Customs exemption for fertilizer input imports permitted manual filing and provisional release pending end-use verification.

Imported muriate of potash claimed for use in manufacturing fertilizers was treated as falling within an exemption for fertilizers imported for use in the manufacture of other fertilizers, subject to verification of end-use. Because the department disputed only the actual use of the goods, the import could not be stalled on that basis alone. The Court directed the customs authorities to accept manual bills of entry so the importer could pursue the exemption claim, and ordered provisional release of the goods against a bank guarantee for the disputed countervailing duty and payment of basic duty pending final assessment.

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Issues: Whether imported muriate of potash proposed for use in the manufacture of fertilizers was entitled to exemption from countervailing duty and whether the customs authorities could be directed to accept manual bills of entry and provisionally release the goods on security pending final assessment.

Analysis: The exemption notification expressly covered fertilizers imported for use in the manufacture of other fertilizers. The department did not dispute the wording of the exemption but questioned the actual end-use of the imported goods. In the circumstances, the import could not be stalled merely because that issue was under dispute. Reliance was placed on the government communication permitting acceptance of manual bills of entry, and the Court directed the customs authorities to accept manual filing in order to enable the petitioner to claim the exemption. The Court further directed provisional release of the goods upon filing of the manual bill of entry, on furnishing a bank guarantee for the disputed countervailing duty and payment of basic duty.

Conclusion: The petitioner was held entitled to proceed with manual filing to claim the exemption, and the goods were directed to be provisionally released against security pending final assessment.

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