Circular No. 166/77/95-CX dated 29/12/95
Subject: CE - Classification of Coconut Oil packed in small containers -
Clarification regarding.
Your kind attention is invited to Board"s Circular No. 145/56/95-CX dated 31st
August,1995 regarding correct classification of coconut oil packed in small containers
as to whether the same is classifiable as a fixed vegetable oil under Chapter 15 or as
a cosmetic preparation under Central Excise Tariff Act. 1985.
2. Jn para 9 of the said Circular it has been, inter aha, clarified that if thr
containers bear labels/literature etc. indicating that it is meant for application of
hair, as specified under Note 2 of Chapter 33 and/or if the coconut oil has additives
(other than BHA) or has undergone processes which make it a "preparation for use on
hair" as mentioned in Chapter Note 6 of Chapter 33, then the coconut oil may merit
classification under Chapter 33.
3. It has been represented that the above para has created dOilbts, as to. whether
addition of any additive other than BHA to coconut oil makes it a ""preparation for use
on the hair"". It has also been submitted that the last sentence of para 9 of the
circular, therefore need amplification so as to include other permitted anti-oxidants
and that instead of confining it to only BHA, all anti-oxidants permitted vide Rule 59
of the Prevention of Food Adulteration. Rules, 1955 may be allowed as additives
without making the coconut oil a "preparation for use on hair."
4. The matter has since been examined. It is further clarified that, that the use of
anti-oxidants as specified under Rules 59 of the Prevention of Food Adulteration
Rules, 1955 will not alter the classification if they are meant only for preventing
the rancidity of the oil.
Sd/-
(Rajiv Bhatia)
Under Secretary to the Govt. of India
F.No.i03/l/95-CX.3Presented by eximkey.com