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2013 (12) TMI 118 - CESTAT, MUMBAIClassification of Xanthan Gum - Classification under Heading No. 39.13 or Heading No. 13.01 - Import of consignment of Xanthan Gum USP 80 Mesh - Held that:- even though the product might have natural origin, it has been subjected to various processes and the product no longer retains the characteristics of a natural secretion. Heading 1301 covers Lac, natural gum, resins, resin gum, and oleo resins. The said heading does not cover products which have been processed further by using various processes. The classification of the product has also been examined by the US customs and it has been noted in the classification ruling that “Xanthan Gum is obtained by microbial fermentation from the Xanthomonas campestris organism. At the end of the fermentation process, the Xanthium Gum is recovered from precipitation in isopropyl alcohol, then dried and milled.” The said ruling further notes that CTH 13.01 covers natural gums, resins, gum resins, oleoresins and balsams. They may be crude, washed, purified, bleached, crushed or powdered, but excludes such items that have been subjected to more complicated processes such as treatment with water under pressure, treatment with mineral acids and treatment with heat. In other words, when the natural gum is further processed, it falls outside the CTH 13.01. Since the product is a natural polymer, the US customs has ruled that it merits classification under CTH 3913.90 - Therefore, the appropriate classification for the product is 3913 which covers natural polym - Therefore, decided against Revenue.
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