2025(06)LCX0398(AAR)

Highwi Enterprise Private Limited

decided on 11-06-2025

Customs Authority for Advance Rulings 

New Custom House, Ballard Estate, Mumbai - 400 001

E-MAIL: cus-advrulings.mum@gov.in

N.B. :

1. A copy of this order made under sub-section (2) of Section 28-1 of the Customs Act, 1962 . is granted to the concerned free of charge.

2. Any appeal against this Advance Ruling order shall lie before the jurisdictional High Court of concerned jurisdiction, within 60 days from the date of the communication of such ruling or order.

3. The Principal Commissioner or Commissioner shall be authorised to file appeal against the advance ruling in terms of sub-section (1) of section 28KA.

4. The advance ruling pronounced by the Authority under Section 28 - I shall remain valid for three years or till there is a change in law or facts on the basis of which the advance ruling has been pronounced, whichever is earlier.

5. Where the Authority finds that the advance ruling was obtained by the applicant by fraud or misrepresentation of facts, the same shall be declared void ab initio

Advance Ruling

1. Highwi Enterprise Private Limited (IEC No.: AAFCH8169P) (hereinafter referred as "The Applicant") filed application for advance ruling in the Office of Secretary, Customs Authority for Advance Ruling (CAAR), Mumbai. The said applications were received in the secretariat of the CAAR, Mumbai on 14.01.2025, along with its enclosures in terms of Section 28H (I) of the Customs Act, 1962 (hereinafter referred to as the 'Act'). The applicant is seeking advance ruling regarding classification of 'Choline chloride 60% Corn Cob (Feed Grade) (Powder Form in 25 kg Bags).

2. Submission by the Applicant:

2.1 Highwi Enterprise Private Limited (hereinafter referred to as the "Applicant") registered with the Maharashtra GST Authorities vide No. 27AAFCH8169P1ZP under the Maharashtra Goods and Services Tax Act, 2017 and holds a valid Importer-Exporter Code number AAFCH8169P issued by the Additional Director General of Foreign Trade, Mumbai under section 7 of the Foreign Trade (Development and Regulation Act), 1922 (22 of 1922). Thus, the applicant is rightly covered under the definition of 'applicant' as provided under Section 28E(c)(i) of the Customs Act, 1962 for making an Advance Ruling Application.

2.2 The applicant is presently engaged in the trading business of importing 'Chemicals and Animal feed/Supplements' from China, the British Virgin Islands, and Hong Kong. The applicant submitted that they intend to import 'Choline Chloride 60% Corn Cob (Feed Grade) (Powder Form in 25 kg Bags)' from China. They further submitted that as per the present scheme of Classification of Commodities under the Customs Tariff Act, 1975, 'Preparation of a kind used in Animal Feeding' is classified under Chapter Heading 2309, while 'Concentrates for Compound Animal Feed' are particularly and specifically classified under the Tariff Item 23099020.

3. Applicants Interpretation of Law/Facts:

3.1 The applicant stated that the Goods are classified by taking into consideration the scope of headings/ subheadings, related Section Notes, Chapter Notes, and the General Interpretative Rules (GIR). The GIR is a set of 6 rules for the classification of goods in the Tariff Schedule. These rules have to be applied sequentially. The applicant further stated that Interpretative Rules play a very important role in the classification of the goods.

3.2 What is Choline Chloride: The applicant submitted that Choline is a beta-hydroxyethyl trimethylammonium hydroxide and is categorized as an essential water-soluble B vitamin (vitamin B4). It is naturally present in plant and animal tissues. Like other vitamins, it plays a significant role in nutrition, but animals require choline to a greater extent than other B vitamins. Choline chloride is a white crystalline solid that is commonly marketed as an aqueous solution. It has a colorless liquid appearance with an amine-like odor. Choline chloride is available as a concentrate in aqueous solutions.

3.3 The applicant further submitted that Choline chloride is a quaternary ammonium salt with choline cation and chloride anion. It has a role as an animal growth promotant. Choline chloride is an organic compound with the formula (CH3)3NCH2CH20H]C1. It is bifunctional, containing both quaternary ammonium salt and an alcohol. The cation is choline, which occurs naturally. It is a white, water-soluble salt. Choline has a wide range of functions. The biochemical functions of choline feature three main aspects:

i) It serves as a methyl donor in transmethylation pathways (via betaine in the transmethylation pathway)

ii) It is required for the transmission of nerve impulses (precursor of acetylcholine, an important neurotransmitter).

iii) It is important for the maintenance of cell membrane and structure as an emulsifier to transport lipids (constituent of phospholipids).

3.4 The applicant further submitted the details of 'Choline Chloride 60% Corn Cob (Feed Grade)' forwarded by the manufacturer supplier M/s. Taian Havay Chemicals Co., Ltd., China containing various details such as properties, production methods, uses and applications, and health benefits. The same are reproduced below:

i. Choline Chloride 60% corn cob (feed grade) product used in animal feed as a compound. Content mainly corn cob as a carrier.

ii. Properties:

a. Appearance: Light brownish powder

b. Content of choline chloride: 60% by weight

c. Odor: Smell-light pungent smell.

iii. Production Methods: Choline chloride 60% corn cob is typically produced by spraying choline chloride liquid on corn cob powder (or rice husk or other agricultural waste product). Then it is dried in rotating kiln with hot blowing air. Choline chloride 60% corn cob is then forwarded to the conveyor belt and packed in 25 kg. bag with automatic machinery.

iv. Uses and Applications: Choline chloride 60% is commonly used as a supplement in animal feed, particularly for poultry, swine, and ruminants. It is essential for proper liver function, fat metabolism, and muscle development. It is an essential nutrient because animals cannot synthesize sufficient amounts of choline on their own.

v. Health Benefits:

a. Liver Health: Choline is crucial for liver function and helps in preventing non-alcoholic fatty liver disease (NAFLD).

b. Brain Health: Choline is vital for the synthesis of acetylcholine, which is essential for memory and cognitive functions. It is also crucial during foetal development for brain formation.

c. Fat Metabolism: Choline helps in breaking down fat and preventing its accumulation in the liver.

3.5 The applicant submitted that as per Explanatory notes of CTH 2309, it includes products of a kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristic of the original material, for example, in the case of products obtained from vegetable materials, those which have been treated to such an extent that the characteristic cellular structure of the original vegetable material is no longer recognizable under a microscope.

"General Notes:

This Chapter covers the various residues and wastes derived from vegetable materials used by food-preparing industries, and also certain products of animal origin. The main use of most of these products is as animal feeding stuffs, either alone or mixed with other materials, although some of them are fit for human consumption.

(C) PREPARATIONS FOR USE IN MAKING THE COMPLETE FEEDS OR SUPPLEMENTARY FEEDS DESCRIBED IN (A) AND (B) OF THE EXPLANATORY NOTES

These preparations, known in trade as "premixes", are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal production required. These substances are of three types:

(1) Those which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health: vitamins or provitamins, amino-acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc.

