In re Danisco India Pvt. Ltd. (CAAR Delhi)
The Customs Authority for Advance Ruling (CAAR), Delhi, analyzed the classification of Grindsted PS 101-M, a food emulsifier primarily composed of fully hydrogenated palm-based triglycerides. The product, delivered in bead form, is widely used in the food industry to prevent oil separation in fat-based products like peanut butter and margarine. Under Chapter 15 of the Customs Tariff Act, which covers animal, vegetable, or microbial fats and oils, the product underwent evaluation per the General Rules of Interpretation (GRI) to determine its appropriate classification.
Applying GRI Rules 1 and 6, CAAR concluded that Grindsted PS 101-M falls under the heading for vegetable fats and oils (CTH 1516 20). Further sub-classification identified it as an edible-grade product (CTH 1516 20 91), based on its intended use in the food industry. This classification aligns with Circular No. 29/97 issued by the Ministry of Finance, which clarified that edible-grade vegetable oils include those suitable for human consumption post-processing. Consequently, Grindsted PS 101-M is classified under the specified tariff heading, ensuring clarity for import procedures and applicable duties.
RELEVANT TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI
Analysis and Conclusion
5. The present application pertains to a brand of food emulsifying agent, namely GRINDSTED PS 101-M. An emulsifier enables the creation of uniformly blended products from ingredients which, because of the fundamental differences between each other are immiscible without the presence of the said emulsifiers. The subject product, which is used a food emulsifying agent, is pre-dominantly composed of ‘Fully Hydrogenated Palm-based Triglycerides’. The physical processes of filtration, spray cooling, magnet separation takes place to get the subject product in its imported form. The subject product prevents oiling out in fat containing products, e.g. peanut butter, margarine, spreads etc. The subject product has high oil-binding capacity and is delivered in beads form. For ease of reference, the chemical composition and the physical property of the subject product is captured below:
| PARTICULARS | DESCRIPTION | QUANTITY |
| Ingredient | Glycerides. C16-18 (CAS No. 68002-71-1) | 95 – 100% |
| Form . | Beads | – |
| Physical State | Solid | – |
| Colour | White | – |
| Odor | No Odor | – |
| Water Solubility | Insoluble in Water | – |
5.2 The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (“HSN”) issued by the World Customs Organization (`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.
