Bio-pesticide classification for Spinetoram upheld despite chemical modification, preserving customs exemption eligibility.

Spinetoram was analysed as an insecticide falling under Chapter 38 and, on the materials considered, as a bio-pesticide derived from Saccharopolyspora spinosa. The fact that the product undergoes chemical or synthetic modification did not, by itself, disqualify it from bio-pesticide treatment where the evidence showed it remained based on that organism. On that basis, and because the exemption conditions were met, the product was found eligible for Entry No. 249 of Notification No. 50/2017-Cus. dated 30-6-2017.

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Issues: Whether Spinetoram is classifiable under Chapter 38 and qualifies as a bio-pesticide based on Saccharopolyspora spinosa so as to be eligible for exemption under Entry No. 249 of Notification No. 50/2017-Cus. dated 30-6-2017.

Analysis: The product literature, departmental comments, and other materials showed that Spinetoram is derived from fermentation of Saccharopolyspora spinosa and then chemically modified. The product was treated as an insecticide falling under Chapter 38, and insecticide was regarded as a subset of pesticide. The fact that the manufacturing process involved chemical or synthetic modification did not, by itself, negate its character as a bio-pesticide, particularly in light of the registration granted under the Insecticides Act, 1968. The materials before the Authority supported the view that the product remained based on Saccharopolyspora spinosa and satisfied the conditions of the exemption entry.

Conclusion: Spinetoram was held to be eligible for the benefit of Entry No. 249 of Notification No. 50/2017-Cus. dated 30-6-2017.

Ratio Decidendi: A product derived from Saccharopolyspora spinosa does not cease to be a bio-pesticide merely because it undergoes chemical or synthetic modification, if the evidence shows it remains based on that organism and satisfies the exemption entry conditions.

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