Circular No. 427/60/98-CX dated 30/10/1998
Sub : Classification of compounded asafoetida under chapter heading 13.01 or 21.03
or 09.03 of the Central Excise Tariff Act, 1985 -classification
I am directed to say that a doubt has been raised regarding the classification
of compounded asafoetida whether under chapter Heading 13.01 or 21.03 or 09.03 of the
Central Excise Tariff Act, 1985.
2. The matter has been examined in the Board. Raw asafoetida imported into India is
classified under Chapter 13 of the Customs Tariff which covers natural gums, resins
and gum resins. Asafoetida in gum form is mixed with water till it is totally diluted
and then added to the mixture of wheat flour and edible gum. The mixed substance in
dough form is spread on the floor and allowed to set for 8 to 10 days till the colour
changes to dark brown. Then it is packed in wooden cases and kept for 7 days and
allowed to harden. It is then cut manually according to required weight and packed in
retail containers. In respect of compounded asafoetida in powder form, the dark brown
semi solid mass is allowed to dry in the sun, powdered and packed in gunny bags in the
case of bulk packings. It is then repacked in plastic bottle containers of required
weights. Thus manufacture of compounded asafoetida invoices 1) diluting in water for
reducing the concentration, 2) mixing with edible gum and wheat flour (compounding of
the product) for reducing or making the flavour uniform, 3) fermenting to bring about
the changes necessary to make the product palatable, 4) drying to check fermentation
and removal of moisture from the mass, 5) grinding the dried mass in the case of
powder compounded asafoetida and 6) cutting to required sizes in the case of lump
compounded asafoetida and packing in retail containers.
The percentage of asafoetida in the compounded asafoetida is generally around
15%.
3. After going through the possible classification of compounded asafoetida under
Chapter 9 as spices, under Chapter l3 as gums, resins and other vegetable saps and
extracts and Chapter 21 as mixed condiments and mixed seasonings, it is felt that the
classification under Chapter 21 is ruled out as mixed condiments and mixed seasonings
would mean condiments or seasonings mixed with other commandments and other seasonings.
Since neither the wheat flour nor the edible gum fall under the category of condiments
and seasonings, the mixture would not become mixed condiments and mixed seasonings.
4. The classification under spices is ruled out as the spices as natural product are
also known as spices, for example, cumil coriander, etc. In the present case, the
natural product asafoetida is classified as a gum resin not as spices. The fact that
Spices Board acknowledges asafoetida as a spice would not help in deciding the central
excise classification as a specific meaning has been assigned to spices for the
purpose of Central Excise Tariff.
5. Under Customs Tariff, asafoetida is specifically mentioned in the HSN Explanatory
Note under vegetable gum resins. There is no dispute regarding the customs
classification of asafoetida imported into India. The compounded asafoetida is the
product after the admixture of blending of asafoetida with wheat flour and edible gum.
The flour and gum work as fillers and do not change the essential character of
asafoetida. Applying interpretation Rules, the mixture "compounded asafoetida"
should be classified as if they consist of the material which gives them
their essential character. Therefore, the classification of compounded asafoetida
would most appropriately fall under Heading 13.01.
6. Keeping in view the manufacturing process, composition of the product, the
harmonization of Central Excise Tariff with Customs Tariff and the principles of
classification, the Board is of the view that compounded asafoetida is rightly
classifiable under Chapter Heading 13.01 of Central Excise Tariff Act, 1985.
Sd/-
(S.C. Bhatia)
Under Secretary to the Government of India
F.No. 21/3/98-CX.I
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