02 January 2013 07:59 [Source: ICIS news]
SINGAPORE (ICIS)--India’s Ministry of Finance has lowered custom duty to 0-2.5% for toluene cargoes originating from ASEAN and South Korea with effect from 1 January 2013, according to an official document ICIS received on Wednesday.
Imported cargoes originating from most ASEAN countries that include Malaysia, Singapore, Thailand, Vietnam, Myanmar, Indonesia, Brunei Darussalam, and Lao People’s Democratic Republic are custom tax free, from its previous duty at 2%.
Import duty from Philippines remains at 3%.
Imported parcels from South Korea will now be subjected to 2.5%, from its previous level of 3.13%.
The new import duties will be valid for a year.
“Previously the duty difference between ASEAN and South Korean origins were at 1.13%, but now it will be 2.5%, so to end users [in India] ASEAN origins will be more attractive,” a Singapore-based trader that actively trades in India said.
“With a lower [import] duty now, the increase in imports will cover the shortfall in supply in the near-term when the demand increases,” a Mumbai-based trader said.
India imports an average of 15,000-16,000 tonnes of toluene each month in 2012, with about 50% originating from South Korea, while the remainder was mainly from Singapore and Thailand, market players said.
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