SI Group-India has requested the government to reduce import duty on crucial olefinic products to a level not exceeding 5 percent ad valorem. In a letter to the Department of Chemicals and Petrochemicals, SI Group also called for correction of inverted duty structure on some chemicals.

The company is engaged in the manufacture of organic chemicals, intermediates and speciality chemicals and phenolic resins.

As part of our product portfolio, we manufacture nonyl phenol (tariff code 2907 1300) and dodecyl phenol (tariff code 2907 1950) both of which attract basic customs duty of 7.5 per cent ad valorem,? the company said.

Nonyl phenol is manufactured from propylene trimer (also called nonene, tariff code 2710 1990) and phenol (tariff code 2907 11). On the other hand, dodecyl phenol is manufactured from propylene tetramer (tariff code 2710 1990) and phenol (tariff code 2907 11).

Both propylene trimer and propylene tetramer are completely imported into India s there is no domestic manufacturer.

?Since the imported duty on liquid petroleum refinery products falling under chapter 27 is 10 per cent ad valorem, these two olefin inputs also attract 10 per cent basic customs duty. The basic customs duty on phenol is 7.5 per cent ad valorem.?

The company said this is a "clear case of inverted duty structure which needs to be corrected".

According to SI Group, propylene trimer and propylene tetramer are olefins and are basic building blocks in the value addition chain in the chemical industry and should therefore attract basic customs duty of not more than 5 per cent ad valorem.

"We request the government to reduce import duty on these crucial olefinic inputs to a level not exceeding 5 per cent ad valorem," it said