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of <h1>Furnace Oil Eligible for Customs Duty Exemption in Fertilizer Manufacturing under Notification No. 17/2001-Cus.</h1> The circular addresses the eligibility of furnace oil for customs duty exemption under notification No. 17/2001-Cus. when used in the manufacture of fertilizers. Although furnace oil is not directly used in fertilizer production, it is employed as fuel in boilers for steam production, which is essential for ammonia synthesis, an intermediate in fertilizer manufacturing. The Board has decided that furnace oil qualifies for the exemption, provided importers comply with the Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996. Any implementation issues should be reported to the Board.
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