The Central Government has cut basic customs duty (BCD) on imported crude and refined soybean and palm oils, while reducing the duty on crude sunflower oil to Nil. The revised rates are scheduled to take effect from September 24, according to related current coverage.
The change covers 3 widely used edible oils and separates the rates for crude and refined products. Crude soybean oil and crude palm oil will now face a 5% BCD, compared with the earlier rate of 10%.
For refined products, the BCD on refined soybean oil and refined palm oil has been reduced from 32.5% to 27.5%. The government has also removed the BCD on crude sunflower oil, bringing it down from 10% to Nil.
Revised basic customs duty rates
| Product | Earlier BCD | Revised BCD |
|---|---|---|
| Crude soybean oil | 10% | 5% |
| Crude palm oil | 10% | 5% |
| Refined soybean oil | 32.5% | 27.5% |
| Refined palm oil | 32.5% | 27.5% |
| Crude sunflower oil | 10% | Nil |
The reductions lower the customs-duty rates applied to the listed imported oils. However, the direct impact on retail cooking-oil prices has not been specified. Retail prices can reflect more than customs duty, and the announcement itself does not provide a price estimate.
The measure covers both crude oils, which can be processed after import, and refined oils. For crude soybean and palm oil, the stated duty reduction is from 10% to 5%. For their refined forms, the reduction is from 32.5% to 27.5%. Crude sunflower oil receives the largest stated change, with its BCD moving from 10% to Nil.
The revised rates are expected to be relevant from September 24. The announcement does not provide further details on the duration of the changes or on any separate conditions attached to the rates.
What the duty change covers
- Crude soybean oil: BCD reduced to 5% from 10%.
- Crude palm oil: BCD reduced to 5% from 10%.
- Refined soybean oil: BCD reduced to 27.5% from 32.5%.
- Refined palm oil: BCD reduced to 27.5% from 32.5%.
- Crude sunflower oil: BCD reduced to Nil from 10%.
Conclusion
The government has lowered BCD on crude and refined soybean and palm oils and removed it on crude sunflower oil. The revised rates are scheduled to begin from September 24, while their effect on retail prices has not been specified.
Frequently Asked Questions
Q. What is the new BCD on crude soybean oil?
The BCD on crude soybean oil has been reduced to 5% from 10%.
Q. What is the new BCD on crude palm oil?
The BCD on crude palm oil has been reduced to 5% from 10%.
Q. What is the new BCD on refined soybean and palm oil?
The BCD on both refined soybean oil and refined palm oil has been reduced to 27.5% from 32.5%.
Q. What is the new BCD on crude sunflower oil?
The BCD on crude sunflower oil has been reduced to Nil from 10%.
Q. When will the revised rates take effect?
Related current coverage says the revised rates will take effect from September 24.
Q. Will cooking oil become cheaper for consumers?
The direct effect on retail cooking-oil prices has not been specified.
