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Introduction: In a recent move by the Ministry of Finance’s Central Board of Indirect Taxes & Customs, significant amendments have been made to the customs tariff values concerning various commodities including crude palm oil, RBD palm oil, crude soya bean oil, and precious metals like gold and silver. This update, encapsulated in Notification No. 16/2024-Customs (N.T.), dated 29th February 2024, comes as a strategic adjustment to the evolving market dynamics and aims to streamline the customs valuation process for these goods.

Detailed Analysis:

The Revisions in Tariff Values: The notification introduced new tariff values for a range of commodities. For instance, the tariff value of crude palm oil has been set at $891 per metric tonne, a figure that is crucial for importers and industry stakeholders to note. Similarly, adjustments in the tariff values of gold and silver, set at $654 per 10 grams and $724 per kilogram respectively, reflect the government’s response to the global precious metals market.

Impact on Trade and Industry: These amendments are expected to have a significant impact on the trading ecosystem. For commodities like palm oil and soybean oil, which are essential inputs for the food and cosmetics industries, the revised tariff values could influence import costs and pricing strategies. On the precious metals front, the adjustments in gold and silver tariff values might affect the jewellery sector, potentially altering consumer prices and demand.

Strategic Implications: The revision of tariff values is a testament to the government’s intent to align customs duties with international market prices. This move is strategic, aiming to prevent under-valuation in imports and ensure fair trade practices. Furthermore, it underlines the government’s commitment to maintaining a balanced trade environment that supports both the domestic industry and consumer interests.

Conclusion: The Ministry of Finance, through its latest notification, has made pivotal adjustments to the customs tariff values of key commodities. This update is not just a routine change but a reflection of the government’s proactive approach to adapt to global market trends and safeguard the national economy. As these changes come into effect from 1st March 2024, stakeholders across various sectors are encouraged to recalibrate their strategies in light of the new tariff values, ensuring compliance and leveraging opportunities for growth.

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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
NOTIFICATION
New Delhi

Notification No. 16/2024-Cutoms (N.T.) | Dated: 29th February, 2024

S.O. 986(E).— In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient to do so, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:-

In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely: –

“TABLE-1

Sl. No.

Chapter/ heading/ sub-heading/tariff item Description of goods

Tariff value (US $Per Metric Tonne)

(1) (2) (3) (4)
1 1511 10 00 Crude Palm Oil 891
2 1511 90 10 RBD Palm Oil 902
3 1511 90 90 Others – Palm Oil 897
4 1511 10 00 Crude Palmolein 907
5 1511 90 20 RBD Palmolein 910
6 1511 90 90 Others – Palmolein 909
7 1507 10 00 Crude Soya bean Oil 903
8 7404 00 22 Brass Scrap (all grades) 4937

TABLE-2

Sl. No.

Chapter/ heading/ sub- heading/tariff item Description of goods Tariff value
(US $)
(1) (2) (3) (4)
1. 71 or 98 Gold, in any form, in respect of which the benefit of entries at serial number 356 of the Notification No. 50/2017-Customs dated 30.06.2017 is availed 654 per 10 grams
2. 71 or 98 Silver, in any form, in respect of which the benefit of entries at serial number 357 of the Notification No. 50/2017-Customs dated 30.06.2017 is availed 724 per kilogram
3. 71 (i) Silver, in any form, other than medallions and silver coins having silver content not below 99.9% or semi-manufactured forms of silver falling under sub­heading 7106 92;

(ii) Medallions and silver coins having silver content not below 99.9% or semi-manufactured forms of silver falling under sub-heading 7106 92, other than imports of such goods through post, courier or baggage.

Explanation. – For the purposes of this entry, silver in any form shall not include foreign currency coins, jewellery made of silver or articles made of silver.

724 per kilogram
4. 71 (i) Gold bars, other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units;

(ii) Gold coins having gold content not below 99.5% and gold findings, other than imports of such goods through post, courier or baggage.

Explanation. – For the purposes of this entry, “gold findings” means a small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of Jewellery in place.

654 per 10 grams

TABLE-3

Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value

(US $ Per Metric Ton)

(1) (2) (3) (4)
1 080280 Areca nuts 6259 (i.e., no change)”

2. This notification shall come into force with effect from the 01st day of March, 2024.

[F. No. 467/01/2024-Cus.V]

MEGHA BANSAL, Under Secy.

Note: – The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001–Customs (N.T.), dated the 3rd August, 2001, vide number S. O. 748 (E), dated the 3rd August, 2001 and was last amended vide Notification No. 12/2024-Customs (N.T.), dated the 15th February, 2024 e-published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S.O. 720 (E), dated 15th February, 2024.

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