In re Danisco India Pvt. Ltd. (CAAR Delhi)
Customs Authority for Advance Rulings (CAAR), Delhi, analyzed the classification of “Grindsted SSL P 70 Veg,” a food emulsifying agent primarily composed of Sodium Stearoyl Lactylate. The product is manufactured through a chemical reaction involving stearic acid and lactic acid, resulting in a waxy material widely used in food products. The product’s physical properties include being a solid, white to off-white in color, with a slight fatty acid odor and insolubility in water. Its classification under the Customs Tariff was determined based on its chemical composition, physical properties, and manufacturing process.
CAAR concluded that the product does not qualify as a “separate chemically defined compound” as per Chapter Note 1 to Chapter 29 of the Customs Tariff. It contains multiple molecular species, including residual mono- and diglycerides. The product was classified under Chapter 34, specifically under tariff heading 3404, which includes artificial waxes and prepared waxes of organic origin. This classification was supported by the product’s compliance with criteria such as its waxy character, drop melting point above 40°C, and viscosity requirements as outlined in the Harmonized System of Nomenclature (HSN). The ruling emphasized the use of scientific opinions and technical guidelines for accurate classification.
