, tartaric acid, citric acid, phosphoric acid, preserving agents, foaming agents, fruit juices, etc. The preparations contain (in whole or in part) the flavouring ingredients which characterize a particular beverage. As a result, the beverage in question can usually be obtained simply by diluting the preparation with water, wine or alcohol, with or without the addition, for example, of sugar or carbon dioxide gas. Some of these products are specially prepared for domestic use; they are also widely used in industry in order to avoid the unnecessary transport of large quantities of water, alcohol, etc. As presented, these preparations are not intended for consumption as beverages and thus can be distinguished from the beverages of Chapter 22.

The heading excludes preparations of a kind used for the manufacture of beverages, based on one or more odoriferous substances (beading 33.02).

(8) Edible tablets with a basis of natural or artificial perfumes (e.g., vanillin).

(9) Sweets, gums and the like (for diabetics, in particular) containing synthetic sweetening agents (e.g., sorbitol) instead of sugar.

(10) Preparations (e.g., tablets) consisting of saccharin and a foodstuff, such as lactose, used for sweetening purposes.

(11) Autolyzed 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).

(12) Preparations for the manufacture of lemonades or other beverages, consisting, for example, of:

• • flavoured or coloured syrups, being sugar solutions with natural or artificial substances added to give them the flavour of, for example, certain fruits or plants (raspberry, blackcurrant, lemon, mint, etc.), whether or not containing added citric acid and preservatives;
  • syrup flavoured with an added compound preparation of this heading (see paragraph (7) above) containing, in particular, either cola essence and citric acid, coloured with caramelised sugar, or citric acid and essential oils of fruit (e.g., lemon or orange);

• • syrup flavoured with fruit juices which have been modified by the addition of constituents (citric acid, essential oil extracted from the fruit, etc.) in such quantities that the balance of the fruit juice constituents as found in the natural juice is clearly upset;
  • concentrated fruit juice with the addition of citric acid (in such a proportion that the total acid content is appreciably greater than that of the natural juice), essential oils of fruit, synthetic sweetening agents, etc.

Such preparations are intended to be consumed as beverages after simple dilution with water or after further treatment. Certain preparations of this kind are intended for adding to other food preparations.

(13) Mixtures of ginseng extract with other ingredients (e.g., lactose or glucose) used for the preparation of ginseng “tea” or beverage.

(14) Products consisting of a mixture of plants or parts of plants (including seeds or fruits) of different species or consisting of plants or parts of plants (including seeds or fruits) of a single or of different species mixed with other substances such as one or more plant extracts, which are not consumed as such, but which are of a kind used for making herbal infusions or herbal “teas”, (e.g., those having laxative, purgative, diuretic or carminative properties), including products which are claimed to offer relief from ailments or contribute to general health and well-being.

The heading excludes products where an infusion constitutes a therapeutic or prophylactic dose of an active ingredient specific to a particular ailment (heading 30.03 or 30.04).

The heading also excludes such products classifiable in heading 08.13 or Chapter 9.

(15) Mixtures of plants, parts of plants, seeds or fruit (whole, cut, crushed, ground or powdered) of species falling in different Chapters (e.g., Chapters 7, 9, 11, 12) or of different species falling in heading 12.11, not consumed as such, but of a kind used either directly for flavouring beverages or for preparing extracts for the manufacture of beverages.

However, products of this type whose essential character is given by their content of species falling within Chapter 9 are excluded (Chapter 9)

(16) Preparations, often referred to as food supplements, based on extracts from plants, fruit concentrates, honey, fructose, etc. and containing added vitamins and sometimes minute quantities of iron compounds. These preparations are often put up in packaging’s with indications that they maintain general health or well-being. Similar preparations, however, intended for the prevention or treatment of diseases or ailments are excluded (heading 30.03 or 30.04).

The heading further excludes preparations made from fruit, nuts or other edible parts of plants of heading 20.08, provided that the essential character of the preparations is given by such fruit, nuts or other edible parts of plants (heading 20.08).

