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Govt brings about change in palm oils' duty structure

The government has fixed tariff values in respect of imported edible oils which would replace the existing percentage tariffs, in order to check under-invoicing and enhance revenue to the exchequer.

According to a government notification, tariff value imposed on crude palm oil would be $337 per tonne.

For RBD palm oil it would be $351 per tonne and $372 per tonne for RBD palmolein.

Earlier, the import duty on CPO was 75 per cent and on RBD palmolein was 85 per cent.

The hike in import duty in the Union Budget this year had prompted traders to show lower prices in the invoice than the price at which they had actually made the transaction.

As a result, legitimate trade of edible oils was affected and Minerals and Metals Trading Corporation had made a representation to the government to switch over to tariff values instead of percentage duties.

This also gives the option to the government to change tariff values in accordance with the prevailing international prices which had lately shot up to around $350 per tonne.

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