25% Customs Duty on Wheat to Continue
AS per Sl. No. 34 of the Table to Notification No. 12/2012-Cus, dated 17.3.2012, the effective rate of Customs duty for import of wheat is 25%. But as per the proviso (ac), this exemption is not applicable on or after the 1st day of July, 2016. Now the Government has omitted this clause thereby continuing the existing effective rate of 25%.
This duty is to check cheap imports. Flour millers near the port cities in South India have been importing it because it is cheaper to buy from countries such as Australia than transporting the grain from Northern and Central States.
Notification No. , Dated June 17 2016