Circular No. 3 dated 8^th January 2002

I am directed to refer to the subject mentioned above and to state that a doubt has been raised regarding classification of hot pepper seeds (chilli seeds) in the Customs Tariff and its eligibility for the benefit of notification No.17/2001-Cus., (Sl.No.7 and Sl.No.24 of the Table). Some Custom Houses are reported to have denied the benefit of the notification to "hot pepper seeds".

2.      The matter has been examined. Vide Circular No. 51/2001-Customs, dated 25.09.2001, it was clarified that pepper seeds imported for sowing purposes would merit classification under heading 09.04 and not under Chapter 12. It was also clarified that if such products (other than cubeb pepper) have been assessed under Chapter 12 as vegetable seeds, the practice may be reviewed. It may be noted that `hot pepper seeds' are different from pepper seeds. `Hot pepper seeds' are seeds of chillies of genus Capsicum. As per HS Explanatory Notes to heading 09.04, the heading applies to seeds or fruits of pepper plants of the genus Piper except Cubeb pepper. The heading also covers fruits of genus Capsicum or of the genus Pimenta (dried or crushed or ground). Therefore, seeds of genus Capsicum are not covered under heading 09.04. As a matter of fact, sub-heading 0904.20 does not cover the seeds of the fruits of genus Capsicum or of the genus Pimenta, the two main groups of which are the chillies or paprikas. Seeds of genus Capsicum (chilli seeds) imported for sowing or otherwise are appropriately classifiable under heading 12.09 (sub-heading 1209.91) and are eligible for benefit of notification No.17/2001-Cus., (Sl.Nos.7 and 24 of the Table).

3.      The Custom Houses may kindly take note of the above instructions while assessing such goods. Pending assessments may be finalised in accordance with these instructions. Difficulties, if any, faced may be brought to the notice of the Board.

Please acknowledge receipt of this Circular.