Light naphtha
Light naphtha, petroleum light oils and preparations
HSN 2710 12 21 (Light naphtha) is subject to Petroleum and Explosives Safety Organisation (PESO) licensing under the Petroleum Rules, 2002, which mandates a licence from the Chief Controller of Explosives for the import, transport, and storage of Class A petroleum products including naphtha. The tariff line is Free under the ITC (HS) import policy administered by the Directorate General of Foreign Trade (DGFT) per Notification 51/2015-20 dated 18-03-2020, but import is permitted only through ports approved by the Ministry of Shipping and declared as customs ports.
- Import licence from PESO
- Approved-port declaration to CBIC
- ITC (HS) policy compliance from DGFT
Procedural directions for customs clearance are issued by: Directorate General of Foreign Trade.
- 1Obtain a licence from the Chief Controller of Explosives, Petroleum and Explosive Safety Organisation (PESO), Nagpur, covering import, transport, and storage of Class A petroleum products before the consignment is dispatched. The licence must be current at the time of bill-of-entry filing.Petroleum Rules, 2002 · DGFT Notification 51/2015-20 dated 18-03-2020
- 2Route the consignment exclusively through a port approved by the Ministry of Shipping in consultation with the Chief Controller and declared a customs port by the Commissioner of Customs. Arrival at an unapproved port renders the consignment liable to detention and seizure under the Petroleum Rules, 2002.Petroleum Rules, 2002 (port-approval provision)
- 3Ensure containers used for storing the imported light naphtha conform to the specifications prescribed under Rules 4, 5 and 6 of the Petroleum Rules, 2002. Non-conforming containers constitute a separate licence violation independent of the import-stage clearance.Rules 4, 5 and 6 of the Petroleum Rules, 2002
A recurring enforcement exposure on this tariff line is misdeclaration of light naphtha as low aromatic white spirit, hydrocarbon solvents, or Industrial Mixture Composition Plus (IMPS) to circumvent Class A petroleum licensing requirements — a pattern flagged in DRI Alert Circular 02/2020-CI dated 23-04-2020. Customs officers are directed to scrutinise product descriptions against laboratory analysis; a misdeclaration finding attracts confiscation of the consignment, monetary penalty, and potential prosecution under the Petroleum Rules, 2002, in addition to Customs Act liability.