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G. Chandrashekhar

Mumbai , Sept. 25

ANY grade of imported palm oil and palmolein that cannot be strictly categorised as either crude or as refined as per extant specifications will fall under the residuary category of `other-other' under sub-heading 15119090 of the Customs Tariff, the Ministry of Finance has clarified vide circular number 85/2003 issued on September 24.

In other words, consignments of palm oil and palmolein that do not meet the quality specifications in terms of acid value and carotenoid content as announced on August 1, 2003 will be assessed at 70 per cent duty instead of 65 per cent, traders said.

In case of imports that took place before August 1, the assessment should be made on the basis of test reports of samples drawn by Port Health Officer (PHO), the circular said.

Already upset over delays in clearance of consignments, several importers expressed disappointment about the contents of the circular.

For one, it deals with consignments that arrived prior to August 1 and is silent about clearance of imported goods that arrived after the specifications were revised.

"We have to infer that goods will be assessed on the basis of transaction value as no tariff value has been specified for the other (non-crude, non-refined) category," said Mr Jayant Lapsia, President, All-India Liquid Bulk Import Export Association.

According to Mr D.N. Pathak, Executive Director of Indian Vegetable Oil Processors Association, it would have been appropriate for the Government to fix a tariff value for the category of palm oil/palmolein that does not meet strict carotenoid value.

"While the circular will bring some relief to importers, there is a lot more the Government has to do to remove uncertainties in the import business," he added.

Edible oil importers have been sore for some time now on account of uncertainty relating to Government action, non-transparency in fixing tariff values and lack of cohesive approach to the industry's problems.

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