Crude Rapeseed/Canola Oils Classifiable Under CTSH 15141120, CEPA Duty at 8%: CAAR

In re Gokul Agri International Limited (CAAR Mumbai)

In this advance ruling application before the Customs Authority for Advance Rulings (CAAR), Mumbai, M/s Gokul Agri International Limited sought clarity on the classification of their proposed imports and the applicable Basic Customs Duty (BCD) under the India–UAE Comprehensive Economic Partnership Agreement (CEPA). The application, filed under Section 28H(1) of the Customs Act, 1962, was received on 22.08.2025 and raised two key questions: whether ‘Crude Rapeseed Oil’, ‘Crude Canola Oil’, ‘Crude Rape Oil’, or ‘Low Erucic Acid Rape Oil’ could be classified under CTSH 1514 11 20; and whether the applicable BCD under CEPA for the year 2025–26 would be 8%, as reflected in the tariff reduction schedule and subsequent notifications issued under the Customs Act.
a
The applicant, engaged in the manufacture, import, and export of edible oils, intended to import crude canola/rapeseed oil from the UAE. They submitted that CEPA provides phased tariff reductions for specified goods over a period of five years beginning 1 May 2022. Notification No. 22/2022-Customs, dated 30 April 2022 and effective from 1 May 2022, implemented these commitments in India. Subsequent amendments were issued through Notification No. 21/2025-Cus (effective 01.04.2025) and Notification No. 25/2025-Cus (effective 01.05.2025), updating the tariff table.

The applicant argued that crude canola oil—also referred to as crude rapeseed oil or low erucic acid rape oil—falls under the 8-digit code 1514 11 20. They cited Chapter Note 2 of Chapter 15, which defines “low erucic acid rape or colza oil” as oil containing less than 2% erucic acid by weight. According to the applicant, the product, regardless of its trade name, satisfies this definition. They also submitted the phased CEPA tariff commitments: 32% in Year 1, 24% in Year 2, 16% in Year 3, 8% in Year 4 (May 2025 – April 2026), and 0% in Year 5. The applicable BCD for tariff item 1514 11 20 during Year 4 was therefore 8%, provided the import met origin requirements.

The application was forwarded to the jurisdictional Principal Commissioner of Customs at Mundra Port, but no comments were received. A personal hearing was held on 11.11.2025, during which the applicant’s representative reiterated the submissions and confirmed readiness to comply with the origin rules under CEPA and the Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR 2020). No departmental representative appeared at the hearing.

CAAR examined the materials on record, including the Customs Tariff Act, 1975; applicable interpretative rules; and relevant notifications. On classification, the Authority noted that Chapter 15 covers oils and fats, and heading 1514 includes rapeseed, colza, or mustard oils. Applying General Rule of Interpretation (GRI) 1, the Authority found that classification must follow the terms of the headings and relevant notes. Chapter Sub-Heading Note 2 clearly defines “low erucic acid rape or colza oil” as oil containing less than 2% erucic acid by weight. Since the applicant’s product meets this definition, and since canola is understood to be a variety of rapeseed bred to contain low erucic acid, the Authority concluded that these goods fall within subheading 1514 11 20, covering crude low erucic acid rape oil.

Regarding the applicable BCD, CAAR noted that tariff item 1514 11 20 is expressly listed at Serial No. 1195 of Annex 2A of CEPA, which provides a five-year Tariff Elimination Phased (TEP) schedule. CEPA commitments were incorporated through Notification No. 22/2022-Cus and its amendments, including the updated Table-I entry at Serial No. 1007 prescribing a BCD rate of 8% for tariff item 1514 11 20 for the year beginning 1 May 2025. The Authority held that the effective BCD for the relevant period (May 2025 – April 2026) is accordingly 8%.

The Authority emphasized that preferential duty benefits under CEPA are subject to fulfilment of Rules of Origin requirements. To claim the concession, the importer must produce a valid Certificate of Origin issued by the UAE and satisfy the relevant provisions of the CEPA Origin Rules, 2022, along with CAROTAR 2020. The importer must also demonstrate compliance to the satisfaction of customs officers at the port of import.

