Circular No. 4/91-CX.1 Dated 20-2-1991

Classification and dutiability of product namely ‘Cheetos’ whether under sub-heading 1905.90 or 1904.10 of the Central Excise Tariff.- A doubt has been raised regarding the classification of product ‘Cheetos’ whether under sub-heading 1905.90 or 1904.10 of the Central Excise Tariff. It is reported that the product is mainly manufactured out of cereals/flour by adding some quantity of seasoning. The Cornmeal is fed to blender/extruder where it is thoroughly and homogenously mixed in the process of extrudating. In this process the cornmeal gets heated by decipation of mechanical energy which is exerted on the cornmeal from the inter-meshing pedals, screws etc. In this very process, some quantity of water is also added to make it pasty and gelatenized by heating. The gelatinizing cornmeals is compressed to high pressure and passed through a die from where they emerge in the form of pellets. These pellets containing some degree of moisture are passed through an Oven where these are heated so as to achieve dryness. Thereafter, these are put into seasoning tumblers for further working, where seasoning slurry is sprayed, and then are packed into unit containers.

2. This issue came up for discussion in the 2nd North Zone Tariff Conference held at Manali on 7th and 8th June,1990. The Conference took note of the manufacturing process of the product under consideration, and sponsoring Collector’s report that the product were obtained by swelling or roasting, of the corn paste which is specifically covered by Heading No.19.04 of the Central Excise Tariff Act, 1985. Accordingly, the Conference decided that the appropriate classification of Cheetos would be under sub-heading 1904.10. The Conference also ruled out the classification under Heading No. 19.05 on the ground that the process of baking was not involved in the manufacture of Cheetos.

3. The matter was further examined in the Board. It is seen from the manufacturing process that the said product is mainly manufactured from cornmeal consisting of cereals/flour by applying the process of swelling and roasting. Therefore, the product merits classification in chapter sub-heading 19.04 as prepared foods obtained by the swelling or roasting of cereals. Board agrees with the views expressed by the North Zone Tariff Conference.

4. This may be brought to the notice of the trade and field formations.

[F. No. 11/1/90-CX.1]