2.3 Nature of the Product

From the applicant’s own submission, it is evident that the product “Supro® XT 40” undergoes post-isolation modification. A stabilized form of calcium phosphate is incorporated and a patented fortification method is used. The purpose is to enhance nutritional profile and improve functionality in beverages. Thus, the product is not merely protein isolate, but a designed nutritional preparation. Though protein is a major component, the product is engineered for specific end-use (food/beverage fortification). Addition of calcium phosphate is intentional and functional, not incidental. Further, the product is marketed and used as a composite nutritional ingredient. Therefore, the essential character shifts from “protein isolate as a chemical substance” to “food preparation based on protein”.

2.4. Applicability of Correct Heading

On a combined reading of the tariff entries, Explanatory Notes and the nature of the product, it is evident that the subject goods are not mere protein substances but are protein- based preparations intended for human consumption. Heading 35.04 is restricted to isolated or chemically defined protein substances, whereas Heading 21.06 specifically covers protein concentrates, hydrolysates and food preparations. Further, the existence of a specific tariff entry under CTH 2106 10 00 for “protein concentrates and textured protein substances” clearly indicates the legislative intent to classify such products under Heading 21.06. In terms of General Rules for Interpretation, particularly Rule 3(a), a more specific description is to be preferred over a general one. Accordingly, the subject goods, being in the nature of a protein preparation rather than a pure isolate, are appropriately classifiable under Heading 2106, and not under Heading 3504.

2.5. Application of GRI

The classification of the subject goods is also guided by the General Rules for Interpretation (GRI) of the Customs Tariff. In the present case, Rule 3(a) is particularly relevant, which provides that when goods are prima facie classifiable under two or more headings, the heading which provides the most specific description shall be preferred over a heading providing a more general description. In this context, heading 3504 is a generic entry covering protein substances, whereas CTH 2106 10 00 specifically covers “protein concentrates and textured protein substances”, which directly corresponds to the nature of the subject goods. Therefore, the specific entry under Heading 2106 prevails over the general entry under Heading 3504. Further, classification must be determined based on the essential character, composition and intended use of the product, all of which support classification under Heading 2106. Accordingly, applying the provisions of GRI, the subject goods are rightly classifiable under Heading 2106.

2.6. Trade Parlance

The product “Supro® XT 40” is commercially known and traded as a protein ingredient I nutritional preparation used in food formulations such as beverages, dietary supplements and fortified foods. In common trade and commercial parlance, such products are not regarded as chemically pure protein substances but as functional food ingredients meant for consumption. Further, the product is marketed, labelled and supplied for nutritional or dietary purposes, which clearly distinguishes it from isolated protein substances of Heading 35.04 that are generally used in industrial, laboratory or pharmaceutical applications. Hence, applying the test of trade parlance, the product is more appropriately classifiable as a food preparation under Heading 2106.

2,7. Revenue Implication

It is also pertinent to note that classification under Heading 35.04 attracts a significantly lower duty burden (approximately 43.96%), whereas classification under 1-leading 21.06 attracts a substantially higher duty (approximately 70% to 92%). Therefore, incorrect classification under Heading 35.04 would result in substantial loss of legitimate revenue to the exchequer. While classification must be determined strictly as per legal provisions, such a significant duty differential reinforces the need for correct and strict interpretation of tariff entries and Explanatory Notes, particularly where the product clearly falls ‘within the scope of Heading 21.06.

2.8. Conclusion

A harmonious reading of the Explanatory Notes to Headings 35.04 and 21.06 clearly delineates the scope of the respective headings. The Explanatory Notes to Heading 35.04 restrict its coverage to peptones and other protein substances in isolated or chemically defined form, and expressly exclude protein hydrolysates and similar products when used in food preparations, directing their classification to Heading 21.06. Conversely, the Explanatory Notes to 1-leading 21.06 specifically include protein concentrates, protein hydrolysates and other preparations intended for human consumption, even when such products contain a high proportion of protein. In view of the above, it appears that the correct classification of the product “Supro® XT 40” is under Heading 2106 of the Customs Tariff Act, 1975. Thus, the Explanatory Notes themselves provide a clear legislative intent that protein-based preparations meant for dietary or nutritional use are to be classified under Heading 21.06, and not under Heading 35.04. Accordingly, in the present case, the subject goods being in the nature of a protein preparation’ for consumption, are squarely covered under Heading 21.06.

