Background:
The Central Board of Indirect Tax and Customs (CBIC) has withdrawal the exemption from ‘payment of
custom duty on certain goods given vide Notification No.30/2022 dated May 24, 2022’. The detail of
goods exempted are given below:
| S. No. | Sub-heading or tariff item | Description of goods | Tariff Rate Quota (TRQ) quantity per financial year |
| 1. | 1507 10 00 | Crude Soya-bean oil, whether or Changes made:not degummed | 20,00,000 MT |
| 2. | 1512 11 10 | Crude Sunflower seed oil | 20,00,000 MT |
Please refer to the annexure for the condition to be fulfilled for exemption.
The said notification was supposed to be in effect from 25th May, 2022 to 31st March, 2024.
Changes made:
Earlier, the duty-free import of 20 Lakh MT per year was applicable for two financial years 2022-23 and
2023-24. The CBIC substituted the figure “2024” with the figure “2023” via Notification No. 15/2023 dated
March 03, 2023 to make this exemption effective till March 31, 2023. The entities procuring Soya-Bean
and sunflower oil from April 01, 2023 onwards need to pay the custom duty as per the applicable rates.
*Annexure (relevant when exemption was effective)
| Condition for exemption |
| (a) The TRQ is allotted to the importer by the Directorate General of Foreign Trade, in accordance with the relevant procedure as specified in the Hand Book of Procedures, 2015-20; (b) The TRQ authorization shall contain name and address of the importer, IEC code, Customs notification No., sub-heading or tariff item as applicable, quantity and validity period of certificate; (c) The TRQ authorization shall be issued electronically by the Directorate General of Foreign Trade and transmitted to ICES system; (d) Imports made against the TRQ shall be allowed only upon debiting electronically in the ICES system. |
SW Point of View:
The above amendment will make Soya-bean oil and Sunflower oil expensive April 01, 2023 onwards, on the account of withdrawal of the exemption given earlier.
