1. The expression "milk" means full cream milk or partially or completely skimmed milk.
2. For the purposes of heading 0405.
(a) The term "butter" means natural butter, whey butter or recombined butter (fresh, salted or rancid, including canned butter) derived exclusively from milk, with a milk fat content of 80% or more but not more than 95% by weight and a maximum milk solids-not-fat content of 2% by weight and a maximum water content of 16% by weight. Butter does not contain added emulsifiers, but may contain sodium chloride, food colours, neutralising salts and cultures of harmless lactic-acid-producing bacteria.
(b) The expression "dairy spreads" means a spread able emulsion of the water-in-oil type, containing milk fat as the only fat in the product, with a milk fat content of 39% or more but less than 80% by weight.
3. Products obtained by the concentration of whey and with the addition of milk or milk fat are to be classified as cheese in heading 0406 provided that they have the three following characteristics :
(a) a milk fat content, by weight of the dry matter, of 5 percent or more;
(b) a dry matter content, by weight, of at least 70 percent but not exceeding 85 percent; and
(c) they are moulded or capable of being moulded.
4. This Chapter does not cover:
(a) Products obtained from whey, containing by weight more than 95% lactose, expressed as anhydrous lactose calculated on the dry matter (heading 1702); or
(b) Albumins (including concentrates of two or more whey proteins, containing by weight more than 80% whey proteins, calculated on the dry matter) (heading 3502) or globulin (heading 3504).
Sub-heading Notes
1. For the purposes of sub-heading 0405 10, the expression "modified whey" means products consisting of whey constituents, that is, whey from which all or part of the lactose, proteins or minerals have been removed, whey to which natural whey constituents have been added, and products obtained by mixing natural whey constituents.
2. For the purpose of sub-heading 0405 10, the term "butter" does not include dehydrated butter or ghee (sub-heading 0405 90)
Supplementary Note
In this Chapter, "wild animal" means wild animal as defined in the Wild Life (Protection) Act. 1972 (53 of 1972)
Other Notes - 2010
HS Classification Changes in Year 2007 - In tariff item 04064000 the item description has been substituted by Finance Act 2006,
Addition Duty - Addl. Duty NIL in sub Heading 0401, as goods are not excisable under Central Excise Tariff schedule. There is no additional duty in sub Heading 04.02 except on concentrated (condensed milk) whether sweetened or not up in unit containers and ordinarily intended for sale on which the duty is 16%.
Special CVD - Spl CVD on Poultry, Eggs, Ref. Customs Notification no. 20/2006.
Education Cess - 2%+1% on the aggregate of customs duties exempted on 040210, 04022100, 04051000, 40590 in this chapter under notification 69/09.07.2004.
Other Notes - 2009
HS Classification Changes in Year 2007 - In tariff item 04064000 the item description has been substituted by Finance Act 2006,
Addition Duty - Addl. Duty NIL in sub Heading 0401, as goods are not excisable under Central Excise Tariff schedule. There is no additional duty in sub Heading 04.02 except on concentrated (condensed milk) whether sweetened or not up in unit containers and ordinarily intended for sale on which the duty is 16%.
Special CVD - Spl CVD on Poultry, Eggs, Ref. Customs Notification no. 20/2006.
Education Cess - 2%+1% on the aggregate of customs duties exempted on 040210, 04022100, 04051000, 40590 in this chapter under notification 69/09.07.2004.
Other Notes - 2008
HS Classification Changes in Year 2007 - In tariff item 04064000 the item description has been substituted by Finance Act 2006,
Addition Duty - Addl. Duty NIL in sub Heading 0401, as goods are not excisable under Central Excise Tariff schedule. There is no additional duty in sub Heading 04.02 except on concentrated (condensed milk) whether sweetended or not up in unit containers and ordinarily intended for sale on which the duty is 16%.
Special CVD - Spl CVD on Poultry, Eggs, Ref. Customs Notification no. 20/2006.
Education Cess - 2%+1% on the aggregate of customs duties exempted on 040210, 04022100, 04051000, 40590 in this chapter under notification 69/09.07.2004.
Other Notes - 2007
HS Classification Changes in Year 2007 - In tariff item 04064000 the item description has been substituted by Finance Act 2006,
Addition Duty - Addl. Duty NIL in sub Heading 0401, as goods are not excisable under Central Excise Tariff schedule.
Special CVD - Spl CVD on Poultry, Eggs, Ref. Customs Notification no. 20/2006.
Education Cess - 2%+1% on the aggregate of customs duties exempted on 040210, 04022100, 04051000, 40590 in this chapter under notification 69/09.07.2004.
Other Notes : 2006
a. Additional Duty : NIL, in heading 04.01 as goods are not excisable under Central Excise Tariff Schedule. There is no additional duty in heading 04.02 except on concentrated (condensed milk) whether sweetened or not put up in unit containers and ordinarily intended for sale on which the duty is 16% (Ref. Central Excise Tariff Schedule Sub-heading 0401.14).
a. Additional Duty Notes : Additional duty exempted on concentrated milk, not containing any Sweetening matter Nil (Ref. Sl No. 01 of CE-03/01.03.2006). However, Concentrated milk containing , sweetening will attract -16%.
b. Special CVD : on Poultry, eggs. Vide notification 20/06.
c. MRP Based Assessment : Valuation for the purpose of additional duty in heading 04.02 is based on MRP (Maximum Retail Price) declaration on the package.
D. Education Cess : EC of 2% on aggregate of customs duties under section 91(1) of Finance Act 2004 exempted on the following codes on this chapter under notification 69/09.07.2004.