Based on the foregoing analysis, CAAR ruled that the proposed imports—whether described as crude rapeseed oil, crude canola oil, crude rape oil, or low erucic acid rape oil—are classifiable under CTSH 1514 11 20. Further, for imports from the UAE during May 2025 to April 2026, the applicable BCD under CEPA is 8%, subject to compliance with Rules of Origin and conditions under the relevant customs notifications.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI

M/s GOKUL AGRI INTERNATIONAL LIMITED (IEC No. 0814021182) and hereinafter referred to as ‘the applicant’, in short) filed application (CAAR-1) for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The said applications were received in the secretariat of the CAAR, Mumbai on 22.08.2025 along with enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’ also). The Applicant is seeking advance ruling on following questions; –

(i) Whether the proposed imports of ‘Crude Rapeseed Oil’ or ‘Crude Canola Oil’ or Crude Rape oil’, or ‘Low Erucic Acid Rape Oil’ can be classified under CTSH 1514 1120.

(ii) Whether the Basic Customs Duty on at the rate mentioned in the Annexure 2A of the CECPA Agreement, against the CTSH 15141120, can be taken as 8% for the import during the year 2025-26 which is the 4^thyear since May-2022, when the No. 22/2022-Customs, dated the 30th April, 2022,effective from 1-5-2022, was issued.

2. Submission made by the applicant

2.1 The applicant M/s. Gokul Agri International Ltd, 301, Block A, “Gokul Pratham”, Beside SWA Bungalows, Nr. Tapovan Circle, T.P. 44, Chandkheda, Ahmedabad 382 424, are engaged in the manufacture and trading of edible oils, and are also importing crude edible oils and exporting refined edible oils, and are holding IEC No. 0814021182 and GSTIN 24AAFCG6211K1ZR.

2.2 The applicant intended to import ‘Crude Canola Oil’ also known as ‘Crude Rapeseed Oil’ falling under CTSH 1514 1120 of the First Schedule to the Customs Tariff from the United Arab Emirates (UAE) and also wish to avail the exemption under the India-United Arab Emirates Comprehensive Economic Co-operation and Partnership Agreement (CECPA) notified w.e.f. 1-5-2022.

2.3 The applicant submits that under the CECPA agreement between the two countries, India and UAE, the exemption from Basic Customs duties has been granted to the imports of the specified goods, when imported into India and exported from UAE, over a period of five years or more, as per the Table given in the Annexure 2A — Schedule of specific tariff commitments of India on trade in goods.

2.4 The applicant also submitted that the Customs Tariff No. 22/2022-Customs, dated the 30th April, 2022,, which is effective from 01-05-2022, issued under Section 25 of the Customs Act, 1962, provides exemption from Basic Customs Duty to the import of goods as mentioned the Table I of the Notification, which is in line with the Annexure 2A of the CEPA — India UAE Agreement.

The Question on which the Advance Ruling is sought is as below:

i) Whether the proposed imports of ‘Crude Rapeseed Oil’ or ‘Crude Canola Oil’ or `Crude Rape oil’, or ‘Low Erucic Acid Rape Oil’ can be classified under CTSH 1514 1120.

ii) Whether the Basic Customs Duty on at the rate mentioned in the Annexure 2A of the CECPA Agreement, against the CTSH 15141120, can be taken as 8% for the import during the year 2025-26 which is the 4^thyear since May-2022, when the No. 22/2022-Customs, dated the 30th April, 2022, effective from 1-5-2022, was issued.

