Hike in Customs Duty on Vegetable Oils
GOVERNMENT has increased the Customs duty on crude and refined vegetable oils by 5 percentage points, much to the happiness of the Indian Industry. Solvent Extractors' Association of India (SEA) and Soyabean Processors Association of India (SOPA) have welcomed the hike, though they were demanding a 10 to 15 percentage hike. Consequent to the duty hike, the Government is expected to mop up at least Rs.5,000crore annually, which the Trade wants to be used for oilseeds development purposes and improving productivity.
The Solvent Extractors' Association says, “In last two months, due to Nil export duty on palm products by Indonesia and Malaysia, lowest prices of palm products in last 5 years and reduced demand of CPO for bio diesel, pushed the export of palm products to India to reduce burgeoning stock held by the exporting countries.Also, due to high prices of soybean and lesser realization for oil and soybean meal in export market, resulted in lower crushing and availability of domestic oil coupled with anticipated increase in import duty by the Indian Government, raised the import during November, 2014 to a record level compared to Nov.'13 & Nov.'12. Import of vegetable oils during November 2014 is reported at 1,189,934 tons compared to 944,309 tons in November 2013.
The existing and amended rates are:
S. No. | Chapter or Heading or sub-heading or tariff item | Description of goods | Rate of duty | |
|---|---|---|---|---|
EXISTING | AMENDED | |||
(1) | (2) | (3) | (4) | (5) |
51 | 15 | Crude Palm Oil - 1511 | 2.5 | 7.5 |
55 | 15071000 | All goods (Soya) | 2.5 | 7.5 |
56 | 15079010 | All goods (Soya) | 10 | 15 |
57 | 1508, 1509, 1510, 1512, 1513, 1514, or 1515 | All goods, crude and edible grade (Ground nut) | 2.5 | 7.5 |
58 | 1508,1509, 1510, 1512, 1513, 1514 or 1515 | All goods, refined and edible grade | 10 | 15 |
59 | 1511 90 | All goods (Palm) | 10 | 15 |
62 | 15121110 | All goods (sunflower) | 2.5 | 7.5 |
63 | 15121910 | All goods(sunflower) | 10 | 15 |
65 | 1514 11 or 1514 91 | All goods, edible grade (rape, colza or mustard) | 2.5 | 7.5 |
66 | 1514 19 or 15 14 99 | All goods, edible grade (rape, colza or mustard) | 10 | 15 |
69 | 1516 20 | All goods, edible grade (animal or Vegetable fats) | 10 | 15 |
71 | 1517 10 21, 1517 90 10, 1517 90 20, 1518 00 11, 1518 00 21 or 1518 00 31 | All goods, edible grade (margarine) | 10 | 15 |
Notification No. , Dated: December 24, 2014