Classification — Vanilla extract – classifiable under sub-heading no. 13.02.19

Circular No. 15/2000-Cus

F.NO. 609/443/97-DBK
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs

Subject: Classification — Vanilla extract – classifiable under sub-heading no. 1302.19

It is directed to refer to the subject mentioned above and to say that doubts have been raised regarding classification and levy of duty on “Vanila Extract” due to an anomaly in the description of sub-heading 13.02.13 in the Customs Tariff published by the Directorate of Publications vvis-à-visthat published by the private publishers. It has been stated that in the Customs Tariff published by the Directorate of Publications, the description of the articles and the rate of duty under sub-heading Nos. 13.02.13 and 13.02.19 are as under:

However, in the Customs Tariff brought out by the private publishers, the description of the articles and the rate of duty under sub-heading Nos. 13.02.13 and 13.02.19 read as under:

It is thus seen that whereas, as per the Customs Tariff published by the Directorate of Publications “Vanila Extract” is classifiable under sub-heading 13.02.13 with duty at 40%, as per the Customs Tariff published by private publishers, the same is classifiable under sub-heading 13.02.19 and liable to duty at 15%.

3. The matter has been examined. It is seen the HS Nomenclature that tariff sub-heading 13.02.13 covers vegetable saps and extracts – of hops only and therefore, vanila extract will not fall under this sub-heading. A reading of Explanatory Notes to heading 13.02 makes it clear that “vanila extract” will merit classification under the residual entry 13.02.19. Accordingly, it is clarified that `vanila extract’ may be classified under sub-heading 13.02.19 and charged to duty accordingly.

4.  Pending assessments may be finalised on the basis of these instructions. Difficulties, if any, may be brought to the notice of the Board.