India cuts import duties for MDI, other raw materials

SINGAPORE (ICIS)–India will cut import duties for methylene diphenyl diisocyanate (MDI) by 2.5 percentage points to 5.0% effective 24 July, the country’s finance minister Nirmala Sitharaman announced on Tuesday.

MDI was among raw materials identified by the Indian government on which custom duties will be reduced.

Sitharaman announced the changes to the country’s Basic Customs Duty (BCD) – a tax levied on imported goods at the time of their entry into the country – in her presentation before parliament of India’s national budget for the fiscal year ending March 2025.

Conversely, the minister said that the customs duty for polyvinyl chloride flex films/flex banners will be raised sharply from 10% currently to 25% from 24 July “to curb their imports”.

Flex banners are commonly used for outdoor advertising as billboards.

“PVC flex banners are non-biodegradable and hazardous for environment and health,” Sitharaman said.

For ammonium nitrate, the custom duty will be raised to 10% from 7.5% from 24 July “to support existing and new capacities in the pipeline”, she said.

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