Govt extends customs duty waiver on import of key petrochemical products till July 15

The government on Tuesday extended nil customs duty on import of critical petrochemical products by 15 days till July 15 to ensure continuity of supply stability amid the West Asia crisis.

The full customs duty waiver on about 40 critical petrochemical products provided on April 2 was a “temporary and targeted relief”, and was set to lapse on June 30. In a notification on Tuesday, the Finance Ministry extended the customs duty exemption to July 15. The import duty exemption was intended to benefit sectors dependent on petrochemical feedstock and intermediates, such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components and other manufacturing segments.

On April 2, the Finance Ministry had said that in light of the ongoing conflict in West Asia and the consequent disruptions in global supply chains, the government has decided to provide full customs duty exemption on critical petrochemical products till June 30.

This measure was aimed to ensure the continued availability of critical petrochemical inputs for the domestic industry, reduce cost pressures on downstream sectors, and safeguard supply stability in the country, the ministry had said.

This will also provide relief to consumers of final products, it added. The goods on which the customs duty has been exempted include Methanol, Anhydrous ammonia, Toluene, Styrene, Dichloromethane (methylene chloride), Vinyl chloride monomer, Poly butadiene, Styrene butadiene and Unsaturated polyester resins.

Disruption in shipping routes amid the West Asia war has raised concerns over imports of fertiliser, crude oil and natural gas. India is a major importer of fertiliser and petroleum.