3. Record of Personal hearing:

3.1 The authorized representatives of the applicant appeared for the personal hearing conducted in virtual mode on 25.05.2026 and reiterated the submissions made in the application. The authority directed the applicant to furnish a copy of the contract entered in to with its customers, specifically the requirement to deliver a stipulate percentage of protein in the protein isolate. The applicant sought time to submit the same. No authorized representative appeared on behalf of the Department at the time of the personal hearing.

3.2 In connection to PH held on 25.05.2026, the applicant filed submission vide mail dated 27.05.2026, which are stated as under:

3.2.1 The present submission is being filed in connection with the Personal Hearing held on 25.05.2026 in the above-mentioned Advance Ruling Application filed before the Ld. Customs Authority for Advance Ruling. At the outset, Applicant is grateful for the patient hearing granted to them on 25.05.2026.

3.2.2 The present Application has been filed seeking correct classification of `Supro® XT 40 i.e., Isolated Soy Protein Product’.

3.2.3 As submitted during the course of the hearing, as per the Applicant the products are correctly classifiable under Heading 3504, specifically under Tariff Item 35040091. Further, it was submitted that the products are not classifiable under Heading 2106. In this context we also wish to highlight that HSN Explanatory Notes to Heading 2106 specifically excludes protein isolates of Heading 3504 from Heading 2106. Detailed submission in this regard is in Ground 2 of the Application.

3.2.4 During the hearing the Ld. Authority has asked us to provide illustration of the specification generally provided by Applicant’s customer and details of customer’s finished product made using Applicant’s products. The requisite details are being submitted below.

The details of finished product made by Applicant’s customers are as follows:

Product 1— Protinex Diabetes Care

Key Ingredients:

Skimmed Milk Powder, Dextrin (Soluble Fiber), Soy Protein Isolate, Corn Flour, Soy Fiber, Maize Starch, Wheat Bran, Nature identical Flavoring Substances, Vitamins, Minerals, Taurine, Sweetener (Sucralose)

The above product can be accessed at – Protinex Diabetes Care Powder 159% less post meal sugar spikes from day I I High protein I High fibre & Clinically proven low GI formula Creamy Vanilla: Buy box of 400.0 gm Powder at best price in India lmg

Product 2 — Bodykey by Neutrality Advanced Meal Replacement⁺ Shake Chocolate

INGREDIENTS

Isolated Soy Protein, Maltodextrin, Sucrose, Fructose, Hydrogenated Sunflower Oil, Cocoa, Inulin (4.48g/100g), Corn Dextrin, Nonfat Dry Milk, Coconut Oil, Tricalcium Phosphate, Chia Seed, Sodium Caseinate, Potassium Chloride, Lecithin (soy), Magnesium Oxide, Rice Starch, Salt, Natural Flavours, Gum Acacia, Ascorbic Acid, Silicon Dioxide, Mono and Diglycerides (Coconut Oil & Palm 010 (0.05g/100g), Stevie Extract, Vitamin E Acetate, Iodine Kelp, Ferric Pyrophosphate, Niacinamide, Vitamin A Palmitate, Tocopherols, Zinc Oxide, D-Calcium Pantothenate, Manganese Sulfate, Copper Gluconate, Cyanocobalamin, Vitamin D3, Folic Acid, Biotin, Pyridoxine Hydrochloride, Thiamine Hydrochloride, & Riboflavin & Propylene Glycol.

The above product can be accessed at – BodyKey by Nutri lite Meal Replacement Shake (Chocolate)

3.2.5 The fact that the finished product is comprised of isolated soy protein is evident from the ingredients of the finished product mentioned above.

3.2.6 Further, with regard to the specifications provided by Applicant’s customer, it is submitted that complete details cannot he disclosed due to confidentiality constraints. Accordingly, the relevant extracts from the Customer’s Order document (which lists out the specifications) are set out below:

Customer I Specification

–

Both the Customer specifications set out the required protein content as 77% on as in basis. That is, this is protein content if moisture is present in the product. If moisture is removed, the protein context will increase. This is evident from the Customer 2’s specification, which says clearly that on dry basis a minimum protein content of 82% is required. Despite mentioning a protein requirement of only 82% on dry basis, yet the Customer is specifically referring to the product as “isolate”.

