In re Danisco India Pvt. Ltd. (CAAR Delhi)
Customs Authority for Advance Ruling (CAAR) in Delhi examined the classification of GRINDSTED PGMS 86, a food emulsifier primarily composed of propylene glycol ester (E477), under the Customs Tariff Heading (CTH) 3404. Manufactured from palm oil through esterification of fatty acids with propylene glycol, the product is combined with other ingredients like silicium dioxide, alpha-tocopherol, and citric acid to enhance properties such as anti-caking and acidity regulation. Not classified as a chemically defined compound due to the presence of residual mono- and diglycerides, the product possesses a waxy character and a drop melting point exceeding 40°C. These attributes align with the essential requirements for classification under CTH 3404, which pertains to artificial and prepared waxes.
The ruling considered the General Rules of Interpretation (GRI) and Notes to Chapter 34 of the Harmonized System of Nomenclature. It emphasized that GRINDSTED PGMS 86 meets the criteria of being a chemically produced organic product with waxy characteristics. Further, the product’s viscosity and melting point confirm its inclusion under CTH 3404 while excluding it from categories such as petroleum-based waxes under CTH 2712. This classification impacts import duties and regulatory compliance for similar food emulsifiers.
RELEVANT TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI
