AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 58
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....ntioned 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 4th year since May-2022, when the notification no. 22/2022-Cus dated 30-4-2022 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....
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....is 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 Tariff Act, 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; (ii) . . . (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 ame....
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....mmissionerate: 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 Oi! 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 ....
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....hich 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: 1514 RAPE,....
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....orementioned 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 C....