3.2.8 On a general internet search it would be evident that protein content can be calculated on many basis:

i. As is basis: calculation of protein without eliminating moisture, mineral etc:

ii. Moisture free basis or dry basis: calculation of protein after eliminating moisture

iii. Moisture free and mineral matter free basis: calculation of protein after eliminating moisture, minerals etc.

3.2.9 As stated in the Application, the HSN Explanatory Notes do not say in what basis the protein must be calculated. Thus, in absence of such a direction, we must resort to laws governing such protein isolates i.e. Codex Alimentarius and FSSAI. If these standards are adopted, the protein in the product is to be calculated after excluding the moisture, minerals etc. When so calculated, the protein content in the products is above 90% as evident from the 3″ party test report enclosed in page 72 of the Application. The product in question on undergoes an intense processing to reach 90% protein content and thus is rightly classifiable as an isolate. The addition of calcium phosphate does not change the product’s characteristics and the product continues to be a protein source (as evident from its name and brochure) and thus is rightly classifiable under Heading 3504.

3.2.10 Thus, for the reasons mentioned above, it may be ruled that the products are classifiable under Heading 3504, specifically under Tariff Item 35040091.

3.2.11 In case it is required, we request your good office to kindly grant us an additional hearing.

4. Additional Submission of the Applicant:

The comments received from the Port Commissionerate were forwarded to the applicant vide this office email. In response thereto, the applicant, vide their letter dated 22.05.2026. submitted their reply addressing the said comments. The additional submission made by the applicant is as under:

4.1. As stated in the application, as per the Applicant the product i.e., Supro® XT 40 is an isolated soy protein product and is classifiable under Heading 3504. The Applicant submitted that the product is not: classifiable under Heading 2106. The relevant portion of the Headings from the Tariff are extracted below:

SI. No.	Heading	Description
1.	2106	FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED
2	3504	PEPTONES AND THEIR DERIVATIVES; OTI !ER PROTEIN SUBSTANCES AND THEIR DERIVATIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED; HIDE POWDER, WIIETIIER OR NOT CHROMED

4.2. The Applicant is in receipt of the Department’s comments dated 13.04.2026 whereby the Department has suggested that prima facie the product is classifiable under Heading 2106. The Applicant’s responses to the Department’s Comments are as follows:

