GOVERNMENT OF PAKISTAN

COLLECTORATE OF CUSTOMS APPRAISEMENT (EAST)

CUSTOMS HOUSE, KARACHI

C. No. 180/KAPE/PCT/2021/II                                                      Dated: 11.03.2022

PUBLIC NOTICE NO.04/2022

Sub:   CLASSIFICATION OF THE GOODS DECLARATION AS ‘MOZZARELLA CHEESE PIZZA TOPPING.’

M/s. Ekada Corporation (NTN 4232868), Karachi imported the item ‘Mozzarella Cheese Pizza Topping’ and claimed PCT heading 2106.9090. The Collectorate of Appraisement (Port Qasim) changed the classification of imported item from 2106.9090 to 0406.3000 on the grounds that goods were based on natural facts. The importer contested the classification done by the Collectorate and the matter was referred to the Classification Committee.

2.         The meeting of Classification Committee was held on 12.11.2021 where representatives of applicant and the Collectorate argued their case. Importer’s representatives argued that product ‘Mozzarella Cheese Pizza Topping’ is a cheese substitute or imitation cheese in which milk fat, milk protein or both are partially or wholly replaced by non-milk based alternatives, principally of vegetable origin. The importer also submitted HEJ Lab test report of item ‘Mozzarella Cheese Pizza Topping referred to HEJ by Model Customs Collectorate, Port Qasim in which HEJ, inter alia, interpreted the results as following:

“In the light of tests carried out, the given sample entitled as Mozzarella Cheese Pizza Topping’ was found to be as Mozzarella Cheese. The fatty acid profile indicates that milk fat was replaced with Palm Oil/Vegetable Oil.”

3.         The Classification Committee has examined the arguments of applicant and consulted technical literature as well as the lab report of the product. The Committee considered headings 04.06, 19.01 and 21.06 for possible classification of impugned product. The committee has referred to the relevant chapter (04, 19 and 21) notes and explanatory notes of heading 04.06, 19.01 and 21.06.

4.         Note 4 (b) to Chapter 4 excludes from its scope the products obtained from milk where one or more milk constituents has been replaced with another substance and suggests that such products shall be classified either under heading 19.01 or in heading 21.06. Thus instant product (Mozzarella Cheese Pizza Topping) in which milk fat has been replaced with vegetable fat does not fall within the scope of Chapter 04; therefore cannot be classified under HS Code 0406.3000.

5.         Technical literature and HEJ lab report of the product shows following characteristics verses natural milk constituents:

Natural Milk Constituents verses Milk Constituents in Mozzarella Cheese Pizza Topping

*Source Milk and Dairy Products in human nutrition (2013), FAO, Page 45.

** HEJ Lab report dated 10.07.2019 in GD No.KPPI-HC-87904-20.05.2019

6.         Analysis of above facts reveal that vegetable fat and protein content in “Mozzarella Cheese Pizza Topping is high as compared to milk fat and protein available in natural milk specially cow milk. Whereas, percentage of lactose (an essential milk constituent) found in product is very low as compared to percentage found in natural milk. Committee is of the view that in terms of Note III (2) of heading 19.01 products to qualify for heading 19.01should be essentially ‘milk preparation” based on replaced as well as not replaced milk constituents in more or less same proportion. That is not the case in product under consideration.

7.         Accordingly, the Committee is of the opinion that under Rule 1, 3 (c), 4 and 6 of General Rule of Interpretation, the product (Mozzarella Cheese Pizza Toping) is appropriately classifiable under subheading 2106.9090 being a food preparation in terms of Explanatory Note A and B of heading 21.06.

8.         This ruling is issued for Mozzarella Cheese Pizza Topping having same characteristics as mentioned in Lab Reports (produced above). However, Pizza Cheese Toppings with different specifications and characteristics are not covered under this ruling and may be classified as per relevant classification rule and principles.

9.         The ruling is issued in terms of Chapter-II (Classification) of the CGO 12/2002 dated 15.06.2002.

                                       (Signed by)

(Muhammad Daud Pirzado)

Additional Collector

Chairman Classification Committee

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