In re AZ Overeas (CAAR Delhi)
M/s AZ Overseas filed applications dated 29.04.2026 and 05.05.2026 before the Customs Authority for Advance Rulings (CAAR), New Delhi under Section 28H of the Customs Act, 1962 seeking an advance ruling on the classification of Oven Roasted Areca Nuts proposed to be imported from ASEAN countries and on the applicability of the customs duty exemption under Sl. No. 172 of Exemption Notification No. 46/2011-Customs dated 01.06.2011. The applicant stated that the imported goods are whole areca nuts subjected only to de-husking, drying, light roasting, cooling, sorting, grading and packing without addition of salt, flavouring agents, sweeteners, lime or spices. The applicant asserted that the goods remain plain roasted areca nuts intended for sale or consumption after cutting or grading.
According to the applicant, the competing tariff classifications were Chapter Heading 0802 and Tariff Item 2008 19 20. The applicant submitted that Chapter 8 covers fresh or dried nuts and the processes specified therein include drying but not roasting. It argued that roasting is distinct from drying, produces physical and chemical changes, and therefore roasted areca nuts do not fall under Chapter 8. The applicant further contended that roasted areca nuts are commercially understood as roasted betel nuts, that Chapter 20 specifically covers preparations of nuts, and that Tariff Item 2008 19 20 specifically enumerates areca nuts. The applicant also relied upon Rule 3(a) of the General Rules for Interpretation, Chapter Notes, HS Explanatory Notes, common trade understanding and several judicial decisions and advance rulings in support of classification under Tariff Item 2008 19 20. On that basis, it claimed eligibility for exemption under Sl. No. 172 of Notification No. 46/2011-Customs.
