Crude Palm, Soyabean and Sunflower Oil Basic Customs Duty Scrapped; Agriculture Cess Cut

Crude Palm Oil, Soyabean Oil and Sunflower Seed Oil Cut by 2.5%

·         RBD and Refined Palm Oil, Edible Grade Soybean Oil, Sunflower Oil down by 15%

·         ADIC Slashed by 15% on Crude Soyabean Oil and Crude Sunflower Oil; Crude Palm Oil Cut by 12.5%

·         Concession Effective from 14 Oct to 31 March 2022

The basic customs duty on refined varieties of sunflower, soyabean, palmolein and palm oil has been slashed to 17.5 per cent each from 32.5 per cent at present.

The government on Wednesday, 13 October 2021 scrapped basic customs duty as well as agri cess slashed on crude varieties of palm, soyabean and sunflower oil till March 2022, a move which will help cool prices and increase domestic availability in the festive season.

The duty cuts will be effective from October 14 and will remain in force till March 31, 2022, the Central Board of Indirect Taxes and Customs (CBIC) said in a notification. Crude palm oil will now attract agri infrastructure development cess (AIDC) of 7.5 per cent, while the rate will be 5 per cent for crude soyabean oil and crude sunflower oil.

Post reduction, the effective customs duty on crude varieties of palm, soyabean and sunflower oil will be 8.25 per cent, 5.5 per cent and 5.5 per cent respectively. Besides, the basic customs duty on refined varieties of sunflower, soyabean, palmolein and palm oil has been slashed to 17.5 per cent each from 32.5 per cent at present.

"The government has slashed import duties on edible oils because of high retail prices in the domestic market and the festive season," Solvent Extractors' Association of India Executive Director BV Mehta said.

[Notification No. 48/2021-Customs dated 13 October 2021]

Seeks to reduce BCD on crude and refined soya, sunflower and palm oils till 31.03.2022

G.S.R. ……(E). - In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description specified in column (3) of the Table below, falling within the Chapter, heading, sub–heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) specified in column (2) of the said Table, when imported into India, from so much of the duty of customs leviable thereon under the said First Schedule to the Customs Tariff Act, 1975 (51 of 1975), as is in excess of the amount calculated at the standard rate specified in the corresponding entry in column (4) of the said Table, namely –

 

Table

S. No.

Chapter or Heading or sub- heading or tariff item

Description of goods

Standard rate

(1)

(2)

(3)

(4)

1.

1507 10 00

Crude Soya-bean oil, whether or not degummed

Nil

2.

1507 90 10

Soya-bean oil, edible grade

17.5%

3.

1511 10 00

Crude Palm Oil

Nil

4.

1511 90

Refined bleached deodorized(RBD) palm oil, RBD palmolein, RBD palm stearin and any palm oil other than crude palm oil

17.5%

5.

1512 11 10

Crude Sunflower seed oil

Nil

6.

1512 19 10

Sunflower oil, edible grade

17.5%

2. This notification shall come into effect on the 14th October, 2021, and will remain in force up to and inclusive of the 31st March, 2022.

[F. No. CBIC-190354/226/2021-TRU]