Biofertilisers as cultures of micro-organisms classified under tariff item 30029030, not as fertilisers under heading 3101.

Bio agricultural products composed of living micro-organisms were distinguished from fertilisers under heading 3101 because they are cultured and packed for application to seeds, plant surfaces or soil, rather than functioning as animal, vegetable or organic fertilisers. On that basis, RhizoMyx and Rhizomyco were found outside heading 3101 of the Customs Tariff. The products were then treated as cultures of micro-organisms under heading 3002, specifically tariff item 30029030 excluding yeasts. They were therefore classifiable under tariff item 30029030 of the First Schedule to the Customs Tariff Act, 1975, and correspondingly under Entry 61 of Schedule II of Notification No. 1/2017-Central Tax (Rate).

---

---

Issues: Whether the bio agricultural products RhizoMyx and Rhizomyco are classifiable under heading 3101 as animal, vegetable or organic fertilisers, or under heading 3002 as cultures of micro-organisms.

Analysis: The products were examined against the statutory and dictionary meanings of biofertilisers, animal fertilisers, organic fertilisers and vegetable fertilisers. The ruling held that biofertilisers are distinct in nature and use from fertilisers falling under heading 3101 because they consist of living micro-organisms cultured and packed in carrier material for application to seeds, plant surfaces or soil. On that basis, the products were found not to fall under heading 3101 of the Customs Tariff. The ruling then considered heading 3002, especially tariff item 30029030 covering cultures of micro-organisms excluding yeasts, and held that biofertilisers produced by culturing micro-organisms fit that entry.

Conclusion: RhizoMyx and Rhizomyco are classifiable under tariff item 30029030 of the First Schedule to the Customs Tariff Act, 1975 and correspondingly under Entry 61 of Schedule-II of Notification No. 1/2017-Central Tax (Rate) dated 28.06.2017.

---