In re Sh. Sunil Chandrana (CAAR Mumbai)
CAAR rules that Glyteine (Gamma Glutamylcysteine), packaged in 415 mg. sachets and branded as Continual-G merits classification under sub-heading 21069099 of the first schedule to the Customs Tariff Act, 1975.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY FOR ADVANCE RULING, MUMBAI
Ruling
An application for advance ruling has been received from Shri Sunil Chandarana on 07.06.2021. In the said application, a ruling has been sought on the classification of formulated Gamma Glutamylcysteine branded as Glyteine and sold as Continual-G in retail sales. According to the applicant, the said formulation merits classification under HS Code 3004.90.
2. The applicant, in their CAAR – I form, has indicated that they propose to import the intended goods through the Nhava Sheva port. Accordingly, the application was forwarded to the Principal Commissioner of Customs, Nhava Sheva – I, Jawaharlal Nehru Custom House. In their comments, it has been opined, after considering the product details/characteristics and explanatory notes, that the impugned formulation merits classification under heading 21.06. The comments received from the Principal Commissioner have been conveyed to the applicant and his rebuttal/rejoinder is on record.
3. The application was heard on 08.2021. Apart from the applicant, Shri Rajan Shah also appeared on behalf of the applicant. No one appeared on behalf of the Principal Commissioner, Shri Shah explained the product characteristics and argued that the proper classification of Continual-G is the heading 30.04. It was also informed that Continual-G is manufactured in the United States of America and supplied to many countries, including the European Union. Shri Shah stated that their main mode of sale is to retail consumers directly through courier and that they use the services of DHL for delivery. Shri Shah further stated that they classify Continual-G under HS Code 300490 in the USA but was not sure what classification is adopted for supplies to the EU. The applicant confirmed during the hearing that no application has been made to the Drug Controller of India seeking approval for use of Continual-G in India.
4. In the application for advance ruling, the applicant has provided the chemical structures of L-Cysteine, N-Acetylcysteine, Gamma-Glutamylcysteine, Glutathione, Acetic acid, and Acetic Anhydride in a pictorial manner. Based on the chemical structure, the applicant has claimed that L-Cysteine, N-Acetylcysteine (pure) and Glutathione (pure) have similar structures and should fall under the same heading, i.e., 2930.90. It is also stated that when N-Acetylcysteine and Glutathione are formulated for retail sale, they fall under the same namely, 3004.90; and that N-Acetylcysteine and Glutathionc are formulated for other uses, they are classifiable under heading 3003.90. The reason for the common classifications is that all these substances are not only chemically related, but also have similar applications. Glutathione is a tri-peptide, i.e., a small protein (all peptides are proteins) comprised of L-Glutamic Acid, L-Cysteine and Glycine and is chemically known as Gamma- Glutamylcysteinylglycine and/or Gamma-L-Glutamyl-L-Cysteinylglycine. L-Cysteine is one of the three starting amino acids for producing glutathione. L-Cysteine is not formulated due to its tendency to get oxidized when exposed to air. It is therefore used in pure form and sold in sealed containers. Its major uses are in the production of bread, manufacturing N-Acetylcysteine and the di-peptide Gamma-glutamyl-cysteine. N-Acetylcysteine is sold in pure form for use as an ingredient in formulations used in hospital emergency rooms and for IV injections. N-Acetylcysteine is also used as an ingredient in formulated products for retail sales and for self-use. Glutathione in pure form is used as an ingredient in formulations for use in hospital emergency rooms and for IV injections. Glutathione is also formulated with other ingredients for use in retail sales and for self-use. Gamma-Glutamylcysteine is a di-peptide and is the immediate precursor to glutathione. It is produced by the reaction between 1-Glutamic Acid and 1-Cysteine. Reacting Gamma Glutamylcysteine with Glycine results in Glutathione. This reaction occurs inside the cells in the human body. The main function of Gamma-Glutamylcysteine is to increase the quantity of Glutathione inside the body. Gamma-Glutamylcysteine is closely related both to L-Cysteine and to Glutathione and is the intermediate product formed between 1-Cysteine and Glutathione. The chemical name for Glutathione Gamma-Glutamylcysteinylglycine clearly shows that the first part of the name describes Gamma-Glutamyl-Cysteine. Gamma-Glutamylcysteine is available in pure form and is used as an ingredient in formulations with other ingredients and the manufacture of capsules. Gamma-Glutamylcysteine is also formulated for retail sale and for self-use. All 3 products, i.e., N-Acetylcystiene, Gamma-Glutamylcysteine and Glutathione have the same use, namely, increasing Glutathione levels in the body. Increasing Glutathione levels is important to improve immunity and also to provide a range of health benefits. The difference is in their performance and efficiency in increasing Glutathione levels. In light of the above, the applicant has suggested that the HS codes for Gamma-Glutamylcysteine should fall in the same category as those for Glutathione, as follows: –
