In re Royal Canin India Private Limited (CAAR Mumbai)
CAAR held that pet food i.e. cat and dog food, imported in bulk merit classification under CTI 2309.90.90 of the First Schedule of the Customs Tariff Act, 1975.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
Ruling
M/s. Royal Canin India Private Limited (having IEC No. 0306078074 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 having Commissioner of Customs, Mumbai-III(Import), ACC, Sahar, Andheri (East), as jurisdictional address was received in the secretariat of the CAAR, Mumbai on 08.11.2023 and the other application was received on 25.10.2023 in which jurisdictional address was not correct. The said deficiency was removed and correct address of jurisdictional commissionerate was sent by letter dated 03.11.2023 along with its enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’ also). The applicant is seeking advance ruling on the classification of imported pet foods in bulk bags and the rate of custom duty applicable on the imported goods.
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. The applicant is a subsidiary of Royal Canin SAS, France (‘RC France’), engaged in import and sale of pet food i.e, dog and cat food in India (hereinafter referred to as ‘product’ or ‘pet food’). The Company imports pet food from its overseas related entities i.e., Royal Canin South Africa, Royal Canin France, Royal Canin South Korea and Mars Austria (collectively referred to as ‘overseas suppliers’).
DESCRIPTION OF THE PRODUCT:
2.1.1 The pet food imported by the Company from its overseas related entities is imported in retail packages of 1 kilogram (kg), 2 kgs, 4 kgs and so on up to 20 kgs. The imported goods are intended for ‘as is’ sale to customers in India. The retail packages imported by the Company are considered as pre-packaged commodity under the Legal Metrology Act (LM Act) and are subject to the provisions of the Legal Metrology Rules (LM Rules).
2.1.2 The packages are pre-printed with information such as the ingredients, nutritional information, quantity, best before date, batch number etc. The imported goods are then moved to a bonded warehouse, wherein the labelling as per the requirements under the Legal Metrology Act, 2009 (LM Act) and Legal Metrology (Packaged Commodities) Rules, 2011 (LM Rules). Post clearance of the goods for home consumption, the retail packages are sold in the Indian market.
2.1.3 The pet food imported by the Company are classified under Chapter 23 of the First schedule to the Customs Tariff Act, 1975 having chapter heading ‘Residues and waste from the food industries; prepared animal fodder’.
2.1.4 The Company classifies the imported retail packages under customs tariff heading (`CTH’) 23091000 of the Customs Tariff Act, 1975 at 8 digit level, which is specifically in relation to dog and cat food, put up for retail sale and accordingly, discharges basic custom duty (BCD’) @ 20%, Social Welfare Surcharge (`SWS’) @10% and Integrated Goods and Services Tax (`IGST’) ©18%.
The Custom Tariff description along with the BCD and IGST rate as per First Schedule of the Custom Tariff Act, 1975 is as below —
