ITC (HS), 2022
SCHEDULE 1 - IMPORT POLICY

CHAPTER 27
MINERAL FUELS, MINERAL OILS AND PRODUCTS OF THEIR DISTILLATION; BITUMINOUS SUBSTANCES; MINERAL WAXES

NOTES:

1. This Chapter does not cover:

(a) Separate chemically defined organic compounds other than pure methane and propane which are to be classified in heading 2711;

(b) Medicaments of heading 3003 or 3004; or

(c) Mixed unsaturated hydrocarbons of heading 3301, 3302 or 3805.

2. References in heading 2710 to “petroleum oils and oils obtained from bituminous minerals” include not only petroleum oils and oils obtained from bituminous minerals but also similar oils, as well as those consisting mainly of mixed unsaturated hydrocarbons, obtained by any process, provided that the weight of the non-aromatic constituents exceeds that of the aromatic constituents.

However, the references do not include liquid synthetic polyolefins of which less than 60% by volume distils at 300⁰C, after conversion to 1,013 millibars when a reduced-pressure distillation method is used (Chapter 39).

3. For the purposes of heading 2710, “waste oils” means waste containing mainly petroleum oils and oils obtained bituminous minerals (as described in Note 2 to this Chapter), whether or not mixed with water. These include:

a) Such oils no longer fit for use as primary products (for example, used lubricating oils, used hydraulic oils and used transformer oils);

b) Sludge oils from the storage tanks of petroleum oils, mainly containing such oils and high concentration of additives (for example, chemicals) used in the manufacture of the primary products; and

c) Such oils in the form of emulsions in water or mixtures with water, such as those resulting from oil spills, storage tank washings, or from the use or cutting oils for machining operations.

SUB-HEADING NOTES:

1. For the purpose of sub-heading 2701 11 “anthracite” means coal having a volatile matter limit (on a dry, mineral-matter-free basis) not exceeding 14%.

2. For the purposes of sub-heading 2701 12, “bituminous coal” means coal having a volatile matter limit (on a dry, mineral-matter-free basis) exceeding 14% and a calorific value limit (on a moist, mineral-matter-free basis) equal to or greater than 5,833 kcal/kg.

3. For the purposes of items 2707 10 00, 2707 20 00,2707 30 00 and 2707 40 00 the terms “benzol”, “(benzene)”, “toluol” (toluene)”, “xylol (xylenes)” and “naphthalene”  apply to products which contain more than 50% by weight of benzene, toluene, xylenes or naphthalene, respectively.

4. For the purposes of sub-heading 2710 12, “light oils and preparations” are those of which 90 % or more by volume (including losses) distil at 210 °C according to the ISO 3405 method (equivalent to the ASTM D 86 method).

5. For the purposes of the subheadings of heading 2710, the term “biodiesel” means mono-alkyl esters of fatty acids of a kind used as a fuel, derived from animal, vegetable or microbial fats]  and oils whether or not used.

Policy Conditions of this Chapter:

(1) Import of naphtha is free.

(2) Import of SKO shall be allowed through State Trading Enterprises (STEs) i.e. IOC, BPCL, HPCL and IBP for all purposes with STC being nominated as a State Trading Enterprise (STE) for supplies to Advance Licence holders. Advance Licence holders shall however, have the option to import SKO from the above mentioned STEs including STC.

(3) Import is restricted in terms of Interim PIC Procedure of Rotterdam Convention on Prior Informed Consent procedure for hazardous chemicals and pesticides.

(4) Automobile industries, having R&D registration, are allowed to make free import of reference fuels (Petrol and Diesel) which are not manufactured in India, up to maximum of 5 KL per annum, subjects to the condition that the said imported reference fuels shall be used for R&D and emission testing purposes only.

⁵[(5) Import allowed through IOC subject to para 2.21 of Foreign Trade Policy, except for the companies who have been granted rights for marketing of transportation fuels in terms of Ministry of P&NGs Resolution No. P23015/1/2001-MKT. Dated 8.3.2002 including HPCL, BPCL and IBP who have been marketing transportation fuels before this date.]

^[helldodold[(5) Import allowed through IOC subject to para 2.20 of Foreign Trade Policy, except for the companies who have been granted rights for marketing of transportation fuels in terms of Ministry of P&NG's Resolution No. P-23015/1/2001-MKT. Dated 8.3.2002 including HPCL, BPCL & IBP who have been marketing transportation fuels before this date.]^helldod]

⁶[(6) Import of pet coke for fuel purpose is 'Prohibited'. However, import of Pet coke of the following categories shall be permitted, subject to conditions :

a. Import of Pet coke is 'Free' for cement,lime kiln, calcium carbide, gasification industries and graphite electrode industries for use as feed stock or in the manufacturing process only on Actual User basis.

