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.
