CUSTOMS INSTRUCTION DATE 15/03/2007

Sub: Clarification regarding additional duty of Customs (CVD) on import of Heeng /“Asafoetida”-regarding.
Board has received certain representations from the trade and industry on the additional duty of Customs (CVD) being imposed on import of Asafoetida (Heeng) in certain commissionerates.

2. It is stated in the above representation that Asafoetida’ in raw form is imported through various ports. These goods when imported from Afghanistan are fully exempt from basic customs duty. However, importers are being asked to pay CVD on such products, even though these are agro product in raw/ unprocessed form, on which additional duty of customs is not chargeable. Commissioner of Customs (Imports), Mumbai has also sent a report on the facts of the case and the issues involved therein.

3. The issue was examined in the Board. ‘Asafoetida’ is classified under tariff item 1301 90 13 of the First Schedule to the Customs Tariff Act, 1975 as one of the Natural gums, attracting tariff rate of 30%. However, import of asafoetida from Afghanistan is fully exempted from basic customs duty vide Notification No.76/2003-Cus. dated 13.5.2003. Under Central Excise Tariff also asafoetida is classified under corresponding tariff item 1301 90 13 with tariff rate of 16%. Further, compounded asafoetida, commonly known as ‘heeng’ is also exempted fully from central excise duty vide serial No.5 of the notification No.3/06-C.E. dated 1.3.2006.

4. The doubt arose because the entry in Central Excise tariff covers all forms of asafoetida, while the exemption appears to be limited only to compounded asafoetida. Further Prevention of Food Adulteration Rules, 1955 mention standards for Asafoetida Hing, Asafoetida Hingara and Compounded Asafoetida. It is seen that under the First Schedule to the Customs Tariff Act, 1975, ‘asafoetida’ is classified under sub-heading 1301 as Natural gums. HS explanatory notes also provide for classification of all natural gums under 1301 and ‘Asafoetida’ is mentioned as one of the principal product obtained as vegetable secretions. When such products are subjected to certain processes such as treatment with water under pressure, mineral acids or heat-treatment these are excluded from this heading. Further, ‘Asafoetida’ is known in different names depending upon the flavour, odour and colour, such as ‘Heeng’ and ‘Hingra’ varieties and on the basis of place of origin, as ‘Irani Heeng’ and ‘Patani Heeng’ (Afganistan). These are usually in mass tears or mass form. However, asafoetida in powder or paste forms containing extraneous matter such as gum arabic, edible starches or edible cereal flour is referred as ‘compounded asafoetida’. Hence, there is no variation in the classification of natural or compounded form of asafoetida for the purpose of Customs or Central Excise. The references to various terms of asafoetida in PFA Rules are based on its different forms available in market and prescribe respective standards of composition for the purpose of prevention of food adulteration.

5. In Central Excise Tariff, prior to alignment with Customs/HS, Lac; gums, resins including asafoetida was categorized as (i) those in or in relation to the manufacture of which any process is ordinarily carried on with the aid of power with 16% tariff rate and (ii) Other, residual entry with ‘Nil’ tariff rate, under 1301.10 and 1301.90 respectively. Further, ‘compounded asafoetida’ classified under 1301.10, was exempt from central excise duty vide serial No.5 of the notification No.3/2001-C.E dated 1.3.2001. Further, even without the central excise exemption, as the condition of manufacture with the aid of power could not be applied on the imported goods, Asafoetida was not charged with CVD at the time of import. After alignment with Customs tariff and HS, asafoetida was classified in tariff item 1301 90 13 with tariff rate of 16%. Further, compounded asafoetida, commonly known as ‘heeng’ is also exempted fully from central excise duty vide serial No.5 of the notification No.3/06-C.E. dated 1.3.2006. This exemption covers compounded asafoetida, commonly known as ‘heeng’ under its scope. Further, asafoetida or heeng obtained in natural form or raw form is not chargeable to central excise duty. Accordingly, all type of asafoetida, either in raw form or compounded form is not chargeable with central excise duty.

6. In view of the above, it is clarified by the Board that ‘asafoetida’ or ‘heeng’ imported in raw form being goods obtained in natural process cannot be considered as final product manufacture, for imposition of additional duty of Customs (CVD).

7. The above instructions may be brought to the notice of all concerned for effective implementation. Pending assessments, if any, may be finalised accordingly. Please acknowledge receipt of these instructions.

F. No.528/6/2007-Cus(TU)

Yours faithfully,

(Anupam Prakash)
Under Secretary (Customs Policy)
Ph. 2309 3859

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