(2) Those designed to preserve the feeding stuffs (particularly the fatty components) until consumption by the animal: stabilisers, anti-oxidants, etc.

(3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soya flour or meal, middlings, yeast, various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates). The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogeneous dispersion and mixing of these substances in the compound feeds to which the preparations are added. Provided they are of a kind used in animal feeding. "

3.6 The applicant reproduced the relevant extracts of the CTH 2309 as below for ease of reference:

2309 Preparation of a kind used for animal feeding

2309 JO 00 - Dog or cat food, put up for retail sale

2309 90 - Other :

2309 90 10 — Compounded animal feed

2309 90 20 — Concentrates for compound animal feed

Feeds for fish (prawn, etc.) :

2309 90 31 — Prawn and shrimps feed

2309 90 32 — Fish feed in powdered form

2309 90 39 — Other

2309 90 90— Other

3.7 The Applicant submitted that Choline Chloride 60% Dry powder on corn cob carrier helps in the growth and optimum health of poultry birds. They further submitted that Choline chloride is available in different concentrations, with 60%, 70%, and 75% variations. The Choline Chloride 60% corn cob (feed grade) product is a premix that contains additives, such as corn cob and it is a dry powder that uses corn cob as a carrier. They further submitted that Choline Chloride 60% on Corn Cob is used as a feed supplement for animals, especially chickens. They further submitted that Choline chloride 60% premix is prepared by mixing choline chloride liquid with corn cob meal and drying it to a lower moisture content.

3.8 The Applicant submitted that on the imported Bags of the 'Choline chloride 60% corn cob (feed grade)' the following markings would be printed or label affixed by the supplier:

One Side of the Bag Printed -

"Choline chloride 60% Powder Feed Grade,

Manufacturer: Taian Havay Chemicals Co. Ltd.

Production base: Tai 'an Dawenkou Gypsum Industry Pak, Shandong, China.

Second Side of the Bag Label -

CHOLINE CHLORIDE (POULTRY FEED SUPPLEMENTS/NOT FOR MEDICINAL USE/ NOT FOR HUMAN USE)

NET WT: 25KG

PRODUCTION DA TE:

EXPIRY DATE:

LOT NO.:

MAD IN CHINA

3.9 The applicant further submitted that the imported consignment of 'Choline chloride 60% corn cob (feed grade)' would always be accompanied by a Health Certificate issued by the Entry-Exit Inspection and Quarantine of the People's Republic of China. The applicant submitted a sample copy of such Health Certificate, wherein it was mentioned by the Chinese authority that,

"the goods are in good sanitary condition, well stored and fit for animal consumption. Upon inspection the product can be used for animal feeding. This product does not contain any ingredient of animal origin including aquatic animal. "

3.10 The Applicant submitted that feed additives are used for increasing the existing nutritional efficiency that not only reduces the feeding expense of the poultry but also promotes healthy and timely growth of the poultry, swine, etc. The applicant submitted a copy of the literature and flowchart received from the manufacturer supplier M/s. Taian Havay Chemicals Co., Ltd., China wherein it is mentioned that, 'Choline Chloride 60% corn cob (feed grade)' in its feed grade form is primarily used as a dietary supplement in animal feed, particularly poultry, swine and ruminants.

3.11 The applicant further submitted that the subject goods viz. "Choline Chloride 60% on corn cob feed grade" is covered in "Vitamin Premix (Feed Grade)" in the Consolidated list of animal feed additives/ premix/ supplements for import into India notified by the Department of Animal Husbandry and Dairying vide Office Memorandum dated 21.12.2022 under F. No. L-l 10102(2)/2/2016-Trade
(E-246).

3.12 The applicant further submitted that CBIC issued instructions vide Instruction No. 34/2022 dated 30.12.2022 regarding the Consolidated list of animal feed additives/ premix/ supplements for import into India wherein it is mentioned that import of animal feed additives/ premix/ supplements will be regulated strictly. Further, From the said instructions issued by the CBIC, it can be concluded that the department has accepted the items mentioned in the Consolidated List issued by the Department of Animal Husbandry and Dairying as animal feed additives/ premix/ supplements and other than those mentioned in the consolidate list will not be allowed under the animal feed additives/ premix/ supplements.

3.13 The applicant further submitted that the subject goods viz. "Choline Chloride 60% corn cob (feed grade)' is excluded from Chapter 29 and reproduced the Relevant Chapter notes of 29 as below:

Note 1. Except where the context otherwise requires, the headings of this Chapter apply only to:

(a) Separate chemically defined organic compounds, whether or not containing impurities.

(A) Chemically defined compounds

(Chapter Note 1)

A separate chemically defined compound is a substance which consists of one molecular species (e.g., covalent or ionic) whose composition is defined by a constant ratio of elements and can be represented by a definitive structural diagram. In a crystal lattice, the molecular species corresponds to the repeating unit cell.

Separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter. Accordingly, a product consisting of saccharin mixed with lactose, for example, to render the product suitable for use as a sweetening agent is excluded (see Explanatory Note to heading 29.25).

3.14 The Applicant submitted that from the aforesaid explanatory notes and clarifications it is evident that, Chapter 29 contains separate chemically defined compounds (commonly known as pure chemicals) whether or not containing impurities, but any other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter. The applicant submitted that the subject goods is a premix preparation of Choline Chloride and Corn Cob and also is for a specific use in animal feed. After the premix, the goods do not remain in the form of a pure chemical or separate chemically defined compounds. Therefore, the subject goods are excluded from Chapter 29.

3.15 The applicant further submitted that the Tribunal Larger bench in the case of Tetragon Chemie (P) Ltd. V/s. Collector of C.Ex., Bangalore {2001(138) E.L.T.414 (Tri.-LB} had held that Heading 23.02 of CETA, 1985 has to be read and meant to extend the scope of the heading so as to include preparations not confined to those obtained by processing animal or vegetable material but to preparations containing synthetic material also -

'Product' and 'Preparation' - Meaning of - Different and distinct items - Preparation described under Heading 23.02 of Central Excise Tariff'Act, 1985 covered thereunder even if not obtained by processing vegetable or animal material, and containing synthetic material word 'includes' in Chapter Note of Chapter 23 ibid extending the scope and coverage of Chapter. - Note under Chapter 23 speaks of products' and Heading 23.02 speaks of preparations'. Preparations are different from products and if the term 'includes' was not there, there would have been difficulty in the application of the term 'products' to preparations. Hence, the term 'includes' enlarges the scope of Heading 23.02 and does not signify the phrase 'means and includes'. The preparations given under Heading 23.09 of HSN are clearly defined and show the contents leaving no ambiguity or doubt and shall have to be given the importance they deserve. In the absence of any definition given in the enactment, the meaning of the term in common parlance has to be adopted. In the instant case, the preparations have been clarified and specified under Heading 23.09 of HSN which has been adopted under Heading 23.02 of CETA, 1985 and hence the statute is clear in so far as preparations are covered. These preparations may contain minerals, vitamins, proteins etc. Therefore, the note of Heading 23.02 of CETA, 1985 has to be read and meant to extend the scope of heading so as to include preparations not confined to those obtained by processing animal or vegetable material but to preparations containing synthetic material also, [paras 83, 89, 90]

