Customs Circular
No.34/2007-Cus dated 17.9.2007
Classification of Boric Acid and separate chemically defined compounds for the
purpose of Customs & Central Excise - reg.
It has been represented by the trade and industry
associations that certain difficulties have been faced in classification of
imported boric acid. Doubts have also been expressed by field formations as to
whether ‘Boric Acid’, would be classifiable as ‘separate defined chemical
compound’ under chapter 28 or as pesticides / insecticides, etc. under chapter
38 of the Customs Tariff.
2. Board discussed the issue of classification of Boric Acid and other separate
chemically defined compounds. It was noted by the Board that ‘Boric Acid’ is a
chemical compound specified under heading 2810 of the Customs Tariff. It has
multifarious uses, which, interalia, include industrial raw material,
insecticide use, etc. Following a Supreme Court's decision in the case of Union
of India Versus Pesticides Manufacturing & Formulators Association of India
[2002 (146) ELT 19(SC)], the Board in the past had examined the matter regarding
the classification of Boric Acid, and its admissibility for imports in terms of
the Foreign Trade Policy. Accordingly, Circular
No.61/2004-Cus dated 28.10.2004 was issued, classifying Boric Acid under
Chapter 3808 of the Customs Tariff. Following the circular, all customs
formations are classifying Boric Acid under Chapter 38, whereas the domestic
manufacturers are classifying the commodity under Chapter 28, which has a
specific heading for the commodity. Hence, differing assessment practices were
prevailing, and the issue was required to be sorted out in respect of Boric
Acid, which is imported for purposes other than for use as Insecticide.
3. The Board observed that Boric Acid is covered by two specific entries i.e.
25289010 and 28100020, based on its chemical composition. Heading 38.08 covers
insecticidal / pesticidal or other similar preparations; insecticides /
pesticides put up in forms or packings for retail sale; and insecticidal /
pesticidal articles. The Board also took note of the view that as per rule 3 of
the General Rules for the interpretation of Import Tariff, "When by application
of rule 2(b) or for any other reason, goods are, prima facie, classifiable under
two or more headings, classification shall be effected as follows: (a) The
heading which provides the most specific description shall be preferred to
headings providing a more general description". Therefore, Boric Acid should be
classifiable under Chapter 28 of the Tariff, both under Central Excise Tariff
and Customs Tariff.
4. In view of the above, it has been decided by the Board that the
classification of ‘Boric Acid’, in supersession of its earlier circulars, would
be under heading 2810; technical grade pesticides for insecticidal use or Boric
Acid put up for retail sale or other specified forms as preparations or articles
alone will be classifiable under 3808. This is being clarified for the purpose
of uniformity in classification and for the purpose of levy and assessment
thereof in respect of Boric Acid and similar separate chemically defined
compounds.
5. Customs and Central Excise field formations may finalise the pending
assessments, if any, accordingly.
Yours faithfully,
(M.M.Parthiban)
Director (Customs)
F. No. 528/9/2004-Cus.(TU)
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