The Central Board of Indirect Taxes and Customs (CBIC) has recently issued a notification introducing a new definition of “laboratory chemicals” under the First Schedule of the Customs Tariff Act, 1975.
According to the revised definition, “laboratory chemicals” encompass all chemicalsāorganic or inorganic, whether or not they are chemically definedāthat are imported and intended solely for the importer’s own use. This explicitly excludes purposes such as trading or further sale. Additionally, these chemicals must be packaged in quantities not exceeding 500 grams or 500 millilitres. They should also be identifiable by their purity, markings, or other distinguishing features that indicate they are meant exclusively for use as laboratory chemicals.
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The Central Board of Indirect Taxes and Customs has made this change with the public interest in mind, aiming to prevent misuse and ensure that laboratory chemicals are utilized appropriately within the intended contexts. By refining the definition, the Board seeks to tighten regulatory oversight and reduce potential loopholes in the importation process.
Prior to this amendment, chapter note 3 of Chapter 98 stated that Heading 9802 covered all chemicalsāorganic or inorganic, whether or not chemically definedāimported in packings not exceeding 500 grams or 500 millilitres, which could be identified by purity, markings, or other features indicating their exclusive use as laboratory chemicals. The key addition in the new definition is the emphasis on the chemicals being intended only for the importer’s own use, thereby explicitly excluding trading or further sale.
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The notification is effective from September 19, 2024. It is important for importers, research organisations, educational institutions, and other users of laboratory chemicals to be aware of this change to ensure compliance with the updated regulations.
In related news, the Directorate General of Foreign Trade (DGFT) has amended the import policy of areca nuts.
Read More Here: DGFT Allows 17,000 MT of Fresh Areca Nut Imports from Bhutan via Two Additional Ports Without MIP
By specifying that these chemicals are for the importer’s personal use and reinforcing packaging and identification requirements, the amendment seeks to enhance control over the import and utilisation of laboratory chemicals within the country.
Stakeholders and importers are advised to review the new definition carefully and adjust their practices accordingly to remain compliant.
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