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New Govt Policies Certain Major decisions/achievements in respect of edible oils and fats since 2005. 1.

By virtue of Notification No.9/2005-Customs dated February 15, 2005, the custom duty on crude palm oil/crude palmolein had been raised from 65% to 80% and the custom duty on refined palm oil/RBD palmolein has been raised from 75% to 90%. Vide Notification No.80/2006 Customs dated 11.8.2006, the custom duty on crude palm oil/crude palmolein had been reduced from 80% to 70% and the custom duty on refined palm oil/RBD palmolein has been reduced from 90% to 80%. 2. In order to address the concern of domestic edible oil industry, definitions/specifications of crude palm oil and crude palmolein have been modified to avail specified custom duty under actual user condition vide Notification No.7/2005-Customs dated 4.2.2005. In this notification, lower eligibility limit of total carotenoid for crude palm oil has been revised from 500 mg/kg to 250 mg/kg and acid value for both crude palm oil and crude palmolein from 2 to 4. 3. Vide Notification No.37/2003-Central Excise dated April 30, 2003, excise duty @ Re.1/kg and Rs.1.25/kg had been levied on refined edible oils and Vanaspati & bakery shortening respectively. By virtue of Notification No.56/2004-Central Excise dated December 31, 2004, excise duty @ Rs.1.25/kg had been levied on interesterified fat. Excise duty on refined edible oils/vanaspati/interesterified fat etc has been withdrawn vide Notification No. 4/2005 Central Excise dated 1.3.2005. 4. Concessional import of non-edible grade Crude Palm Oil (CPO) for manufacture of soaps, fatty acids and industrial fatty alcohols has been withdrawn vide Notification No.88/2005-Customs dated September 30, 2005 so as to eliminate its possible diversion to edible products. 5. Custom Duty on Vanaspati has been raised from 30% to 80% with effect from 1.3.2006. In addition, edible oils (except soyabean oil, rapeseed oil and mustard oil) attract education cess 2% of the aggregate of customs duty. With effect from 1.3.2006, special additional duty of customs on vanaspati imported from Nepal under TRQ has been exempted. 6. Vide Public Notice No.17(RE-2006)/2004-09 dated 2nd June,2006 issued by the Ministry of Commerce and Industry, Department of Commerce (DGFT), import of vanaspati including bakery shortening and margarine under the Indo Sri Lanka Free Trade Agreement shall be made only by National Agricultural Cooperative Marketing Federation of India Limited (NAFED). 7. Vide Order No.45-VP(2)/99 dated 3rd July,2006 under the provisions of Vegetable Oil Products (Regulation) Order,1998, the use of indigenous oils (other than expressed mustard oil) and mustard oil obtained from indigenous mustard seed by the method of expression in the manufacture of vanaspati shall be a minimum of 12% (twelve percent) and 20% (twenty percent) respectively by weight on a monthly basis, subject to the condition that Department of Agriculture and Cooperation shall ensure the supply of such quantity of mustard oil

obtained by processing of domestic mustard seed through National Agricultural Cooperative Marketing Federation of India Limited (NAFED) to the Vanaspati units on their demand at a pre-determined price fixed by the Government.