Reduction in customs duty on palm oils

New Delhi, Aug 11 (UNI) The government has reduced import duty on the most commonly used palm oils with effect from today as part of its startegy to keep the prices of essential commodities under check.

On crude palm oil, crude palmoline and its other fractions, the import duty has been reduced from 80 per cent to 70 per cent.

On Refined Bleached Deodorised (RBD) palm oil, RBD palmolein and other refined palms oils the duty has been brought down from 90 per cent to 80 per cent.

''The import duty on palm oils has been reduced to cushion the impact of increase in international prices of edible oils,'' a spokesman of the Central Board of Excise and Customs said here.

The government had earlier reduced customs duty on wheat and exempted sugar and pulses from customs duty.

The spokesman said the international prices of palm oils have been rising during the current financial year, which has resulted in increase in domestic prices of edible oils. For instance, tariff value of crude palm oil, on the basis of which import duty is charged has gone up from 417 dollars per metric tonne(PMT) in the first week of February 2006 to 447 dollars PMT in August 2006.

Similarly, tariff values for RBD palmolein have increased from 421 dollars to 484 dollars PMT and from 418 dollars to 481 PMT respectively during the same period.

The spokesman said reduction in customs duty will bring down the landed cost of these oils, though they would still be higher than the landed cost prevailing in the first week of February 2006.

A Notification (No 80/200- Customs) dated August 11, 2006 has been issued in this regard.

UNI GS VJ BD1937