Classification of EDTA Zinc 12% as fertilizer under Chapter 31 secured CVD exemption despite Chapter 29 arguments.

EDTA Zinc 12% was analysed under Chapters 29 and 31 by reference to the manufacturing process, expert opinion and tariff notes. The product was found to contain nitrogen deliberately incorporated during manufacture, with nitrogen remaining present in the finished goods, and to be of agricultural grade for use as a fertilizer or micronutrient. On that basis, it was treated as a product of a kind used as fertilizer containing an essential fertilizing element, so it did not fall within Chapter 29 as a separate chemically defined compound. It was classified under CTH 3105 9090 as other fertilizer, making the CVD exemption under Notification No. 04/2006-CE available.

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Issues: Whether EDTA Zinc 12% is a separate chemically defined compound classifiable under Chapter 29 or classifiable as other fertilizer under Chapter 31, and consequently whether it is entitled to exemption from CVD under Notification No. 04/2006-CE dated 01.03.2006.

Analysis: The product was examined in light of the manufacturing process, expert opinion, and the tariff notes governing Chapters 29 and 31. Under Note 1 to Chapter 29, separate chemically defined organic compounds are covered, whereas Chapter 31 excludes separate chemically defined compounds unless they fall within the specified exceptions. The material showed deliberate incorporation of nitrogen along with zinc during manufacture, and the nitrogen remained present in the finished product. The product was also shown to be of agricultural grade and intended for use as a fertilizer or micronutrient. Chapter Note 6 to Chapter 31 requires a product of a kind used as fertilizer and containing, as an essential constituent, at least one fertilizing element. On the facts found, nitrogen was treated as an essential constituent, and the presence of zinc did not take the product out of Chapter 31. The reasoning adopted the view that micronutrient mixtures with fertilizing elements in substantial proportion are more appropriately classified as fertilizers rather than as separate chemically defined compounds.

Conclusion: EDTA Zinc 12% is not classifiable under Chapter 29 as a separate chemically defined compound and is correctly classifiable under CTH 3105 9090 as other fertilizer. The exemption from CVD under Notification No. 04/2006-CE dated 01.03.2006 is available.

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