Tariff Value on Palm Oil and Palmolein Cut by US$ 97 per MT and US$ 112 per MT to Reduce Import Price, Duty impact will vary from 30 to 54%

·      Gold and Silver Tariff Value Table 2 and Table 3 Missing from the Table. Corrigendum to be issued

·      Brass Scrap, and Areca Nuts Tariff Value also missing in the Table

In an attempt to give relief to the consumers, the government on Wednesday reduced the benchmark import price of edible oil. In this regard, the import tariff value on crude palm oil was reduced by $87 to $1,136/tonne, while crude soya oil import tariff value reduced by $37 to $1,415/tonne.

The Central Board of Indirect Taxes and Customs through Ministry of Finance said in a notification about the benchmark import price cut. The notification reads that the new rates shall come into force with effect from the 17th day of June, 2021.

While other oil imports such as RBD palm oil reduced to $1148/tonne, others-palm oil $1142/tonne, crude palmolein to $1150/tonne, RBD palmolein to $1153/tonne and others – palmolein to $1152/tonne, the government notification read.

India’s monsoon-sown oilseeds output is seen rising 15% from a year earlier to 25.73 million tons in 2020-21, according to the farm ministry. Lately, edible oil prices have been skyrocketed with the rise in the oil prices across categories in international markets.

In the commodity markets, crude palm oil jumped over two per cent to Rs 1022 per 10 kgs, while, crude soya oil rose by around one hand a half per cent to Rs 1296 per 10 kgs on Wednesday.

The government, in March, had raised the import duty on crude palm oils from 30 per cent to 44 per cent, while that on refined palm oils to 54 per cent from 40 per cent.

[Notification No. 53 /2021-CUSTOMS (N.T.) dated 16 June 2021]

S.O. … (E).– In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient to do so, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:-

In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely: -

 

“TABLE-1

Sl. No.

Chapter/ heading/ sub-heading/tariff item

Description of goods

Tariff value (US $Per Metric Tonne)

Tariff value (US $Per Metric Tonne) As on 15.06.2021

(1)

(2)

(3)

(4)

 

1

1511 10 00

Crude Palm Oil

1136

1222

2

1511 90 10

RBD Palm Oil

1148

1245

3

1511 90 90

Others – Palm Oil

1142

1234

4

1511 10 00

Crude Palmolein

1150

1262

5

1511 90 20

RBD Palmolein

1153

1265

6

1511 90 90

Others – Palmolein

1152

1264

7

1507 10 00

Crude Soya bean Oil

1415

1452

2. This notification shall come into force with effect from the 17th day of June, 2021

[F. No. 467/01/2021-Cus-V]