Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs

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October 12th, 2006.

Subject: Import of non-edible oils – regarding-

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The undersigned is directed to refer to above subject and to say that concern has been raised over substantial increase in imports of non-edible oils in the recent past. It is apprehended that edible grade oil is being mis-declared as non-edible grade and is being sold in the domestic market exerting a downward pressure on the domestic edible oil prices. It is also apprehended that non-edible grade oils might have been used for adulteration of edible oils.

2. There were earlier reports that the concessional rates of non-edible grade crude palm oil were being misused. Taking note of such complaints, non-edible grade crude oil was excluded from the purview of the scheme of concessional rate. Non-edible grade crude palm oil can now be imported only at 100% rate of duty. The increase in import duty on non-edible grade oils, may not necessarily mean that there is misuse, as soap manufacturers import such non-edible grade oils.

3. However, as a precautionary measure, you are requested to alert the field formations under your jurisdiction to check any mis-declaration of the imported oils. Specific instances of cases of mis-declaration, if any, may be brought to the notice of the Board. These cases shall be thoroughly investigated and appropriate action taken.