In re Ekdant Sales Pvt. Ltd (CAAR Mumbai)
The Customs Authority for Advance Rulings (CAAR), Mumbai, has issued a ruling on the classification of imported roasted and salted cashew nuts. In the matter of In re Ekdant Sales Pvt. Ltd., the CAAR ruled that the correct classification for these goods is under Customs Tariff Item (CTI) 2008 19 10, rejecting the broader classification under Chapter 08 of the Customs Tariff Act, 1975. The applicant, Ekdant Sales Pvt. Ltd., sought this advance ruling to confirm its belief that the products, which have been processed through roasting and salting, fall under the specific heading for “nuts, prepared or preserved.”
Roasting Process Distinguishes Product from Raw Nuts
The applicant argued that the roasting process fundamentally alters the raw cashews, making them distinct from the “fresh” or “dried” nuts covered under Chapter 08. The CAAR agreed with this interpretation, noting that roasting and drying are not the same process. Roasting involves a significant application of heat that changes the product’s moisture level, color, and flavor, distinguishing it from the processes of freezing, steaming, boiling, or simple drying covered in other chapters. According to the Harmonized System of Nomenclature (HSN) Explanatory Notes, Heading 2008 specifically includes nuts that have been “dry-roasted, oil-roasted or fat-roasted.” This specific description, the CAAR ruled, takes precedence over the general classification for nuts under Chapter 08.
