Changes In Basic Custom Duties For Edible Oils And Juices, Union Budget 2018
With the new Union Budget for FY 2018-19, the government of India (GOI), with immediate effect, increased tariffs on several imported agricultural products; including, fruit juices, crude and refined edible vegetable oils, and several other agricultural and non-agricultural items. Here is the report.
The Ministry of Finance had presented India’s Budget for the financial year 2018-19 which runs from 1st of April, 2018 to 31st of March 2019. It is believed that with each annual budget, the GOI has an opportunity to review the structure of import tariffs and through its annual budget, propose and implement changes to India’s Customs and Central Excise Board regulations along with duty rates. This year, the GOI’s Tax Research Unit issued this hyperlinked notice to India’s Customs Commissioners of various tariff changes as part of the Finance Bill 2018.
The changes, in the basic custom duties (BCD) are scheduled to enter into force with immediate effect from midnight of the day Union Budget was presented. Custom duty changes announced in the Budget are typically not reversed from one year to the next.
Import duties on food and agricultural products are occasionally reduced to zero when there is concern about food price inflation or tight supplies, but may sometimes be increased. Food and agricultural products seldom are considered for permanent changes in the tariff structure; however, the recent announcement increases the BCD for a number of agricultural goods except for cashew nuts.
The Products Affected
Cashew nuts, fruit juices, crude edible vegetable oils, refined edible vegetable oils, and soft drink concentrates are the products affected by the proposals. The details of all such products are also mentioned with the technical Item code number published by the Ministry of Finance’s website.
Chapter 08 of the budget refers to cashew nuts that had been changed from five per cent to 2.5 per cent. Chapter 15 has inclusion of ‘crude edible vegetable oils like groundnut oil, olive oil, cotton seed oil, safflower oil, saffola oil, coconut oil, palm kernel oil, linseed oil, maize oil, corn oil, castor oil, sesame oil and other fixed vegetable fats and oils from 12.5 per cent to 30 per cent.
Chapter 15 has also mentioned refined edible vegetable oils like groundnut oil, olive oil, cotton seed oil, safflower seed oil, saffola oil, coconut oil, palm kernel oil, linseed oil, maize oil, corn oil, castor oil, sesame oil, fixed vegetable fats and oils, edible margarine, sat fat, modified linseed oil, modified castor oil, these are specified goods of ‘heading 1518’ with changes in duty from 20 per cent to 35 per cent. Chapter 20 details about changes in orange juice from 30 per cent to 35 per cent and cranberry juice from 10 per cent to 50 per cent.
