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Classification of vanilla extract under First Schedule to Customs Tariff
Act
Circular No. 15
dated 23rd February 2000
I am directed to refer to the subject mentioned
above and to say that doubts have been raised regarding classification and levy
of duty on �Vanilla Extract� due to an anomaly in the description of
sub-heading 1302.13 in the Customs Tariff published by the Directorate of
Publications vis-a-vis that published by the private publishers. It has been
stated that in the Customs Tariff published by the Directorate of Publications,
the description of the articles and the rate of duty under sub-heading Nos.
1302.13 and 1302.19 are as under:
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Sub-heading
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Description of article
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Rate of duty
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Vegetable saps and extracts
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1302.13
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Of hops, Vanilla, Oleoresin, or Vanilla extract
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40%
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1302.19
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Other
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15%
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However, in the Customs Tariff brought out by the
private publishers, the description of the articles and the rate of duty under
sub-heading Nos. 1302.13 and 1302.19 read as under:
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Sub-heading
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Description of article
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Rate of duty
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Vegetable saps and extracts
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1302.13
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Of hops
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40%
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1302.19
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Other
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15%
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It is thus seen that whereas, as per the Customs
Tariff published by the Directorate of Publications �Vanilla Extract� is
classifiable under sub-heading 1302.13 with duty at 40%, as per the Customs
Tariff published by private publishers, the same is classifiable under
sub-heading 1302.19 and liable to duty at 15%.
3. The matter has
been examined. It is seen the HS Nomenclature that tariff sub-heading 1302.13
covers vegetable saps and extracts - of hops only and therefore, vanilla extract
will not fall under this sub-heading. A reading of Explanatory Notes to heading
13.02 makes it clear that �vanilla extract� will merit classification under
the residual entry 1302.19. Accordingly, it is clarified that `vanilla extract'
may be classified under sub-heading 1302.19 and charged to duty accordingly.
4. Pending
assessments may be finalised on the basis of these instructions. Difficulties,
if any, may be brought to the notice of the Board.
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