Government of Pakistan

Model Customs Collectorate of Appraisement

Custom House, Karachi

No.CC-40/2009(A)                                                                           Dated: 13.06.2011

PUBLIC NOTICE NO. 05/2011 (A)

Sub:     CLASSIFICATION OF THE PRODUCT NAMELY “CRATEX TABLETS”

            The classification aspect of product namely “Cratex Tablets” herbal supplement made by Dr. Willmar Schwabe, Germany has been referred to Classification Centre (Appraisement), by MCC (Preventive), AFU which came up to discussion on 03.10.2009 and 05.25.2011.

 2.         The product “Cratex FC Tablets” as per information provided and printed on Package is in the form of a film coated tablet containing 30 mg dry extract from Gingko Biloba leaves (35: - 67:1), standardized to 6.6 to 8.1 mg flavone glycosides and 1.5 – 2.1 mg terpene lactones of  which 0.84 – 1.02 mg ginkgolic acids for each film coated tablets. It also contain other ingredient such as Camuba wax, Croscamellose  sodium, Dimethicone emulsion, Collidial Anhydrous Silica, Lactose Mono-Hydrate, Macrogal (E171), Magnesium Stearate, Maize Starch, Micro Crystalline Cellulose, Titanium Dioxide, Iron Oxide Hydrate (E-172), Indigo Carmine Aluminate (E-132), Erythrosine Aluminate (E-127) etc. The product as per information printed on the product is used to promote and maintain mental sharpness, concentration and focus, supports blood circulation and oxygen supply to the brain and the extremities. The recommended dosage is one tablet three to four times daily with some liquid.

 3.         The importer are of the view  that Cratex Tablets contains Dry Extract from Gingko Biloba leaves which is concentrated and standardized to 24% flavones glycosides and 6% terpene lactones. It was also contended that the product is put up in measure doses in the form of tablets to promote and maintain metal sharpness, treatment of diseases, therefore, the product is classifiable as herbal medicament under PCT heading 3004.9099.

 4.         The importers further explained that Cratex Tablets cannot be classified under PCT Heading 2106.9090 due to the reason that the product is not a food preparation in terms of Explanatory Notes to HS Code 2106, which covers food preparations consisting wholly or partly of food stuff used in the making of beverages or food preparations for human consumption. The heading also includes preparation consisting of mixture of chemicals with food stuffs (flour, sugar, milk powder etc.) for incorporation in food preparations either as an ingredients or to improve some of their characteristics and since the Cratex Tablets neither contain any food stuff nor used as an ingredients for incorporation in food preparation, therefore, the produce do not attract classification under PCT Heading 2106.9090.

 5.         One the other hand the Customs is of the view that the impugned goods are classifiable under heading 21.06 which dealt with “food preparations not elsewhere specified or included.” They referred Para 16 Page IV-21006-3 of the Explanatory Notes under heading 2106 specifying that heading 21.06 covers foods supplements, based on extracts from plants, fruits concentrates, honey, fructose etc. and containing added vitamins and sometime minute quantities of iron compounds. These preparation are often put in packaging with indications that they maintain general health or well-being. Similar preparations, however, intended for the prevention or treatment of diseases or ailments are excluded (heading 30.03 or 30.04), on the grounds that they are not meant for treatment of diseases and as such fall outside the ambit of heading 30.04 and fall for classification under heading 21.06.

 6.         The case has been examined by the PCT Committee in depth. The literature provided by the importer reveals that “Cratex” is marketed in 30 mg film coated tablets comprising of dry extract from Ginko Bilbola leaves. The literature describes that with the effect of Cratex, tissues are supplied with more oxygen and important nutritional substances. Various headings were considered as discussed in the followings paragraphs.

 7.         PCT headings 13.02 deals with vegetable extracts whether or not standardized. The goods under reference contains in-addition to extract derived from Ginko Bilbola leaves other substances as well. At page II-1302-3 of the Explanatory Notes under heading 13.02 it has been explained that:

“The vegetable saps and extract of this heading are generally raw materials for various manufactured products. They are excluded from the heading when because of addition of other substances, they have the character of food preparations, medicaments etc.”

 8.         The impugned goods fall outside the ambit of heading 13.02 as the added substances to Ginko Bilbola leaves such as Carnuba wax, Croscarmellose Sodium, Dimetheicone emulsion, Collidial Anhydrous Silica, Lactose Mono-Hydrate, Macrogal (E171), Magnesium Stearate, Maize Starch, Micro Crystalline Cellulose, Titanium Dioxide, Iron Oxide Hydrate (E-172), Indigo Carmine Aluminate (E-132), Erythrosine Aluminate (E-127) etc. give the product character of food preparations.

 9.         Note 1(b) to Chapter 38 describes that mixture of chemicals with foodstuff or other substances with nutritive value, of a kind used in preparation of human food stuff are generally classified under heading 21.06. At page VI-38-3 of  the Explanatory Notes it has been explained that the expression “food stuff or other substances with nutritive value” principally includes edible products of Section I to IV of the Harmonized System. The expression also includes certain other products etc. for example products of Chapter 28 used as mineral supplements in food preparations, sugar alchols of heading 29.05, essential amino acids of heading 2922, lecithin of heading 29.23, pro-vitamins and vitamins of heading 29.36, sugars of heading 29.40, animal blood fraction of heading 30.02 for food preparations.

 10.       The perusal of the composition of the impugned product reveals that the other substances added into extract of Ginko Bilbola leaves are principally edible products classifiable in Section I to IV of the Pakistan Customs Tariff such as Carnuba wax, Croscarmellose Sodium, Dimethicone emulsion, Collidial Anhydrous Silica, Lactose Mono-Hydrate, Macrogal (E171), Magnesium Stearate, Maize Starch, Micro Crystalline Cellulose, Titanium Dioxide, Iron Oxide Hydrate (E-172), Indigo Carmine Aluminate (E-132), Erythrosine Aluminate (E-127) etc. Thus, they give character of food preparation of the impugned product.

 In pursuance of FBR‘s notification No. 851(I)/2011 dated 17-09-2011 read with notification No. 884(I)/201111.  At Sr. No. 16 Pages IV-2106-3 of the Explanatory Notes, the following example has been cited for classification of food preparation (Food Supplement).

“Preparation, often referred to as food supplements based extract from plants, fruits concentrate, honey, fructose etc. containing added vitamins and sometimes minute quantities of iron compounds. These preparations are often put up in packaging with indication that they maintain general health or well being. Similar preparations, however, intended for the prevention of diseases or ailments are excluded (heading 3003, 3004).”

12.       In view of the above, the PCT Committee ruled out classification of “Cratex” under heading 30.04 and came to the conclusion that the same is classifiable under heading 21.06 (2106.9090) by application of General Interpretation Rule 1 and Pakistan Note 1 to the Pakistan Customs Tariff.

Signed by

 (Dr. Zulfiqar Ahmed Malik)

Additional Collector

MCC Appraisement-I Chairman PCT Committee

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