Animal feed - Preparations of kind used in animal feeding consisting of one or more vitamins mixed with diluents to be considered as animal feed and classifiable under Heading 23.02 of Central Excise Tariff Act, 1985. - There is no limiting factor in the chapter Note so as to restrict its meaning. On the contrary, Heading 23.02 of CETA, 1985 corresponds to Heading 23.09 of HSN. Explanatory Note under Heading 23.09 of HSN speak of various preparations which contain minerals, vitamins, carbohydrates, proteins etc. These Explanatory Notes of HSN clearly speak offeed additives andfeed supplements. According to these Notes, animal feed additives and animal feed supplements are preparations meriting classification under Heading 23.09 of HSN which corresponds to Heading 23.02 of CETA, 1985. These preparations known in the trade as premixes' are generally speaking compound compositions consisting of a number ofsubstances (sometimes called additives) the nature and proportions of which vary according to the animal production required. This clearly shows that in so far as preparations mentioned under Heading 23.09 of HSN are concerned, they include synthetic materials also. The technical literature clearly brings out that animal feed stuff is that part of the feed which is essential for the maintenance of life which has been termed 'ration'. Animal feed is supplemented by addition of proteins, vitamins, carbohydrates etc. to make it a complete feed. Analysis of the technical literature brings out that preparations containing vitamins, proteins, carbohydrates, minerals etc. are feed additives or supplementary feeds for animals. The labels affixed on the preparations for the purpose of sale, certificates by Experts and Manufacturers' Association and the Affidavits by the Users/Dealers clearly indicate that the preparations are animal feed supplements. Since the preparations comprise not only of vitamins, in addition, they contain carbohydrates, proteins, minerals etc. in terms of Circular No. 1/90 dated 1-1-1990, they will not be classifiable under Heading 29.36. The clarification of the circular confirms the fact that if end use unequivocally shows that the preparation is known in the trade as animal feed supplement, it should be treated as animal feed supplement. The description ofpreparation under Heading 23.09 of HSN clearly show that the preparations may contain synthetic ingredient also. [1988 (36) E.L. T 479; 1997 (93) E.L.T. 641; 1984 (16) E.L.T. 467; 1995 (77) E.L.T. 23 (S.C); 1979 (43) STC 386; relied on], [paras 72, 73, 95, 97, 98, 101, 112]

Further, it was confirmed by the Hon'ble Supreme Court in the case of Ranbaxy Laboratories Ltd. V/s. Collector {2006(193) E.L.T.A92 (S.C.)} that, - Pentaforte and Famitone — Synthetic preparations containing mixtures of vitamins as active ingredients — Classifiable under Excise Heading 23.02.

3.16 The Applicant submitted that the Tribunal in the case of SMZS Chemicals Ltd. V/s. Commissioner of Central Excise, Raigad (2006(193) E.L.T.346 (Tri. - Mumbai} had held that 'Choline Chloride as animal feed' is classified under CTH 23.20 -

Animal feed supplement - Choline Chloride manufactured by appellant classifiable as animal feed under Heading 23.20 of Central Excise Tariff even if made synthetically. - Preparations described under Heading 23.20 of Central Excise Tariff cover even those products which are obtained by processing vegetable or animal material because the word 'includes' in chapter note of Chapter 23 extends the scope and coverage of this Chapter. Further, Hawley's Condensed Chemical Dictionary describes Choline chloride as animal feed additive derived from agricultural waste or made synthetically. In view of this position, the Commissioner's contention that because the product is synthetic it is not an animal feed supplement cannot be upheld. [2001 (138) E.L. T. 414 (Tribunal-LB) relied on], [para 3]

3.17 The applicant further submitted that the Hon'ble Bombay High Court in the case of M/s. Glindia Limited v. U.O.I. [1988 (36) E.L.T. 479] while citing the judgment in the case of Glaxo Labs (I) Limited decided by the Hon'ble Gujarat High Court, observed that the Hon'ble Gujarat High Court was required to consider whether certain vitamin products which were used for supplementing the feed for cattle and poultry should be classified as cattle feed in terms of the meaning of entry 21 of Schedule 1 of Gujarat Sales Tax Act, 1969 or as entry No. 22 of Schedule 1 of the said Act. The Hon'ble Gujarat High Court had held that the term cattle and poultry feed must include not only that, food which is supplied to domestic animals or birds as an essential ration for the maintenance of life, but also that feed which is supplied over and above the maintenance requirements for growth or fattening and for production purposes.

3.18 The applicant further submitted that Note to Chapter 23 states that, "Heading 2309 includes products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing". They submitted that this chapter note is inclusive in nature and it is clear that the heading covers other items and also includes products obtained by processing vegetable or animal material, not elsewhere specified or included. This view is supported by the Tetragon Chemie (P) Ltd. v. Collector of C. Ex., Bangalore, wherein it was held that there is no limiting factor in the said chapter note so as to restrict its meaning.

3.19 The applicant submitted that as per the HSN explanatory notes to the Heading 2309, the heading covers sweetened forage and prepared animal feeding stuff consisting of a mixture of several nutrients designed:

(1) to provide the animal with a rational and balanced daily diet (complete feed):

(2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed): or

(3) for use in making complete or supplementary feeds.

3.20 The Applicant submitted that the first type of animal feedstuff, i.e. complete feed, contains energy nutrients, bodybuilding protein nutrients or minerals and function nutrients; the second type of animal feedstuff, i.e., secondary feed, is the preparations devised to compensate for deficiencies, so as to ensure a well-balanced animal diet, consisting of proteins, minerals or vitamins plus additional-energy feeds and the third type is used for making complete or supplementary feeds. The product in question is stated to belong to the aforesaid categories of food supplements.

3.21 The applicant submitted that for the identity of the product, the manufacturer supplier has declared in their literature that it is for animal feed. The supplier in their literature has categorically mentioned that the impugned products is a dietary supplement in animal feed, particularly for poultry, swine, and ruminants. Further, In the trade parlance, the impugned product is commonly known as products for specific use in animal feeding i.e. dietary supplement to animal feed. They further submitted that it is always mentioned in the imported goods packing bag as 'Poultry Feed Grade' or 'Poultry Feed Supplements' and Chinese authorities' health certificate also certifies fit for animal feeding.

