Case Law Details
In re Danisco India Pvt. Ltd. (CAAR Delhi)
In the case of In re Danisco India Pvt. Ltd. (CAAR Delhi), the product Enviva E0 101G is a phytogenic blend designed to improve animal feed intake, gut health, and overall performance. Studies show that its key ingredients, thymol and cinnamaldehyde, offer various biological benefits, including antibacterial, antiviral, antioxidant, and anti-inflammatory properties. These ingredients also help in the growth and feed utilization in poultry. The product is considered a premix under Heading 2309 of the Harmonized System of Nomenclature (HSN), as it fulfills the criteria of being an animal feed supplement. The classification aligns with the European Feed Manufacturers’ Federation’s (FEFAC) definition of premixes, where micronutrients like bacillus are combined into premixes before being added to animal feed. Enviva E0 101G fits into the premix category described under HSN Explanatory Notes, which details preparations for animal feeding, including vitamins, amino acids, antibiotics, and other additives. For a product to be classified under Heading 2309, it must be an animal feed, supplement, or additive intended for animal feeding, which Enviva E0 101G satisfies. Therefore, the product is rightly classified under Heading 2309 and more specifically under Tariff Item 23099090 as a premix essential for mixing micronutrients in poultry feed.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, DELHI
A.1. Danisco India Pvt. Ltd. (hereinafter referred to as the “Applicant”) is a private limited company incorporated in the year 1997 under the Companies Act, 1956. The Applicant uses its research and development capabilities to serve the following markets:
i. Food and Beverage
ii. Home and Personal Care
iii. Health and Wellness
A.2. The Applicant is proposing to import the product `Enviva EO 101G’ for the purpose of trading.
A.3. Enviva EO 101G (hereinafter referred to as `Enviva’) is an animal feed supplement. Enviva is a balanced combination of nature identical phytogenic compounds. It is recommended for use in pig and poultry diets. It is supplied as a fine white agglomerated powder of spicy, aromatic smell on a maltodextrin carrier. The product brochure is enclosed as Exhibit-B.
A.4. Enviva offers the following benefits:
i. Improves gut microbiota
ii. Improves efficiency of the immune system
iii. Inhibits salmonella in feed
iv. Improves performance
v. Boosting Feed Intake: Enviva combines the two potent components (thymol and cinnamaldehyde) to stimulate palatability in animal feed. When added to the diet, it encourages animals, especially young ones like piglets, to consume more feed.
vi. Nutribiotic State: By creating a favourable Nutribiotic state, Enviva promotes a harmonious balance between nutrition, the gut microbiome, and immune function. This synergy contributes to overall animal health and growth.
A.5. The composition of Enviva is as follows:
| Sr No. | Ingredients | Quantum (weight on centration) | Role/purpose |
| 1 | Thymol | 16-24% | Active ingredient- Important dietary constituent as it has antimicrobial, anti-inflammatory and antioxidant properties |
| 2 | Cinnamaldehyde | 04-09% | Active ingredient- Important dietary constituent as it has antimicrobial, anti-inflammatory and antioxidant properties |
| 3 | Purity gum / modified starch | 04-08% | Stabilizer |
| 4 | Maltodextrin | 60-70% | Carrier |
| 5 | Water | 04-10% | Carrier |
The technical datasheet of Enviva is enclosed as Exhibit-C.
A.6 The manufacturing process of Enviva is enclosed as Exhibit-D.
A.7 Enviva’s components are carefully selected for their synergy to boost feed intake and provides many benefits through stimulating the release of digestive enzymes and improving intestinal development. It overall aids in enhancing livestock performance.
A.8 Enviva will be imported in ready to sell packages of 20kg polyethylene/aluminium lined paper bags.
A.9 Enviva can be used in following manner:
i. In case of Broilers: It has to be used at a rate of 0.1 kg/tonne (0.01%) of finished feed, included either directly or via a premix.
ii. In case of Piglets (weaned): It has to be used at a rate of up to 0.15 kg/tonne (0.015%) of finished feed, included either directly or via a premix.
A.10. In the present case, even the supplier has classified Enviva under Tariff Item 23099090.
1. APPLICANT’S ELIGIBLITY FOR ADVANCE RULING
1.1 In order to file an application before the Authority for Advance Ruling, the Applicant must satisfy the conditions prescribed under the Customs Act, 1962 (hereinafter referred to as ‘Customs Act’).
1.2 Provisions relating to Advance Ruling are prescribed under Chapter VB of the Customs Act. Clause (c) of Section 28E of the Customs Act defines an “Applicant” as:
In this chapter, unless the context otherwise requires.
(c) “applicant” means- holding a valid Importer-exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992);
1.3 The Applicant herein has been granted a valid Importer-Exporter Code Number (IEC) under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. The same is 0599001780.
1.4 Clause (b) of Section 28E of the Customs Act defines ‘advance ruling’ as:
(b) “advance ruling” means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation;
1.5 The questions on which an application for an advance ruling can be made have been provided under Section 28H of the Customs Act. As per the said Section 28H (2) of the Customs Act, an applicant may make an application for advance ruling in respect of questions relating to:
(a) Classification of goods under the Customs Tariff Act, 1975;
1.6 The present application is being made by the Applicant to confirm classification of Enviva.
1.7 Therefore, it flows that in the present case, the Applicant is satisfying the following conditions required for filing the application for advance ruling, namely:
a. have been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992;
b. Application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962.
Non-Applicability of Bar under Section 281
1.8 Section 281 of the Customs Act, 1962 is set out below:
“SECTION 28-1. Procedure on receipt of application. — (1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the [Principal Commissioner of Customs or Commissioner of Customs] and, if necessary, call upon him to furnish the relevant records :
Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the [Principal Commissioner of Customs or Commissioner of Customs].
(2) The Authority may, after examining the application and the records called for, by order. either allow or reject the application :
Provided that the Authority shall not allow the application [ * * */ where the question raised in the application is –
(a) already pending in the applicant’s case before any officer of customs, the Appellate Tribunal, or any Court;
(b) the same as in a matter already decided by the Appellate Tribunal or any Court
Provided further that no application shall be rejected under this sub-section unless an opportunity has been given to the applicant of being heard :
Provided also that where the application is rejected, reasons for such rejection shall be given in the order”
1.9 Thus, the conditions set out in Section 281 are satisfied as:
a. the question raised in the present application is not pending in the applicant’s own case before any officer of customs, the Appellate Tribunal, or any Court;
b. the question raised in the present application is not a matter already decided by the Appellate Tribunal or any Court
1.10 Therefore, it flows that in the present case, the Applicant satisfies all the criteria required for filing the application for advance ruling, namely:
(a) The Applicant has been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992;
(b) The Applicant is filing the Application in respect of goods prior to their importation into India.
(c) The application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962; and
(d) The application is not barred under Section 281 of the Customs Act, 1962.
1.11 Thus, the present application must be allowed to be proceeded with.
2. CLASSIFICATION OF ENVIVA EO 101G (submission by the applicant)
2.1 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.
