Government of Pakistan
Model Customs Collectorate of Appraisement
Custom House, Karachi
No. CC-34/2010 (A) Dated: 25.06.2011
PUBLIC NOTICE NO. 06/2011-APP
SUB: Import and classification thereof in respect of L-250 mixed Enzyme.
M/s. AB Mauri Pakistan (Pvt.) Limited, Lahore, Pakistan imported a consignment declared to consist of MIXED ENZYMES from Sri Lanks and sought release thereof under PCT heading 3507.9000. The Consignment wax examined and samples were drawn for testing. Perusal of the documents produced by the importer at the time of initial assessment e.g. invoice, packing list, product specification reveal that the product is specially designed for making of premium quality bread and bakery products and the product contains ingredients like SOYA FLOUR, CORN STARCH, FLOUR TREATING AGENTS (E300, E924), ENZYMES, therefore, appropriately classifiable under PCT heading 1901.2000 instead of declared 3507.9000. The issue was referred to the PCT Classification Centre, MCC, Appraisement, Custom House, Karachi vide letter No. SI/Misc/232/2010-PQ dated 18.06.2010 for determination of PCT Classification of the subject product.
2. The case was discussed in PCT Classification meeting on 07.02.2011/14.03.2011. In the meanwhile the HEJ Laboratory vide its letter Sample Analayise Report bearing Reference No. IAC/TR/3759 dated 26th March, 2011 reported the goods to be found as per following Measurement/Results.
“The given sample of Mixed Enzyme (Bakery enzyme) is the preparation of complex mixture of enzymes along with starch and emulsifiers.”
The case was finally fixed for Committees meeting on 23.05.2011. The detailed deliberations are as follows:
ISSUE- The basic issue involved in the instant imported goods namely L-250 Mixed Enzymes is whether it should attract heading 35.07 (Enzymes; prepared enzymes not else where specified or included), 19.01 (Mixes and doughs for the preparation of bakers wares of heading 19.05). Accordingly, the Committee has examined the classification issue in depth and considered the following headings for the purpose of classification of the impugned goods:
i) 19.01 ii) 35.07
3. The importers were of the view that the goods are classifiable under PCT heading 35.07, merely on the plea that their product is being released by customs under PCT heading 3507.9000 after extending the benefit of zero percent customs duty under the regime of SRO 567(I)/2006 together with Zero rating of sales tax under the regime of SRO 509(I)/2007 etc. However, no cogent reason in writing with reference to its classification was ever produced by the importer at import/clearance stage and before the classification Committee. On the other hand, the clearance Collectorate i.e. MCC Port Muhammad Bin Qasim was of the view that the product is specially designed for making of premium quality breads and bakery products and the product contains ingredients like SOYA FLOUR, CORN STARCH, FLOUR TREATING AGENT (E300, E924), ENZYMES, therefore, is appropriately classifiable under PCT heading 1901.2000 instead of declared 3507.9000. Their view point was also supported with cogent/substantial evidences like Product Catalogue produced by the importer, Test Report from HEJ, information available on the importers own website, explanatory notes to the heading 1901.
THEORTICAL ANALYSIS
4. In terms of explanatory notes to PCT heading 35.07 Enzymes, Prepared Enzymes not elsewhere specified or included fall within the ambit of this heading. Prepared Enzymes attract single dash residual sub heading 3507.90 which covers Biological enzymes inter alia e.g. amylases, lipases, proteases, fungal amylase etc. the characteristic of enzymes amylase to break down starches and lipase which are mainly used for breaking down fatty substances. Note (C) of the explanatory notes to heading 3507 further enunciate the position that preparations with substances added, which render them suitable for specific purposes, are also included in this heading provided they are not covered by a more specific heading in the Nomenclature. This note specifically includes enzymatic preparations for tenderizing meat, such as those consisting of a proteolytic enzyme (e.g. papain) with added dextrose or other food stuffs, enzymatic preparations for clarfiyin beer, wine or fruit juice (e.g. pectic enzymes containing added gelatine, bentonite, etc) and enzymatic preparations for de-sizing textiles such as those with a basis of bacterial a amylases or proteases.
5. The notes to heading 19.01 reveal that it covers, inter alia food preparations of flour, groats, meal, starch or malt extract. Note (II) states that this heading covers a number of food preparations with a basis of flour, groats or meal, of starch or of malt extract, which derive their essential character from such materials whether or not these ingredients predominate by weight of volume. Other substances may be added to these main ingredients such as milk, sugar, eggs, casein, albumin, fat, oil, flavoring, gluten, coloring vitamins, fruit or other substances to improve their dietetic value. The preparations of this heading may be liquid or in the form of powders, granules, doughs or other solid forms such as strips or discs. These preparations are often used for making beverages, gruels, infant foods, dietetic foods, etc by simply mixing with or boiling milk or water or for making or for making cakes, puddings, custards or similar culinary preparations.
Product Analysis.
6. Perusal of all the literature, Product Catalogue produced by the importer, Test Report from HEJ, information available on the importers own website, explanatory notes to the heading 1901 /3507, reveals that the instant product namely L-250 Mixed Enzymes (in powder Form) consist of Soya Flour, Corn Starch, Flour Treating Agents (E-300, E-924), Enzymes (fungal- amylase, lipase & hemicellulitic enzyme preparation and Reducing agents (INS 300). As per specification, this product is specially designed for making of premium quality and bakery products. The product is specially designed for making of premium quality breads and bakery products. The product specification further enunciates that:-
· L250 DoH is preparation with excellent properties to improve Fermentability and machinability of dough.
· Gives good oven spring and higher volume.
· Reducing agents improves gluten quality and dough stability.
· Improves the fresh keeping properties.
· Improves softness by aiding the formation of the three dimensional matrixes capable of enclosing gas bubbles.
· It has a whitening effect on crumb color and improves hydration capacity of dough.
CONCLUSION
7. In view of the above stated detailed discussion, deliberations and legal as well as technical references and conclusive evidences placed before the committee it is established that the impugned product namely L-250 Enzyme is correctly classifiable under PCT heading 19.01 (1901.2000) by application of Rule (1) and (6) of the General Rules of Interpretation of the Harmonized System. Accordingly, the Committee unanimously decided the PCT classification of subject product as 19.01 (1901.2000).
Signed by
(Dr. Zulfiqar Ahmed Malik)
Additional Collector
Chairman- PCT Committee
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