3.22 The applicant submitted that heading 2309 is an end-use-based heading and placed his reliance on the decision of Hon'ble Tribunal in the case of Tetragon Chemie (P) Ltd. v. Collector of Central Excise, Bangalore - 2001 (138) E.L.T. 414, wherein it was held that end-use assumes importance in determining the classification of goods under Heading 2302 of CETA, 1985. The same is because the description of the goods under Heading 2302 reads as 'Preparations of a kind used for animal feeding including cat and dog food'. The heading specifically states that the preparations must be used for animal feeding. The applicant submitted that therefore, Heading 2302 is an end-use-based heading. They further submitted that it must be noted that Heading 2302 of CETA, 1985 is akin to Heading 2309 of the Customs Tariff Act, 1975. The applicant submitted that after considering technical literature, the end-use certificate issued by the dealer, HSN explanation, definitions of animal feed and clarification contained in the Board's circular, the Hon'ble Tribunal concluded in Para 135 of the said judgment as under:

"Having regard to the discussions in the preceding paragraphs, what has to be seen is as to whether, in this case before us, any such clinching evidence of common trade understanding has been placed on record so as to put the matter beyond all possible doubt and justify the respondent's contention for ignoring any type of reference to technical literature, On a commutative reading of the record, we reply in the affirmative. We certainly also take into consideration the principles laid down by the Hon 'ble Supreme Court in the Sun Exports Corporation's case. There is a treasure of valuable wealth placed on record by the Appellants to support the view that preparations in dispute are preparations squarely falling in those preparations given under Heading 23.09 of HSN which corresponds to Heading 23.02 of CETA, 1985. We feel that Explanatory notes to the HSN are representative and symbolic of the common trade parlance and these notes particularly those under Heading 23.09 also throw light on the question that pre-mixes including those containing mineral substances and vitamins or provitamins, trace elements, appetisers, soya flour or meal, yeast, etc. are covered by it. We think that the test laid down by the Hon 'ble Bombay High Court in the case of Chemical Fibres [1982 E.L.T. 917] is a safer and reliable test where the evidence of trade usage is not beyond doubt, then a reference to technical literature cannot be precluded. In regard to Niger Seed/Rice Bran extractions, we hold that they are animal feed. "

3.23 The applicant submitted that in Para 12 in the case of Tetragon Chemie (P) Ltd. v. Collector of Central Excise, Bangalore - 2001 (138) E.L.T. 414, it was held that,-

"wherein Animal Feed has been commented upon in the Encyclopedia Brittanica, Volume 9, Page No. 144 as Feeds Animal' are material on which animals are fed differ widely in chemical composition and nutritive value. For convenience they are divided into two general classes: Concentrates and Roughages. Concentrates include a large variety of feeds that have a high value because they are rich in easily digested nutrients, such as starch, fat and protein and are low in fibre or woody material which is not well digested. Roughages have a much lower value because they are relatively high in fibre and contain less of the more digestible nutrients. Good nutrition is necessary if animals are to be able to maintain health and produce satisfactory amounts of milk, eggs, meat, wool or work. Animals require each day food furnishing sufficient amount of protein, energy, vitamins. Plenty of water and air are also needed. Dealing in detail with the role of vitamins in animal feed, the learned authors have pointed out that the numerous scientific discoveries concerning vitamins had a profound effect upon livestock farming by increasing the efficiency of animal production and preventing serious nutritional diseases."

3.24 The applicant further submitted that the Paras 7, 8 & 12 of the Notification in Case No. ADD- OI-12/2019 dated 25.08.2020 issued vide F. No. 6/18/2019-DGTR regarding Final Findings in the anti-dumping investigation concerning imports of "Choline Chloride in all forms" originating in or exported from China PR, Malaysia, and Vietnam states as under:

C.3. Examination by the Authority:-

Para 7: The submissions made by the domestic industry and other interested parties with regard to the product under consideration and like article-related issues have been examined.

Para 8:The product under consideration in the present application is "Choline Chloride in all its forms". Is produced in two broad forms - (a) liquid choline chloride falling under Chapter 29 and (b) choline chloride compound animal feed falling under Chapter 23. Liquid Choline Chloride is classifiable under 29231000 while dry Choline Chloride is classifiable under 23099010 as animal compoundfeed of the Customs Tariff Act, 1975. However, imports of subject goods have been reported under Customs Tariff headings 23099010, 23099020, 23099090, and 29231000.

Para 12: As regards customs classification, the Authority notes that dry Choline Chloride is under Chapter 23 only because it is an animal compound feed, and considering the application, it is classifiable under Chapter 23. The customs classification is essentially for the facilitation of imports and the mere fact that liquid Choline Chloride is classifiable under 29231000 while dry Choline Chloride is classifiable under 23099010 does not render them dislike articles for the present purposes. Both the customs classifications were considered in the previous two investigations as well.

3.25 The Applicant submitted that the subject goods .'Choline Chloride 60% Corn Cob (Feed Grade)' is a dry powder and an important compound in animal nutrition; and is used as a supplement in animal feed. Therefore, it is properly and correctly classifiable under CTI 23099020.

3.26 The Applicant submitted that the impugned product is commonly known in the trade parlance as products for specific use in animal feeding i.e. dietary supplement to animal feed. The manufacturer M/s. Taian Havay Chemicals Co. Ltd., in their literature, has mentioned it as a 'dietary supplement for animals, particularly in livestock and poultry industries', and on printed bags/labels of the imported Bags, it is mentioned as 'Poultry Feed Grade' or 'Poultry Feed Supplements'.

3.27 The applicant submitted that from the above, it is evident that the product is sold as animal feed for the nutritional needs of the livestock and poultry industries. A sample health certificate issued by the Chinese Government authority certifies that these products are fit for animal consumption and fit for animal feeding. Further, as per the letter issued by the Department of Animal Husbandry, Dairying and Fisheries, dated 21.12.2022 alongwith the consolidated list, the impugned goods are a feed grade (Vitamin Premix). Also, as per the ADD Notification dated 5.08.2020 the dry choline chloride is classifiable under CTH 2309. They submitted that therefore, on the basis of the aforesaid grounds, facts, case laws, etc. it is evident that the said products are used for animal feed. These products are not covered under the exclusion list provided in the HSN Explanatory Notes for Chapter 23. In light of the above, the product merits classification under Heading 2309 and specifically under sub-heading 2309 9020 as 'Concentrates for compound animal feed'.

3.28 The applicant further submitted that the Bureau of Customs, Philippines Advance Ruling No. 23-634 dated 15.09.2023 on Tariff Classification supports the case that 'Choline Chloride 60% in Corn Cob Carrier' is rightly classifiable under Customs Tariff Item 2309.90.20.

4. Port of Import and reply from Jurisdictional Commissionerate

4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. Short Block Sub-Assembly at the jurisdiction of office of Principal Commissioner of Customs, NS-I, JNCH and at the jurisdiction of office of Principal Commissioner/Commissioner of Customs(Imports), Chennai-II. In terms of Provisions of the Section 28-1(1) of the Customs Act, 1962 read with the Sub-regulation No. (7) of the Regulation No. 8 of the Customs Authority for Advance Rulings Regulations, 2021, the application was forwarded to the office of Principal Commissioner of Customs, NS-I, JNCH and to the office of Principal Commissioner/Commissioner of Customs(Imports), Chennai-II on 21.01.2025 as indicated by the applicant at Sr. No. 13 of their CAAR-1 Forms calling upon them to furnish the relevant records with comments, if any, in respect of the said application.