2.2 The classification of the goods imported into India is to be determined based on the General Rules of Interpretation (hereinafter referred to as the “GRI”) set out in the Tariff. As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI.
2.3 The product in question i.e., Enviva is a preparation used in animal feed. Such products are specifically covered under Heading 23.09. Thus, this Heading may be examined at the outset.
Classification under Heading 23.09
2.4 The relevant extract of Heading 2309 is extracted hereunder:
| Tariff Item | Description of goods |
| 2309 | PREPARATIONS OF A KIND USED IN ANIMAL FEEDING |
| 23091000 | – Dog or cat food, put up for retail sale: |
| 230990 | – Other: |
| 23099010 | — Compound animal feed |
| 23099020 | — Concentrates for compound animal feed |
| — Feeds for fish (prawn etc.): | |
| **** | |
| 23099090 | — Other |
2.5 Chapter Note 1 to Chapter 23 is as under —
Heading 23.09 includes products of a kind used in animal feeding, not elsewhere specified, or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and byproducts of such processing.
2.6 As evident from above, in order to be classified under Heading 2309 the following requirements have to be met:
a. It must be of a kind used in animal feeding;
b. It must be obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material,
c. It must be other than vegetable waste; vegetable residues and by-products of such processing;
d. It must not be specified or included elsewhere.
I. Enviva is a product of a kind used in animal feeding
2.7 Relevant extracts from the HSN explanatory notes to Heading 23.09 is as under —
23.09 – Preparations of a kind used in animal feeding.
2309.10 – Dog or cat food, put up for retail sale
2309.90 — Other
This heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed:
(1)) to provide the animal with a rational and balanced daily diet (complete feed);
(2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed); or
(3) for use in making complete or supplementary feeds.
The heading includes products of a kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, for example, in the case of products obtained from vegetable materials, those which have been treated to such an extent that the characteristic cellular structure of the original vegetable material is no longer recognisable under a microscope.
(I) SWEETENDED FORAGE
*****
(II) OTHER PREPARATIONS
(A) PREPARATIONS DESIGNED TO PROVIDE THE ANIMAL WITH ALL THENUTR IENT ELEMENTS REQUIRED TO ENSURE A RATIONALAND BALANCED DAILY DIET (COMPLETE FEEDS)
The characteristic feature of these preparations is that they contain products from each of the three groups of nutrients described below:
(1) “Energy” nutrients, consisting of high-carbohydrate (high-calorie) substances such as starch, sugar, cellulose, and fats, which are “burned up” by the animal organism to produce the energy necessary for life and to attain the breeders’ aims. Examples of such substances include cereals, half-sugar mangolds, tallow, straw.
(2) “Body-building” protein-rich nutrients or minerals. Unlike energy nutrients, these nutrients are not “burned up” by the animal organism but contribute to the formation of animal tissues and of the various animal products (milk, eggs, etc.). They consist mainly of proteins or minerals. Examples of the protein-rich substances used for this purpose are seeds of leguminous vegetables, brewing dregs, oil-cake, dairy byproducts. The minerals serve mainly for building up bones and, in the case of poultry, making egg-shells. The most commonly used contain calcium. phosphorus, chlorine, sodium, potassium, iron, iodine, etc.
(3) “Function” nutrients. These are substances which promote the assimilation of carbohydrates, proteins, and minerals. They include vitamins, trace elements and antibiotics. Lack or deficiency of these nutrients usually causes disorders.
The above three groups of nutrients meet the full food requirements of animals. The mixing and proportions depend upon the animal production in view.
(B) PREPARATIONS FOR SUPPLEMENTING (BALANCING) FARM-PRODUCED FEED (FEED SUPPLEMENTS)
Farm-produced feed is usually rather low in proteins, minerals, or vitamins. The preparations devised to compensate for these deficiencies, so as to ensure a well-balanced animal diet, consist of proteins, minerals, or vitamins plus additional-energy feeds (carbohydrates) which serve as a carrier for the other ingredients.
Although, quantitatively, these preparations have much the same composition as those described in paragraph 1 (A), they are distinguished by a relatively high content of one particular nutrient.
This group includes:
(I) Fish or marine mammal soluble in liquid or viscous solutions or in paste or dried form, made by concentrating and stabilising the residual water (containing water-soluble elements, viz. proteins, vitamins B, salts, etc.), and derived from the manufacture of fish or marine mammal meal or oil.
(2) Whole green leaf protein concentrate and green fraction leaf protein concentrate, obtained from alfalfa (lucerne) juice by heat treatment.
(C) PREPARATIONS FOR USE IN MAKING THE COMPLETE FEEDS OR SUPPLEMENTARY FEEDS DESCRIBED IN (A) AND (B) ABOVE
These preparations, known in trade as “premixes”, are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal production required. These substances are of three types:
(1) Those which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health such as vitamins or pro vitamins, amino-acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings, and appetisers, etc
(2) Those designed to preserve the feeding stuffs (particularly the fatly components) until consumption by the animal such as stabilisers, anti-oxidants, etc.
(3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soya flour or meal, middling’s, yeast, various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates).
The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogeneous dispersion and mixing of these substances in the compound feeds to which the preparations are added.
Provided they are of a kind used in animal feeding, this group also includes:
(a) Preparations consisting of several mineral substances.
(b) Preparations consisting of an active substance of the type described in (1) above with a carrier, for example products of the antibiotics manufacturing process obtained by simply drying the mass, i.e. the entire contents of the fermentation vessel (essentially mycelium, the culture medium and the antibiotic). The resulting dry substance, whether or not standardised by adding organic or inorganic substances, has an antibiotic content ranging generally between 8 % and 16 % and is used as basic material in preparing, in particular, “premixes “.
The preparations of this group should not, however, be confused with certain preparations for veterinary uses. The latter are generally identifiable by the-medicinal nature and much higher concentration of the active substance and are ofteii-01*n a different way.
…………………..
2.8 As seen from the above explanatory notes, Heading 2309 covers Feed Supplements- products added to feed to enhance certain nutrients.
2.9 Enviva is added to the feed to improve digestion and health. Thus, it is a feed supplement.
2.10 That it is exclusively intended for use as an animal feed supplement is evident from below:
a. It is a feed additive with a unique combination of products and meant specifically for use as animal feed supplements.
b. They are tailor made solutions to ensure that health, digestion, and performance of the poultry is improved and maintained.
c. Further the brochure and data sheet (enclosed as Exhibit-B & C) also clearly states that Enviva is a feed additive containing a combination of phytogenic compounds for use in pig and poultry diets. It also enhances gut and immune function i.e., increases digestion and boosts feed intake.
2.11 Thus, Enviva is of a kind used in animal feeding.
II. Obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material (other than vegetable waste, vegetable residues and by-products of such processing)
2.12 As detailed above, Enviva is made of two ingredients namely Thymol and Cinnamaldehyde which are phytogenic compounds in their nature identical form.
2.13 The said two ingredients are phytogenic compounds in their nature identical form. While, thymol is a natural compound found in thyme. and possesses antimicrobial properties contributing to overall gut health, cinnamaldehyde which is derived from cinnamon, also exhibits antimicrobial effects aiding in digestive well-being.
