In re Anshul Life Sciences (CAAR Mumbai)
Introduction: This article delves into the Customs Authority of Advance Ruling (CAAR) Mumbai’s decision regarding the HS code classification for Sorbitol Special MDF 85, a crucial case involving Anshul Life Sciences. The applicant sought clarity on the appropriate HS code for the import of Sorbitol Special MDF 85 through the port of Mumbai.
Detailed Analysis: The applicant, Anshul Life Sciences, filed an application (CAAR-1) seeking an advance ruling on the classification of Sorbitol Special MDF 85 under the Customs Tariff Act, 1975. The product, a mixture of Sorbitol, Mannitol, 1, 4 Sorbitans, and water, is imported for use in various applications, particularly soft gel capsule manufacturing.
The Customs Tariff Act, 1975, and explanatory notes indicate that Sorbitol Special MDF 85 falls under CTI 38246010, specifically as ‘Sorbitol other than that of sub-heading 2905 44: In aqueous solution.’ The classification is based on its characteristics, including D-glucitol content ranging from 60% to 80% of the dry matter.
During a personal hearing, the applicant representatives presented additional submissions, emphasizing the distinct properties and applications of Sorbitol Special MDF 85 compared to Sorbitol Solution. They highlighted its role as a plasticizer in soft gel capsules, providing improved drying times and premium appearance.
Conclusion: After a comprehensive analysis of the applicant’s submissions, the CAAR Mumbai decided that Sorbitol Special MDF 85 is appropriately classified under CTI 38246010 of the Customs Tariff Act, 1975. The decision considers the product’s composition, manufacturing process, and applications, aligning with the statutory framework.
This ruling clarifies the HS code for Sorbitol Special MDF 85, providing valuable insights for importers, manufacturers, and those involved in the pharmaceutical and related industries. It emphasizes the importance of understanding the specific characteristics and uses of chemical compounds for accurate classification under customs regulations.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Anshul Life Sciences (having IEC No. 0394051793 and hereinafter referred to as ‘the applicant’, in short) filed an application (CAAR-1) for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The said application was received in the secretariat of the CAAR, Mumbai on 01.06.2023 along with its enclosures in terms of Section 281-1 (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’ also). The applicant is seeking advance ruling to get the clarity of HS code for Sorbitol Special MDF 85 for imports through the port of Mumbai.
2. Applicant has stated as follows in their statement of relevant facts having a bearing on the question(s) raised enclosed with the CAAR-1 application:
2.1 That the applicant is an importer and trader in various excipients and other chemicals etc. In order to know the most appropriate and suitable HIS code for “Sorbitol Special MDF 85″, (mixtures of Sorbitol, Mannitol and 1, 4 Sorbitans and water)- Make SPI Pharma, USA, the applicant has decided to seek ‘Advance Ruling” and has asked whether the correct CTI is:
38249900 —– Mis Chemicals which states Mis. Chemical.
OR
3824 6010 – Sorbitol other than that of sub-heading 2905 4400- in aqueous solution.
The applicant has submitted a test/analysis report showing chemical composition of Sorbitol Sorbitan Solution NF Sorbitol Special MDF 85 issued by SPI Pharma in the name of the applicant M/s. Anshul Life Sciences which is reproduced below:
2.2 Further, the applicant has submitted a user guide of SPI Pharma which is reproduced as follows:
