In re Abhaya International LLP (CAAR Mumbai)
The Customs Authority for Advance Rulings (CAAR), Mumbai, in In re Abhaya International LLP, examined the classification of the product “Mineral Concentrate (with Calcium Phosphates)” marketed under the brand name VitalArmor Ca M10, a nutraceutical product used for bone health and nutritional fortification. The applicant sought an advance ruling under Section 28H of the Customs Act, 1962, to determine the appropriate classification under the Customs Tariff Act, 1975.
Background and Product Details
The applicant, a valid IEC holder, described VitalArmor Ca M10 as a fine, white to off-white, slightly hygroscopic powder containing minerals like calcium, phosphorus, magnesium, sodium, and potassium. The product is obtained from acid whey, processed through precipitation, separation, drying, and micronisation. It contains approximately 27% calcium and 13% phosphorus, resembling the natural mineral composition of bones and teeth. The product is used for calcium fortification in dairy products, biscuits, yoghurts, desserts, and nutritional beverages, and is marketed as a dietary supplement for bone health.
Information obtained from the manufacturer’s website, Armor Proteines (France), corroborated that VitalArmor Ca M10 is produced by precipitating milk calcium from acid whey and micronising it to enhance suspension and texture in food matrices. The product is promoted for nutritional enrichment in dairy, sports nutrition, and senior health applications. The manufacturer also highlighted its anti-caking properties, positioning it as an alternative to additives like calcium phosphate (E341) or silicon dioxide (E551).
Issue for Determination
The core question before the Authority was to determine the correct Customs Tariff Heading (CTH) for VitalArmor Ca M10. The applicant proposed classification under Heading 2835 (“Phosphinates, Phosphonates, and Phosphates; Polyphosphates, whether or not chemically defined”), more specifically CTH 2835 25 00 (“Calcium hydrogenorthophosphate – dicalcium phosphate”).
Legal Analysis and Findings
Applicability of Chapter 28 (Heading 2835)
CAAR noted that Heading 2835 covers phosphates, including calcium hydrogenorthophosphate. However, Note 1 to Chapter 28 restricts this chapter to separate chemical elements or chemically defined compounds, whether or not containing impurities. The HSN Explanatory Notes clarify that a separate chemically defined compound must consist of one molecular species with a constant ratio of elements and a definitive structural diagram.
CAAR observed that only polyphosphates under Heading 2835 are excluded from this rule, while phosphates and phosphites must be chemically defined compounds. Since VitalArmor Ca M10 is a mixture of multiple minerals (Ca, P, Mg, Na, K) derived from whey, and not a chemically pure or stoichiometric compound, it does not qualify as a separate chemically defined compound. Consequently, it cannot be classified under Heading 2835.
Examination of Heading 0404 (Whey and Modified Whey Products)
The Authority next examined whether the product could fall under Heading 0404, which covers whey and modified whey products, or other milk constituents in natural or recombined forms. As per the HSN Explanatory Notes, this heading applies to products consisting of natural whey constituents or modified whey obtained by removing or adding milk components.
CAAR noted that VitalArmor Ca M10 is derived from acid whey but undergoes precipitation and separation that isolates only the mineral fraction, removing proteins and lactose. Hence, the final product does not retain the essential characteristics of whey or its natural composition. It is therefore not classifiable under Heading 0404, which is limited to products that remain essentially milk constituents.
Applicability of Heading 2106 (Food Preparations NESOI)
CAAR then analyzed Heading 2106, which is a residual heading covering food preparations not elsewhere specified or included. The HSN Explanatory Notes to this heading list two major categories:
(A) Preparations for direct human consumption or after processing (e.g., dissolving in milk or water).
(B) Preparations consisting wholly or partly of foodstuffs used to make or improve other food preparations, including mixtures of chemicals (like calcium salts) with foodstuffs.
Entry (16) of the Explanatory Notes explicitly covers food or dietary supplements made of vitamins, minerals, extracts, isolates, or synthetic equivalents, marketed to support general health or correct nutritional deficiencies, but not intended for therapeutic use.
CAAR noted that the applicant had described VitalArmor Ca M10 as a nutrient supplement premix intended for direct consumption (with milk or water) or incorporation into food formulations like biscuits and health drinks. This, coupled with the manufacturer’s description, satisfied both categories (A) and (B) under Heading 2106. Since it is not a medicinal or therapeutic product, it appropriately falls within CTH 2106, specifically sub-heading 2106 90 99 (“Other”).
Conclusion and Ruling
CAAR held that VitalArmor Ca M10—a milk mineral concentrate obtained from acid whey, rich in calcium and phosphorus, and used for nutritional fortification—does not qualify as a chemically defined compound under Chapter 28 and loses the essential character of whey under Chapter 04. It fits squarely within the description of food or dietary supplements under Heading 2106 90 99 of the First Schedule to the Customs Tariff Act, 1975.
The Authority clarified that the import of this product will remain subject to compliance with the Food Safety and Standards Act, 2006, and related FSSAI regulations governing nutraceuticals and dietary supplements.
Key Takeaways