2.14 The ingredient Thymol is extracted from Thymus vulgaris (common thyme), ajwain, and various other plants as a white crystalline substance of a pleasant aromatic odour and strong antiseptic properties.’ Whereas the ingredient Cinnamaldehyde naturally occurs in the bark of cinnamon trees, specifically the species Cinnamomic cassia and Cinnamomum velum and is extracted through a process known as steam distillation.2
2.15 Therefore, the aforesaid ingredients are extracted from plants i.e., vegetable material.
The vegetable material is processed to such an extent that the essential characteristic of the original material has been lost.
Ill. Products which are not specified or included elsewhere
2.16 Enviva is a mixture of the following two active ingredients:
a. Thymol
b. Cinnamaldehyde
2.17 Individually, Thymol is a Phenol, covered under Heading 2907 and more specifically under Tariff Item 29071930. The relevant extract of the Heading 2907 is as follows:
| Tariff Item | Description of goods |
| 2907 | PHENOLS; PHENOL-ALCOHOLS |
| – Monophenols: | |
| 290711 | — Phenol (hydroxybenzene) and its salts : |
| **** | |
| 290712 | — Cresols and their salts : |
| **** | |
| 290715 | — Naphthols and their salts : |
| **** | |
| 290719 | — Other : |
| **** | |
| 29071930 | — Thymol |
2.18 The relevant extract of the Explanatory notes appended to Heading 2907 is as follows:
(A) MONONUCLEAR MONOPHENOLS
(1) *”*
(2) **”
(3) ****
(4) ****
(5) Thymol (5-methyl-2-isopropylphenol). Found in thyme oil. Colorless crystals with an odour of thyme; used in medicine, in perfumery, etc.
2.19 Further, Cinnamaldehyde is an aldehyde, which is covered under Heading 2912 and more specifically under Tariff Item 29122910. The relevant extract of Heading 2912 is as follows:
| Tariff Item | Description of goods |
| 2912 | ALDEHYDES, WHETHER OR NOT WITH OTHER OXYGEN
FUNCTION; CYCLIC POLYMERS OF ALDEHYDES; PARAFORMALDEHYDE |
| – Acyclic aldehydes without other oxygen function : | |
| **** | |
| 291219 | — Other : |
| **** | |
| – Cyclic aldehydes without other oxygen function : | |
| **** | |
| 291229 | — Other : |
| **** | |
| 29122910 | — Cinnamic aldehyde |
2.20 The relevant extract of the Explanatory notes appended to Heading 2912 is as follows:
(A) ALDEHYDES
(I) ****
(II) ****
(III) ****
(IV) Aromatic Aldehydes
(1)***
(2) Cinnamaldehyde (C6HsCH=CHCHO). Oily yellowish liquid with a strong odour of cinnamon; used in perfumery.
2.21Accordingly, the aforesaid ingredients fall under the scope of Chapter 29, which covers organic chemicals.
2.22 Note 1(a) to Chapter 29 states that Chapter 29 applies only to (a) separate chemically defined organic c compounds, whether or not containing impurities;
2.23 The relevant extracts from HSN Explanatory Notes to Chapter 29 explain what separate chemically defined compound is:
“As a general rule. this Chapter is restricted to separate chemically defined compounds. subject to the provisions of Note 1 to the Chapter.
(A) Chemically defined compounds-
A separate chemically defined compound is a substance which consists of one molecular species whose composition is defined by a constant ration of element and can be represented by a definitive structural diagram. In a crystal lattice, the molecular species corresponds to the repeating unit cell.
Separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter”
2.24 On an examination of the above-mentioned HSN Explanatory Note and Chapter Note 1 to Chapter 29 of the Customs Tariff, it is clear that in order to be classifiable under Chapter 29, the product needs to be a separate chemically defined organic compound, and mixtures are clearly excluded.
2.25 As mentioned above, Enviva is a mixture of `thymol and `cinnamaldehyde’, alongwith numerous other ingredients. Therefore, Enviva not being a chemically pure product/separate chemical compound, but a mixture, are excluded from Chapter 29.
2.26 There is no other Heading that aptly or more specifically covers the product now in question i.e., Enviva.
2.27 Thus. all conditions to be classified under Heading 23.09 are met. In view of the above, it is clear that Enviva is classifiable under Heading 2309 more specifically under Tariff Item 23099090. is not specified or included elsewhere.
3. ISSUES REQUIRING ADVANCE RULING AND APPLICANT’S UNDERSTANDING
a. In light of the aforementioned submissions, the Applicant’s interpretation of the questions raised will be as under:
a) Question: Whether the product in question in the present application is classifiable under Tariff Item 23099090?
Applicant’s Understanding : Yes.
b) Question: If the answer to the above question is in the negative, then what
would be the correct classification of the product mentioned above under the Customs Tariff of India?
Applicant’s Understanding: Not Applicable
4. COMMENTS OF THE PORT COMMISSIONERATE
i) Eligibility of the applicant, in terms of section 28-E (c) of the Customs act, 1962 to seek such advance ruling.
-In this regard it has been submitted that the importer is holding a valid Importer Exporter code (0599001780)
ii) Applicability of proviso (1) of section 28-I (2) of the Customs Act, 1962 regarding the question raised in the application.
– As per available records, SCN No. 396/2023-24/Commr/NSI/CAC/ JNCH
dated 22.05.2023 was issued by the Commissioner of Customs, NS-I, JNCH, to M/s Danisco India Pvt. Ltd., wherein the importer was asked to show cause as to why the import of item Enviva Pro 201 BA under CTH 30029030 be rejected and reclassified under CTH 23099000. It has been checked with the concerned adjudication cell and found that above mentioned SCN has not been adjudicated yet.
iii) Specify whether the claim of the applicant regarding the nature of activity, i.e. it is ongoing/ proposed is correct.
-No Comments.
iv) Comments on the merits of the question raised in the application, along with all materials in support thereof.
– No Comments.
5. Personal Hearing in the matter was conducted on 07.10.2024.
6. ADDITIONAL SUBMISSION by the applicant
6.1 The present submission is being filed in respect of the Application dated 25.06.2024filed re garding the product ‘Enviva EO 101G’ and the virtual hearing for the same listed on 07.10.2024. The submissions are also filed in response to the Comments received from the Ld. Additional Commissioner, NS-I, JNCH, along with the approval of the Ld. Commissioner NSI, JNCH. Applicant prays that the present submissions be treated as an addition to the submissions already made in Application bearing Diary No. 47 of 2024.
Response to comments received from Commissioner of Customs, Nhava Sheva on the Application filed:
A.1 Vide letter dated 23.09.2024, Commissioner of Customs, Nhava Sheva has provided comments on the applicability of proviso (1) of section 28-I (2) of the Customs Act.1962 (Act). The comment is extracted below:
Point 3 ii) Applicability of proviso (1) of section 28-I (2) of the Customs Act, 1962 regarding the question raised in the application.
