What is the Customs Duty on Mono Potassium Phosphate? Will Board Clarify?
Sl. No 202 of the Table to Notification No. 12/2012-Cus dated 17.03.2012 reads as:
S. No. | Chapter or Heading or sub-heading or tariff item | Description of goods | Standard rate | Additional duty rate | Condition No. |
|---|---|---|---|---|---|
(1) | (2) | (3) | (4) | (5) | (6) |
202 | 31 | I.The following Water Soluble Fertilizers included in Schedule 1, part A of the Fertilizers Control Order, namely:- | |||
(a) Potassium nitrate (13:0:45) | 5% | - | - | ||
(b) Calcium nitrate | 5% | - | - | ||
(c) Mono ammonium phosphate | 5% | - | - | ||
(d) Mono potassium phosphate (0:52:34) | |||||
(e) 13:40:13 NPK fertilizers | 2.5% | - | - | ||
(f) 18:18:18 NPK fertilizers | 2.5% | - | - | ||
(g) 13:25:26 fertilizers | 2.5% | - | - | ||
(h) 20:20:20 NPK fertilizers | 2.5% | - | - | ||
(i) 6:12:36 NPK fertilizers | 2.5% | - | - | ||
(j) Potassium magnesium sulphate | 2.5% | - | - | ||
(k) 19:19:19 NPK fertilizers | 2.5% | - | - | ||
(l) NPK 12:30:15 | 2.5% | - | - | ||
(m) NPK 12:32:14 | 2.5% | - | - |
Please note that rates of duty against (d) Mono potassium phosphate (0:52:34) are shown as blank.
The JS TRU DO letter issued on the Budget Day in para 24.2 explains that for Specified soluble fertilizers and liquid fertilizers, other than urea, the customs duty was reduced to 5% or 2.5%. So, the effective rate of duty for Mono potassium phosphate should have been 5% or 2.5%. But the Board while drafting this notification obviously made a mistake and forgot to fill the columns 4,5 and 6 against Mono potassium phosphate in the notification. Even after two and a half months after issue of this notification, this gap glaringly mocks at the notification making capacity of the Board. This means that there is no exemption for Mono potassium phosphate, which was certainly not the intention.
Let us hope the Board would correct this lapse soon and correct it properly with a notification instead of smuggling it through the backdoor.