Circular No.: 1022/10/2016-CX
F. No. 106/03/2013-Cx.3
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
KAKAKKKKKKKK
New Delhi, dated the 6% April, 2016
To,
Principal Chief Commissioner of Central Excise/ Service Tax (All),
Chief Commissioner of Central Excise/ Service Tax (All),
Principal Commissioner of Central Excise/ Service Tax (All),
Webmaster, CBEC
Madam /Sir
Sub: Classification of Micronutrients, Multi-micronutrients, Plant Growth Regulators
and Fertilizers - reg.
The issue of classification of micronutrients, multi-micronutrients, plant growth
regulators and fertilizers has remained a disputed area in Central Excise. To bring clarity to
the issue of classification thereof, it was decided to take opinion of Indian Agricultural
Research Institute (IARI) on various issues relating to micronutrients such as - what
constitutes micronutrients, its usage, distinction from plant growth regulator, if any, etc. In
light of the opinion received from IARI, Central Excise Tariff and explanatory notes of HSN,
nature, usage and classification of micronutrients, multi-micronutrients, plant growth
regulators and fertilizers is explained in the following paragraphs.
2.1 Micronutrients are essential nutrients that are required in small quantities for the
normal growth and development of plants. As on today, iron (Fe), manganese (Mn), zinc
(Zn), copper (Cu), boron (B), molybdenum (Mo), nickel (Ni) and chlorine (Cl) are included
in this category. These elements are also called minor or trace elements, but this does not
mean that they are less important than macronutrients. Reply received from IARI on the
subject, enclosed with the circular, may please be referred for further details. Inputs
received from the trade indicates that these micronutrients are sold in the market as
‘micronutrient fertilizer’ supplying one or more of the eight essential nutrients listed
above, namely iron to chlorine. However, in the trade parlance sale of micronutrients as
‘micronutrient fertilizers’ would not lead to classification thereof under chapter 31 as
1
fertilizers for the purposes of Central Excise Tariff. For classification under chapter 31, at
least one of the elements, namely- nitrogen, phosphorus or potassium should be an
essential constituent of the fertilizer as per chapter note 6 of chapter 31.
2.2 There is no specific heading in the tariff for classification of micronutrients. However,
where the micronutrient is a separate chemically defined compound, it will be classifiable
under the heading for that chemically defined compound under chapter 28 or chapter 29.
For example, some of the sulphates of micronutrients are specifically covered under CETH
2833.
2.3. Vide Notification no. 12/2016 - C.E dated 1.3.2016, Notification no. 12/2012 - CE
dated 17.3.2012 has been amended and a new serial no 109A has been inserted to exempt
duty of excise in excess of 6%, payable on micronutrients classifiable under chapter 28, 29
or 38 and covered under serial number 1(f) of Schedule 1, Part (A) of the Fertilizer Control
Order, 1985 and manufactured by the manufacturers registered under the Fertilizer
Control Order, 1985.
3.1 Plant Growth Regulators are defined as organic compounds other than nutrients
that affect the physiological processes of growth and development in plants when applied
in low concentration. Plant growth regulators are active at low concentrations in
promoting, inhibiting or modifying growth and development. They are either natural or
synthetic compounds that are applied directly to a target plant to alter its life processes and
its structure to improve quality, increase yields, or facilitate harvesting etc. These are in the
nature of plant hormones and classical of them are auxins, cytokinins, gibberellins (all
three promoters) and abscisic acid, ethylene (both inhibitors). PGRs in the list are not
exhaustive and more growth substances are being discovered in this category. PGRs are
naturally produced by plants and they act by controlling or modifying, plant growth
processes such as formation of leaves and flowers, elongation of stems, development and
ripening of fruits etc. Synthetic organic chemicals are also used as PGRs and are industrially
produced and marketed. A list of some of the PGRs industrially produced in India is
enclosed with the reply of IARI.
6 Red It would thus be noted that PGRs are different from nutrients, be it macronutrient
or micronutrient. The difference between PGR and micronutrient has been clearly brought
out in the reply from ICAR. PGR as a substance is specifically covered under CETH 3808.
More specifically, Gibberellic acid and Plant Growth regulators are respectively covered
under tariff item 3808 9330 and 3808 9340.