– As per available records, SCN No, 396/2023-24/Comm/NS-1/CAC/JNCH dated 22.05.2023 was issued by the Commissioner of Customs, NS-I, JNCH, to Mis Danisco India Pvt. Ltd., wherein the importer was asked to show cause as to why the import of item Enviva Pro 201 BA under CTH 30029030 be rejected and re-classified under CTH 23099000. It has been checked with the concerned adjudication cell and found that above mentioned SCN has not been adjudicated yet.
Department’s Comments on Merits of Application
A.2 Further, it is important to note that on merits, the response of the Respondent is “No Comments”. The same is extracted below:
Point 3 iv) Comments on the merits of the question raised in the application, along with all materials in support thereof.
-No Comments.
This is issued with the approval of Commissioner (Nhava Sheva-I), JNCH.
A.3 Thus, the Ld. Commissioner seems to be agreeing that the product Enviva EO 101G is classifiable under Heading 2309.
Department’s Comments on Maintainability of Application
A.4 However, regarding maintainability of the application, the Comments seem to indicate that
the application is not maintainable as SCN has earlier been issued for the product Enviva Pro 201BA.
A.5 It is submitted that the comments provided do not act as a bar to the present application, and in fact support the Applicant’s stand for classification under Heading 2309 for the following reasons:
a. SCN dated 22.05.2023 (Enclosed herewith as Annexure-1) was issued disputing the classification numerous products including of the product `Enviva Pro 201BA’. The SCN was not issued regarding Enviva E0 101G.
b. SCN issued contended that Enviva Pro 201BA is rightly classifiable under Heading 2309 and not under Heading 3002.
Enviva Pro 201A and Enviva ED 101G are completely different products
A.6 It is pertinent to note that the product covered by the SCN is completely different from he one covered in the present application. The difference is evident from the table below:
| Particulars Enviva Pro 201BA | Enviva EO 101G | |
| Active strain/ ingredient | 1. Dried Bacillus amyloliquefaciens | 1. Thymol
2. Cinnamaldehyde |
| Purpose of product as per brochure | A 3-strain probiotic was developed using Danisco’s CSI platform technology ensuring high efficacy under modern poultry production challenges. Enviva Pro has been proven under challenging commercial conditions to effectively support the management of the gut microbiota balance. Probiotic beneficial effects on gut morphology and balance help support a more efficient nutrient utilization and better flock health status leading to an improved economic return.1 | It is an animal feed supplement. It is a nature identical
essential oils blend of cinnamaldehyde and thymol that boosts feed intake in poultry and swine. This assists in creating a favorable Nutribiotic state in the animal.2 |
| Difference in function / use of products | Product is to ensure better nutrient absorption by the birds. It helps to strengthen gut of the birds. | Product stimulates palatability in animal feed. Further. it also promotes a harmonial balance between nutrition, gut microbiome, and immune function. |
A.7 The product brochure/data sheet of Enviva Pro 201BA is enclosed as Annexure-2.
A.8 From the above table, it is evident that the composition of the product covered in the SCN vis a vis the composition of the product covered in the present application are different. Further, the purposes of the products too are different: while Enviva Pro is for the birds to achieve better nutrition from the feed, Enviva EO 101G is for encouraging feed intake in young animals such as piglets and also creating a balance in gastrointestinal tract.
A.9 Thus, as both products are different in terms of composition as well as use, the bar under Section 28-I (2) will not apply.
A.10 The Relevant extract form the Customs Act is as follows:
SECTION 26-I. Procedure on receipt of application. –
(1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the
1[Principal Commissioner of Customs or) Commissioner of Customs and, if necessary, call upon him to furnish the relevant records :
Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the 1[Principal Commissioner of Customs or] Commissioner of Customs.
(2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application :
Provided that the Authority shall not allow the application where the question raised in the application is –
(a) already pending in the applicant’s case before any officer of customs, the Appellate Tribunal or any Court:
A.11 The question raised in present application is for classification of “Enviva EO 101G”.
whereas the SCN is dealing with classification of the product “Enviva Pro 201 BA”, which is a altogether different product. Thus. the question raised now is definition not pending in Applicant’s own case. Thus. the bar will not apply.
Present classification
A.12 The SCN dated 22.05.2023, was issued contending that Enviva Pro 201BA is classifiable under Heading 2309 and not under Heading 3002.
A.13 In this regard, it is also submitted that consequent to such SCN disputing the classification of the product Enviva Pro 201BA. the Applicant had started importing the same by adopting classification under Heading 2309. The illustrative copy of Bill of Entry for the product Enviva Pro 201BA is enclosed as Annexure-3.
A.14 It is also essential to note that the Applicant has not commenced import of Enviva EO 101G.
B. Submissions on merits: Enviva Provalen Plus is rightly classifiable under Heading 2309
13.1. The product Enviva EO 101G is a nature identical phytogenic blend designed to fit into any nutritional health strategy and consistently improve feed intake. leading to improved gut heath and performance.
B.2. A review of previous studies has shown that thymol and cinnamaldehyde possess a wide range of biological activities, including antibacterial, antiviral, antioxidant, anti-inflammatory, modulating of immunity response and regulating of the gut microbial population. Also, in meat type chickens can promote growth and influence feed utilization. A research on effects of thymol and cinnamaldehyde has also been conducted, to show that the same have many benefits. Relevant extract of the same is as follows:
Immunomodulatory effects of thymol and cinnamaldehyde in chicken cell lines
Thymol and cinnamaldehyde are phytogenic feed additives that have been developed to improve gut health, immunity and growth performance in poultry and swine. This study evaluated the immune modulating effects of a thymol and cinnamaldehyde blend (TCB) in the intestinal system of poultry in vitro, using two chicken cell lines, LMH (liver cell line) which has been used to mimic epithelial cell responses, and HD-11 (monocyte/macrophage-like). Cells with high viability (>95%) from established cell lines were cultured in the
B.3 The book ‘Sustainable use of feed additives in livestock’3, lists out the plant-based source as well as health benefits of the essential oils, Thymol and Cinnamaldehyde. Relevant extract of the same is follows:
Table 1 (continued)
B.4. Further, the said book ‘Sustainable use of feed additives in livestock”, also provides a list of essential oils obtained from their respective plant, which contribute towards antibacterial-antifungal activity and thymol and cinnamaldehyde are covered thereunder. Relevant extracts of the same are as follows:
Table 1 Chemical composition of various essential oils and their antibacterial-antifungal activity against pathogens
B.4 Further, the said book ‘Sustainable use of feed additives in livestock”, also provides a list of essential oils obtained from their respective plant, which contribute towards antibacterial-antifungal activity and thymol and cinnamaldehyde are covered thereunder. Relevant extracts of the same are as follows:
Essential oils have been shown to he beneficial in maintaining gut health in animal nutrition. They can stimulate the growth of beneficial gut microorganisms, inhibit the growth of pathogenic bacteria, and improve the absorption of nutrients in the gut. According to a study by Li et al. (2020), the use of essential oils as feed additives in piglets resulted in reduced inflammation and improved gut health. The study found that the addition of thymol, cinnamaldehyde, and their combination to the diet of weaned piglets improved intestinal morphology, increased the population of beneficial gut bacteria, and decreased the population of harmful bacteria. Furthermore, the essential oil treatments were found to enhance the immune response of the piglets. These results suggest that essential oils can he a useful tool in maintaining gut health and improving the overall health and performance of animals in animal production.
