Classification of Natural Astaxanthin Grades as Food Preparations under Tariff Item 2106 90 99 – Ruling in In re Mediraw Pharma & Nutra Private Limited (CAAR Delhi)

Background and Context

M/s Mediraw Pharma & Nutra Private Limited approached the Customs Authority for Advance Rulings, Delhi, seeking clarity on the correct customs tariff classification of certain natural Astaxanthin-based products they proposed to import. The application was filed under Section 28H of the Customs Act, 1962, which enables an assessee to obtain binding advance rulings on classification and related customs issues.

The request concerned five specific commercial grades of Astaxanthin derived from microalgae Haematococcus pluvialis:

  • AstaReal L10
  • AstaReal P4AF
  • AstaReal 50FC
  • AstaReal CLEAR100
  • AstaReal CW25S

Mediraw Pharma & Nutra Private Limited contended that these goods should be categorised as colouring matter of vegetable or animal origin and accordingly fall under Tariff Item 3203 00 20 of the First Schedule to the Customs Tariff Act, 1975. The jurisdictional Customs Commissionerate held a different view and argued that the products, based on their composition and commercial use, were essentially nutraceutical/dietary ingredients. The Authority was therefore required to decide whether these goods were primarily “colouring preparations” or “food preparations” for the purpose of classification.

Applicant’s Position: Claim for Classification under Heading 3203

Nature and Origin of the Goods

The assessee explained that:

  • All five grades are derived from the microalgae Haematococcus pluvialis.
  • The active component in each product is Astaxanthin, which is a naturally occurring carotenoid pigment.
  • The preparations contain Astaxanthin in varying strengths and in different physical forms—oils, powders, or water-soluble systems.

The assessee emphasised the following aspects:

  • Astaxanthin is widely recognised as a pigment and has inherent colouring properties.
  • According to the assessee, the goods imported preserved their character as natural colouring preparations, despite being formulated into different physical manifestations (oil dispersions, powders, etc.).

The assessee supported its proposed classification under Tariff Item 3203 00 20 with the following arguments:

  • Heading 3203 specifically covers “colouring matter of vegetable or animal origin”, including dyeing extracts and preparations based on such colouring matter.
  • The assessee referred to the HSN Explanatory Notes to demonstrate that plant-based pigments such as carotenoids are intended to be covered under Heading 3203.
  • Reference was made to certain foreign customs rulings where Astaxanthin preparations were apparently classified as colouring matter, suggesting an international practice of treating such products as colourants.

On that basis, the assessee maintained that the products remained essentially colouring matter of vegetable origin, merely standardised and formulated for stability or ease of use, and therefore appropriately classifiable under Heading 3203.

Revenue’s Stand: Products are Nutraceutical/Dietary Ingredients

The jurisdictional Commissionerate opposed the classification under Heading 3203 on multiple grounds:

  • The compositions, carriers, additives and stabilisers used in the products, as indicated in the technical data and Safety Data Sheets, were consistent with formulations intended to be consumed as part of dietary supplements or nutraceuticals.
  • The manner of commercial presentation, including product literature and marketing material of the manufacturer, highlighted their positioning as ingredients for health supplements, functional foods and beverages, rather than as food colourants.
  • On a combined reading of the ingredients, dosage forms and recommended uses, the goods appeared to be designed and sold as nutraceutical or dietary ingredients, with health and functional benefits being the primary focus.