Finance Ministry Slashes Customs Duty on Lab Chemicals to 10%

The Finance Ministry reduced the customs duty on lab chemicals, excluding undenatured ethyl alcohol, from 150% to 10%, effective August 1, 2024. This move follows previous measures to curb misuse of the low-duty category for imports wrongly declared as lab chemicals. The reduced duty aims to aid research and development efforts.

The Finance Ministry has slashed the customs duty on lab chemicals, excluding undenatured ethyl alcohol, from 150% to 10%, effective August 1, 2024. This decision comes as a relief to researchers and laboratories who rely on these chemicals for their work.

According to a notification by the customs department, the basic customs duty (BCD) on lab chemicals for research and development purposes has been significantly lowered to facilitate trade and support scientific innovation.

Officials mentioned that some importers evaded the higher duty by misdeclaring undenatured ethyl alcohol as lab chemicals. To address this misuse, the duty was initially raised in the 2024-25 Budget. However, the recent reduction ensures genuine users are not disadvantaged in their scientific pursuits.

(With inputs from agencies.)