Furthermore, essential oils have been !build to possess anti-inflammatory properties that can benefit animal nutrition. A study conducted by Hassan et al. (2020) found that the essential oil of oregano had anti-inflammatory effects on the small intestine of broiler chickens. The study showed that oregano essential oil reduced the levels of pro-inflammatory cytokines and increased the levels of anti-inflammatory cytokines in the intestine. This indicates that the essential oil of oregano can reduce inflammation in the small intestine of broiler chickens. The anti-inflammatory effect of essential oils can benefit animals by improving their gut health and reducing the risk of inflammation-related diseases. The use of essential oils as feed additives has become increasingly popular due to their many beneficial effects on animal health and performance.
B.5. The said book ‘Sustainable use of feed additives in livestock’s, also specifically explains how a combination of thymol and cinnamaldehyde have an impact of gut microbe and together they bear actions in gastrointestinal tract to raise food palatability, promote digestive fluid production etc. Relevant extract of the same is below:
Most Of–the–Studies focused on the growth-promoting features, such as feed intake,- weight gain, and feed conversion ratio. The effects of essential .oils on feed intake of pigs showed promising results. In the review by Franz et al. (2010). the change in feed intake compared to control ranged from 9% to 12%, while a recent analysis by Zeng et al. (2015) revealed a range of 3-19%. The growth-promoting property of Essential oils is primarily connected with actions on the gastrointestinal tract to raise feed palatability. promote digestive fluid production, improve intestinal shape, stabilize intestinal flora, and reduce inflammation (Steiner and Syed 2015). Improved palatability of animal feed stimulates appetite and enhances ‘feed intake in Many different ways. Cinnarrialdebyde and thymol increased piglet apparent total tract digestibility–of dry Matter, crude protein, and energy (Li et al. 2012). Plate! and Srinivasan (2004) proposed that the improved apparent digestibility of fat and nutrients could he attributed to increased bile and enzyme secretion, which was proposed as the. primary mode for the digestive stimulant action of spices. Carvacrol. thymol, eugenol, and cinnamaldehyde were shown to be virtually entirely absorbed in the gut and small intestine of pigs within 2 hours (Michaels et al. 2008). Sonic essential oils may have ‘a selective effect on the gut microbiota. A combination of carvacrol, cinnamaldehyde, and capsicum oleoresin enhanced the population of Lactobacilli and the ratio of Lactobacilli to Enterobacteria of early-weaned piglets (Manzanillo et al. 2006: Castillo et al. 2006). Lastly, essential oils may enhance immunological responses. Piglets’ blood lymphocyte proliferation rate, phagocytic-sis rate, imniunoglohulin 1gG, IgA. IgM, C3. and C4 levels we re enhanced by supplementing essential oils (Li et al. 2012). The addition of essential oils to weaned pigs improved both non-specific cellular and humoral immune responses, according to Halas et al. (2011).
B.6. From the above, it is evident that thymol and cinnamaldehyde are essential oil which have an overall benefit in improving gut health, immunity and growth performance in poultry and swine.
B.7. Further, the meaning and benefits of feed additives has also been elaborated by Author D.V. Reddy in his book titled “Principles of Animal Nutrition and Feed Technology”, wherein Mr. Reddy has provided an insight on the use and importance of feed additives in livestock and poultry feeding. The relevant portion of the book is extracted below:
B.8. Further, the book ‘Sustainable use of feed additives in livestock’8, provides information of the effects of feed additives on the immune system of poultry. The relevant extract from the book is as follows:
B.9. As elaborated in the application filed, the product in question is fed to the animals and the same helps improve their digestion, and overall performance.
Why is palatability of feed?
B.10. Palatability refers to the acceptability of the feed by the animal, the facility of a feed to be consumed, and the preference between different feeds. In animals feed palatability influences the preference an animal has for a feed when given the choice and is a factor that regulates feed intake. Animal preferences for feed result primarily from the senses of smell and taste.9
B.11. Further, Palatines can improve the taste and smell of a feed to make it more appealing to livestock and increase feed intake, which again can help to increase weight gains and milk yield in animals. It can also be used to mask unpleasant flavors to increase feed palatability.
B.12. Thus, the management of feed palatability can greatly contribute to few objectives:
- Ensure a consistent taste and smell of feed, also in the case of reformulation or feed optimization
- Guarantee an optimal feed consumption of animals, also during stress or transition periods
- Preserve the quality of feed and create an olfactory footprint for customers.1°
Why is creating balance in gastrointestinal tract important?
B.13. The digestive tract includes the oral cavity and associated organs (lips, teeth, tongue, and salivary glands), the esophagus, the forestomach’s (reticulum, rumen, omasum) of ruminants and the true stomach in all species, the small intestine, the liver, the exocrine pancreas, the large intestine, and the rectum and anus.
B. 14. Effective functionality of the gastrointestinal tract (GIT) and its health are important factors in determining animal performance. Optimal gastrointestinal functionality is essential for sustainable animal production. Effective functionality of the GIT and its health are important factors in determining animal performance (growth, milk yield, meat and egg quality).
B.15. Although the primary purpose of the GI tract is the digestion and absorption of food, it also has important secondary roles, including immune functions, elimination of waste products, and endocrine effects.
B.16. Thus, from the above it is evident that it is essential to increase the palatability of the feed, which encourages feed intake in young animals and also create a proper balance in the gastrointestinal tract.
Premix under Heading 2309
B 17. As elaborated in the present application dated 25.06.2024, Heading 2309 covers three kinds of preparations:
a. complete feeds (Para (II) (A) of the Explanatory Notes)
b. Feed supplements (Para (II) (B) of the Explanatory Notes) and
c. Preparations (i.e. premixes) for use in making the complete feed or feed supplements. (Para (II) (C) of the Explanatory Notes)
B.18. Relevant extracts from HSN Explanatory Notes pertaining to the Premix category is as follows:
“(C) PREPARATIONS FOR USE IN MAKING THE COMPLETE FEEDS OR SUPPLEMNTARY FEEDS DESCRIBED IN (A) AND (B) ABOVE
These preparations, known in trade as “premixes”, are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal production required. These substances are of three types:
(1) Those which improve digestion and more generally, ensure that the animal makes good use of the feeds and safeguard its health : vitamins or provitamins, amino- acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc.
(2) Those designed to preserve the feeding stuffs (particularly the fatty components) until consumption by the animal : stabilizers, anti-oxidants, etc.
(3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soya flour or meal, middling’s, yeast, various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates).
The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogenous dispersion and mixing of these substances in the compound feeds to which the preparations are added.
Provided they are of a kind used in animal feeding,’ this group also includes :
(a) Preparations consisting of several mineral substances.