Applicants’ interpretation of Law/Facts:

3. Further, Applicant submitted that the CTSH 15141120 covers the goods described as,

1514 – Low Erucic Acid Rape or Colza Oil and its fractions:

1514 11 — Crude Oil:

1514 11 10 — Colza Oil

151420 — Rape Oil

3.1 The Chapter Sub-Heading No. 2 of Chapter 15 of Customs Tariff, explains the expression “low erucic acid rape or colza oil” as below:

2. For the purposes of sub-headings 1514 11 and 1514 19, the expression “low erucic acid rape or colza oil” means the fixed oil which has an erucic acid content of less than 2% by weight.

3.2 The applicant also submitted that, Crude Rape Oil is identically also known as Crude Canola Oil or Low Erucic Acid Rape Oil or Crude Rapeseed Oil. By whatever description as mentioned as it is called, it is classified under the 8-digit HS Code or CTSH 15141120 only.

3.3 Further, applicant submitted that the No. 22/2022-Customs, dated the 30th April, 2022, issued under Section 25 of the Customs Act, 1962, specifically for the goods imported under the CECPA Agreement between India-UAE w.e.f 01-05-2022.

3.4 As per this notification, and the Table mentioned therein, the exemption is granted to the “(i) goods of the description as specified in column (3) of the TABLE I appended hereto and falling under the Tariff item of the First Schedule to the Customs Torii fAct, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the said TABLE, from so much of the duty of customs leviable thereon as is in excess of the amount calculated at the rate specified in the corresponding entry in column (4) of the said TABLE,

(it) . . .

(iii) . . .

when imported into Republic of India from The United Arab Emirates:

Provided that the exemption shall be available only if importer proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the goods in respect of which the benefit of this exemption is claimed are of the origin of The United Arab Emirates, in terms of rules as may be notified in this regard by the Central Government by publication in the Official Gazette of India read with Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020.”

3.5 Further after various amendments, the latest amended Table was updated vide Notification No. 21/2025-Cus dated 28.03.2025 w.e.f. 01-04-2025, and further by Notification No. 25/2025-Cus dated 30-4-2025 w.e.f. 1-5-2025.

TABLE –

3.6 The applicant also submitted that under the India-UAE agreement, the exemption from

the duties of customs was agreed to be granted on a regular basis by releasing year-wise tranches, through the Customs Tariff Notifications. As per the agreement, in the Specific Tariff Commitments in Annexure 2A, the year wise effective rates of Customs duties as agreed to be as below, from the effective date of the agreement i.e. 1-5-2022. The applicant submits that as per the agreement the terms agreed upon are TEP i.e. ‘Tariff Elimination Phased’ over a period of 5 years from 1-5-2022.

3.7 The proposed goods to be imported by the applicant is covered in the Annexure 2A at SI. No. 1195 for the goods Tow Erucic Acid Crude Rape oil’

3.8 The Standard Rate of duty is 75% and the Effective rate of duty but for this India-UAE agreement is 35%. However, under this CEPA Agreement, the Tariff Elimination Phased being provided for imports on the trade in goods, most specifically for the proposed goods to be imported by the applicant, i.e. ‘Low Erucic Acid Crude Rape Oil’ or ‘Crude Rapeseed Oil’ or `Crude Canola Oil’ covered under the 8-digit CTSH 15141120, and the effective rate for the period May-2025 to April-2026 is 8% for the Fourth Year Tranche, as notified under Notification No. 22/2022-Cus as amended by Notification no. 21/2025-Cus.

Hence, applicant requested that the questions/issues may be clarified regarding the classification and rate of duty, as framed above.

4. Port of Import and reply from jurisdictional Commissionerate: The applicant in their CAAR-1 indicated that they intend to import the subject goods from the jurisdiction of Office of the Principal Commissioner of Customs, MP & SEZ, 5-B, Port User Building, Mundra Port, Mundra, Dist: Kutchh. The application was forwarded to the Office of the Principal Commissioner of Customs, MP & SEZ, 5-B, Port User Building, Mundra Port, Mundra, Dist: Kutchh for their comments on 05.09.2025, 01.10.2025 & 31.10.2025 however, no reply has been received in this regard.

