Denaturing of Ethyl Alcohol
Un-denatured ethyl alcohol of strength 80% or higher is classifiable under sub-heading 2207.10 whereas denatured ethyl alcohol is classifiable under sub-heading 2207.20. Denatured ethyl alcohol attracts concessional rate of customs duty @10% basic under Notification No. 21/2002-Cus., dated 1.3.2002 (Sl.No.50) as against 150% basic on un-denatured ethyl alcohol. Ethyl alcohol is imported in un-denatured form, whether for use as such (e.g. potable type) or for industrial use. In case of latter use, ethyl alcohol requires to be denatured before clearance. For denaturing, of ethyl alcohol, it is treated with certain chemical agents such as, wood naphtha, methanol, acetone, pyridine, aromatic hydrocarbons (benzene etc.) and coloring matter (HSN notes for heading 2207 refer).
Board has now decided that BIS standards IS 4117-1973 may be adhered to for denaturation of imported consignment of ethyl alcohol in order to bring about uniformity in denaturing process at all Customs formations and avoid any misuse. Further, the Commissioner may also allow any other specific denaturant or bitterant, coloring agent in addition to denaturant as specified by the State Government, for the purpose of preventing the scope of renaturation of denatured spirit and its misuse for potable purpose. The Commissioners may allow use of additional denaturants in quantity which is adequate for denaturing the imported spirit for use in a particular industry, in consultation with the Chief Chemist/Deputy Chief Chemist.
CIRCULAR NO. , Dated: January 10, 2006