4.2 NS-I Commissionerate, JNCH vide their letter dated 05.03.2025 submitted as under:

A. Overview of the Applicant's Submission: The applicant has submitted that Choline Chloride, 60% in com cob (feed grade), is primarily a feed supplement used in the livestock and poultry industries. The applicant asserts that this product should be classified under CTH 2923 1000, which pertains to Choline Chloride, based on its chemical composition, purity, and classification principles under Chapter 29 of the Customs Tariff. The contention is that classifying it under CTH 2309 9020 (animal feed) would be incorrect, as it would fail to consider the product's actual chemical nature.

i. Chemical Nature vs. End-Use: The classification of a product under the Customs Tariff is primarily based on its chemical nature and composition, rather than its intended use. The applicant emphasizes that although Choline Chloride is used as a feed supplement, it remains a pure chemical compound and should, therefore, be classified under Chapter 29 rather than as a compound animal feed under Chapter 23.

ii. Significance of Chapter 29: Chapter 29 specifically deals with separate chemically defined organic compounds, which aligns with the nature of Choline Chloride. As a pure chemical, it should be classified under CTH 2923 1000, which pertains to alcohols and their derivatives, rather than under CTH 2309 9020, which is designated for compound animal feeds containing a mixture of ingredients.

iii. Support from Precedent Case Laws: The Hon'ble Tribunal in Tetragon Chemie Pvt. Ltd. v. Collector of Central Excise, Bangalore (2001 (138) E.L.T. 414) held that classification should be determined based on the chemical composition of the product rather than its end-use. This decision provides strong support for the applicant's claim.

B. Chemical Nature of Choline Chloride and Classification under CTH 2923 1000

i. Pure Chemical Compound: Choline Chloride is an organic compound (C5H14C1NO), recognized as a separate chemically defined substance. It is produced synthetically and remains unchanged in its composition when used as a feed supplement.

ii. Alignment with Chapter 29: Chapter 29 specifically covers separately defined organic compounds, whether or not they contain impurities. Since Choline Chloride maintains its specific molecular identity and chemical composition, it squarely falls under CTH 2923 1000, which pertains to other alcohols, phenols, and phenol-alcohols.

iii. Precedent Case Law: The Tetragon Chemie Pvt. Ltd. v. Collector of Central Excise case underscores that Choline Chloride, being a pure chemical, cannot be classified as an animal feed product under Chapter 23. The Tribunal reinforced that classification should be based on the inherent chemical characteristics rather than how the product is used.

iv. Judicial Consistency: The Tribunal in M/s. S.M.I.S. Chemicals Ltd. v. Commissioner of Central Excise (2006 (193) E.L.T. 346) further held that Choline Chloride, even when used in animal feed, is a synthetic chemical and must be classified under Chapter 29.

C. The Role of End-Use in Classification - Misclassification Under CTH 2309 9020

i. Misconception Regarding End-Use: While Choline Chloride is used in animal feed, this does not alter its chemical classification. End-use should not determine classification for a chemically pure substance. Chapter 23 deals with prepared animal feeds and premixes, which Choline Chloride is not.

ii. Supreme Court Ruling: In Ranbaxy Laboratories Ltd. vs. Collector (2006 (193) E.L.T. A92), the Supreme Court ruled that mixtures of vitamins and nutrients fall under Chapter 23 only when they are premixed compounds. Since Choline Chloride remains a standalone chemical substance, it should not be classified under CTH 2309 9020.

iii. HSN Guidelines: The HSN Explanatory Notes for Heading 2309 confirm that products classified under this heading are compound animal feeds, consisting of mixed or blended nutrients. Pure chemicals are explicitly excluded, further reinforcing that Choline Chloride should be classified under CTH 2923 1000.

D. Distinction Between Pure Chemicals and Animal Feed Mixtures

i. Chapter 23 Covers Compound Feeds: CTH 2309 9020 applies to compound animal feeds, premixes, and feed preparations containing multiple ingredients. Choline Chloride, being a single chemically defined compound, is not a mixture of nutrients and does not fit within this category.

ii. Chapter 29 Covers Defined Chemical Compounds: The chemical integrity of Choline Chloride remains intact regardless of its use in animal feed. The Tribunal in Tetragon Chemie Pvt. Ltd. held that unless mixed with other substances, a pure chemical should not be classified under Chapter 23.

E. Duty Structure Comparison: CTH 2309 9020 vs. CTH 2923 1000

i. CTH 2309 9020 (Animal Feed Premixes): Attracts a lower customs duty (BCD 15%, SWS 10%, IGST 0%, effective rate of duty = 16.5%) as it pertains to compound animal feeds.

ii. CTH 2923 1000 (Choline Chloride as a Chemical): Attracts higher customs duty (BCD 7.5%, SWS 10%, IGST 18%, effective rate of duty = 27.735%), as applicable to synthetic chemicals.

iii. Rationale for Higher Duty: The customs duty for chemicals under Chapter 29 is structured to account for their synthetic origin and industrial applications, reinforcing the classification of Choline Chloride under CTH 2923 1000.

F. International Precedents and Trade Understanding

i. Bureau of Customs, Philippines Advance Ruling: The Bureau of Customs in the Philippines ruled that Choline Chloride mixed with other ingredients falls under CTH 2309.90.20. However, pure Choline Chloride remains classified under Chapter 29, supporting the applicant's contention.

ii. Industry Practice: Trade and industry experts recognize Choline Chloride as a chemical additive rather than a compound feed, reinforcing its correct classification under CTH 2923 1000.

G. Conclusion - Choline Chloride is Rightly Classifiable under CTH 2923 1000 Based on the above analysis, Choline Chloride, a separate chemically defined compound, should be classified under CTFI 2923 1000 and not under CTH 2309 9020.

i. Customs Tariff Guidelines: Chapter 29 explicitly covers pure chemicals, while Chapter 23 covers compound feeds and mixtures. Choline Chloride, in its pure form, is not a feed mixture.

ii. Legal Precedents: Judicial rulings, including Tetragon Chemie Pvt. Ltd. and M/s. S.M.I.S. Chemicals Ltd., establish that pure chemicals used as feed additives must be classified under Chapter 29.

iii. HSN and Trade Understanding: HSN Explanatory Notes and international trade practices support the classification of pure Choline Chloride under Chapter 29.

iv. Duty Structure Justification: The higher customs duty applicable under CTH 2923 1000 reflects the classification of Choline Chloride as a synthetic chemical rather than an animal feed mixture.

Thus, the classification of Choline Chloride under CTH 2923 1000 is the most appropriate, legally justified, and in accordance with trade practice

4.3 Further reminders were issued to Chennai-II Commissionerate on 07.02.2025,21.03.2025 and 09.04.2025. However, no reply, till date, has been received in this office.