5. Details of Personal Hearing:– A personal hearing was held on 11.11.2025 at 4PM. Shri Sharan, Advocate appeared on behalf of applicant for the hearing. He reiterated the contentions filed with the application and submitted that the applicant intends to import Crude Canola Oil also known as ‘Crude Rapeseed Oil’ falling under CTSH 1514 1120 of CEPA 2022 from the UAE. That as per the CECPA notified from 01.05.2022 in notification no. 22/2022 and 25/2025 as amended from time to time. Further, he submitted that they are of the view that the grade canola/rapeseed oil (low Erucic Acid content <2% by weight) is covered under sr. no.1195 of scheduled tariff commitment of Index on trade in goods referred in chapter 2. Further, the rule 3(Origin Criteria) Customs Tariff (Determination of origin of goods under the CEPA between India and UAE) Rules 2022, will be complied with the applicant.

Further, he contended that as per CEPA between India and UAE came into existence w.e.f from 01.05.2022 after four years the subject effective rate of duty would be 8% in terms of tariff commitment prescribed in Annexure 2A (Chapter 2).

No body appeared for Personal Hearing on behalf of department.

6. I have carefully considered the application filed by applicant Mis. Gokul Agri International Ltd., the supporting documents and the oral submissions made by their advocate during the personal hearing held on 11.11.2025. The ruling is to be pronounced based on the information available on record, provisions of the Customs Tariff Act, 1975, the General Rules of Interpretation and the applicable notifications including Notification No. 22/2022-Customs, dated the 30th April, 2022,, Notification No. 21/2025-Cus dated 28.03.2025 (effective from 01.04.2025), and Notification No. 25/2025-Customs dated 30.04.2025 (effective from 01.05.2025), as well as the prevailing legal framework.

The applicant has sought an advance ruling on two specific questions:

i) The classification of the proposed imports of ‘Crude Rapeseed Oil’, ‘Crude Canola Oil’, `Crude Rape Oil’, or Tow Erucic Acid Rape Oil’ under CTSH 1514 1120.

ii) The applicable rate of Basic Customs Duty under the India-UAE Comprehensive Economic Partnership Agreement (CEPA) for the financial year 2025-26.

I proceed to examine these issues sequentially.

7.1 Classification of the Subject Goods- The first question for determination is the correct classification of the goods described as “Crude Rapeseed Oil, Crude Canola Oil, Crude Rape Oil, or Low Erucic Acid Rape Oil”.

Chapter 15 of the First Schedule to the Customs Tariff Act, 1975, pertains to “Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes.”

Within this chapter, heading 1514 specifically covers “Rape, colza or mustard oil and fractions thereof whether or not refined, but not chemically modified.”

The classification is decisively resolved by the application of General Rule for Interpretation (GRI) 1, which mandates that “for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require…”

Crucially, Chapter Sub-Heading Note 2 to Chapter 15 provides a definitive statutory meaning. “2. For the purposes of sub-headings 1514 11 and 1514 19, the expression “low erucic acid rape or colza oil” means the fixed oil which has an erucic acid content of less than 2% by weight.”

The applicant’s product, irrespective of whether it is termed ‘Canola Oil’, ‘Rapeseed Oil’, or ‘Rape Oil’, is crude, fixed oil derived from rapeseed. The applicant has asserted that the goods have an erucic acid content of less than 2% by weight. It is a well-established fact in trade and industry that ‘Canola’ is a specific variety of rapeseed bred to contain low erucic acid, conforming to this very definition. Therefore, the product falls squarely within the legal definition stipulated in the Chapter Note.

Consequently, the product is specifically classifiable under the subheading for crude low erucic acid rape oil:

No other heading more specifically describes the product. Thus, the classification under CTSH 1514 11 20 is legally sound.