Sr. No.	Particular	Department Comment	Applicant’s Response
a	Nature of the Product	The product undergoes post-isolation modification. A stabilized form of calcium is used as a composite nutritional ingredient. Therefore, the essential character shifts from protein isolate as a chemical substance to a food preparation based on protein.	Stabilized calcium phosphate (a food-grade mineral) is incorporated to the product to preserve protein quality. It is submitted that the subject goods cannot be consumed directly in the imported state and the same is further sold to manufacturers of beverages. As per the HSN Explanatory Notes to Heading 3504, for a product to be classified as protein isolate, the protein content in the product is generally not less than 90%. However, the HSN Explanatory Notes do not mention on what basis this 90% is to be calculated. It is submitted that universally, soy protein isolates are products which have a minimum of 90% protein content. Therefore, the requirement in HSN appears to be aligned with the general understanding of protein isolates in trade. Thus, reference can be made to established food standards like Codex Alimentarius Commission (CAC) and Food Safety and Standards Authority of India (FSSAI) to understand how this 90% must be calculated. Codex Alimentarius International Food Standard (CODEX STAN 175-1989) provides that in case of soy protein isolate, protein content should be 90% or more and should be calculated on dry weight basis after excluding vitamins, minerals, amino acids and food additives. Similarly, FSSAI standards provide that protein content on dry weight basis after excluding moisture and phosphate should exceed 90%. The protein content on moisture and phosphate free basis is 91.62 g/100g. Thus, the product is rightly classifiable under Heading 3504.
b	Applicability of Correct Heading	On a combined reading of the tariff entries, Explanatory Notes and the nature of the product, it is evident that the subject goods are not mere protein substances but are protein-based preparations intended for human consumption. Heading 35.04 is restricted to isolated or chemically defined protein substances, whereas Heading 21.06 specifically covers protein concentrates, hydrolysates and food preparations. Further, existence of a specific tariff entry under CTH 2106 10 00 for “protein concentrates and textured protein substances” clearly indicates the legislative intent to classify such products under Heading 21.06. Application of Rule 3(a) of GRI will classify the product under Heading 2106.	The product in question is essentially an isolated soy protein with added calcium phosphate. Purpose of addition of calcium phosphate has been discussed above. The addition of calcium phosphate does not alter the essential character of the product i.e., protein source. Furthermore, the product is explicitly marketed as “Isolated Soy Protein Product”, which itself demonstrates that it is fundamentally a protein source only. Heading 2106 covers only two types of products: (A) preparations meant for direct human consumption or consumption after processing; and (B) preparations mixed with foodstuffs for manufacture of food preparations. The product is more aptly described as a source of protein rather than a “food preparation” made by blending multiple ingredients for culinary use. It is not the type of protein hydrolysate contemplated under Heading 2106. Instead, it consists mainly of isolated soy protein and is supplied as a protein isolate-based ingredient for nutritional use. Accordingly, since Heading 2106 specifically excludes protein isolates covered under Heading 3504, the product is more appropriately classifiable under Heading 3504. The product in question is more aptly described as a protein substance and not as a food preparation. Thus, even on applying Rule 3(a) of GRI, Heading 3504 will prevail. Similarly, even on applying Rule 3(b) or Rule 3(c) of GRI, Heading 3504 only will be applicable.
c	Application of GRI	Heading 3504 is a generic entry covering protein substances, whereas CTH 2106 10 00 specifically covers “protein concentrates and textured protein substances”, which directly corresponds to the nature of the subject goods. Therefore, the specific entry under Heading 2106 prevails over the general entry under Heading 3504. Further, classification must be determined based on the essential character, composition and intended use of the product, all of which support classification under Heading 2106. Accordingly, applying the provisions of GRI, the subject goods are rightly classifiable under Heading 2106.	The product in question is not a protein concentrate but rather a protein isolate. Protein concentrates are products containing 60%–80% protein and are manufactured with minimal processing. Protein concentrates contain some amount of fat and carbohydrates. The product in question undergoes extensive processing to reach 90% pure dry protein content on dry weight and mineral free basis. This is further supported by the manufacturing process. Thus, the product cannot be equated with protein concentrates. Further, the essential character, composition and intended use of the product is a protein source. The product is a raw ingredient which will be used in juices and acidic beverages to give nutritional value. Thus, product will not classifiable under Heading 2106 rather it will be classifiable under Heading 3504.
d	Trade Parlance	The product “Supro® XT 40” is commercially known and traded as a protein ingredient / nutritional preparation used in food formulations such as beverages, dietary supplements and fortified foods. In common trade and commercial parlance, such products are not regarded as chemically pure protein substances.	The product is traded as “isolated soy protein product”. This fact is evident from the following documents: (a) Product brochure enclosed as Exhibit 2 to CAAR Application filed; (b) Nutrient Profile of the product enclosed as Exhibit 3 to CAAR Application.
e	Revenue Implication	Classification under Heading 35.04 attracts a significantly lower duty burden (approximately 43.96%), whereas classification under Heading 21.06 attracts a substantially higher duty (approximately 70% to 92%). Therefore, incorrect classification under Heading 35.04 would result in substantial loss of legitimate revenue to the exchequer.	It is submitted that the classification of the product is not determined on the basis of rate of duty. Reliance is placed on the Supreme Court decision in Unichem Laboratories Vs. CCE, Bombay – 2002 (145) E.L.T. 502 (S.C.), wherein it was held that authorities are duty bound to collect duty in accordance with law—no less and no more. Loss to revenue cannot be a ground to classify the product under Heading 2106.

5. Discussion, Findings & Conclusion:

5.1. Haying examined the CAAR-1 application, the comments received from the jurisdictional Customs Commissionerate, the record of personal hearing held on 25.05.2026, the additional written submissions of the Applicant dated 22.05.2026 and 27.05.2026, 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 imports on the basis of the information on record.

Product description:

5.2. Supro® XT 40 is an isolated soy protein product. It is a product in light cream-colored powder form which is used by manufacturers of juices and other acidic beverages to fortify/add extra nutrients such as protein in their product while meeting consumers’ taste and expectations.