5. Rebuttal by the Applicant

5.1 The comments received from the NS-I Commissionerate, JNCH were forwarded to the Applicant for Rebuttal. The applicant in its reply dated 18.03.2025 submitted that the application is very consistent with the HSN explanatory notes, Chapter notes, case laws, CBIC Instruction No. 34/2022 dated 30.12.2022 - Instruction regarding the Consolidated list of animal feed additives/ premix/ supplements for import into India wherein it is mentioned that import of animal feed additives/ premix/ supplements will be regulated strictly and the classification of the subject goods determined in the Notification in Case No. ADD-OI-12/2019 dated 25.08.2020 issued vide F. No. 6/18/2019-DGTR regarding Final Findings in the anti-dumping investigation concerning imports of "Choline Chloride in all forms" originating in or exported from China PR, Malaysia, and Vietnam.

5.2 The Applicant further submitted that the impugned product is commonly known in the trade parlance as products for specific use in animal feeding i.e. dietary supplement to animal feed. The manufacturer M/s. Taian Havay Chemicals Co. Ltd., in their literature, has mentioned the product as a 'dietary supplement for animals, particularly in livestock and poultry industries'. On printed bags/labels of the imported Bags, it is mentioned as 'Poultry Feed Grade' or 'Poultry Feed Supplements'. From the above, it is evident that the product is sold as animal feed for the nutritional needs of the livestock and poultry industries. Further, as per the letter issued by the Department of Animal Husbandry, Dairying, and Fisheries, dated 21.12.2022 alongwith the consolidated list, the impugned goods are a feed grade (Vitamin Premix). Also, as per the ADD Notification dated 5.08.2020 the dry choline chloride is classifiable under CTH 2309. Therefore, on the basis of the aforesaid grounds, facts, case laws, etc. it is evident that the said products are used for animal feed. These products are not covered under the exclusion list provided in the HSN Explanatory Notes for Chapter 23. The applicant submitted that in light of the above, the product merits classification under Heading 2309 and specifically under sub-heading 2309 9020 as 'Concentrates for compound animal
feed'.

5.3 The applicant reiterated the contents of the application in support of its case regarding classification of Choline Chloride 60% on Corn Cob.

6. Records of Personal Hearing

5.1 A personal hearing was held on 09.04.2025. Shri Lawrence Tauro, Advocate appeared for personal hearing in the matter. He reiterated the submission filed with the application and submitted that the subject import good 'Choline Chloride 60% Corn Cob (Feed Grade) 25 kg.' is used in animal feed/Premix as food supplements and therapeutic use and merit classification under CTI- 23099020. He relied upon Ministry of Fisheries, Animal Husbandry Dairying OM dated 21.12.2022 and Board instruction 34/2022 dated 30.12.2022T He submited a copy of rebuttal on the comments received from the jurisdictional field authority. He also cited some case laws in their support viz- (i) SMZS Chemicals Ltd., (ii) Tetragon Chemie (P) Ltd. (Supra)
    Nobody appeared from the department for the PH.

7. Discussions and Findings

7.1 I have considered all the materials placed before me in respect of the classification of subject goods. I have gone through the submissions made by the applicant during the personal hearing as well as the reply received from the jurisdictional Commissionerate and its rebuttal by the applicant. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework.

7.2 The applicant has sought advance ruling in respect of the following questions:

Question: Whether the goods sought to be imported, viz. 'Choline Chloride 60% Corn Cob (Feed Grade) (Powder Form in 25 kg Bags)' will be classified under Customs Tariff Item (CTI) 23099020 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)?

7.3 At the outset, I find that the issue raised at the Sr. No. 08 in the CAAR-1 form is squarely covered under Section 28H(2) of the Customs Act, 1962 being a matter related to the classification of goods i.e. Choline Chloride 60% on Corn Cob.

7.4 The applicant submitted that the product i.e. Choline Chloride 60% on Corn Cob is commonly used as a supplement in animal feed, particularly for poultry, swine, and ruminants. It is essential for proper liver function, fat metabolism, and muscle development.

7.5 Before deciding on the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/Section notes along with HSN explanatory notes. Classification of goods in the Harmonized System of Nomenclature (HSN) is governed by the General Rules for the interpretations. Rule 1 of the General Rules for the Interpretation of the Import Tariff to the Customs Tariff Act, 1975 stipulate that for legal purposes, the classification of the import item shall be determined according to the terms of the headings and any relative Section or Chapter Notes.

7.6 In this case, there are two competing headings i.e. 2309 "Preparation of a kind usedfor animal feeding" and 2923 "Quaternary Ammonium salts and hydroxides; Lecithins and other phosphoaminolipids, whether or not chemically defined". The issue before me to decide is whether the product i.e. Choline Chloride 60% on Corn Cob should be classified as a preparation used for animal feeding or as a separate chemically defined compound.

7.7 To arrive at a decision regarding classification of the product i.e. Choline Chloride 60% on Corn Cob, I find it essential to first understand the product in regards to its composition, uses and utilities and how the presence of a carrier i.e. Corn Cob changes its composition, uses and utilities.

7.7.1 I find that Choline Chloride is an organic compound with the formula [(CH3)3NCH2CH20H]+C1-. It is a quaternary ammonium salt, consisting of choline cations ([(CH3)3NCH2CH20H]+) and chloride anions (C1-). It is primarily used as a key additive in animal feed, especially for poultry, to accelerate growth.

7.7.2 I find that Choline chloride 60% corn cob is a dry, granular feed-grade preparation comprising
of:

• Choline Chloride (60%): A quaternary ammonium salt (CsH₁₄ClNO), widely recognized as an essential micronutrient for animal growth and metabolism.
   

• Corn Cob Powder (40%): A natural, inert carrier material used to convert hygroscopic liquid choline chloride into a stable, free-flowing dry formulation suitable for feed mixing.

7.7.3 I further find that it is a feed grade supplement used in animal feed to provide choline, a vital nutrient for animal health and growth. It's essentially a dry powder of choline chloride, formulated with a 60% concentration of the active ingredient, and uses corn cob as an inert carrier that serves as a diluent and delivery medium. This form is commonly used in animal and poultry feed to promote growth, enhance liver function, support fat metabolism, improve immunity, and prevent conditions like fatty liver syndrome. It is used in compound feed and premixes for poultry, swine, cattle, and aquaculture. I further find that the presence of corn cob powder renders the product dust-free, flowable, and easier to mix into feed formulations and makes the product suitable for bulk handling, packaging, and storage in agricultural settings. This product is exclusively used in the animal feed industry, particularly for poultry, swine, ruminants, and aquaculture.

