Customs Duty Waiver on Edible Oil Imports

  Nov 02, 2021

Customs Duty Waiver on Edible Oil Imports

Q What is the context  ?

A The Union Commerce Minister has announced that the government has decided to waive customs duty on import of crude sunflower, palm and soyabean oil, a move aimed at controlling their prices.

Q What is status of Edible Oil Imports in India ?

Q What is Customs Duty ?

Q How is the price of palm oil determined ?

Q What will be Impact of the move ?

Q What can be Long-term implications of Customs Duty Waiver on Edible Oil Imports ?

Q What are various types of Types of custom duty ?

  1. Basic Customs Duty (BCD): It is the duty imposed on the value of the goods at a specific rate at a specified rate of ad-valorem basis.
  2. Countervailing Duty (CVD): It is imposed by the Central Government when a country is paying the subsidy to the exporters who are exporting goods to India.
  3. Additional Customs Duty or Special CVD: It is imposed to bring imports on an equal track with the goods produced or manufactured in India.
  4. Protective Duty: To protect interests of Indian industry
  5. Safeguard Duty: It is imposed to safeguard the interest of our local domestic industries. It is calculated on the basis of loss suffered by our local industries.
  6. Anti-dumping Duty: Manufacturers from abroad may export goods at very low prices compared to prices in the domestic market. In order to avoid such dumping, ADD is levied.