5.3. Composition of the product is as follows:

a. Isolated Soy Protein

b. Calcium Phosphate, With Less Than 2% Lecithin

5.4. The nutrient profile of the product is as under:

Sr No.	Assay	Specifications
1	Moisture	Maximum 6.0 %
2	Protein, Dry Basis	Minimum 82%
3	Protein on Moisture and Mineral Free basis)	More than 90%
4	Fat, Acid Hydrolysis	Maximum 5.5%
5	Ash	Maximum 13%
6	pH (5% Slurry)	7.2 — 7.6
7	Calcium	Minium 2.8%
8	Phosphorous	Minimum 2 °A
9	Sodium	Maximum 1 %
10	Potassium	Maximum 1.5 %

Issue of classification:

5.5. On the basis of the facts presented before me in the present application, I find that the question for determination is the correct classification of the said “Supro® XT 40” under the First Schedule to the Customs Tariff Act, 1975, and in particular whether the goods merit classification under CTH 35040091 or 35040099 as claimed by the applicant or under CTH 2106 10 00 as claimed by the Jurisdictional Commissionerate.

5.6. It is a well-settled principle of law that the classification of goods under the Customs Tariff Act, 1975 is governed by the General Rules for the Interpretation of the Import Tariff (GRI). Rule 1 of the WCO’s General Rules of Interpretation states that customs classification is based on the terms of headings and relevant Section or Chapter Notes, not on titles, which serve only as reference and have no legal standing. Rule 1 of GRI is as under:

“Rule 1: The titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the following provisions.”

5.7. I observe that as per Rule 1 of GRI, the subject products under consideration should be classified in accordance with the terms of the heading or relevant Section or Chapter Notes. Therefore, Section Notes and Chapter notes are relevant for the purposes of determining classification of the subject products. Moreover, on application of GM 6 which requires that while interpreting the sub-headings of the tariff for classification, the guidance of the GRIs can be applied mutatis mutandis.

5.8. Tariff Heading 3504 covers “PEPTONES AND THEIR DERIVATIVES; OTHER PROTEIN SUBSTANCES AND THEIR DERIVATIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED; HIDE POWDER, WHETHER OR NOT CHROMED”. For ease of reference, the entries of CTH 3504 are extracted as below:

Tariff Item 3504	Description of goods PEPTONES AND THEIR DERIVATIVES; OTHER PROTEIN SUBSTANCES AND THEIR DERIVATIVES, NOT ELSEWHERE SPECIFIED OR INCLUDED; HIDE POWDER, WHETHER OR NOT CHROMED
350400	– Peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included; hide powder, whether or not chromed:
350400	— Peptones
	— Other:
35040091	— Isolated soya protein
35040099	— Other

5.9. The relevant extract to HSN Explanatory Note to Chapter 3504 is reproduced below:

5.10. I note that the product under consideration is marketed as “Supro® XT 40”, a light cream coloured powder intended for use by manufacturers of juices and acidic beverages for the purpose of protein fortification. As per submission of the applicant, detailed at para 1.5, the composition of the product consists principally of isolated soy protein along with calcium phosphate and less than 2% lecithin. The manufacturing process submitted by the applicant indicates that after obtaining soy protein through extraction and isolation, a stabilized form of calcium phosphate is intentionally incorporated through a patented fortification process in order to impart specific nutritional characteristics to the final product.

5.11. The first question that requires examination is whether the product can be regarded as a protein isolate of Heading 3504. Heading 3504 covers peptones and their derivatives, other protein substances and their derivatives, not elsewhere specified or included. The HSN Explanatory Notes to Heading 3504 state that protein isolates obtained by extraction from vegetable substances generally contain not less than 90 percent protein. The relevant explanatory notes is as below:

“35.04 — Peptones and their derivatives; other protein substances and their derivatives, not elsewhere specified or included, hide powder, whether or not chromed.

This heading covers:

(A)…

(B)..

(1)

(2)

….

(6)Protein isolates obtained by extraction from a vegetable substance (e.g., defatted soya bean _.flour) and consisting of a mixture of proteins contained therein. The protein content of these isolates is generally not less than 90%.”

