The Federal Government has decided to withdraw customs duty on the import of palm oil from Indonesia up to 30 June 2022.
The Federal Board of Revenue (FBR) issued a notification in this regard on Tuesday. According to the notification, the import of edible palm oil falls under PCT codes 1511.1000, 1511.9010, 1511.9020, and 1511.9030 for shipments originating from all sources except Indonesia for the period commencing on the 10 June 2022 and ending on the 30 June 2022.
The notification says that the current rate of customs duty on the import of different products of palm oil from other countries will be intact. It is important to mention here that the Pakistan government has charged customs duty on the import of palm oil from different countries.
According to the record of FBR, the government is charging Rs. 8,000/MT on import of crude palm oil, Rs. 9,050/MT on import of palm stearin Rs. 1,0800/MT on import of RBD palm oil and Rs. 9,050/MT on import of palm olein.
Some cargoes of palm oil are arriving from Indonesia against the orders issued in March/April by Pakistani importers. However, the Indonesian government has imposed a ban on the export of palm oil, which creates a risk of a palm oil shortage in Pakistan.
Pakistani delegation visited Indonesia headed by Federal Minister for Industries and Production to take up the issue related to palm oil last week. Pakistan meets its local demand for palm oil through imports from Indonesia, Malaysia, and other countries.