New relief for researchers: Customs duty on lab chemicals reduced to 10%
The Finance Ministry on Wednesday offered relief for researchers and academicians by carving out a new section for the use of lab chemicals for R&D purposes. The ministry also reduced customs duty on the product to 10 per cent from the 150 per cent rate it had set in the 2024-25 Budget.
To address concerns of genuine lab chemical users, the government issued a relief, effective August 1, under which those importing lab chemicals for R&D and lab use will be taxed on customs duty only at 10 per cent. Such importers must submit an undertaking.
“If the importer submits an undertaking before the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, that the goods so imported shall be for use in laboratory or for use in research and development purposes, and shall not be sold or traded after importation...” the notification dated July 31 read. “In case of failure to comply with this condition, he shall be liable to pay, in respect of such quantity of the said goods as is proved to have not been so used for the specified purposes, an amount equal to the duty leviable on such quantity but for the exemption under this notification,” it added.
The government further explained that some importers were importing undenatured ethyl alcohol after misdeclaring them as lab chemicals to circumvent the 150% duty on undenatured ethyl alcohol and to curb this misuse, the Budget 2024-25 had increased duty of chemicals under HS Code 9802 to 150%.
