In re Hi Tech Print Systems (CAAR Mumbai)
CAAR find that the provisionally preserved betel nuts are not fit for immediate human consumption and they are more specifically covered under Chapter heading 0812 due to following chapter note.
Chapter note (4) provides as follows:
“4. Heading 0812 applies to fruit and nuts which have been treated solely to ensure their provisional preservation during transport or storage prior to use (for example, by Sulphur dioxide gas, in brine, in Sulphur water or in other preservative solutions), provided they remain unsuitable for immediate consumption in that state.”
Following are the four sub-headings under the above heading.
| 0812 10 00 – | Cherries |
| 0812 90 – | Other: |
| 0812 90 10 — | Mango slices in brine |
| 0812 90 90 — | Other |
This heading applies to fruit and nuts (whether or not blanched or scalded) which have been treated solely to ensure their provisional preservation during transport or storage prior to use (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), provided they remain unsuitable for immediate consumption in that state. Though areca nuts are separately mentioned under 0802, nuts provisionally preserved but unsuitable in that state for immediate consumption, as the areca nuts in the present case, will get covered under heading 0812 which occurs later in the schedule and accordingly, the nuts that are provisionally preserved and not fit for immediate consumption need to be classified more specifically under heading 0812 90 90.
From the submission of the applicant I find that the subject product is treated with sulphur-di-oxide gas or sodium benzoate solution before packing and export for preservation. The said preservatives can be removed before consumption through simple processes, as explained at para 2 above, to make the product suitable for human consumption. It is observed that the subject goods remain unsuitable for immediate consumption in that state and need to be processed further to remove the preservatives to make the same suitable for human consumption. Thus, I find that the conditions of chapter note (4) as mentioned above are duly fulfilled and hence the said goods come within the ambit of Customs Heading 0812. Therefore, in view of the submissions made by the applicant, relevant legal provisions and the above discussions, I have reached a conclusion in the matter in respect of the questions asked in the CAAR- 1 application.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s Hi Tech Print Systems (hereinafter referred to as ‘the applicant’, in short) filed an application for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR, in short). The said application dated 18.01.2023 was earlier received in the secretariat of the CAAR, Mumbai on 24.01.2023 along with its enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’) and the same was later received with amendments on 3.2.2023. The applicant is seeking advance ruling on the classification of `Provisionally preserved Areca nut’ (subject goods) which they intend to import through the port of Tuticorin, Tamil Nadu. On the issue of whether the question(s) raised is pending in the applicant’s case before any officer of Customs, Appellate Tribunal or any Court of Law the applicant has replied in negative. Further on the issue of whether a similar matter as raised in the question(s) by the applicant has already been decided by the Appellate Tribunal or any Court, the applicant has again replied in negative. In their CAAR-1 application the applicant has claimed the classification of provisionally preserved areca nut/betel nut under CTH 0812 of the First schedule of the Customs Tariff Act, 1975. Applicant’s submissions are as follows:
2. The applicant proposes to import `Areca nut’ from Indonesia and other South East Asian countries. Areca nut is a tropical plant found all over South-East Asia. The tree belongs to the palm tree species and is from the Arecaceae family. The fruit (nut) of this tree is popularly Again, Chapter note (4) reads as follows:
“4. Heading 0812 applies to fruit and nuts which have been treated solely to ensure their provisional preservation during transport or storage prior to use (for example, by sulphur dioxide gas, in brine, in sulphur water or in other preservative solutions), provided they remain unsuitable for immediate consumption in that state.”
3.1 Heading 0812 covers fruits and nuts provisionally preserved but unsuitable in that state for immediate consumption. Following are the four sub-headings under the above four-digit heading.