4, Fertilizers are classified under chapter 31 of the Central Excise Tariff and for this
purpose they may interalia be minerals or chemical fertilizers - nitrogenous (CETH 3102),
phosphatic (CETH 3103), potassic (CETH 3104) or fertilizers consisting of two or three of
the fertilizing elements namely nitrogen, phosphorous and potassium; other fertilizers
(CETH 3105). For the purpose of classification of any product as “other fertilizers”,
chapter note 6 of Chapter 31 is relevant which provides that the term “other fertilizers”
applies only to products of a kind used as fertilizers and contain, as an essential
2
constituent, at least one of the elements nitrogen, phosphorus or potassium. It is quite clear
that for any product to merit classification under CETH 3105 as other fertilizers, the
product must have nitrogen or phosphorus or potassium or their combination as an
essential constituent providing the essential character to the product. The chemical
elements - nitrogen, phosphorus and potassium are also referred as macronutrients or
primary fertilizer elements and are required in higher quantity by the plants.
4.2 Any product where the essential elements are not nitrogen or phosphorus or
potassium or their mixture would not merit classification under CETH 3105. Further, the
specific exclusion of separate chemically defined compounds as laid down in chapter note
1(b) and in the HSN Explanatory Notes to the heading 3105.90, reinforce the above
conclusion. It may also be noted that notifications issued under Fertilizer Control Order are
not relevant for deciding classification under the Central Excise Tariff.
5. Mixtures of micronutrients/multi-micronutrients
with fertilisers are also
manufactured and sold. They shall be classified according to their essential characters and
general rules for interpretation of the schedule to the tariff. Where the essential constituent
giving character to the mixture is one or more of the three elements namely Nitrogen,
Phosphorous or Potassium, the mixture shall be classified under any of the heading of
Chapter 31, depending upon its composition. On the other hand, where the essential
character of the product is that of mixture of micronutrients /multi-micronutrients having
predominately trace elements, it shall be classified under CETH 3824 as chemical products
not elsewhere specified or included.
6. Past circulars of the Board on the subject namely 79/79/94-CX dt 21-11-94 and
392/25/98 - CX dt 19-5-1998 stand rescinded. Classification of Micronutrients, Multi-
micronutrients, Plant Growth Regulators and Fertilizers shall be governed by the
clarification contained in this circular to the extent the product under consideration is
covered by the circular.
re Difficulty experienced, if any, in implementing the circular should be brought to the
notice of the Board. Hindi version would follow.
ae
ae =
Lhe Ly
(Shankar Prasad Sarma)
Under Secretary to the Government of India
Encl: Opinion of IARI (5 pages)
ICAR-Indian Agricultural Research Institute
New Delhi
Classification of Micro-nutrients
S.No
1)
Points Comments
What are Plant
Micro-nutrients?
What
functions in
plant?
are
the their
Micronutrients are essential nutrients that are required in small
quantities for the normal growth and development of plants, As on
today, iron (Fe), manganese (Mn), zinc (Zn), copper (Cu), boron (B),
molybdenum (Mo), nickel (Ni) and chlorine (Cl) are included in this
category. The concentration of these nutrients in plants is found
often within 100 mg kg’! (on dry weight basis), except Fe and Mn,
which can go normally up to about 500 mg kg”. These elements are
also known as minor or trace elements, but this does not mean that
they are less important than macronutrients.
Functions
Tron
e ron is a constituent of two groups of proteins, viz. (a) Heme
proteins containing Fe porphyrin complex as a prosthetic
group: Cytochrome oxidase, catalase, peroxidase,
leghemoglobin, and (b) Fe-S proteins in which Fe is
coordinated to the thiol group of cysteine or to inorganic S:
Ferrodoxin
e It activates a number of enzymes, including aminolevolinic
acid synthetase and coproporphyrinogen oxidase.
e It plays an essential role in the nucleic acid metabolism.
e It is necessary for synthesis and maintenance of chlorophyll
in plants.
Manganese
e Manganese is an integral component of the water-splitting
enzyme associated with photosystem II. Because of this role,
Mn-deficiency is associated with adverse effects on
photosynthesis and O> evolution.
e lt is a constituent of superoxide dismutase (Mn-SOD). Role
of Mn assumes criticality because Mn-SOD (present in
mitochondria, peroxisomes, and glyoxysomes) protects cells
against the deleterious effects of superoxide free radicals.
e Manganese has a role in tricarboxylic acid cycle (TCA) in
oxidative and non-oxidative decarboxylation reactions.
Zinc
e Zinc is involved in many enzymatic activities such as
dehydrogenase, proteinase, peptidase efc.
e Zinc is involved in the synthesis of indole acetic acid,
metabolism of gibberellic acid and synthesis of RNA .
