The Hindu Business Line : Crude palm stearin duty cut to 10%

Mumbai, Aug. 3 Customs duty on imported crude palm stearin (CPS), a key raw material for manufacture of soaps as also fatty acids and fatty alcohols, has been slashed to 10 per cent from 12.5 per cent from August 2.

As per notification 91/2007 issued by the Department of Revenue, CPS having free fatty acid of 20 per cent or more when imported for manufacture of soaps, fatty acids and fatty alcohols by a manufacturer having plant for splitting up of such oils into fatty acids and glycerol will attract 10 per cent customs duty. Industry representatives said in tandem with reduction in basic customs duty, a countervailing duty of 8 per cent would be levied on CPS imports; but the CVD would be modvatable. Reduction in duty will bring some relief to the soap ndustry that has been facing sharply rising raw material costs.

Rising imports

CPS imports into the country have been rising. In 2005-06, the country imported close to 3 lakh tonnes (lt) of CPS, up from 1.9 lt in the previous year, and a little over one lakh tonnes in 2003-04.

From November 2006 till June 2007, CPS arrivals totalled 1.46 lt. Other industrial oils such as fatty acid distillates are also imported. Industrial oil imports aggregated over 7 lt in 2005-06 and 4.5 lt in 8 months till June 2007.

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