(b) Preparations consisting of an active substance of the type described in (I) above with a carrier, for example products of the antibiotics manufacturing process obtained by simply drying the mass, i.e. the entire contents of the fermentation vessel (essentially mycelium, the culture medium and the antibiotic). The resulting dry substance, whether or not standardised by adding organic or inorganic substances, has an antibiotic content ranging generally between 8% and 16% and is used as basic material in preparing, in particular, “premixes”.
B.19. Thus, a preparation containing active ingredient for improving digestion, with a carrier is covered under Heading 2309.
Why is premix necessary?
B.20 As per Author D.V. Reddy in his book titled ‘Principles of Animal Nutrition and Feed Technology””, micro-ingredients i.e. nutritional adducts, are added to feed at very low levels. and the dispersion of such low concentrations of active ingredients poses a challenge to the manufacturers. The relevant portion of the book is extracted below:
Micro ingredient Premixing
Microingredients
Microingredients are nutritional adducts or drugs that are added to the feed at very low levels. Dispersion of such low concentrations of active ingredients presents a challenge to the manufacturers of the compound feed. This challenge can be met by the premix-the dilution of an active component with a suitable carrier.
Physical characteristics of microingredients such as particle size, particle shape, specific weight, hygroscopicity, susceptibility to electrostatic charges, adhesiveness of the particles due to physical properties, such as rough surfaces or additions of adhesives such as oils influence mixing them with the other feed ingredients. Microingredients have a very small particle size and high density compared to other feed ingredients. A significant uptake of moisture by a microingredients can seriously hamper its ability to distribute and mix well. A hygroscopic ingredient can affect the chemical stability of any moisture sensitive component. This problem may be dealt with during formulations by cornplexation or through a coating that acts as a moisture barrier.
During intensive grinding to reduce particle size, a pure crystalline compound frequently develops a static charge and hence the individual particles repel one another which may affect its distribution in the premix and in the feed mixture. An antistatic agent such as an unsaturated vegetable oil is suggested.
B.21. From a perusal of the above, it is evident that direct administration of micro- ingredients (like bacillus) or direct mixing of micro-ingredients in the final feed is not recommended for the following reasons:
i. Micro-ingredients are added to feed in at very low levels. It is essential that the quantum added must be within the recommended limits.
ii. It is difficult to ensure homogenous dispersion of micro-ingredient of such low quantity in a big batch of complete feed.
iii. Micro-ingredients are prone to uptake of moisture. This further hampers its ability to distribute and mix uniformly in the feed.
iv. During mixing and grinding. the particles of micro-ingredients may develop a static charge and the individual particles repel one another. thereby affecting the distribution of the micro-ingredient in the feed mixture. Thus, an anti-static agent is needed to be added to the micro-ingredient.
B.22. The solution to the above problems is the creation of premix, as elaborated further in Mr. D. V. Reddy’s book.12
Premix
Premixes arc formulations of one or more rnicroingredients, such as vitamins, minerals, or drugs mixed with diluent and /or carrier ingredient. Diluent and carrier should be inert and inactive. Premixes are used to facilitate uniform mixing of the microingredients in the complete feed or concentrate mixture.
Diluent is an edible substance used to mix with and reduce the concentration of nutrients and/or additives to make them more acceptable to animals, safer to- use and more capable of being mixed uniformly in feed. The mixing properties of the original ingredients are not drastically altered. Carrier is an edible material to which ingredients are added to facilitate uniform incorporation of the latter into feeds. The active principles are absorbed, impregnated or coated into the edible material in such a way as to physically carry the active ingredient. When a carrier is used with a microingreclient the mixing properties are drastically altered.
B.23. Reference is also made to the European Feed Manufacturers’ Federation (FEFAC)’s article titled ‘What is a premix?”‘ which states that in order to ensure that micro-ingredients are mixed with macro-ingredients (in a homogeneous way), an intermediate dilution step is required via a ‘premix’. The relevant portion is extracted below:
What is a premix?
Premixes are complex mixtures of vitamins, minerals, trace elements and other feed additives that are incorporated at levels between 0.2 and 0.5% in the compound feed.
Adequate nutrition requires feed compositions consisting of macro ingredients and micro ingredients, sometimes incorporated at ppm levels (e.g. vitamins). To secure that these micro-ingredients are mixed with macro-ingredients in an homogeneous way, an intermediate dilution step is required via a so-called premixture. Premixtures are legally defined as mixtures of feed additives or mixtures of one or more feed additives with feed materials or water used as carriers, not intended for direct feeding to animals (Regulation (EC) No 1831/2003). This premixture is incorporated at levels typically between 0.2 to 0.5% in the compound feed. The manufacturing of premixtures requires a specific technology and is often performed by specialized companies.
B.24. From the above extracts, it is evident that for undertaking such supplements for poultry litter management, the micro-ingredients like bacillus are first prepared into the form of premix, and the premix is then added to animal feed. Thus, such supplementation is necessarily done through a two-step process: 1) preparing of the premixes and 2) addition of premix to animal feed. Thus, “premixes” are an essential and an indispensable necessity for mixing micronutrients in animal feed.
B.25. Premixes are formulations of one or more micro-ingredients mixed with diluent and carrier. As per D. V. Reddy, a carrier is an edible material to which ingredients are added to facilitate uniform incorporation of such ingredients into feeds. The relevant portion of the book is extracted below:
Premix
Premixes are formulations of one or more microingredients, such as vitamins, minerals, or drugs mixed with diluent and/or carrier ingredient. Diluent and carrier should be inert and inactive. Premixes are used to facilitate uniform mixing of the microingredients in the complete feed or concentrate mixture.
Diluent is an edible substance used to mix with and reduce the concentration of nutrients and/or additives to make them more acceptable to animals, safer to use and more capable of being mixed uniformly in feed. The mixing properties of the original ingredients are not drastically altered. Carrier is an edible material to which ingredients are added to facilitate uniform incorporation of the latter into feeds. The active principles are absorbed, impregnated or coated into the edible material in such a way as to physically carry the active ingredient. When a carrier is used with a microingredients the mixing properties are drastically altered.
B.26. The product in question is a combination of active ingredients i.e., Thymol and Cinnamaldehyde with a carriers i.e., Maltodextrin and water. This is evident from the very inception of the product, as the carriers are added in it for the specific end use in mind and for the reason of ensuring homogenous dispersion and mixing of the complete animal feeds. The benefits of maltodextrin as carriers is as follows:
a. While maltodextrin provides an easily digestible energy source, water provides the necessary digestion and absorption of feed
b. Maltodextrin is essential as it is non-reactive with other ingredients. Water helps transport products like metabolites, hormones and gases throughout the body.
c. While maltodextrin enhances pellet quality and stability, water aids in elimination of waste products, through urine and faces
d. Maltodextrin holds ingredients for uniform distribution and water provides the ion balance
B.27. A carrier is usually an inactive accessory substance (vehicle) or a substance (such as a catalyst) by whose agency some element or group is transferred from one compound to another.” Therefore, the carrier absorbs or coats the micro-ingredient in order to physically carry the micro-ingredient. thereby facilitating the uniform mixing of the product into the feed.
