Minimized Basic customs duty on import under Chapter 85

Indian Budget 2018-19, changes in import basic duty under chapter 85

 

 

According to Indian Budget 2018-19,

 

BCD on spark ignition engines, falling under heading 8407, of motor vehicles falling under headings 8702, 8703, 8704 or 8711, is being increased from 7.5% to 15% by increasing the tariff rate. [Clause 101 (a) of the Finance Bill, 2018 refers]. However, the existing BCD rates/concession rates on engines of aircraft (8407 10 00), marine propulsion engines (8407 21 00 and 8407 29 00), or engines of motor vehicles [other than motor vehicles falling under headings 8702, 8703, 8704 or 8711] shall continue [New S. Nos. 448 A and 448 B of notification No. 50/2017-Cus, dated the 30thJune, 2017, as amended by notification No.6 /2018-Cus, dated 2nd February, 2018, and other existing entries in the notification No. 50/2017-Cus refer] .

BCD on compression ignition engines, falling under heading 8408, of motor vehicles falling under headings 8702, 8703, 8704 or 8711, is being increased from 7.5% to 15% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, the existing rates of 7.5% of BCD on all goods [other than the engines of motor vehicle falling under headings 8702, 8703, 8704 or 8711] shall continue [New S. Nos. 448 C of notification No. 50/2017-Cus, dated the 30thJune, 2017, as amended by notification No. 6/2018-Cus, dated 2nd February, 2018 refers].

BCD on parts falling under heading 8409 and suitable for use solely or principally with the engines, of heading 8407 or 8408, of a kind used in motor vehicles, falling under heading 8702 or 8704, motor cars falling under heading 8703, or motor cycles falling under heading 8711 is being increased from 7.5% to 15%, by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, BCD of 7.5% for all other parts [other than parts of engines of said motor vehicles/ motor cars/ motor cycles] falling heading 8409 shall continue [New S. No. 448 D of notification No. 50/2017-Customs, dated 30thJune, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018 refers].

BCD on Crank shaft falling under tariff items 8483 10 91 and 8483 10 92 for engines falling under headings 8407 and 8408 respectively and used in motor vehicles falling under headings 8702, 8703 8704 and 8711 is being increased from 7.5% to 15% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, BCD of 7.5% on Crank shaft [other than for engines of said motor vehicles/ motor cars/ motor cycles] shall continue. [New S. Nos. 448 E and 448 F of notification No. 50/2017-Customs, dated 30thJune, 2017, as amended by notification No.6 /2018-Customs, dated 2nd February, 2018 refer].

BCD on electrical ignition or starting equipment and cut-outs falling under heading 8511, of motor vehicles falling under headings 8702, 8703, 8704, 8711, is being increased from 7.5% to 15% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, BCD of 7.5% on such goods [other than for engines of said motor vehicles/ motor cars/ motor cycles] shall continue. [New S. No. 489 A of notification No. 50/2017-Customs, dated 30thJune, 2017, as amended by notification No.6/2018-Customs, dated 2nd February, 2018 refers].

BCD on cellular mobile phones is being increased from 15% to 20% by increasing the tariff rate of BCD for tariff items 8517 12 10 and 8517 12 90 from 15% to 20%. [Clause 101(a) of the Finance Bill, 2018 refers].

BCD on charger or adapter of cellular mobile phones is being increased from 10% to 15%. For this purpose, the tariff rate of BCD for goods falling under sub-heading 8504 40 (other than 8504 40 21) is being increased from 10% to 15% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, BCD on goods other than charger or adapter of cellular mobile phones, falling under sub-heading 8504 40, is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. No. 13 refers].

BCD on cell/battery of cellular mobile phones is being increased from 10% to 15% by increasing the tariff rate on goods falling under heading 8506 (other than tariff item 8506 90 00). [Clause 101(a) of the Finance Bill, 2018 refers]. Further, effective rate of BCD on goods [other than cell/battery of cellular mobile phones], falling under heading 8506, is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. Nos. 14 refer].

BCD on battery pack [other than Lithium-ion battery] of cellular mobile phones is being increased from 10% to 15% by increasing the tariff rate on goods falling under heading 8507 (other than tariff item 8507 60 00 and sub-heading 8507 90). [Clause 101(a) of the Finance Bill, 2018 refers]. Further, effective rate of BCD on goods [other than battery pack of cellular mobile phones], falling under heading 8507, is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. Nos. 15 refer].

BCD on Lithium-ion battery falling under tariff item 8507 60 00 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. The effective rate on lithium ion battery of cellular mobile phones is being increased from 10% to 15%. However, the effective rate of BCD on goods, other than lithium ion battery of cellular mobile phones, falling under tariff item 8507 60 00, is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [New S. Nos. 16, 17 refer].

BCD on microphone, wired headset, receiver of cellular mobile phones is being increased from 10% to 15% by increasing the tariff rate on goods falling under tariff items 8518 10 00, 8518 29 00, 8518 30 0, 8518 40 00. [Clause 101(a) of the Finance Bill, 2018 refers]. However, BCD on goods [other than microphone, wired headset, receiver of cellular mobile phones], falling under tariff items 8518 10 00, 8518 29 00, 8518 30 0, 8518 40 00, is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [New S .No. 18 refers].

