In a significant win for the scientific community, the finance ministry reversed a customs duty hike on lab chemicals. The recent Union budget initially increased customs duty on laboratory chemicals from 10 percent to 150 percent, impacting nearly 40,000 items.
However, the finance ministry has now stated that all chemicals intended for research and development, except undenatured ethyl alcohol, will continue to be subject to a 10 percent customs duty.
The ministry described the amendment as being in the public interest. Furthermore, a new penalty clause has been introduced to deter fraudulent imports of these chemicals under the guise of research purposes.
Importers are required to submit an undertaking to the deputy or assistant commissioner of customs, declaring that the imported goods will be used solely for laboratory or research and development purposes and will not be sold or traded post-import.
As reported by msn.com, if the chemicals are discovered to be used for any other purposes, the higher customs duty rate will be enforced. The scientific community has welcomed this amendment.
