Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
Circular No. 1022/10/2016-CX
New Delhi, Dated the 6th 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-micro nutrients, Plant
Growth Regulators and Fertilizers- reg.
The issue of classification of micronutrients, multi-micro nutrients, 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 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
– C.E 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.
3.2 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 constituent, at least one of the elements nitrogen, phosphorus or
potassium. It is quite clear that for any product to merit classification under
CETH3105 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.
7. Difficulty experienced, if any, in implementing the circular should be
brought to the notice of the Board. Hindi version would follow.
(Shankar Prasad Sarma)
Under Secretary to the Government of India
F. No. 106/03/2013-CX.3
Encl: Opinion of IARI (5 pages)
ICAR – Indian Agricultural Research Institute New Delhi
Classification of Micro-nutrients
| Sl. No. |
Points |
Comments |
| i) |
What are Plant Micro-nutrients?
What are their functions in the plant?
|
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-I (on dry weight basis). except Fe and Mn, which
can go normally up to about 500 mg kg-1. These elements are also known
as minor or trace elements, but this does not mean that they are less
important than macronutrients.
Functions
Iron
-
Iron is a constituent of two groups of proteins, viz. (a) Herne
proteins containing Fe porphyrin complex as a prosthetic group:
Cytochromeoxidase, catalase, peroxidase, leghemoglobin.and
(b)Fe-Sproteinsin whichFeis coordinated to the thiol group of
cysteine or to inorganic S: Ferrodoxin
-
It activates a number of enzymes, including aminolevolinic acid
synthetase and coproporphyrinogen oxidase.
-
It plays an essential role in the nucleic acid metabolism.
-
It is necessary for synthesis and maintenance of chlorophyll in
plants.
Manganese
-
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 O2 evolution.
-
It 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.
-
Manganese has a role in tricarboxylic acid cycle (TCA) in
oxidative and non-oxidative decarboxylation reactions.
Zinc
-
Zinc is involved in many enzymatic activities such as
dehydrogenase, proteinase. peptidase etc.
-
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
-
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 N2.
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.
Boron
-
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).
-
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.
-
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.
-
It acts as a co factor in Mn-containing water splitting enzyme
of photosystem II.
-
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.
|
ii)
|
What are single Micro-nutrients & Mixture of Micro-nutrients? |
There is no standard definition of single micronutrients and mixture
of micronutrients |
iii)
|
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.brass inosteroids,
dehydrodiconiferyl alcohol glucosides,
turgorins,systemin,unrelated natural stimulatorsand 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.
|
iv)
|
Kindly give examples of Plant Micro Nutrients and Plant Growth
Regulators naturally found. Kindly also give examples of Plant Growth
Regulators and Plant Growth Harmones which are produced industrially and
sold in the market, |
Micro
Nutrients
Iron (Fe), manganese (Mn), zinc (Zn), copper (Cu), boron (B), molybdenum (Mo), nickel (Ni) and chlorine (Cl)
are classified as plant micronutrients.
Plant
Growth Regulators Naturally Found:
-
The plant hormones are identified as promoters(auxins.
gibberellin and cytokinin),inhibitors(abscissic acid and
ethylene) and other hypothetical growth substance(florigen,
lfowering hormone, etc.,)
-
More recently discovered natural growth substances that have
phytohonnonal-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-nutrients and Plant Growth Regulators (PGRs) one and the
same? |
These are different |
Table 1: LIST OF MARKETED PLANT GROWTH REGULANTS WITH ACTIVE
INGREDIENTS
Active
ingredient/Formulation/Concentrate
|
Product
Name
|
Company
Name
|
Crops
|
| AUXINS |
| 2-(1naphthyl)acetic acid |
SL |
45 g/l |
Planofix |
|
Apple Pear Pineapple |
| 4-Indol-3-ylbutyric acid |
DP |
1 g/kg |
Seradix B No 1 |
|
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 B No 3 |
|
Ornamentals |
GIBBERELLINS
|
| Gibberellins |
SL |
32 g/l |
ProGibb 4% |
|
Grape, Pear, Citrus, Potato, Mango, Hops, Grape-seedless |
CYTOKININS
|
| 6-benzyl adenine/gibberellins |
SL |
19/19 g/l |
Promalin |
|
Apple, Plum, Flowers, 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 |
|
Litchi Mango Peach Plum |
| Daminozide |
SP |
850 g/kg |
B-Nine SP |
|
Flowers Ornamentals |
| Glyphosate-isopropylamine |
SL |
360 g/l |
Glyphosate 360 Acid |
|
Sugarcane and Grasses (chemical mowing) |
| Glyphosate-isopropylamine |
SL |
360 g/l |
Mamba 360 SL |
|
Sugarcane Grasses (chemical mowing) |
| Glyphosate-isopropylamine |
SL |
360 g/l |
Roundup |
|
Grasses (chemical mowing) Sugarcane |
| Glyphosate-isopropylamine |
SL |
360 g/l |
Roundup Ultra |
|
Sugarcane Grasses (chemical mowing) |
GROWTH
INHIBITORS
|
| Mepiquat chloride |
SL |
50 g/l |
Pix |
|
Cotton |
| Chlormequat chloride |
SL |
750 g/l |
CeCeCe 750 |
|
Pear, Wheat |
| Chlormequat chloride/ethephon |
SL |
300/150 g/l |
Uprite |
|
Wheat |
| DEFOLIANTS |
| Thidiazuron/diuron |
SC |
120/60 g/l |
Dropp Ultra |
|
Cotton |
GROWTH
STIMULATORS
|
| Brassinolide |
SL |
0.1% |
Double |
|
Agril, and Hortil, crops |
*SL – Liquid Suspension; WP – Wettable Powder; EC – Emulsifiable Concentrate; DP
– Powder Dust
|