BCD on key pad, GSM antenna or antenna of any technology, of cellular mobile phones, falling under tariff item 8517 70 90 is being increased from 10% to 15%. For this purpose, the tariff rate of BCD for goods falling under tariff item 8517 70 90 is being increased from 10% to 15%. [Clause 101(a) of the Finance Bill, 2018 refers]. BCD on goods [other than parts of cellular mobile phones] falling under this tariff item will remain unchanged.

BCD on side key of cellular mobile phones, falling under tariff item 8538 90 00, is being increased from 10% to 15% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, BCD on goods [other than side key of cellular mobile phones], falling under tariff item 8538 90 00, is being retained at 7.5%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. No. 19 refers].

BCD on USB cable of cellular mobile phones, falling under heading 8544, is being increased from 7.5/10% to 15% by increasing the tariff rate on goods falling under tariff item/sub-headings 8544 19 10, 8544 19 20, 8544 19 30, 8544 19 90, 8544 49 from 10% to 15% and tariff rate of items falling under 8544 42 91, 8544 42 92, 8544 42 93, 8544 42 99 from 7.5% to 15%. [Clause 101(a) of the Finance Bill, 2018 refers]. However, the effective rate of BCD on goods [other than USB cable of cellular mobile phones], falling under heading 8544 is being retained at 7.5%. S. No.491 of notification No.50/2017-Customs, dated 30th June, 2017, amended by notification No. 6/2018-Customs, dated 2nd February, 2018 refers.

BCD on wrist wearable devices (commonly known as smart watches) falling under tariff item 8517 62 90 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, the effective rate of BCD on goods [other than wrist wearable devices], falling under tariff item 8517 62 90, is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. No. 20 refers].

Concessional 5% BCD on parts of Cellular Phones under S. No 499 of notification No 50/2017 is being withdrawn. Consequently, parts of Cellular Phones will attract applicable BCD. S.No.499 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018, refers.

Exemption from BCD on Printed Circuit Board Assembly (PCBA) falling under tariff item 8504 90 90 for manufacture of charger or adapter of cellular mobile phone is being withdrawn, and they will now attract at tariff rate of 10% BCD, without any actual user condition. S.No.7 and 7A of notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No. 22/2018-Customs, dated 2nd February, 2018 refer.

Exemption from BCD on moulded plastics falling under tariff items 3926 90 99 or 8504 90 90 for manufacture of charger or adapter of cellular mobile phone is being withdrawn, they will now attract 10% of BCD without actual user condition. S. No.7, 7A and 7B of notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 refer.

BCD on inputs or parts for manufacture of Printed Circuit Board Assembly (PCBA) and moulded plastics of charger or adapter of cellular mobile phone is being exempted, subject to actual user condition. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. No. 7C refers].

BCD on LCD/LED/OLED panels of television falling under heading 8529 is being increased from 7.5% to 15% and on other parts of LCD/LED/OLED TVs falling under heading 8529 is being increased from 10% to 15%. The tariff rate of BCD for goods falling under tariff items 8529 10 99 and 8529 90 90 is being increased from 10% to 15%. [Clause 101(a) of the Finance Bill, 2018 refers]. S.No.514 of notification No.50/2017-Customs, dated 30th June, 2017, is being omitted by notification No.6/2018-Customs, dated 2nd February, 2018. However, BCD on parts of goods of heading 8525, 8526 and 8527, falling under tariff items 8529 10 99 or 8529 90 90, is being retained at 10%. Notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018 [new S. Nos. 516A refers].

BCD on parts of other cathode ray tube monitors; other monitors; other projectors; reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus, not designed to incorporate a video display or screen and other Monochrome of heading 8528, falling under tariff items 8529 10 99 or 8529 90 90, is being retained at 10%. Notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No.6/2018-Customs, dated 2nd February, 2018 [new S. No. 516B refers].

BCD on 11 specified parts of Liquid Crystal Display (LCD) and Light Emitting Diode (LED) TV panels is being increased from Nil to 10%. S. No. 516 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018 refers.

Concessional 2.5% BCD is being extended to Ball Screws [8483 40 00], Linear Motion Guides [8466 93 90] and CNC Systems [8537 10 00] for manufacture of all types of CNC machine tools falling under headings 8456 to 8463, subject to actual user condition. S. No. 462, 463 and 464 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018 refers.

The Second Schedule (Export Tariff) to the Customs Tariff Act, 1975, is being amended so as to prescribe a tariff rate of export duty of 20% for ‘Carbon Electrodes of a kind used for furnaces’ falling under tariff item 8545 11 00. [Clause 102(b) of the Finance Bill, 2018 refers]. The effective rate of Export duty on Carbon Electrodes of a kind used for furnaces’ falling under tariff item 8545 11 00, however, will be Nil. Notification No.27/2011-Customs, dated 1st March, 2011, as amended by notification No.23/2018-Customs, dated 2nd February, 2018 [new S. No. 62A refers].

 

The above product changes in import basic customs tax fall under Chapter 84 of HS code.

 

The BCD rate tariff changes under this HS chapter may or may not change either before or at the time of next Indian Budget 2019-20.  


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