Import duty cut on edible oil: Patanjali Foods, Gokul Refoils among companies likely to benefit from exemption
Through a notification, the Finance Ministry allowed imports of crude soya bean oil and crude sunflower oil at zero basic customs duty and zero AIDC for TRQ licence holders for FY23 up to June 30, 2023.
The Ministry of Finance through a notification informed that the Centre has exempted imports of crude soya bean and sunflower oils from basic customs duty and agriculture infrastructure and development cess till June 30, subject to certain conditions. The duty exemption is applicable only for importers holding TRQ (Tariff Rate Quota) licence for 2022-23 fiscal.
What is Tariff Rate Quota?
Tariff Rate Quota (TRQ) is allotted to the importer by the Directorate General of Foreign Trade, in accordance with the relevant procedure as specified in the Hand Book of Procedures, 2015-20 or 2023 as applicable. TRQ is a quota for a volume of imports that will enter India at specified or nil duty, but after the quota is reached, the normal tariff applies to additional imports.
Through a notification, the Finance Ministry allowed imports of crude soya bean oil and crude sunflower oil at zero basic customs duty and zero AIDC for TRQ licence holders for FY23 up to June 30, 2023.
“This notification shall come into force on the 11th day of May, 2023, and nothing contained in this notification shall apply after the 30th of June, 2023,” the Ministry said.
Earlier this year, the government had given a concession on the import of edible oil under TRQ till March 31, 2023. The duty reliefs for edible oils were first introduced in July 2021, in the wake of a spike in domestic prices. In September 2022, these concessions were extended by six months till March 31, 2023.
