In re Seppic Speciality Ingredients Private Limited (CAAR Mumbai)
The Customs Authority for Advance Rulings (CAAR), Mumbai examined the classification of “Wheat Seed Oil – Ceramides™” proposed to be imported in various forms, including bulk liquid, pouches, bulk powder, and small packets. The applicant sought an advance ruling on whether the product was classifiable as a vegetable extract under Tariff Item 13021919 or, alternatively, as a food preparation under Tariff Item 21069099.
The Authority considered the submissions made during the personal hearing, the response of the Jurisdictional Customs Commissionerate, and the applicable legal framework under the Customs Tariff Act, 1975, along with the General Rules for Interpretation (GRI) and HSN Explanatory Notes. Under GRI 1, classification must be determined according to the terms of the heading and relevant Section or Chapter Notes.
Based on the technical literature and product information, the Authority noted that Wheat Seed Oil – Ceramides™ is derived from wheat seed or wheat flour through a solvent-driven extraction process using 75–80% ethanol at controlled temperatures. The product then undergoes liquid fractionation, filtration, evaporation, and concentration to achieve a standardized form containing bioactive lipids such as phytoceramides and digalactosyl diglycerides. The final product is marketed as Ceramides™ and is intended for use as a functional ingredient in nutraceutical formulations such as tablets, capsules, and powders. It is licensed under FSSAI as a functional ingredient and carries dosage recommendations, including direct consumption in oil form.
The Authority examined the applicability of Heading 1302, which covers simple vegetable extracts obtained by solvent extraction without purification or standardization altering natural compound concentrations. The HSN Notes exclude extracts subjected to additional extraction, purification, or concentration processes. The Authority observed that the subject product undergoes standardized filtration, purification, evaporation, and concentration, is clinically tested, carries defined dosage indications, and is presented as a finished or prepared product. These features go beyond the scope of a crude or simple vegetable extract under Heading 1302. Accordingly, classification under Heading 1302 was ruled out.
The Authority then analyzed Heading 2106, which covers food preparations not elsewhere specified, including food supplements consisting of or based on extracts or isolates of substances found in foods, put up as supplements to the normal diet. The product’s functional characteristics, standardized composition, dosage recommendations, and intended nutraceutical use were found to align with this heading. The Authority also noted that the product does not make therapeutic or prophylactic claims required for classification under Chapters 30 or 33 and is intended solely for dietary supplement use.
Applying GRI 1, and alternatively GRI 3(b) on essential character, the Authority concluded that Heading 2106 best describes the product in terms of its commercial identity, composition, and intended use. The product was held to be a standardized, functional nutraceutical preparation based on a plant extract, intended for oral consumption and general well-being, including skin and hair health.
Accordingly, the Authority ruled that Wheat Seed Oil – Ceramides™ is not classifiable under Tariff Item 13021919 and is correctly classifiable under Tariff Item 21069099 as a food preparation. The advance ruling was pronounced in these terms.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