7.2 Applicability of the Preferential Rate under India-UAE CEPA – The second question pertains to the applicable rate of Basic Customs Duty (BCD) for the subject goods imported from the UAE under the CEPA during the year 2025-26. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is operationalized in India under the powers conferred by Section 5 of the Customs Tariff Act, 1975, and given effect through notifications issued under Section 25 of the Customs Act, 1962. The principal No. 22/2022-Customs, dated the 30th April, 2022,, effective from 01.05.2022.

Annex 2A of the CEPA specifies India’s tariff commitments. The tariff item 1514 11 20 is explicitly listed at Serial No. 1195 of this Annex. The agreement stipulates a Tariff Elimination Phased (TEP) schedule for this item over five years, with the concessional BCD rate reducing annually.

The applicant has correctly outlined the agreed-upon schedule:

-1st Year (May 2022 — April 2023): 32%

-2nd Year (May 2023 —April 2024): 24%

-3rd Year (May 2024 —April 2025): 16%

-4th Year (May 2025 –April 2026): 8%

-5th Year (May 2026 —April 2027): 0%

This schedule has been implemented and updated in Indian law through subsequent amendments to Notification No. 22/2022-Customs. The latest amendments, Notification No. 21/2025-Cus dated 28.03.2025 and Notification No. 25/2025-Cus dated 30.04.2025, effectively prescribe the duty rate for the fourth year of the agreement. The relevant entry at Serial No. 1007 of the amended Table-I for tariff item 1514 11 20 specifies a BCD rate @ 8%.

Therefore, for the period relevant to the applicant’s query (May 2025 to April 2026), the subject goods, when classified under 1514 11 20 and imported from the UAE, are eligible for a preferential BCD rate of 8%, subject to the fulfilment of the Rules of Origin.

7.3 Prerequisites for Availing the Concessional Duty- I must emphasize that the eligibility for the aforementioned concessional rate is not automatic. It is contingent upon the importer’s strict adherence to the prescribed Rules of Origin provisions. The applicant, during the personal hearing, has expressed their readiness to comply with these rules.

To avail the benefit, the importer must comply with:

i) The Customs Tariff (Determination of Origin of Goods under the Comprehensive Economic Partnership Agreement between the Republic of India and the United Arab Emirates) Rules, 2022.

ii) The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020).

This necessitates the submission of a valid ‘Certificate of Origin’, issued by the designated authority in the UAE, and the fulfilment of all origin criteria as per the Agreement. The importer must also maintain all supporting documentation and be prepared to satisfy the proper officer of customs at the port of import regarding the originating status of the goods. The benefit of the preferential duty is extendable only upon the satisfaction of these statutory conditions.

7.4 Based on the foregoing analysis, I find that:

1. The proposed imports of Crude Rapeseed Oil, Crude Canola Oil, Crude Rape Oil, or Low Erucic Acid Rape Oil (with erucic acid content below 2% by weight)are correctly classifiable under CTSH 1514 11 20 of the First Schedule to the Customs Tariff Act, 1975.

2. The said tariff item is expressly covered under the India-UAE CEPA. For the period May 2025 to April 2026 (the 4th year of the agreement), the subject goods attract a preferential rate of Basic Customs Duty of 8%, as stipulated in Notification No. 22/2022-Cus, as amended.

3. The availing of this concessional rate is subject to the importer cot lying with all applicable  Rules of Origin under the CEPA Rules, 2022, and CAROTAR, 2020 read with conditions of No. 22/2022-Customs, dated the 30th April, 2022, as amended.

8. In view of the findings above, and in exercise of the powers conferred under sub-section (2) of Section 28-I of the Customs Act, 1962, I rule as follows:

i) The subject goods i.e. Crude Rapeseed Oil, Crude Canola Oil, Crude Rape Oil, or Low Erucic Acid Rape Oil are classifiable under CTSH 1514 11 20.

ii) The applicable Basic Customs Duty for goods under CTSH 15141120 imported from the UAE under the CEPA for the period May 2025 to April 2026 is @ 8%, subject to the production of a valid Certificate of Origin and compliance with the relevant Rules of Origin.

I rule accordingly.