However, the same Explanatory Notes also make it clear that Heading 3504 covers protein isolates as such and not protein concentrates used as additives in food preparations. The relevant explanatory notes is as below:

“This heading does not include:

(a)protein hydrolysates consisting mainly of a mixture of amino-acids and sodium chloride, and concentrates obtained by the elimination of certain constituents of defatted soya-bean flour, used as additives in food preparations (heading 21.06).”

5.12. The Explanatory Notes to Chapter 3504 stipulate that protein isolates generally possess a protein content of not less than 90%. In the present case, the applicant’s submissions and the nutrient profile of the subject goods, as detailed in paragraph 1.7 above, indicate a protein content of only 82% on dry basis. Therefore, the subject goods do not meet the generally accepted protein content criterion applicable to protein isolates and are consequently at variance with the definition of protein isolates contemplated under Chapter 3504. I further find that the claim of the applicant that protein on moisture and phosphate free basis is 91.62g/100g is based on test report issued by Eurofins to Danisco (India) Pvt. Ltd. and for the product Supro XT 220 DP. In the present application, the subject product is `Supro® XT 40′. Thus, the test report, as relied upon by the applicant, is irrelevant in the present case. Therefore, I find that the subject product cannot be satisfactorily classified in CTH 3504.

5.13. Tariff Heading 2106 covers “FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED”. For ease of reference, the entries of CTH 2106 are extracted as below:

Tariff Item	Description
2106	FOOD PREPARATIONS NOT ELSEWHERE SPECIFIED OR INCLUDED
21061000	– Protein concentrates and textured protein substances
210690	– Other
	— Soft drink concentrates:
21069011	—- Sharbat
21069019	—- Other
21069020	— Pan masala
21069030	— Betel nut product known as “Supari”
21069040	— Sugar-syrups containing added flavouring or colouring matter, not elsewhere specified or included; lactose syrup; glucose syrup and malto dextrine syrup
21069050	— Compound preparations for making non-alcoholic beverages
21069060	— Food flavouring material
21069070	— Churna for pan
21069080	— Custard powder
	— Other:
21069091	—- Diabetic foods
21069092	—- Sterilized or pasteurized millstone
21069099	—- Other

5.14. The relevant extract from HSN Explanatory Notes to Heading 2106 is reproduced below for ease of reference:

21.06 – Food preparations not elsewhere specified or included.

2106.10 – Protein concentrates and textured protein substances

2106.90 – Other

(A) Provided that they are not covered by any other heading of the Nomenclature, this heading covers :

(B) Preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk, etc.), for human consumption. 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 acids_t 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 lilies

(1) Powders for table creams, jellies, ice creams or similar preparations, whether or not sweetened.

Powders based out flour, meal, starch. malt extract or gout!, of heading* 04.01 to 04.04. t 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 its sweetener fall in heading 17.01 or 17.02 as the case may be.

(2) Flavouring powders for making beverages, whether or not sweetened, with a basis of sodium bicarbonate and glycyrrhizin or liquor ice extract (sold as “Cocoa-powder”).

(3) Preparations based on butter or other fats or oils derived from milk and used, e.g., in bakers’ wares.

(4) Pastes based on sugar, containing added fat in a relatively large proportion and, sometimes. milk or nuts, not suitable for transformation directly into sugar confectionery but used us etc., for chocolates, fancy biscuits, pies, cakes, etc.

(5) Natural honey enriched with bees’ royal jelly.

(6) Protein hydrolysates consisting mainly of a mixture of amino-acids and sodium chloride. used in food preparations (e.g., for flavouring); protein concentrates obtained by the elimination of certain constituents of &fatted soya-bean flour, used for protein-enrichment of food preparations; soya-bean flour and other protein substances, textured. however, the heading excludes non-textured deflated soya-bean flour, whether or not fit for human consumption (heading 23.04) and protein isolates (heading 35.04).

5.15. I find that the subject product is not merely an extracted soy protein isolate in its isolated form. The applicant has itself stated that after isolation, calcium phosphate is deliberately incorporated into the product through a patented fortification process. The addition of calcium phosphate is neither accidental nor incidental. Rather, it is intended to improve nutritional value, stability, dispensability and functionality in acidic beverage systems. Thus, the imported goods emerge as a specially formulated nutritional ingredient designed for use in food and beverage manufacture.

