Zero duty import of soya, sunflower oil under TRQ likely to benefit consumers

the Latest notification from the Central Board of Excise and Customs (CBIC) Allowing the import of crude oil Soybean oil Crude sunflower oil with no core tariffs and zero infrastructure development and agricultural tax through June 30 are likely to help consumers.

The CBIC notification dated May 10 allowed the import of crude soybean oil and crude sunflower oil with zero base duty and zero agricultural infrastructure fees and development tax for TRQ (tariff rate quota) license holders for the 2022-23 period through June 30, 2023.

The notification, which went into effect May 11 and is valid through June 30, set out conditions for the exemption. Hereby, the importer will need to submit to the Deputy Commissioner or Assistant Commissioner of Customs, a valid Customs Duty Quota (TRQ) authorization for the fiscal year 2022-23 allocated by Directorate General of Foreign Trade (DGFT). The TRQ license will be issued electronically by DGFT and sent to the ICES system. The notification said that imports made against tariff quotas would only be allowed when discounted electronically in ICES.

SEA President Appeal

PV Mehta, Executive Director, Solvent Extractors Association of India (SEA) said: business line That the government allowed the import of crude soybean oil and crude sunflower oil under tariff quotas of 2 million tons each under zero tariffs for a period of two years in May 2022.

The General Directorate of Forestry had announced the cessation of tariff quotas for crude soybean oil in January from April 1 of 2023-24, and for crude sunflower oil in March.

The Directorate General of Foreign Trade has issued public notifications that the customs tariff issued during the fiscal year 2022-23 for import of crude sunflower seed oil and soybean oil is valid for import clearance for a period up to June 30, provided that the date of the bill of lading. It is March 31st or earlier.

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Earlier, Ajay Jhunjhunwala, President of SEA in India, had informed SEA members in his monthly letter that customs were insisting on the entry bill and not accepting the date of the bill of lading. Hence, shipments have been halted since April 1, 2023.

The association took up the matter with the Food and Public Distribution Administration and the DGFT to allow crude sunflower oil and soybean oil based on the bill of lading date as notified by the DGFT.

shipments have been released

Mehta said SEA had informed the government that importers had made imports based on the DGFT notice and those with a bill of lading before March 31 should be allowed. Finally, he said, the Revenue Department of the Federal Ministry of Finance agreed to this.

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About 90,000 tons of shipments that had been delayed earlier due to confusion in the bill of lading and bill of entry will be released after this notification. About 1.25 thousand tons of sunflower oil and about 1 thousand tons of soybean oil are on a trip. He said this means another 2.25 thousand tons will arrive before June 30. It will be under no charge under the tariff quota, provided that the bill of lading is on or before March 31st.

In response to a question about the impact of these supplies on the market, he said that there will be some mitigating effect on the current price because these imports will be duty-free. “Don’t ask me how much it is, but there will be a palliative effect,” Mehta said.