2023 (10) TMI 120 - AAR - Customs

Classification of goods intended to be imported - Dried Black Currants i.e. dehydrated dark and small seedless raisins from Greece and other countries - classifiable under HS Code 0806 20 10 or not - Sr. No. 32 of Notification No. 50/2017-Cus., dated 30-6-2017 - HELD THAT - Dried Black Currant (subject goods) is classifiable under HS Code 0806 20 10; and the subject goods are eligible to be covered under Sr. No. 32 of Notification No. 50/2017-Cus., dated 30-6-2017. It is noticed that the applicant has stated that Black Dried Currant is a kind of dried grape, of vitis vinifera species commonly known as Zante currant in Greece region made from grapes (Vitis vinifera) which are raisins produced by drying grapes. In light of the foregoing facts and discussions, black dried currant of vitis vinifera species, intended to be imported as raisin merit classification under 0806 20 10 of the First Schedule of the Customs Tariff Act, 1975. As regards, applicability of exemption vide Sr. No. 32 of N/N. 50/2017-Cus, dated 30-6-2017, it is noted that exemption under the said serial number of the notification is admissible to dark seedless raisin classifiable under 0806 20 10. Since the subject goods are dark seedless raisin, exemption under the said notification is admissible to the subject goods.

Summary

Issues Involved:
1. Classification of Dried Black Currant.
2. Applicability of Notification No. 50/2017-Cus., dated 30-6-2017.

Issue-wise Detailed Analysis:

1. Classification of Dried Black Currant:
The applicant, M/s. Wholesome Essentials, sought an advance ruling on the classification of dried black currants, asserting that these are a type of dried grape (vitis vinifera species) commonly known as Zante currants in Greece. The applicant argued that these should be classified under HS Code 0806 20 10, which pertains to grapes, fresh or dried, including currants and raisins.

The applicant provided extensive documentation, including research papers, viticulture information, and definitions from various authoritative sources to support their claim that Zante currants are indeed dried grapes and not related to black currants (Ribes nigrum), which are berries. They emphasized that Zante currants are produced by drying small seedless grapes known as black Corinth grapes, and these should be classified under Heading 0806, which covers dried grapes.

The concerned Commissioner of Customs, however, contended that black currants (Ribes nigrum) are different from Zante currants and should be classified under Heading 2008, which covers fruits, nuts, and other edible parts of plants, prepared or preserved by processes not covered under Chapter 8. The Commissioner argued that black currants are not produced from grapes and thus do not fall under Heading 0806.

Upon review, the Authority for Advance Rulings concluded that the dried black currants intended for import by the applicant are indeed a type of raisin produced from grapes (vitis vinifera species) and not from black berries (Ribes nigrum). Therefore, the classification under HS Code 0806 20 10 is appropriate.

2. Applicability of Notification No. 50/2017-Cus., dated 30-6-2017:
The applicant also sought a ruling on whether the dried black currants qualify for exemption under Sr. No. 32 of Notification No. 50/2017-Cus., dated 30-6-2017. This notification provides an exemption for dark seedless raisins classified under HS Code 0806 20 10.

Given the ruling that the dried black currants (Zante currants) are classified under HS Code 0806 20 10, the Authority confirmed that these goods are eligible for the exemption benefit under Sr. No. 32 of the said notification. The exemption applies to dark seedless raisins, which the subject goods qualify as.

Conclusion:
The Authority for Advance Rulings concluded that the dried black currants (Zante currants) intended for import by the applicant are classifiable under HS Code 0806 20 10 and are eligible for the exemption under Sr. No. 32 of Notification No. 50/2017-Cus., dated 30-6-2017. The ruling was based on the detailed analysis of the nature of the goods, their classification under the Harmonized System, and the specific exemption provisions of the customs notification.