Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs, New Delhi
Subject: Classification of Animal Feed supplements under Sub-heading No. 23.02 or 29.36 or Chapter 30 – Instructions – regarding.Online GST Certification Course by TaxGuru & MSME- Click here to Join
It has been brought to the notice of the Board that a large number of products with different compositions are being cleared as “animal feed supplements” / additives/ premixes etc. but are benign classified either under heading 23.02 or heading 29.36 or under Chapter 30 of the Central Excise Tariff in various Commissionerates.
2. It would be recalled that in its Circular No. 1/90 dated 1.1.1990, issued from F.No. 15/20/89-CX.I, Board had observed that animal feed supplements which are just inter-mixtures of vitamins only without other ingredients, except solvents, stabilizers or anti-oxidants, cannot be classified under heading 23.02 even though they are used as animal feed supplements. Board had observed that such inter-mixtures of vitamins are specifically covered under heading 29.36.
3. Trade interests have however represented that animal feed supplements use vitamins, pro-vitamins, amino-acids, anti-biotics, “Coccidiostats” etc. in very small quantities (micro-quantities) and that the feed supplements contain other organic and in-orgainc feed ingredients as well. They have also represented that such micro-nutrients do not have any independent identity as pure chemicals, that they cannot be easily separated into individual pure chemicals; nor do they conform to standards laid down for medicaments. As such, it is claimed that animal feed supplements cannot be classified under Chapter 29 or Chapter 30 of the Central Excise Tariff merely because they contain the said micronutrients.
4. They matter has been further examined by the Board in consultation with the Chief Chemist, Central Revenue Chemical Laboratory (CRCL), New Delhi.
5. Heading 23.02 of Central Excise Tariff i.e. “preparations of a kind used in animal feeding including dog and cat food” corresponds to Heading 23.09 “Preparations of a kind used in animal feeding” or the HSN. As per Explanatory notes under Heading 23.09 of the HSN, the said heading covers complete animal feeds, supplementary animal feeds and preparations for use in making the complete feeds or supplementary feeds. The preparations for use in making complete feeds or supplementary feeds are known in the trade as “premixes”. These preparations are compound composition consisting of a number of substances- each type of these substances being present in the “premix” in varying proportions to serve a particular purpose. The explanatory notes under heading 23.09 of HSN (pp, 177-178) further indicate that pre-mixes contain, in additions to the active substances (vitamins, amino-acids,
anti-biotics, coc-cidiostates etc.) and stabilizers, ani-oxidants etc., certaing organic or in- organic nutritive substances known as carriers which help in homogeneous dispersion and mixing of the active substances in the compound feeds to which the preparations referred to in the said explanatory notes are added.
6. It this view of the matter, it would appear that preparations containing the active substances (vitamins or provitamins, amino-acids, antibiotics, coccidiostats etc.) along with the said carriers would fall under Heading 23.02 of the CET provided such preparations are of a kind used in animal feeding. It may however be noted that Heading 23.09 of the HSN excludes products of Chapter 29 and medicaments of Heading 30.03 or 30.04. Hence, while deciding the classification of the products claimed to be animal feed supplements, it may be necessary to ensured that the said animal feed supplements are ordinarily or commonly known to the trade as products for a specific use in animal feeding.
7. In view of the for going discussions, the classification of each product being claimed as animal feed supplements may be decided on merits in the light of the above & in accordance with the explanatory notes to Heading 23.09 of the HSN read with Chapter Note 1 of Chapter 23 of the CET.
8. Board”s Circular No. 1/90 dated 1.1.1990 stands modified to the extent indicated above.