The Cabinet Committee on Economic Affairs has approved to defreeze the tariff values of all edible oils, Palm Oil – Crude; Palm Oil – RBD (Refined Bleached Deoderized); Palm Oil – others; Palmolein – Crude; Palmolein – others; and Soyabean Oil – Crude and notify their tariff values on the basis of their prevailing international prices.
An alignment of notified tariff values with international prices will have a positive impact on the duty collected from import of edible oils and will provide an even-field to the domestic refining industry.
Tariff value is fixed under Section 14 (2) of the Customs Act, 1962, inter alia, on the above edible oils and notified on a fortnightly basis. Since 31.7.2006, tariff values of edible oils have remained unchanged, as a fiscal measure to contain inflation. The freeze has led to a significant variation between the notified tariff values and the computed landed prices based on international prices of the edible oils, adversely affecting the revenue collection and also the domestic refining industry. Hence, it is proposed to align the tariff values with international prices of the edible oils.