Crude palm oil and palmoleine – Scope of exemption expanded
As per Sl. No.34 of Notification No.21/2002- Cus dt.1.3.2002, crude palm oil and its fractions attract a concessional rate of duty subject to certain specifications like having a carotenoid content in the range of 500 – 2500 mg/Kg. and an acid value of 2 or more.
These specifications were prescribed to prevent the import of refined palm oil in the guise of crude. But importers were faced with a problem that crude of palm oil with these specifications are not available in the International market and even if it available, the carotenoid content gets reduced during handling and transportation. The importers had to face problems with the customs, as on testing, the crude palm oil proved to contain less than the prescribed carotenoid content.
A responsive government has reacted to the problems of the importers and amended the notification to provide for the same concessional rate of duty of 65% for
(1) Crude palm oil with carotenoid range from 250 – 2500 mg/Kg and having an acid value of 4 or more;
(2) Crude palmoleine with carotenoid range from 500 – 2500 mg/Kg and having an acid value of 4 or more;
(3) Fractions of crude palm oil with carotenoid range from 500 – 2500 mg/Kg and having an acid value of 2 or more (this is already available).
For (1) and (2), the exemption is subject to actual user condition, i.e. it should be used for manufacture of refined oil, refined palmoleine, vanaspathi, bakery shortening or inter – esterfied fats and the importer should follow the procedure set out in the Customs (Import Of Goods At Concessional Rate Of Duty For Manufacture Of Excisable Goods) Rules, 1996.
It may be recalled that the exemption from Central Excise duty available to vegetable oils has been withdrawn by notification no. 66/2004 – CE dt.31.12.2004.
Notification No. Dt.4.2.2005