Terpeneol BP/BPC - Classification of - Central Excise - 13/89

Terpeneol BP/BPC - Classification of Circular No. 13/89 Dated 21-2-1989 . [From F. No. 120/22/88-CX.3] Government of India Ministry of Finance (Department of Revenue) New Delhi Subject : Classification of 'Terpeneol BP/BPC' A doubt has been raised as to whether Terpeneol B.P/B.P.C would be classifiable under heading No. 39.06 of the CET as a 'Cyclic alcohol' or under heading No. 30.03 of the CET as a 'medicament'. 2. The matter has been examined. It is observed that Terpeneols are clearly mentioned on page 345 of the HSN in the category of 'cyclic alcohol' covered by heading No. 29.06 of the HSN and also of the CET. No distinction has been made in such HSN Notes between Terpeneol of Pharma copoeial grade and Terpeneol of any other grade. Moreover, it is mentioned in such notes that Terpeneols in their commercial form are usually mixtures of 'isomers' but even then those remain in heading No. 29.06 of the HSN because of Chapter note 1(b) of Chapter 29 of HSN. Heading No. 29.06 and Chapter note 1(b) of Chapter 29 of the CET. This apart, in such HSN Notes, Terpeneol in its commercial form has been described as a colourless, oily liquid which it sometimes used as a bactericide. A solid Isomer is used in medicines and may also be used as a bactericide. All this would clearly show that Terpeneol, whether of pharmacopoeial grade or not, would be appropriately classifiable under heading No. 29.06 of the CET from 10-2-1987 onwards (under heading No. 29.02 of the CET during the period from 28-2-1986 to 9-2-1987). However, Chapter notes of Chapter 30 of the CET do not exclude from the scope of Chapter 30 the goods classifiable under Chapter 29. But Chapter notes 2(i)(a) and (b) clarify that, for classification of goods as 'medicament' under heading No. 30.03, such goods have either to be products comprising two or more constitutents mixed or compounded together for therapeutic or prophylactic uses or unmixed products, suitable for such use, put up in measured doses or in packings for retail sale or for use in hospitals. Terpeneol BP/BPC is an unmixed product. So, it will be classifiable under heading No. 30.03 as 'medicament' only if it is suitable for therapeutic or prophylactic uses, put up in measured doses or in packings for retail sale or for use in hospitals. 3. Accordingly, it is clarified that Terpeneol BP/BPC in bulk form would be appropriately classifiable under heading No. 29.06 of the CET (under heading No. 29.02 of the CET during the period from 28-2-1986 to 9-2-1987). But when the same is suitable for therapeutic or prophylactic uses, put up in measured doses or in packings for retail sale or for use in hospitals, it would be appropriately classifiable under heading No. 30.03 of the CET. The same principles were adopted in respect of classification of liquid paraffin IP, communicated through this Ministry's F. No. 89/2/88-CX.3, dated 4-5-1988. 4. The above guidelines may be brought to the notice of the lower field formations and the trade interests may also be suitably advised. 5. All pending assessments may be finalised on the above basis.