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India introduces stricter guidelines for the import of palm oil

Wednesday, July 29, 2020

New, stricter guidelines will apply to deliveries of palm oil to India from January. This was announced by the Director General for Foreign Trade (DGTF), who reports to the Ministry of Commerce. Imports of palm oil now require a licence or permit and the consent of the authorities. The import will then be allowed under certain conditions, according to a DGTF announcement. The new rules include, among other things, that importers must submit a purchase contract in advance and details of their imports in the past three years. The validity period for a licence or permit will be reduced from the usual 18 months to six months. If a dealer allows the licence to expire without importing, he will automatically be excluded from the issue of a new licence.

vegetable oil
The customs authorities have been instructed to monitor in particular palm oil from the countries of origin Nepal and Bangladesh. The certificate of origin is a key document for countries with which India has concluded trade agreements. An importer must present a corresponding Certificate of Origin (CoO) to the customs authorities at the port of import. Palm oil and other vegetable oils and fats are mainly imported into India by sea. India is the world’s largest importer of vegetable oils and purchases 15 million tons of them annually. Palm oil accounts for the largest share of this, 9 million tonnes, followed by the remaining 6 million tonnes of soya and sunflower oil.

The main producers of palm oil are Indonesia with 43 million tons and Malaysia with 19 million tons annually. Last year, India changed the status of this important commodity from freely tradable to restricted. The background to this were statements by Malaysia’s Prime Minister Mahatir on India’s new citizenship law and the situation in the Kashmir region. Mahatir expressed concerns about discrimination against Muslim citizens in India. At a session of the UN General Assembly he also said that India had invaded and occupied Kashmir. The Bureau of Indian Standards (BIS) is the largest of all certification bodies and is playing an increasing role in the standardisation of quality standards for raw materials and food. In this role it is responsible for a number of basic certifications in the Indian market. We would be pleased to assist you with BIS certification and are also available to answer your questions at any time.

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Julian Busch

About the author: Julian Busch is the founder and managing director of MPR International GmbH

Publisher: MPR International GmbH

Tel.: +49 69 271 37 69 261

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