Automotive diesel fuel, not containing biodiesel, conforming to standard IS 1460
Automotive diesel fuel conforming to IS 1460, not containing biodiesel
HSN 2710 12 44 (Automotive diesel fuel conforming to IS 1460) is subject to Petroleum and Explosives Safety Organisation (PESO) licensing under the Petroleum Rules, 2002 for import, transport, and storage of Class B petroleum products. The Directorate General of Foreign Trade (DGFT) designates the tariff line as subject to policy condition (5) of Chapter 27, and import of E15 fuel conforming to IS 17586 under this CTI is permitted through a State Trading Enterprise. Petroleum may be imported only through ports and places approved by the Ministry of Shipping and declared as customs ports by the Commissioner of Customs.
- Import and storage licence from PESO
- STE channelisation certificate from DGFT
- Container specification compliance from PESO
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 Organization (PESO), Nagpur, covering the import, transport, and storage of Class B petroleum products before the consignment is dispatched. The licence must be current and produced at the bill-of-entry stage; storage containers must conform to the specifications prescribed under Rules 4, 5, and 6 of the Petroleum Rules, 2002.Petroleum Rules, 2002 · Rules 4, 5 and 6 of the Petroleum Rules, 2002
- 2Ensure the consignment is routed only through a port or place duly approved by the Ministry of Shipping in consultation with the Chief Controller and declared as a customs port by the Commissioner of Customs. Diversion to an unapproved port renders the consignment liable to seizure under the Petroleum Rules, 2002.Petroleum Rules, 2002 (port-approval provision)
- 3Where the imported product is E15 fuel conforming to IS 17586, confirm channelisation through a State Trading Enterprise and compliance with DGFT policy condition (5) of Chapter 27. Note that an additional duty of customs at 4% ad valorem may apply under Notification 53/2017-CUS dated 30-06-2017.DGFT Notification 20/2015-20 dated 07-07-2022 · DGFT Notification 27/2015-20 dated 16-09-2021 · Notification 53/2017-CUS dated 30-06-2017
The most common error on this tariff line is misclassifying automotive diesel fuel or low-aromatic white spirit as an industrial mixture or hydrocarbon solvent to circumvent the PESO licensing requirement and the approved-port restriction. The Directorate of Revenue Intelligence has flagged this pattern in Alert Circular 02/2020-CI dated 23-04-2020; consignments found to be misdeclared are liable to confiscation and monetary penalty under the Customs Act, 1962, compounded by a separate Petroleum Rules, 2002 contravention for unlicensed import.