7.8 After understanding the product, I come to the question of classification of product i.e. Choline Chloride 60% on Corn Cob. I observe that for a product to be able to classify under Chapter 29 "Organic Chemicals", The product needs to satisfy the criterion laid down in Note 1 of the Chapter. The same is reproduced below for ease of reference:

"1. Except where the context otherwise requires, the headings of this Chapter apply only to :

(a) separate chemically defined organic compounds, whether or not containing impurities;

(b) mixtures of two or more isomers of the same organic compound (whether or not containing impurities), except mixtures of acyclic hydrocarbon isomers (other than stereoisomers), whether or not saturated (Chapter 27);

(c) the products of headings 2936 to 2939 or the sugar ethers, sugar acetals and sugar esters, and their salts, of heading 2940, or the products of heading 2941, whether or not chemically defined;

(d) the products mentioned in (a), (b) or (c) above dissolved in water;

(e) the products mentioned in (a), (b) or (c) above dissolved in other solvents provided that the solution constitutes a normal and necessary method of putting up these products adopted solely for reasons of safety or for transport and that the solvent does not render the product particularly suitable for specific use rather than for general use;

(f) the products mentioned in (a), (b), (c), (d) or (e) above with an added stabiliser (including an anti-coking agent) necessary for their preservation or transport;

(g) the products mentioned in (a), (b), (c), (d), (e) or (f) above with an added anti-dusting agent or a colouring or odoriferous substance *or an emetic added to facilitate their identification or for safety reasons, provided that the additions do not render the product particularly suitable for specific use rather than for general use;

(h) the following products, diluted to standard strengths, for the production of azo dye: diazonium salts, couplers used for these salts and diazotisable amines and their salts. "

7.8.1 Further, the HSN Explanatory Notes for Note 1 of the Chapter 29 defines chemically defined compounds as under:

"(A) Chemically defined compounds (Chapter Note 1)

A separate chemically defined compound is a substance which consists of one molecular species (e.g., covalent or ionic) whose composition is defined by a constant ratio of elements
and can be represented by a definitive structural diagram. In a crystal lattice, the molecular species corresponds to the repeating unit cell.

Separate chemically defined compounds containing other substances deliberately added during or after their manufacture (including purification) are excluded from this Chapter.Accordingly, a product consisting of saccharin mixed with lactose, for example, to render the product suitable for use as a sweetening agent is excluded (see Explanatory Note to heading 29.25).

The separate chemically defined compounds of this Chapter may contain impurities (Note 1 (a)). An exception to this rule is created by the wording of heading 29.40 which, with regard to sugars, restricts the scope of the heading to chemically pure sugars. "

7.8.2 From the above, I gather that only pure chemically defined compounds are to be classified under this chapter. Further, I find that addition of any other substance deliberately into a pure chemically defined compound would render the same out of the purview of this chapter. In the instant case, Choline chloride liquid is sprayed on Corn Cob Powder deliberately with a view to make it suitable as Animal Feed. Since the addition of Corn Cob Powder as an inert carrier renders the product suitable for a specific use i.e. as Animal Feed, the same gets excluded from the purview of the Chapter 29 as it fails to satisfy the criterion laid down in the Note 1 to the Chapter 29. Therefore, I find that the product cannot be classified under Chapter 29 and more specifically under Heading 2923 as it is not a separate chemically defined compound.

7.9 I have further gone through the relevant Section Notes, Chapter Notes, HSN Explanatory Notes and Heading Text of Heading 2309. Note 1 of the Chapter 23 states as under:

1- Heading 23.09 includes products of a kind used in animal feeding, not elsewhere specified or included, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, other than vegetable waste, vegetable residues and by-products of such processing.

7.9.1 Further, I find that the HSN Explanatory Notes for heading 2309 "preparation of a kind used in animal feeding" states as under:

"This heading covers sweetened forage and prepared animal feeding stuffs consisting of a mixture of several nutrients designed:

(1) to provide the animal with a rational and balanced daily diet (complete feed);

(2) to achieve a suitable daily diet by supplementing the basic farm-produced feed with organic or inorganic substances (supplementary feed); or

(3) for use in making complete or supplementary feeds.

The heading includes products of a kind used in animal feeding, obtained by processing vegetable or animal materials to such an extent that they have lost the essential characteristics of the original material, for example, in the case of products obtained from vegetable materials, those which have been treated to such an extent that the characteristic cellular structure of the original vegetable material is no longer recognisable under a microscope

7.9.2 Further, I find that the HSN Explanatory Notes for heading 2309 describes the other prepared
animal feeding stuffs as under:

"(II) other preparations

(a) preparations designed to provide the animal with all the nutrient elements required to ensure a rational and balanced daily diet (complete feeds)

(b) preparations for supplementing (balancing) farm-produced feed (feed supplements)

(c) preparations for use in making the complete feeds or supplementary feeds described in (a) and (b) above "

7.9.3 Further, I find that the HSN Explanatory Notes for heading 2309 describes the preparations for use in making the complete feeds or supplementary feeds as under:

"These preparations, known in trade as "premixes", are, generally speaking, compound compositions consisting of a number of substances (sometimes called additives) the nature and proportions of which vary according to the animal production required. These substances are of three types:

(1) Those which improve digestion and, more generally, ensure that the animal makes good use of the feeds and safeguard its health: vitamins or provitamins, amino-acids, antibiotics, coccidiostats, trace elements, emulsifiers, flavourings and appetisers, etc.

(2) Those designed to preserve the feeding stuffs (particularly the fatty components) until consumption by the animal: stabilisers, anti-oxidants, etc.

(3) Those which serve as carriers and which may consist either of one or more organic nutritive substances (manioc or soya flour or meal, middlings, yeast, various residues of the food industries, etc.) or of inorganic substances (e.g., magnesite, chalk, kaolin, salt, phosphates).

The concentration of the substances described in (1) above and the nature of the carrier are determined so as to ensure, in particular, homogeneous dispersion and mixing of these substances in the compound feeds to which the preparations are added. "

7.9.4 Further, I find that although the exclusions mentioned in HSN explanatory notes mentions products of Chapter 29, however, as already discussed above in Para 7.8, the product i.e. Choline Chloride 60% on Corn Cob cannot be classified under Chapter 29 due to the deliberate addition of Corn Cob which renders goods especially suitable for use in Animal feed.

7.9.5 From the above, I observe that the Heading 2309 includes not only just complete animal feed or animal feed supplements, but also preparations, also known as premixes consisting of one or more organic nutritive substance, which in this case is Choline Chloride. Therefore, I find that Choline Chloride 60% on Corn Cob merits classification under Heading 2309 as it is primarily an Animal Feed Preparation.

7.10 I further find that the Department of Animal Husbandry and Dairying (DAHD) in the interest of strict regulation of import of animal feed additives / premix / supplements issued an Office Memorandum No. L-l 10102(2)/2/2016-Trade (E-246) dated 21.12.2022 enclosing a consolidated list of recommended animal feed additives, premix and feed supplements for import in India. The relevant extract of the list vis-a-vis the product i.e. Choline Chloride 60% on Corn Cob is reproduced below:

7.11 Further, I find that Central Board of Indirect Taxes and Customs (CBIC) vide Instruction No. 34/2022 dated 30.12.2022 [F.NO. 401/92/2022-CUS-III] have referred the Office Memorandum No. L-110102(2)/2/2016-Trade (E-246) dated 21.12.2022 issued by the Department of Animal Husbandry and Dairying (DAHD) while instructing for sensitizing officers regarding the consolidated list of animal feed additives /premix/ supplements for Import into India.

