Customs duty on Crude Palm Oil & Palmoleine is 45 per cent

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Customs duty on Crude Palm Oil & Palmoleine is 45 per cent

AIT News Network

NEW DELHI. The Government has taken a U turn on rates of Customs duty on import of crude Palm Oil and Palmoleine notified vide Customs Tariff Notification No 87/2007-Customs dated 23^rd July 2007 within 48 hours and has issued a corrigendum dated 25^th July 2007 according to which in line 16 of Notification No 87/2007 45 % has to be read in place of 40 %.

The Government has clarified :

“On July 23, 2007, Government decided to reduce the import duty, inter alia, on palm oils as under:-

Crude palm oil including crude palmolein from 50% to 45%

Refined palm oil including RBD palmolein from 57.5% to 52.5%.

Consequently, a press release was issued on the evening of July 23, 2007 by the Ministry of Finance to convey the decision of the Government. The press release correctly reflected the decision of the Government.

Notification No. 87/2007 –Customs was issued in this regard on July 23, 2007 evening.

It was subsequently noticed that the notification issued inadvertently indicated the import duty on crude palm oil including crude palmolein to be 40% as against 45% decided by the Government. Immediately, on discovery of this inadvertent error, suitable corrigendum was issued to the notification on 25th July, 2007 morning, to reflect the correct position as had been decided by the Government. The position thus is that the import duty on crude palm oils including crude palmolein stands reduced to 45% and not 40%, with effect from 23rd July, 2007, and all imports on or after this date will attract 45% import duty.

There were clearances of palm oil for home consumption by four importers during the intervening period before the corrigendum was issued. Following the corrigendum, the four importers have agreed to pay duty at 45% and three of them have already done so. The fourth importer has agreed to pay the differential duty on July 27, 2007. Thus, there is no loss of revenue to the Government and no unintended benefit to any importer. Government regrets the mistake in the notification.”

The line 16 of the page 2 of the Gazette Notification is as under:

(ii) against S.No. 34, in column (3), against items (A), (B) and (C), for the entries in column (4), the entry “40%”

Serial No.34 of the Notification No 87/2007 pertains to crude Palm Oil and Palmoleine. Thus the effective rate of Customs duty on import of crude palm Oil and Palmoleine is 45 per cent.

The Corrigendum and the Gazette Notification are as under:

New Delhi, the 25th July, 2007

CORRIGENDUM

G.S.R. (E).- In the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 87/2007-Customs, dated the 23rd July, 2007 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R.499 (E), dated the 23rd July, 2007, at page 2, in line 16, for “40%”, read “45%”.

[F.No. 354/106/2006-TRU]

(S.Bajaj)

Under Secretary to the Government of India

Page 2 THE GAZETTE OF INDIA:EXTRAORDINARY [PART-II-SEC.3(i)]

MINISTRY OF FINANCE

(Department of Revenue)

NOTIFICATION

New Delhi, the 23rd July, 2007

No. 87/2007-Customs

G.S.R.499(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 makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002 which was published in the Gazette of India, Extraordinary, vide number G.S.R.118 (E), dated the 1st March, 2002, namely:-

In the said notification, in the Table,-

(i) after S.No.29 and the entries relating thereto, the following S.No. and entries shall be inserted, namely:-

(1)	(2)	(3)	(4)	(5)	(6)
“29A.	1507 10 00 or 1507 90 10	All goods	40%	-	-”;

(ii) against S.No. 34, in column (3), against items (A), (B) and (C), for the entries in column (4), the entry “40%” shall respectively be substituted;

(iii) against S.No. 36A, for the entry in column (4), the entry “40%” shall be substituted;

(iv) against S.No. 36B, for the entry in column (4), the entry “50%” shall be substituted;

(v) against S.No. 434, for the entry in column (4), the entry “52.5%” shall be substituted.

[F.No. 354/106/2006-TRU]

S.BAJAJ, Under Secy.

Note: The principal notification was published in the Gazette of India, Extraordinary, vide number G.S.R.118(E), dated the 1st March, 2002 and was last amended by notification No. 73/2007-Customs, dated the 21st May, 2007 which was published in the Gazette of India, Extraordinary vide number G.S.R.365(E), dated the 21st May, 2007.

AIT Office was flooded with calls from the Industry and subscribers which wanted to know the exact impact of the corrigendum to the said Notification.