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of <h1>Canola/rapeseed crude oil imports meeting low erucic acid definition treated as CTSH 1514 11 20, CEPA 8% BCD allowed</h1> Crude fixed oil derived from rapeseed, described in trade as canola/rapeseed/rape oil, was held to be classifiable under CTSH 1514 11 20 because the goods ... Classification of imported goods - Crude Rapeseed Oil or Crude Canola Oil or Crude Rape oil or Low Erucic Acid Rape Oil - classified under CTSH 1514 1120 or not - applicability of N/N. 22/2022-Cus dated 30-4-2022 effective from 1-5-2022 - HELD THAT:- 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 - No other heading more specifically describes the product. Thus, the classification under CTSH 1514 11 20 is legally sound. Applicability of the Preferential Rate under India-UAE CEPA - applicable rate of Basic Customs Duty (BCD) for the subject goods imported from the UAE under the CEPA during the year 2025-26 - HELD THAT:- 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% - 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. 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 - 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 N/N. 22/2022-Cus, as amended - The availing of this concessional rate is subject to the importer complying with all applicable Rules of Origin under the CEPA Rules, 2022, and CAROTAR, 2020 read with conditions of Notification 22/2022-Customs dated 30.04.2022 as amended. 1. ISSUES PRESENTED AND CONSIDERED (a) Whether the proposed imports described as 'Crude Rapeseed Oil', 'Crude Canola Oil', 'Crude Rape Oil', or 'Low Erucic Acid Rape Oil' are classifiable under tariff item CTSH 15141120. (b) Whether, for imports during May 2025-April 2026 (the fourth year tranche counted from May 2022), the applicable Basic Customs Duty under the CECPA-linked exemption notifications for tariff item 15141120 is 8%, subject to the notification conditions. 2. ISSUE-WISE DETAILED ANALYSIS Issue (a): Classification of the goods under CTSH 15141120 Legal framework (as discussed): The text refers to Chapter 15 tariff structure under heading 1514, and the Chapter Sub-Heading Note explaining that, for relevant sub-headings, 'low erucic acid rape or colza oil' means fixed oil with erucic acid content of less than 2% by weight. Interpretation and reasoning (as recorded): The applicant's case, as set out, is that crude rape oil is also known as crude canola oil / low erucic acid rape oil / crude rapeseed oil, and that irrespective of description it falls under the same 8-digit tariff item 15141120, provided it meets the 'low erucic acid' criterion stated in the tariff note. Conclusion: The provided text does not contain any conclusive finding by the Authority on classification; it records the question and the applicant's assertions, but no final determination is set out in the excerpt. Issue (b): Applicability of 8% Basic Customs Duty for the fourth year tranche (May 2025-April 2026) under CECPA-linked notification Legal framework (as discussed): The text references an exemption notification issued under section 25 of the Customs Act aligning with CECPA tariff commitments, and its subsequent amendments. It also records that the exemption is conditional on the importer proving UAE origin to the satisfaction of the proper officer, in terms of the applicable rules (as referred to in the notification). Interpretation and reasoning (as recorded): The applicant relies on the year-wise phased tariff reduction in Annexure 2A for tariff item 15141120, showing a progression to 8% for the fourth year tranche (May 2025-April 2026). The text also reproduces the amended Table entry indicating 8% for tariff item 15141120, and notes the applicant's position that this 8% rate is available for the stated period under the amended notification. Conclusion: The excerpt does not record the Authority's final ruling on whether 8% BCD applies for the stated period; it sets out the applicant's reliance on the schedule and notifications and the existence of an origin-condition, but no conclusive decision is contained in the provided text.
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