In re Wunderkind Infotech (CAAR Mumbai)
The Customs Authority for Advance Rulings (CAAR), Mumbai, has issued a ruling that roasted cashew nuts are to be classified under Customs Tariff Item (CTI) 2008 19 10. The applicant, Wunderkind Infotech, sought an advance ruling on this classification, initially for a range of roasted nuts, but later narrowed the request to focus solely on roasted cashew nuts. The company argued that the roasting process fundamentally changes the product, making it distinct from the “fresh” or “dried” nuts typically covered in Chapter 08 of the Customs Tariff Act, 1975.
Roasting Process Distinguishes Product from Raw Nuts
The CAAR’s decision centered on the nature of the roasting process itself. The authority noted that roasting is a “severe heat treatment” that leads to significant changes in a cashew’s moisture, color, and flavor. This distinguishes it from less intensive processes like drying, which are covered under other chapters. The ruling referenced the Harmonized System of Nomenclature (HSN) Explanatory Notes, which specifically include nuts that have been “dry-roasted, oil-roasted or fat-roasted” under Heading 2008. This specific description, the CAAR concluded, is more precise than the general classification for nuts under Chapter 08. The ruling also noted that in common trade parlance, “roasted” cashews are understood as a distinct, prepared product.
