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India slashes duty on crude, refined palm oil imports from ASEAN

02 Jan 2019 Evaluate

Government of India has slashed import duties on crude and refined palm oil from Southeast Asian countries. Tariff on crude palm oil from Malaysia, Indonesia and other members of the Association of South East Asian Nations (ASEAN) has been trimmed to 40% from 44%, while the duty on refined palm oil has been trimmed to 45% from 54% if imported from Malaysia and to 50%, if it is purchased from Indonesia or other member-nations of ASEAN.

India imports about 60% of its edible oil requirements i.e. 15.5 million tonnes annually, majorly from Malaysia, Indonesia, Argentina and Ukraine. As per the industry estimates country’s edible oil consumption will rise at 23.5 million tonnes for 2018-19 and expects to import 15.5 million tonnes, with 60% from Malaysia and Indonesia, followed by soybean oil from Argentina and Brazil, sunflower oil from Ukraine and Russia and canola oil from Canada.

The Central Board of Indirect Taxes and Customs (CBIC) said the duties have been cut to provide deeper tariff concessions in respect of specified goods when imported from ASEAN under the India-ASEAN Free Trade Agreement and Malaysia under the India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA). The duty cuts are effective from January 01, 2019.

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