⁸[b.Total import of 1.9 Million MTs of Raw Petroleum Coke(RPC) for manufacturing Calcined Petroleum Coke(CPC) and 0.5 Million MTs of CPC for Aluminium Industry respectively shall be permissible during 2024-25, and 1.9 Million MTs of RPC for manufacturing CPC Manufacturing and 0.8 Million MTs of CPC for Aluminium Industry respectively shall be permissible from 2025-26 onwards, subject to the following conditions:

i. Import of RPC & CPC shall be permitted only as a feedstock / raw material and under no circumstances shall be used as fuel.

⁹[ii. Import of RPC and CPC shall be permitted to cater entirely to the domestic needs of aluminium industry and other industries, for the processes as permitted under the relevant regulations / statutes.]

^[helldodold[ii.Import of RPC and CPC shall be permitted to cater entirely to the domestic needs of aluminium industry, for the processes as permitted under the relevant regulations / statutes.]^helldod]

iii. Import of RPC by Calciners shall be on Actual User basis and shall not be transferred to any other unit(s) including SEZ unit(s). Export of CPC by Calciners shall not be permitted.

iv. Import of CPC by Aluminium Industry shall be on Actual User basis. Export of Anode by Aluminium Industry shall not be permitted.

v. The RPC/CPC Processing capacity as on the date of the CAQM Order i.e. 14.02.2024 shall be taken on record for any pro-rata allocations.

vi. All other conditions as mentioned in the Commission for Air Quality Management in NCR & Adjoining Areas Order No- F. No.160014/16/2021-MERD/PetCoke-35 dated 14.02.2024 should also be complied with.]

^[helldodold[b. Aluminium industry can import Calcined Pet Coke not exceeding 0.5 MT per annum and Calcined Pet coke manufacturing units can import raw pet coke not exceeding 1.4 MTs per annum.]^helldod]

c. Import of Needle Pet Coke (NPC) (under HS Code 27131190) is 'Free' for making graphite anode material for Li-Ion battery as feedstock /raw material and not for any other purposes including use as a fuel or for trade. The Sulphur content in the NPC should be less than 0.8% which shall be monitored by State Pollution Control Boards (SPCBs)/CPCB.

d. Import of Low Sulphur Pet Coke (under HS Code 27131190) is 'Restricted' and permitted subject to Import Authorisation from DGFT for use in Integrated Steel Plants (ISP) only for blending with the coking coal in recovery type coke ovens equipped with desulphurisation plant and not for any other purpose including use as fuel or for trade purpose. Use of pet coke shall be limited to 10% of its feedstock to the coke oven with pet coke sulphur content not exceeding 3%. Additionally, continuous analysers for measurement of sulphur dioxide shall be installed in the stacks of processes where waste / process gases which shall be monitored by SPCBs/CPCB. Low Sulphur Pet Coke shall not be used by the Steel Industry, either ISP or other steel producers, as fuel or for trade

Regulation and Monitoring of such Pet Coke imports shall be as per the guidelines of MoEF&CC, issued vide its OM No.Q-18011/54/2018-CPA dated 10.09.2018.]

^[helldodold[(6) Import of pet coke for fuel purpose is prohibited. However, import of Pet coke is "free" for cement, lime kiln, calcium carbide, gasification industries and graphite electrode industries for use as feed stock or in the manufacturing process only on Actual User basis. Further, Aluminium Industry can import Calcined Pet Coke not exceeding 0.5 MT per annum and Calcined Pet Coke manufacturing units can import raw Pet Coke not exceeding 1.4 MT per annum. Regulation and monitoring of such imports will be as per the guidelines of Ministry of Environment, Forest and Climate Change issued vide O.M. No.Q-18011/54/2018-CPA dated September 10, 2018.]^helldod]

(7) (i) The Coal Import Monitoring System (CIMS) shall require importers to submit advance information in an online system for import of items and obtain an automatic Registration Number by paying registration fee of Rs. 1 per thousand, subject to minimum of Rs. 500/- and maximum of Rs. 1 Lakh, on CIF value.

⁷[(ii) The importer can apply for registration not earlier than 60th day and till the arrival date (Zero Day) of consignment at gateway port. The Automatic Registration Number shall remain valid for a period of 75 days. Importer shall have to enter the Registration Number and expiry date of Registration in the Bill of Entry to enable Customs for clearance of consignment.]

