The government imposes a tariff of 5 pcs on imports of palm oil from Malaysia
New Delhi, September 4 () The revenue department on Wednesday imposed a 5 percent safeguard tariff on imports of Malaysian refined palm oil, bringing the customs tax to 50 percent for six months, a measure aimed at Protect the interest of national players.
The duty of safeguard on 'Refined bleached deodorized palmolein and refined bleached deodorized palm oil' has been imposed following a recommendation of the General Directorate of Commercial Remedies (DGTR) of the investigation arm of the Ministry of Commerce for 180 days.
The revenue department issued a notification to increase the customs tariff rate by 5 percent on the product, commonly used to formulate trans-free fats, such as margarine, shortening and vegetable ghee.
The DGTR had carried out an investigation into the alleged jump in imports of the product from Malaysia, following a complaint from the Association of Solvent Extractors of India (SEA).
It recommended an increase in the customs duty rate by 5 percent over a period of 180 days on imports, originating in Malaysia and imported under the India-Malaysia Comprehensive Economic Cooperation Agreement.
Under the free trade agreement between India and Malaysia, the current preferential tariff on crude palm oil is 40%, while refined palm oil is 45%.
The DGTR had said that there are critical circumstances in which the delay in the imposition of safeguard measures would cause irreparable damage to domestic producers.
His research on imports is being carried out under the Rules of the India-Malaysia Comprehensive Economic Cooperation Agreement (Bilateral Safeguard Measures), 2017.
The agreement is a kind of free trade agreement under which both countries have reduced customs duties on various goods exchanged between them.
The petitioner, SEA, had alleged a significant decrease in the production, sales and utilization of the product's capacity. They have also stated that the market share of Indian industry has decreased while the share of imports has increased.
The investigation period was January-June 2019. It also considered the import data for 2016-19.
The DGTR had observed that there was a sharp and significant increase in product imports during the POI (investigation period). Imports from Malaysia increased from 6.26,362 MT in 2016-17 to 25.96,225 MT in January-June 2019 (on an annualized basis), showing an increase of 314 percent. Imports from other countries decreased from 23.15,292 MT in 2016-17 to 7.25,210 MT in January-June 2019 (on an annualized basis). RR NKD CS BAL