B.28 Maltodextrin is a renowned carrier for animal feed. It not only acts as a carrier for supplying the essential nutrient /active ingredient, but being a complex carbohydrate,
maltodextrin is quickly absorbed by the gut and can provide fast and readily absorbable energy. Maltodextrin provides a steady release of energy so that the body can begin to break down fat to use as fuel.15
B.29 In view of the above. it is evident that the product in question as a premix i.e., being combination of active ingredients with carrier is essential to be added to the poultry feed and the same are appropriately classifiable under Heading 2309.
C. Conclusion
C.1 Thus, from the foregoing, it is evident that for products to be classified; UN the Heading 2309, the following has to be satisfied —
(a) The product is an animal feed/supplement/additive.
(b) The products should be used in animal feeding purposes.
(c) It is known in the trade as products for use in animal feeding.
C.2 The product in question satisfy all the above conditions and the same is also evident from the composition of the same. Therefore, the product is rightly classifiable under Heading 2309.
7. I have gone through the submissions made in detail during the filing of the application, and also during the hearing and as additional inputs after the hearing, the comments of the Port Commissionerate and proceed to examine the details and issue the Ruling accordingly.
7.1 The product under consideration is Enviva EO 101G, which is an animal feed supplement. Enviva is a balanced combination of nature identical phytogenic compounds. It is recommended for use in pig and poultry diets. It is supplied as a fine white agglomerated powder of spicy, aromatic smell on a maltodextrin carrier. Enviva offers the following benefits:
i) Improves gut microbiota; ii)Improves efficiency of the immune system; iii) Inhibits salmonella in feed; iv) Improves performance; v) Boosting Feed Intake: Enviva combines the two potent components (thymol and cinnamaldehyde) to stimulate palatability in animal feed. When added to the diet, it encourages animals, especially young ones like piglets, to consume more feed; vi) Nutribiotic State: By creating a favourable Nutribiotic state, Enviva promotes a harmonious balance between nutrition, the gut microbiome. and immune function. This synergy contributes to overall animal health and growth.
7.2 The composition of Enviva is as follows:
| Sr No. | Ingredients
|
Quantum (weight concentration) | Role/purpose
|
| 1 | Thymol | 16-24% | Active ingredient- Important dietary constituent as it has antimicrobial, anti-inflammatory and antioxidant properties |
| 2 | Cinnamaldehyde | 04-09% | Active ingredient- Important dietary constituent as it has antimicrobial, anti-inflammatory and antioxidant properties |
| 3 | Purity gum modified starch | 04-08 %
Stabilizer |
|
| 4 | Maltodextrin | 60-70% | Carrier |
| 5 | Water | 04-10% | Carrier |
7.3 Enviva can be used in following manner:
i. In case of Broilers: It has to be used at a rate of 0.1 kg/tonne (0.01%) of finished feed, included either directly or via a premix.
ii. In case of Piglets (weaned): It has to be used at a rate of up to 0.15 kg/tonne (0.015%) of finished feed, included either directly or via a premix.
7.4 Provisions relating to Advance Ruling are prescribed under Chapter VB of the Customs
Act. The present application is being made by the Applicant to confirm classification of Enviva. The Applicant is satisfying the following conditions required for filing the application for advance ruling, namely: a) have been granted a valid Importer-Exporter Code Number (IEC) under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; b) Application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act, 1962. Further, the conditions set out in Section 281 are satisfied as: a) the question raised in the present application is not pending in the applicant’s own case before any officer of customs, the Appellate Tribunal, or any Court; b)the question raised in the present application is not a matter already decided by the Appellate Tribunal or any Court.
7.5 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. The classification of the goods imported into India is to be determined based on the General Rules of Interpretation (hereinafter referred to as the “GRI”) set out in the Tariff. As per Rule 1 of the GRI, classification of the imported products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI.
7.6 The product in question i.e., Enviva is a preparation used in animal feed. Such products are specifically covered under Heading 23.09. Thus, this Heading may be examined at the outset.
Classification under Heading 23.09
The relevant extract of Heading 2309 is extracted hereunder:
| Tariff Item | Description of goods |
| 2309 | PREPARATIONS OF A KIND USED IN ANIMAL FEEDING |
| 23091000 | – Dog or cat food, put up for retail sale: |
| 230990 | – Other: |
| 23099010 | — Compound animal feed |
| 23099020 | — Concentrates for compound animal feed |
| — Feeds for fish (prawn etc.): | |
| **** | |
| 23099090 | — Other |
Chapter Note 1 to Chapter 23 is as under —
Heading 23.09 includes products of a kind used in animal feeding, not elsewhere specified, or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable ‘waste, vegetable residues and byproducts of such processing.
7.6.1 As evident from above, in order to be classified under Heading 2309 the following requirements have to be met:
a. It must be of a kind used in animal feeding;
b. It must be obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material,
c. It must be other than vegetable waste, vegetable residues and by-products of such
processing;
d. It must not be specified or included elsewhere.
7.6.2 Relevant extracts from the HSN explanatory notes to Heading 23.09 is as under —
23.09 – Preparations of a kind used in animal feeding.
2309.10 – Dog or cat food. put up for retail sale
2309.90 — Other
This heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed:
(1) to provide the animal with a rational and balanced daily diet (complete feed);
(2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed); or
(3) for use in making complete or supplementary feeds.
The heading includes products of a kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, for example, in the case of products obtained from vegetable materials, those which have been treated to such an extent that the characteristic cellular structure of the original vegetable material is no longer recognisable under a microscope.
XXXXXXXXXXXXXXX
Provided they are of a kind used in animal feeding, this group also includes:
(a) Preparations consisting of several mineral substances.
(b) Preparations consisting of an active substance of the type described in (1) above with a carrier. for example products of the antibiotics manufacturing process obtained by simply drying the mass, i.e. the entire contents of the fermentation vessel (essentially mycelium, the culture medium and the antibiotic). The resulting dry substance, whether or not standardised by adding organic or inorganic substances. has an antibiotic content ranging generally between 8 % and 16 % and is used as basic material in preparing. in particular. “premixes “.
The preparations of this group should not, however, be confused with certain preparations for veterinary uses. The latter are generally identifiable by the medicinal nature and much higher concentration of the active substance and are often put up in a different way.
7.6.3 As seen from the above explanatory notes, Heading 2309 covers Feed Supplements-products added to feed to enhance certain nutrients. Enviva is added to the feed to improve digestion and health, which could be a feed supplement. Enviva as provided is exclusively intended for use as an animal feed supplement is evident from the fact that- a) It is a feed additive with a unique combination of products and meant specifically for use as animal feed supplements: b) They are tailor made solutions to ensure that health, digestion, and performance of the poultry is improved and maintained; c) Further the brochure and data sheet also clearly states that Enviva is a feed additive containing a combination of phytogenic compounds for use in pig and poultry diets. It also enhances gut and immune function i.e., increases digestion and boosts feed intake.