5.16. Further, the Note 5 to Chapter 21 of the First Schedule to the Tariff is as follows:

“5. Heading 2106 (except tariff items 2106 90 20 and 2106 90 30), inter alia, includes:

(a) protein concentrates and textured protein substances;

(b) preparations for use, either directly or after processing (such as cooking, dissolving or boiling in water, milk or other liquids), for human consumption;

(c) preparations consisting wholly or partly of foodstuffs, used in the making of beverages of food preparations for human consumption;

(d) powders for table creams, jellies, ice-creams and similar preparations, whether or not sweetened;

(e) flavouring powders for making beverages, whether or not sweetened;

(f) preparations consisting of tea or coffee and milk powder, sugar and any other added ingredients;

(g) preparations (for example, tablets) consisting of saccharin and foodstuff, such as lactose, used for sweetening purposes;

(h) pre-cooked rice, cooked either fully or partially and their dehydrates; and

(i) preparations for lemonades or other beverages, consisting, for example, of flavoured or coloured syrups, syrup flavoured with an added concentrated extract, syrup flavoured with fruit juices and concentrated fruit juice with added ingredients.”

I find that Chapter Note 5 to Chapter 21 expressly provides that Heading 2106 includes protein concentrates and textured protein substances. The scope of the Heading is therefore sufficiently wide to cover protein-based preparations intended for human nutrition. The subject product is marketed, traded and used as a nutritional ingredient for incorporation into food and beverage products and not as a chemically defined protein substance. The commercial identity and functional use of the product are therefore consistent with classification under Heading 2106.

5.17. I note that the HSN Explanatory Notes to Heading 21.06 specifically cover protein concentrates obtained from defatted soya bean flour and used for protein enrichment of food preparations. The Explanatory Notes also cover preparations consisting wholly or partly of foodstuffs used in the manufacture of food preparations for human consumption. The applicant has itself stated that the subject goods are intended to be supplied to manufacturers of beverages, nutritional products and other food products for enrichment with protein. Accordingly, the product answers more closely to the description of a protein-based food preparation rather than a protein substance in its isolated form.

5.18. The applicant has argued that Heading 2106 is a residuary heading and that Heading 3504 is more specific. I find that this argument is not applicable to the facts of the present case. While Heading 3504 covers protein substances and protein isolates, Heading 2106 specifically provides for protein concentrates and food preparations intended for human consumption. The subject goods, being a formulated protein preparation containing added calcium phosphate and designed for nutritional fortification of food and beverages, are more specifically described by the expression “protein concentrates and textured protein substances” appearing under tariff item 2106 10 00. Therefore, by application of Rule 3(a) of the General Rules for Interpretation, the more specific description merits preference over the more general description.

5.19. The reliance placed by the applicant upon food standards prescribed under Codex Alimentarius and the FSSAI Regulations is also not determinative of tariff classification. Such standards may assist in understanding food composition and regulatory requirements; however, classification under the Customs Tariff must ultimately be governed by the wording of the tariff entries, the relevant Chapter Notes, the General Rules for Interpretation and the HSN Explanatory Notes. The fact that a product may satisfy food regulatory standards applicable to soy protein isolates does not automatically render it classifiable under Heading 3504 when, in its imported condition, it is presented as a formulated nutritional preparation.

5.20. I also find merit in the contention of the jurisdictional Commissionerate that the goods are commercially recognized and traded as protein ingredients for nutritional applications in food and beverage products. The intended use, method of marketing, composition and functionality of the product all indicate that the goods are designed for human nutrition and food fortification. Such characteristics are more appropriately covered under Heading 2106 than under Heading 3504.

5.21. In view of the foregoing analysis, I conclude that the product “Supro® XT 40” cannot be regarded as an isolated soy protein classifiable under tariff item 3504 00 91. Equally, it does not merit classification under tariff item 3504 00 99. The goods are a formulated protein-based preparation containing isolated soy protein together with added calcium phosphate and are specifically intended for protein enrichment and nutritional fortification of food and beverage products. Accordingly, the

product is appropriately classifiable under tariff item 2106 10 00 as “Protein concentrates and textured protein substances.”

5.22. In light of the above discussion and findings, I find that the product “Supro® XT 40” is correctly classifiable under 2106 10 00 as “Protein concentrates and textured protein substances.”

6. I rule accordingly.