Norms for Import of 5 lakh tonne Maize at Concessional Duty Released

The government has notified norms for import of 5 lakh tonne of maize this year at a concessional customs duty of 15 per cent, a move aimed at increasing availability of the commodity in the domestic market.

These imports are permitted under Tariff Rate Quota Scheme in which the government allows imports of four products, including maize (corn), at concessional rates of customs duty.

It has also notified the norms for imports of 10,000 tonne of milk and cream powder for this year at a concessional duty of 15 per cent.

Besides, 1.5 lakh tonne each of refined rape, colza or mustard oil and crude sunflower seed or safflower oil will be imported at 45 per cent and 50 per cent duty, respectively.

In a notification, the Department of Revenue has said it "seeks to prescribe the manner and modalities in respect of WTO (World Trade Organization) committed in-quota tariffs on specified items".

At present, maize attracts 50 per cent import duty.

India has been traditionally a major corn exporter to southeast Asia but drought and rising domestic demand led to cut in export supplies. Poultry sector and starch manufacturers are the major consumer of maize.

[Notification No. 28/2020 Customs dated 23rd June 2020]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, so to do, hereby exempts the goods of the description specified in column (3) of the Table below, and falling within the sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as are specified in the corresponding entry in column (2) of the said Table in such quantity of total imports of such goods in a financial year, as specified in column (4) below (herein after referred to as the tariff rate quota (TRQ) quantity), when imported into India, from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the rate specified in the corresponding entry in column (5) of the said Table (herein after referred to as the In-quota tariff rate), subject to any of the conditions, specified in the Annexure to this notification, the condition number of which is mentioned in the corresponding entry in column (6) of the said Table; namely:-

Table

S.No.

Subheading or tariff item

Description of goods

Tariff rate quota Quantity

In-quota tariff rate

Condition No.

(1)

(2)

(3)

(4)

(5)

(6)

1.

0402 10 or 0402 21 00

Milk and cream in powder, granules or other solid forms,

(a) of a fat content by weight not exceeding 1.5%;

(b) of a fat content, by weight, exceeding 1.5% - not containing added sugar or other sweetening matter

10000 MT

15 per cent

(i)

2.

1005 90

Maize (corn), other than seed quality

500000 MT

15 per cent

(i) and (ii)

3.

1512 11

Crude sunflower seed or safflower oil and fractions thereof

150000 MT

50 per cent

(i)

4.

1514 19 or 1514 99

Refined rape, colza or mustard oil and fractions thereof

150000 MT

45 per cent

(i)

 

Annexure

Condition No.

Condition

(i)

(a) The TRQ is allotted to the importer by the Directorate General of Foreign Trade, in accordance with paragraph 2.62 of the Handbook of Procedures, 2015-20.

(b) The TRQ authorization shall contain name and address of the importer, IEC code, Customs notification No., sub-heading or tariff item as applicable, quantity and validity period of certificate.

(c) The TRQ authorization shall be issued electronically by the Directorate General of Foreign Trade and transmitted to ICES system.

(d)  Imports made against the TRQ shall be allowed only upon debiting the TRQ quantity electronically in the ICES system.

(ii)

Whereas the Honble High Court of judicature at Hyderabad for the State of Telangana and the State of Andhra Pradesh vide order dated 31.12.2014 in WPMP No.43494 of 2014 and W.P.No.34771 of 2014, has permitted import of maize only on actual user condition and on payment of Customs duty prevailing, but not TRQ Customs duty, subject to further orders in the Writ Petition.

Accordingly, TRQ on Maize shall be subject to order by Honble High Court in the said Writ Petition.

[F. No. 354/24/2020- TRU]