CIRCULAR No.44/2001-CUS. Dated 6th
August, 2001
Classification of certain inorganic chemicals such as, monopotassium phosphate,
calcium nitrate, potassium magnesium phosphate as fertiliser',- Reg.
I am directed to invite your attention to the subject mentioned
above. It has been brought to the notice of the Board that chemical compounds
like monopotassium phosphate, calcium nitrate and potassium magnesium phosphate
are being classified as fertilizers under Chapter 31 of the Customs Tariff and
levied to duty at a concessional rate as applicable to a fertilizers.
2. The matter has been examined. Chapter 31 of the Customs Tariff covers
fertilizers. Note 1(b) of Chapter 31 states that this Chapter does not cover
separate chemically defined compounds other than those answering to the
descriptions in Note 2(A), 3(A), 4(A) and 5 of the said Chapter. As in
monopotassium phosphate, calcium nitrate and potassium magnesium phosphate do
not figure in the above Chapter notes, they have to be excluded from Chapter 31
and are to be classified as a separate chemically defined compounds, Further,
Chapter note 5 to Chapter 31 states that for the purposes of heading 31.05, the
term 'other fertilisers' applies only to products of a kind used as fertilizers
and containing, as an essential constituent, at least one of the fertilizing
elements, namely, nitrogen, phosphorus or potassium.
3. Keeping in view the provisions explained above and the HS Explanatory Notes
to concerned headings, the chemical compounds, viz., calcium nitrate,
monopotassium phosphate and potassium magnesium phosphate will merit
classification under Chapter 28 of the Customs Tariff, and not under Chapter 31
as fertilisers. Such compounds will, therefore, not be eligible for benefit of
concessional duty prescribed for fertilisers under the relevant exemption
notification. It may be noted that calcium nitrate specifically figures in the
Explanatory Notes to heading 28.34 and potassium phosphate finds a mention in
heading 28.35 itself.
4. The Custom Houses may kindly take not of the above clarification while
classifying the aforementioned chemical compounds. If such goods have been
assessed as fertilizer in the past, appropriate demands will have to be issued
immediately and differential duty realized. Difficulties, if any faced, in the
implementation of above clarification may be brought to the notice of the Board.
Please acknowledge receipt of this circular.
Sd/-
(K.M, Ravichandran)
Senior Technical Officer (TU)