Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise & Customs
New Delhi dated 11th February, 2009.
Circular No. 882/02/2009-CX
Subject: Classification of tea admixture containing rice flour, tapioca,
vitamins, etc – regarding.
A dispute has been brought to the notice of the Board regarding classification
of ‘tea’ fortified with micronutrients and with tapioca, jaggery, chicory, rice
flour and vitamins. These additives may be to the extent of 30% with the
remaining part being tea. Doubts have been raised as to whether such an
admixture is classifiable under chapter 9 as flavoured tea or as a preparation
with a basis of tea under chapter 21.
- The matter has been examined with reference to the HSN, the relevant Tariff
entries and the Chapter notes and the earlier board circular No 622 of 2002
dated 21.02.02.
- The tea admixture in the present case, containing rice flour, tapioca,
vitamins, etc cannot be considered as flavoured tea particularly when the
purpose of addition of various ingredients is to add to volume and to provide
health benefits. Neither can these additives be considered as flavouring
material.
- The expression ‘preparation’ has been used in a number of Tariff items in
Chapter 21 and has also been used to explain the scope of an entry in the
Chapter notes and the supplementary notes. From these notes, it is clear that
preparations would include products prepared by addition, mixing, or such other
similar processes to the original commodity. Heading 2101 includes preparations
with a basis of extracts, essences and concentrates of tea and preparations with
basis of tea. Therefore, it is opined that the tea admixture is a preparation
with a basis of tea and is classifiable under chapter Heading 2101 .
- Hindi version will follow.
- Receipt of this circular may be acknowledged
Yours faithfully,
Ashima Bansal
Under Secretary to the Govt. of India.
F.No. 9/1/08-CX1