Because of its preferential binding to sulphydryl group, Zn
plays an important role in the stabilization and structural
orientation of the membrane proteins.
Zinc influences translocation and transport of P in plants.
Under Zn-deficiency. excessive translocation of P occurs
resulting in P-toxicity.
Copper
Copper is a constituent of number of enzymes.
Copper is important in imparting disease resistance to the
plants.
It enhances the fertility of male flowers.
Molybdenum
Boron
@
Molybdenum is a component of nitrate reductase.
nitrogenase, xanthine oxidase/dehydrogenase and sulphite
oxidase.
Biological nitrogen fixation (BNF) is catalysed by the Mo-
containing enzyme, nitrogenase (essentially comprising of
Mo-Fe-S protein and a Fe-S cluster protein) which directly
transfers electrons to Nz. Because of its involvement in BNF,
Mo requirement of nodulated legumes is particularly high.
Nitrate is reduced by nitrate reductase (NR) enzyme in
cytoplasm by transfer of electrons from Mo to NO3~. Owing
to close relationship between Mo supply, nitrate reductase
activity (NRA) and plant growth, NRA has been used as an
indicator of status of Mo in plants.
Molybdenum is involved in protein biosynthesis through its
effect on ribonuclease and alanine aminotransferase activity.
Molybdenum affects the formation and viability of pollens
and development of anthers.
It is responsible for the cell wall formation and stabilization,
_lignification and xylem differentiation. As a consequence, B-
deficiency causes changes in chemical composition and
ultrastructure of cell wall, accumulation of toxic phenols,
inhibition of lignin synthesis and a decrease in the production
of indole acetic acid (IAA)(Figure 2). Decrease in IAA is
responsible for the induction of Ca-deficiency.
It imparts drought tolerance to the crops. Regular boric acid
sprays help in mitigating harmful effects of drought.
Boron plays a role in pollen germination and pollen tube
growth.
It facilitates ion uptake by way of increasing the activities of
plasma-membrane bound H*-ATPase (H*-adenosine
triphosphatase).
ad
te
«
aa
iii)
« It facilitates transport of K in guard cells as well as stomatal
opening.
Nickel
¢ Nickel is associated with nitrogen metabolism by way of
influencing urease activity. In systems where urea is used as
the sole N fertilizer for foliar spray and Ni supply is poor,
lower urease activity causes urea toxicity to the foliage and
leads to severe necrosis of the root tips.
e In free-living Rhizobia, adequate Ni supply ensures optimum
hydrogenase activity.
¢ It facilitates transport of nutrients to the seeds or grains.
Chlorine
¢ It plays a major role in osmoregulation (cell elongation,
stomatal opening) and charge compensation in higher plants.
e It acts as a cofactor in Mn-containing water splitting enzyme
of photosystem II.
e Chlorine in abundance suppresses the plant diseases, viz.
grey leaf spot in coconut palms, take-all and common root rot
in wheat, common root rot and Fusarium root rot in barley,
stalk rot in corn, stem rot and sheath blight in rice, hollow
‘heart and brown centre in potatoes, Fusarium yellows in
celery, and downy mildew in millet.
¢ Chlorine supply improves the nutritional quality of
vegetables by preferentially lowering the NO3” -N
concentration in tissues.
What are single
Micro-nutrients &
Mixture of Méicro-
nutrients?
There is no standard definition of single micronutrients and mixture of
micronutrients.
A
What | are Plant
Growth regulators
(PGRs)? What are
| their functions in the
plant?
> PGRs: Plant growth regulators defined as organic compounds
other than nutrients that affect the physiological processes of
growth and development in plants when applied in low
“concentrations. Plant growth regulators are active at low
concentrations (1-10 ng / nl) in promoting, inhibiting or
_ modifying growth and development.
> They are either natural or synthetic compounds that are applied
directly to a target plant to alter its life processes or its structure
to improve quality, increase yields, or facilitate harvesting. In
modern agriculture, people have established the benefits of
extending the use of plant hormones to regulate growth of other
plants. When natural or synthetic substances used in this
manner, they are called Plant Growth Regulators.
Role:
> Plant hormones are produced naturally by plants and are
essential for regulating their own growth. They act by |
controlling or modifying plant growth processes. such as
formation of leaves and flowers, elongation of stems. |
development and ripening of fruit etc.
Plant hormones rarely act alone, and for most processes-- at
least those that are observed at the organ level-many of these |
regulators have interacted in order to produce the final effect.
