Supro® XT 40 — Fortified Soy Protein Product Classified Under Tariff Item 21061000: CAAR Delhi Ruling

Background and Overview

The Customs Authority for Advance Rulings, New Delhi (CAAR) recently adjudicated an important classification dispute involving a fortified soy protein product proposed to be imported by M/s Solae Company India Pvt. Ltd. The company sought an advance ruling under Section 28H of the Customs Act, 1962 to determine whether its product Supro® XT 40 ought to be classified as an isolated soy protein under Tariff Item 35040091 or whether it fell within the ambit of Tariff Item 21061000 covering protein concentrates and textured protein substances.

The ruling carries significant implications for importers of nutritional ingredients, food fortification compounds, and protein-based preparations, as it clarifies the boundary between Heading 3504 and Heading 2106 of the Customs Tariff Act, 1975 and reinforces that food-grade standards under Codex Alimentarius or FSSAI cannot override the tariff classification framework.

About the Applicant and the Product

M/s Solae Company India Pvt. Ltd., incorporated in 1997 under the Companies Act, 1956, is engaged in the supply of ingredients catering to food and beverage markets, nutritional products including sports nutrition and meal replacements, and the health and wellness segment. The company holds a valid Importer-Exporter Code (IEC No. 0599001780) under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992, making it eligible to file an application before CAAR under Section 28E of the Customs Act, 1962.

The product at the centre of this dispute — Supro® XT 40 — is a light cream-coloured powder composed primarily of isolated soy protein, calcium phosphate, and less than 2% lecithin. It is commercially intended for use by manufacturers of juices and acidic beverages who wish to fortify their products with additional protein while maintaining acceptable taste and consumer acceptability.

Manufacturing Process

The manufacturing sequence for Supro® XT 40 involves the following key stages:

1. Defatted soy flakes are slurried in water to solubilise protein and separate insoluble carbohydrates
2. Protein is precipitated at its isoelectric point to achieve a high level of purity
3. The precipitated protein is dried to attain approximately 90% protein content
4. Following the isolation stage, a stabilised form of calcium phosphate is incorporated through a patented post-isolation fortification method
5. This patented process ensures mineral enrichment without disrupting the structural integrity of the protein matrix

Declared Nutrient Profile

Applicant's Classification Submissions

Claim for Classification Under Heading 3504

The assessee contended that Supro® XT 40 was an isolated soy protein product properly classifiable under Tariff Item 35040091. The following arguments were advanced:

• HSN Explanatory Notes to Heading 35.04 provide that protein isolates obtained from vegetable substances with a protein content of generally not less than 90% fall within this heading
• The applicable protein content threshold of 90% must be computed on a moisture-and-mineral-free basis, in alignment with internationally recognised food standards
• Codex Alimentarius Standard CXS 175-1989 prescribes that for Soy Protein Isolate (SPI), the protein content shall be 90% or more, calculated on a dry weight basis excluding added vitamins, minerals, amino acids and food additives
• FSSAI Food Safety and Standards (Food Products Standards and Food Additives) Regulations, 2011, under Para 2.4.20, similarly requires that protein content in Soy Protein Isolate be more than 90% on dry mass basis, excluding added minerals
• Calcium phosphate is an inorganic mineral and must be excluded when computing protein content for classification purposes
• When calcium phosphate is excluded, the protein content of Supro® XT 40 exceeds 90%, qualifying it as a protein isolate
• The test report submitted by the assessee indicated protein content of 91.62 g/100g on a moisture and phosphate-free basis

Key Argument: The assessee submitted that the addition of calcium phosphate through a post-isolation process does not alter the essential character of the product as a protein isolate. The principal identity of the product remains that of an isolated soy protein.