150% Customs Duty on Lab Chemicals

150% Customs Duty on Lab Chemicals

In a significant policy shift, the Indian government has increased the Basic Customs Duty on laboratory chemicals from 10% to 150%. The decision, detailed in recent budget documents, has sparked concern among scientists and researchers across the country. Laboratory chemicals, which include imported chemicals, reagents, and enzymes, are essential for experimental research in various scientific fields. The price hike means that chemicals that previously cost ₹1,00,000 will now be priced at ₹2,50,000.

The Customs Department defines laboratory chemicals as "all chemicals, organic or inorganic, whether or not chemically defined, imported in packings not exceeding 500 grams or 500 milliliters, and identifiable by their purity or other features to show they are meant for laboratory use." This definition covers a broad range of critical materials used in scientific research.

Santosh Chauhan, a scientist at the CSIR-Centre for Cellular and Molecular Biology (CCMB), raised the alarm on social media platform X, questioning the steep increase. He posted, "Please tell me this is a misprint...lab chemicals custom duty increased from 10% to 150%? How we do research (sic) and whether funding agencies will compensate by reducing expectations or providing more funds?" Chauhan's concerns were echoed by many in the scientific community, who fear the impact on research budgets and the potential hindrance to scientific progress.

While some scientists believe the drastic increase might be a misprint or that exemptions might be made for chemicals used specifically in research and development, the uncertainty remains. Heads of scientific organizations indicated that the situation is still evolving and that it may take time for clarity to emerge. "This is quite a significant problem, and we will be writing to the science secretaries for some clarification," said the director of a prominent lab affiliated with the Department of Atomic Energy, speaking on condition of anonymity. He noted that while some reagents and chemicals can be sourced locally, many essential chemicals still need to be imported due to the lack of domestic manufacturing.

Rajesh Gokhale, Secretary of the Department of Biotechnology, acknowledged the issue and assured that the science ministries are aware of the situation and are working on a resolution. However, he did not provide details on how the duties were imposed. Requests for clarification from the Department of Science and Technology have gone unanswered.

For years, publicly funded research and development organizations with specific registration from the Department of Scientific and Industrial Research have been exempt from customs duties. A recent notification extended this exemption until March 2029. Despite potential clarifications and exemptions, scientists like Binay Panda, a professor at Jawaharlal Nehru University, expressed concern that the new duty could hinder the ease of conducting scientific research in India.

As the scientific community awaits further clarification, the increase in customs duty raises questions about the future of research in India and the potential barriers to accessing vital materials for scientific discovery.