Examples:
(a) Classical plant hormones (auxins, cytokinins, gibberellins,
abscisic acid, ethylene) and growth regulatory substances with
similar biological effects.
(b) More recently discovered natural growth substances that
have phytohormonal-like regulatory roles (polyamines,
oligosaccharins, salicylates. jasmonates, sterols,
brassinosteroids, dehydrodiconiferyl alcohol glucosides,
turgorins, systemin, unrelated natural stimulators and
inhibitors), as well as myoinositol. Many of these growth active
substances have not yet been examined in relation to growth
and organized development in vitro.
Kindly give examples
of Plant Micro
Nutrients and Plant
Micro Nutrients:
Iron (Fe), manganese (Mn), zinc (Zn), copper (Cu), boron (B),
molybdenum (Mo), nickel (Ni) and chlorine (CI) are classified as
Growth Regulators | plant micronutrients.
naturally found.
Kindly also give | Pjant Growth Regulators Naturally Found:
examples of Plant} > The plant hormones are identified as promoters (auxins,
Growth Regulators gibberellin and cytokinin), inhibitors (abscissic acid and
and. Plant Sroyi ethylene) and other hypothetical growth substance (florigen,
Hormones which are flowering hormone, etc.) ;
eemne Sigg > -More recently discovered natural growth substances that have
niet phytohormonal-like regulatory roles (polyamines,
oligosaccharins, salicylates, jasmonates, sterols,
brassinosteroids, dehydrodiconiferyl alcohol glucosides,
turgorins, systemin, unrelated natural stimulators and
inhibitors), as well as myoinositol.
Plant Growth Regulators which are produced industrially are listed in
Table 1.
v)| Are Micro- | These are different.
nutrients and Plant
Growth
Regulators (PGRs)
one and the same?
Table 1: LIST OF MARKETED PLANT GROWTH REGULANTS WITH ACTIVE INGREDIENT/S
Active | Product Name Company | Crops
ingredient/Formulation/Concentrate
Name
| AUXINS
|
2-(J-naphthyljacetic acid | SL 45 g/ Planofix : Apple Pear Pineapple
__4-indol-3-ylbutyric acid _| DP__| 1 g/ke Seradix B No |] r Ornamentals |
4-indol-3-ylbutyric acid | DP | 3 g/kg Seradix B No 2 - Ornamentals
4-indol-3-ylbutyric acid | SL 8 g/kg Seradix BNo3 | - Ornamentals |
GIBBERELLINS
Gibberellins SL 32 g/l ProGibb 4% Grape, Pear, Citrus, Potato,
Mango, Hops, Grape-
seedless
CYTOKININS
6-benzy] SL 19/19 g/l | Promalin F Apple, Plum, Flowers,
adenine/gibberellins
Z Ornamentals
; ETHYLENE
Ethephon SL | 480 g/l | Ethrel ; Apple, Cherry, Citrus,
Cotton, Grape, Maize,
Peach, Pineapple, Plum, ©
Prune and Sugarcane -
Tobacco
GROWTH RETARDANTS
Paclobutrazol SC | 250 g/l _| Cultar oD Litchi Mango Peach Plum
Daminozide SP 850 g/kg | B-Nine SP : Flowers Ornamentals
Glyphosate- SL | 360 g/l | Glyphosate 360 |? " Sugarcane and Grasses
isopropylamine Acid (chemical mowing)
Glyphosate- SL 360 g/l | Mamba 360 SL Sugarcane Grasses
isopropylamine
es (chemical mowing)
Glyphosate- SL 360 g/l | Roundup Grasses (chemical mowing)
isopropylamine
Sugarcane
Glyphosate- SL 360 g/l | Roundup Ultra Sugarcane Grasses
isopropylamine
(chemical mowing)
GROWTH INHIBITORS
Mepiquat chloride SL 50 g/l Pix ih Cotton
Chlormequat chloride SL__| 750g/l_ | CeCeCe 750 re Pear, Wheat
Chlormequat SL | 300/150 | Uprite Wheat
chloride/ethephon g/l
DEFOLIJANTS
Thidiazuron/diuron SC 120/60 | Dropp Ultra Cotton
g/l
GROWTH STIMULATORS
Brassinolide {SL [0.1% | Double ee | Agril. and Hortil. crops
*SL — Liquid Suspension;
Powder Dust
WP — Wettable Powder; EC — Emulsifiable Concentrate:
DP —