7.12 From the above, I find that the product i.e. Choline Chloride 60% on Corn Cob has been included in the list of the Animal feed additives / premix / supplements for Import into India by the Department of Animal Husbandry and Dairying. I further find that the in the Consolidated list, the product has been categorized as "Vitamin Premix". Further, I find that HSN Explanatory Notes for Heading 2309 clearly covers premix consisting of one or more organic or inorganic substance. Therefore, I find that the product i.e. Choline Chloride 60% on Corn Cob merits classification under Heading 2309.

7.13 Further, I have also gone through the Final Findings of the Directorate General of Trade Remedies issued vide Notification dated 25.08.2020 under Case No. ADD-OI-12/2019 in Anti-dumping investigation concerning imports of "Choline Chloride in all forms" originating in or exported from China PR, Malaysia and Vietnam. Para 12 of above referred Final Findings observes that:

"As regards customs classification, the Authority notes that dry Choline Chloride is under Chapter 23 only because it is an animal compound feed, and considering the application, it is classifiable under Chapter 23. The customs classification is essentially for the facilitation of imports and the mere fact that liquid Choline Chloride is classifiable under 29231000 while dry Choline Chloride is classifiable under 23099010 does not render them dislike articles for the present purposes. Both the customs classifications were considered in the previous two investigations as well."

7.14 From the above, I observe that a distinction has been made by the authority while discussing the Customs Classification between the dry Choline Chloride and liquid Choline Chloride on the basis of their use as an animal compound feed. I further observe that the Authority clarified that dry Choline Chloride is classified under Chapter 23 solely due to its use as animal feed, while liquid Choline Chloride falls under Chapter 29.

7.15 I further find that the Tribunal Larger bench in the case of Tetragon Chemie (P) Ltd. V/s. Collector of C. Ex., Bangalore {2001(138) E.L.T.414 (Tri.-LB} had held that the note of Heading 23.02 of CETA, 1985 has to be read and meant to extend the scope of heading so as to include preparations not confined to those obtained by processing animal or vegetable material but to preparations containing synthetic material also. It was further held that preparations mentioned under Heading 23.09 of HSN include synthetic materials also.

7.16 I further find that Tribunal in the case of SMZS Chemicals Ltd. V/s. Commissioner of Central Excise, Raigad {2006(193) E.L.T.346 (Tri.-Mumbai} had observed that preparations described under heading 23.02 cover even those products which are obtained by processing vegetable or animal material and containing synthetic material because of the word "includes" in chapter note of Chapter 23 extends the scope and coverage of the chapter and held that "Choline Chloride as animal feed additive is classifiable under heading 2302 of Central Excise Tariff which corresponds to Heading 2309 of HSN (Harmonized System of Nomenclature).

7.17 In view of above, I find that 'Choline chloride 60% Corn Cob (Feed Grade) is a preparation meant for animal feeding. Further the department has not contended that the subject goods can be used otherwise. Further, the department has submitted that the pure Choline Chloride is classifiable under Heading 2923. However, as discussed above, the product under consideration is not pure Choline Chloride, as the deliberate addition of Corn Cob in the product renders it out of the purview of the Chapter 29 in terms of Chapter Note 1 of Chapter 29. Therefore, as discussed above, I find that the product under consideration merit classification under Customs Tariff Heading 2309. The CTH 2309 is reproduced below:

2309                 Preparation of a kind used for animal feeding

2309 10 00 -     Dog or cat food, put up for retail sale

2309 90 -         Other:

2309 90 10 — Compounded animal feed

2309 90 20 — Concentrates for compound animal feed

                    - Feeds for fish (prawn, etc.):

2309 90 31 —- Prawn and shrimps feed

2309 90 32 — Fish feed in powdered form

2309 90 39 — Other

230990 90 — Other

7.18 I further find that since there is no specific entry for Vitamin Premix, therefore, I find it more appropriately classifiable under CTI 23099090 i.e. Preparation of a kind used for animal feeding-Other - Other.

8. In light of the above facts, discussions and observations, my views on the questions raised by
the applicant are as under:

Question: Whether the goods sought to be imported, viz. 'Choline Chloride 60% Corn Cob (Feed Grade) (Powder Form in 25 kg Bags)' will be classified under Customs Tariff Item (CTI) 23099020 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)?

Answer: The product i.e. Choline Chloride 60% on Corn Cob is an Animal Feed Preparation consisting of an active ingredient i.e. Choline Chloride (60%) and an Inert Carrier i.e. Corn Cob (40%) which is not a pure chemical substance but a feed-grade preparation. Accordingly, it merits classification under Heading 2309, and more particularly under CTI 23099090 (rather than CTI 23093020) since it is not a compound feed.

9. I rule accordingly.

(Prabhat K. Rameshwaram)           
Customs Authority for Advance Rulings, Mumbai

 

F. No. CAAR/CUS/APPL/13,14/2024-O/o Commr-CAAR-Mumbai        Dated: 11-06-2025

This copy is certified to be a true copy of the ruling and is sent to:

1. Highwi Enterprise Private Limited,
2nd Floor, 207, Banarasi Heritage, Chincholi Bunder Road, Mindspace, Malad West, Mumbai,
Maharashtra - 400 064 Email- amit(5)nuovomondo.co.in

2. The Principal Commissioner/Commissioner of Customs (Imports), Chennai-II, Customs
House, 60, Rajaji Salai, Chennai- 600001
Email - chennai-importofilce@gov.in
commr2-cuschn@gov.in

3. The Commissioner of Customs, NS-I, JNCH,
Nhava Sheva, Tal - Uran, Distt - Raigad,
Maharashtra - 400 707
Email- commr-nsl@gov.in

4. The Customs Authority for Advance Rulings,
Room No. 24, New Customs House,
Near IGI Airport, New Delhi-110037.
Email: cus-advmlings.del@gov.in

5. The Principal Chief Commissioner of Customs, Mumbai Customs Zone-I, Ballard Estate,
Mumbai -400001. Email: ccu-cusmuml@nic.in

6. The Commissioner (Legal), CBIC Offices,
Legal/CX.8A, Cell, 5th floor, Hudco Vishala Building,
C-Wing, Bhikaji Cama Place, R. K. Puram, New Delhi - 110066.
Email: commr.legal-cbec@nic.in

7. The Member (Customs), Central Boards of Indirect Taxes & Customs, North Block, New
Delhi-110001 Email: membercus.cbic@nic.in

8. The Webmaster, Central Boards of Indirect Taxes & Customs.
Email: webmaster.cbec@icegate.gov.in

9. Guard file.

(Vivek Dwivedi)           
Dy. Commissioner & Secretary
Customs Authority for Advance Rulings,
Mumbai