7.6.4 As per the data sheet, Enviva is made of two ingredients namely Thymol and Cinnamaldehyde which are phytogenic compounds in their nature identical form. The said two ingredients are phytogenic compounds in their nature identical form. While, thymol is a natural compound found in thyme, and possesses antimicrobial properties contributing to overall gut health, cinnamaldehyde which is derived from cinnamon, also exhibits antimicrobial effects aiding in digestive well-being. The aforesaid ingredients are extracted from plants i.e., vegetable material. The vegetable material is processed to such an extent that the essential characteristic of the original material has been lost.
7.6.5 Individually, Thymol is a Phenol, covered under Heading 2907 and more specifically under Tariff Item 29071930. The relevant extract of the Heading 2907 is as follows:
| Tariff Item | Description of goods |
| 2907 | PHENOLS; PHENOL-ALCOHOLS |
| – Monophenols: | |
| 290711 | — Phenol (hydroxybenzene) and its salts : |
| **** | |
| 290712 | — Cresols and their salts : |
| ,,,,,,,, | |
| 290715 | — Naphthols and their salts : |
| **** | |
| 290719 | — Other : |
| ,,,,,,,, | |
| 29071930 | — Thymol |
Further, Cinnamaldehyde is an aldehyde, which is covered under Heading 2912 and more specifically under Tariff Item 29122910. The relevant extract of Heading 2912 is as follows:
| Tariff Item | Description of goods |
| 2912 | ALDEHYDES, WHETHER OR NOT WITH OTHER OXYGEN FUNCTION; CYCLIC POLYMERS OF ALDEHYDES; PARAFORMALDEHYDE |
| – Acyclic aldehydes without other oxygen function : | |
| ****** | |
| 291219 | — Other : |
| ****. | |
| – Cyclic aldehydes without other oxygen function : | |
| **** | |
| 291229 | — Other : |
| **** | |
| 29122910 | — Cinnamic aldehyde |
7.6.6 Accordingly, the aforesaid ingredients fall under the scope of Chapter 29, which covers organic chemicals. On an examination of the above-mentioned HSN Explanatory Note and Chapter Note 1 to Chapter 29 of the Customs Tariff, it is clear that in order to be classifiable under Chapter 29, the product needs to be a separate chemically defined organic compound, and mixtures are clearly excluded. As mentioned above, Enviva is a mixture of `thymol and tinnamaldehyde’, alongwith numerous other ingredients. Therefore, Enviva not being a chemically pure product/separate chemical compound, but a mixture, are excluded from Chapter 29. There is no other Heading that aptly or more specifically covers the product now in question i.e., Enviva. As of now, all conditions to be classified under Heading 23.09 appears to have fulfilled. It appears that Enviva is classifiable under Heading 2309 more specifically under Tariff Item 23099090. is not specified or included elsewhere.
7.7 Further, it is important to note that on merits, the response of the Port Commissionerate is only on the issue of Show Cause Notice on one of the products of the entity, but not on the product Enviva EO 101G, which is classifiable under Heading 2309. However, regarding maintainability of the application, it is submitted that the comments provided do not act as a bar to the present application, SCN dated 22.05.2023 was issued disputing the classification numerous products including of the product Enviva Pro 201BA’. The SCN was not issued regarding Enviva E0 101G.
7.8 It is pertinent to note that the product covered by the SCN is completely different from the one covered in the present application. The difference is evident from the table below:
7.9 The product Enviva E0 101G is a nature identical phytogenic blend designed to fit into any nutritional health strategy and consistently improve feed intake, leading to improved gut heath and performance. A review of previous studies has shown that thymol and cinnamaldehyde possess a wide range of biological activities. including antibacterial, antiviral, antioxidant, anti- inflammatory, modulating of immunity response and regulating of the gut microbial population. Also. in meat type chickens can promote growth and influence feed utilization. A research on effects of thymol and cinnamaldehyde has also been conducted, to show that the same have many benefits has also been relied upon.
7.10 In the present application dated 25.06.2024, Heading 2309 covers three kinds of preparations:
a. complete feeds (Para (II) (A) of the Explanatory Notes)
b. Feed supplements (Para (II) (B) of the Explanatory Notes) and
c. Preparations (i.e. premixes) for use in making the complete feed or feed supplements. (Para (II) (C) of the Explanatory Notes)
7.11 Relevant extracts from HSN Explanatory Notes pertaining to the Premix category is as follows:
“(C) PREPARATIONS FOR USE IN MAKING THE COMPLETE FEEDS OR SUPPLEMNTARY FEEDS DESCRIBED IN (A) AND (B) ABOVE
These preparations, known in trade as “premixes”, are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal production required. These substances are of three types:
1. Those which improve digestion and more generally, ensure that the ‘animal makes good use of the feeds and safeguard its health : vitamins or provitamins, amino- acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc.
XXXXXXXX
The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogenous dispersion and mixing of these substances in the compound feeds to which the preparations are added.
Provided they are of a kind used in animal feeding; this group also includes :
(a) Preparations consisting of several mineral substances.
(b) Preparations consisting of an active substance of the type described in (I) above with a carrier, for example products of the antibiotics manufacturing process obtained by simply drying the mass, i.e. the entire contents of the fermentation vessel (essentially mycelium, the culture medium and the antibiotic.
7.12 The reference drawn to the European Feed Manufacturers’ Federation (FEFAC)’s article titled ‘What is a premix?’13 which states that in order to ensure that micro-ingredients are mixed with macro-ingredients (in a homogeneous way), an intermediate dilution step is required via a ‘premix’ has been relied too. From the extracts, it is evident that for undertaking such supplements for poultry litter management, the micro-ingredients like bacillus are first prepared into the form of premix, and the premix is then added to animal feed. Thus, such supplementation is necessarily done through a two-step process: 1) preparing of the premixes and 2) addition of premix to animal feed. Thus, “premixes” are an essential and an indispensable necessity for mixing micronutrients in animal feed.
7.13 In view of the above, it is evident that the product in question as a premix i.e., being combination of active ingredients with carrier is essential to be added to the poultry feed and the same are appropriately classifiable under Heading 2309. Thus, from the foregoing, it is evident that for products to be classified under the Heading 2309, the following has to be satisfied — a) The product is an animal feed/supplement/additive; b) The products should be used in animal feeding purposes; c) It is known in the trade as products for use in animal feeding.
7.14 Thus product in question satisfy ail the above conditions and the same is also evident from the composition of the same and therefore, is rightly classifiable under Heading 2309, and more precisely under Tariff Item 23099090.
8. I rule accordingly.
Notes:-
1 Thymol and Thyme Essential Oil—New Insights into Selected Therapeutic Applications – PMC (nih.gov)
2 Linnamaicienyde I Formula, Properties & Application (material-properties.org)
9 Why feed palatability matters in animal husbandry – Pancosma
10 Feeding behaviour: Understanding the science behind feed palatability – Feed C Additive Magazine (feedandadditive.com)
13 European Feed Manufacturers’ Federation (FEFAC), What is a premix?, available at: https://fefac.eu/about- our-industry/what-is-a-premix/