^[helldodold[²[(ii) The importer can apply for registration not earlier than 60th day and not later than 5 days before the expected date of arrival of import consignment. The Automatic Registration Number shall remain valid for a period of 75 days importer shall have to enter the Registration Number and expiry date of Registration in the Bill of Entry to enable Customs for clearance of consignment.]

^old[(ii) The importer can apply for registration not earlier than 60Th day and not later that 95th day before the expected date of arrival of import consignment. The Automatic Registration Number shall remain valid for a period of 75 days. Importer shall have to enter the Registration Number and expiry date of Registration in the Bill of Entry to enable Customs for clearance of consignment.]]^helldod]

 3. The CIMS will be effective from 01.04.2021, i.e., Bill of Entry filed on or after 01.04.2021 for items as listed in this Notification shall be governed by CIMS. The facility of online registration will be available with effect from 15.02.2021

SUPPLEMENTARY NOTES:

In this Chapter, reference to any standard of the Bureau of Indian Standards refers to the last published version of that standard. Illustration: IS 1459 refers to IS 1459: 2018 and not to IS 1459: 1974.”

(a) Motor Spirit means any hydrocarbon oil (excluding crude mineral oil) which has its flash point below 25⁰C and which either by itself or in admixture with any other substance, is suitable for use as fuel in spark ignition engines. “Special boiling point spirits (sub-headings 2710 12 11, 2710 12 12 and 2710 12 13) means light oils, as defined in Chapter Note 4, not containing any anti-knock preparations, and with a difference of not more than 60⁰C between the temperature at which 5% and 90% by volume (including losses) distil;

(b) “Natural gasoline liquid (NGL)” is a low–boiling liquid petroleum product extracted from Natural Gas;

(c) “Superior kerosine Oil (SKO)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS:1459-1974 (Reaffirmed 1996);

(d) “Aviation turbine fuel (ATF)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS:1571:1992:2000;

(e) “High speed diesel (HSD)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards IS:1460:2005;

(f) “Light diesel oil (LDO)” means any hydrocarbon oil conforming to the Indian Standards Specification of Bureau of Indian Standards   IS:15770:2008;

(g) “Fuel oil means any hydrocarbon oils conforming to the Indian Standards Specification of Bureau of Indian Standards IS:1593:1982 (Reaffirmed in the year 1997);

(h) “Lubricating oil” means any oil, which is ordinarily used, for lubrication, excluding any hydrocarbon oil, which has its flash point below 93.30 Centigrade;

(i) “Jute batching oil” and “textile oil” are hydrocarbon oils which have their flash point at or above 93.3⁰C, and is ordinarily used for the batching of jute or other textile fibres;

(j) The expression “petroleum jelly crude” (subheading 2712 10 10) shall be taken to apply to petroleum jelly of a natural colour higher than 4.5 by the ASTM D 1500 method;

(k) For the purposes of these additional notes, the tests prescribed have the meaning hereby assigned to them.

1. “Flash Point” shall be determined in accordance with the test prescribed in this behalf in the rules made under the Petroleum Act, 1934 (30 of 1934);

2. “Smoke Point” shall be determined in the apparatus known as the Smoke Point Lamp in the manner indicated in the Indian Standards Institution specification IS:1448(p.31)-1967 as for the time being in force;

3. “Final Boiling Point” shall be determined in the manner indicated in the Indian Standards Institution specification IS:1448(p.18)-1967 as for the time being in force;

4. “Carbon Residue” shall be determined in the apparatus known as Ramsbottom Carbon Residue Apparatus in the manner indicated in the Indian Standards Institution specification IS:1448 (p.8)-1967 as for the time being in force;

5. “Colour Comparision Test” shall be done in the following manner, namely:

(i)      First prepare a five per cent, weight by volume solution of Potassium Iodine (analytical reagent quality) in distilled water;
(ii)     To this, add Iodine (analytical reagent quality) in requisite amount to prepare an exactly 0.04 normal Iodine solution;
(iii)    Thereafter, compare the colour of the mineral oil under test with the Iodine solution so prepared.

1. Inserted Vide:- Notification No. 20/2015-2020 Dated 07.07.2022

2. Substituted vide:- Notification No. 41/2015-2020 Dated 07.11.2022

3. Inserted Vide:- Notification No. 08/2023 Dated 29.05.2023

4. Deleted Vide:- Notification No. 08/2023 Dated 29.05.2023

5. Substituted vide Notification No. 08/2023 Dated 29.05.2023

6. Substituted vide:- Notification No. 10/2023 Dated 02.06.2023

7. Substituted vide:- Notification No. 34/2023 Dated 04.10.2023

8. Substituted vide Notification No. 68/2023 Dated 07.03.2024

9. Substituted vide Notification No. 27/2024-2025 Dated 04.09.2024