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No further extension of bilateral safeguard duty on imports of palm oil from Malaysia: DGTR

03 Mar 2020 Evaluate

The commerce ministry's investigation arm -- the Directorate General of Trade Remedies (DGTR) has not recommended further extension of bilateral safeguard duty on imports of a particular variety of palm oil from Malaysia. The DGTR in August last year initiated a probe into an alleged jump in imports of 'Refined Bleached Deodorised Palmolein and Refined Bleached Deodorised Palm Oil' from Malaysia, following a complaint from Solvent Extractors' Association of India.

Earlier, on September 4, 2019, the revenue department had imposed 5% safeguard duty on imports of refined palm oil from Malaysia, taking the customs levy to 50% for six months, a move aimed at protecting interest of domestic players. It was imposed after the DGTR in a preliminary findings suggested for imposition of the duty for 180 days.

The directorate has concluded that it may not be necessary to impose safeguard duty beyond the current period of 180 days. It is considered that the bilateral safeguard duty imposed on September 4, 2019 under the CECA (Comprehensive Economic Cooperation Agreement) on the imports for a period of 180 days is sufficient in the present circumstances.

The investigation was conducted under the India-Malaysia Comprehensive Economic Cooperation Agreement (Bilateral Safeguard Measures) Rules, 2017. The agreement is a kind of free trade pact under which both countries have reduced customs duties on several goods traded between them. Imports from Malaysia increased from 6,26,362 MT in 2016-17 to 25,96,225 MT in Jan-June, 2019 (on annualised basis), showing an increase of 314%.

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