Wed Sep 25 04:02:24 UTC 2024: ## India Tightens Lab Chemical Import Rules, Imposing Duty Based on Quantity

**New Delhi, India:** The Central Board of Indirect Taxes and Customs (CBIC) has implemented new regulations for importing laboratory chemicals, effective from September 19th. Under the new rules, packages of 500 grams or 500 milliliters will be categorized as laboratory chemicals and attract a 10% import duty. However, larger quantities will be subject to a differential or higher duty.

This move comes after the Union Budget introduced a 150% duty on laboratory chemicals, which sparked widespread criticism from the research community. The duty was subsequently lowered, with the government introducing a new category for lab chemicals used for research and development (R&D).

The CBIC circular clarifies the definition of “laboratory chemicals,” stating they are intended only for internal use in laboratories and not for trading or resale. Importers of lab chemicals for R&D purposes must submit an undertaking to the customs authorities confirming their intended use and ensuring the chemicals will not be sold or traded after importation. Failure to comply will result in the payment of full duty on the non-compliant quantity.

This new measure aims to address concerns of chemical misclassification, particularly with undenatured ethyl alcohol, which was previously being imported under false pretenses to avoid the 150% duty.

The policy change has been met with mixed reactions. While the 10% duty on smaller lab chemical quantities provides relief for researchers, some argue that the new rules will create complexities and additional administrative burdens for research institutions. The impact of these new regulations on research activities in India remains to be seen.

Read More