Notification on Import Customs duty rate changes India Budget 2017-18

 

 

Budget 2017-18, Notification on import duty tariff rate changes

 

The extract of government notification on import customs duty tariff rate changes under Indian Budget 2017-18 is given below:  You may click here also to download in pdf format:

 

clip_image002Government of India

 

Ministry of Finance

 

Department of Revenue

 

Tax Research Unit

 

*****

 

Alok Shukla

 

Joint Secretary (TRU-I)

 

Tel: 23092687; Fax: 23092031

 

Email: alok.shukla65@nic.in

       

D.O.F.No.334/7/2017-TRU

       

New Delhi, the 1st February, 2017.

Dear Principal

Chief Commissioner / Chief Commissioner/ Principal Commissioner,

The Finance

Minister

has

introduced the Finance Bill, 2017 in Lok Sabha today, that is,

1st February,

2017.

Changes

in

Customs and Central Excise law and rates of duty have been

proposed through the Finance Bill, 2017. To prescribe effective rates of duty and to carry out

changes in the Rules made under the respective

Acts, following notifications

are being issued:

           

CUSTOMS

Notification Nos.

     

Date

Tariff

No.3/2017-Customs to No.6/2017-Customs

   

2nd February, 2017

             

CENTRAL EXCISE

           

Tariff

No.3/2017-Central Excise to No.7/2017-

 

2nd February, 2017

 

Central Excise

         

Non-Tariff

No.2/2017-Central

Excise

(N.T.)

to

 

2nd February, 2017

 

No.5/2017-Central Excise (N.T.)

       
             

clip_image003clip_image003[1]clip_image004

Unless otherwise stated, all changes in rates of duty take effect from the midnight of 1st February

/ 2nd February, 2017. A declaration

has been made under the Provisional Collection of Taxes

Act, 1931 in respect of clauses 109

(a), 110, 118 and 146 of the Finance Bill, 2017 so that

changes proposed therein take effect from the midnight

of 1st

February / 2nd February, 2017. The

remaining legislative changes would come into effect

only

upon the enactment of the Finance

Bill, 2017. These dates may be carefully noted.

   

 

2. Important changes in respect of Customs and Central Excise duty rates and legislative

 

changes are contained in the four Annexes appended to this letter:

1)

Annex I contains Chapter wise changes relating

to Customs;

2)

Annex

II contains

Chapter wise changes relating

to Central Excise;

3)

Annex

III contains

clarification being issued relating to Central Excise;

         


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4) Annex IV provides a bird’s eye view of legislative changes proposed in the Finance Bill, 2017.

 

2.1 The Annexes I, II and IV provide a summary of the changes made and should not be used

 

in any quasi-judicial or judicial proceedings, where only the relevant legal texts need to be referred to.

 

3. In order to achieve a sharper focus, this letter discusses only the key budgetary changes.

 

Details are contained in the Finance Bill and notifications, which alone have legal force. My

 

team and I have made every possible effort to avoid the occurrence of errors or mistakes in the

 

Budget documents. However, inadvertent errors cannot be ruled out. I shall be grateful if the provisions of the Finance Bill and notifications are studied carefully and feedback on issues that may need clarification is provided urgently.

 

4. It may kindly be ensured that the changes are implemented in a smooth manner without causing any inconvenience to the taxpayers and other stakeholders. All possible efforts may be made to guide the taxpayers by holding interactive sessions/ seminars for their benefit. In case of any doubt or difficulty, I would request you to kindly bring it to my notice immediately or to the notice of Sh. G.G. Pai, Director (TRU) (Tel No. 011-23092753), e-mail: giridhar.pai@nic.in, Sh. Reyaz Ahmad, Director (TRU) (Tel. No. 011-23092236), email: ahmad.reyaz@nic.in or Sh. Abhishek Verma, Budget Officer (TRU) (Tel No. 011-23095543), e-mail: abhishek.v85@nic.in. We can also be reached at budget-cbec@nic.in.

 

6. Copies of Finance Bill, 2017, Finance Minister’s Budget Speech, Explanatory

 

Memorandum to the Bill, relevant notifications can be downloaded directly from

 

www.indiabudget.nic.in as well as www.cbec.gov.in.

 

7. To conclude, my team and I would like to express my gratitude to you for the valuable suggestions, feedback and support and would look forward to your comments/ suggestions.

 

With warm regards,

 

Yours sincerely,

clip_image006

 

 

 

(Alok Shukla)

 

Joint Secretary (TRU-I)

 

To,

 

All Principal Chief Commissioners / Principal Directors General

 

All Chief Commissioners / Directors General

 

All Principal Commissioners,

 

All Commissioners

 

Director DPPR/ Logistics/Legal Affairs/ Data Management.


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ANNEX I

 

CUSTOMS

 

Chapter 1 to 19: No change

 

Chapter 20:

 

 

1) Basic Customs duty rate on Cashew nut, roasted, salted or roasted and salted [20081910] is being increased from 30% to 45% by increasing the tariff rate from 30% to 45%. Clause 109

 

(a) of the Finance Bill, 2017 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.

 

Chapter 21 to 25: No change

 

Chapter 26:

1)

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 30% for all goods falling under tariff item 2606 00

 

90, namely, ‘Other aluminium ores and concentrates’. Clause 110 of the Finance Bill, 2017

 

refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this

 

change will come into force with immediate effect.

2)

Export duty is being imposed at an effective rate of 15% on ‘Other aluminium ores, including

 

laterite’ falling under tariff item 2606 00 90. However, goods other than the said goods

 

falling under tariff item 2606 00 90 (concentrates) will continue to attract Nil export duty.

 

S.No.24E and S.No.24F of notification No. 27/2011-Customs, dated 1st March, 2011 as

 

amended by notification No.3/2017-Customs, dated the 2nd February, 2017 refers.

 

Chapter 27:

 

1) Basic Customs Duty on Liquefied Natural Gas (LNG) falling under tariff item 2711 11 00 is being reduced from 5% to 2.5%. S.No.138 of notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated 2nd February, 2017 refers.

 

Chapter 28:

 

1) Concessional 5% Basic Custom Duty is being extended to Clay 2 Powder (Alumax) [2818 20 90], for use in ceramic substrate for catalytic convertors, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated the 2nd February, 2017 [New S.No.371E] refers.


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Chapter 29:

 

1) Basic Customs Duty on o-Xylene [2902 41 00] is being reduced from 2.5% to Nil. Notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated the 2nd February, 2017 [New S.No.172B] refers.

 

2) Basic Customs Duty on 2-Ethyl Anthraquinone [2914 69 90] for use in manufacture of Hydrogen Peroxide, is being reduced from 7.5% to 2.5%, subject to actual user condition. Further, the concessional 2.5% BCD on Anthraquinone [2914 61 00] prescribed in Budget 2015-16, is being restricted to Anthraquinone [2914 61 00] for use in manufacture of Hydrogen Peroxide, subject to actual user condition. S.No.181A of notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated 2nd February, 2017 refers.

3) Basic

Customs

Duty on

Purified

Terephthalic Acid

(PTA), Medium

Quality

Terephthalic

Acid (MTA) and Qualified Terephthalic Acid (QTA),

falling under tariff item 2917 36 00, is

being

rationalized

at 5%.

S.No.182

of notification No.12/2012-Customs,

dated

17th March,

 

2012, as amended by notification No.6/2017-Customs, dated 2nd February, 2017 refers.

 

Chapter 30 to 31: No change

 

Chapter 32:

 

1) Basic Customs Duty on Wattle extract [3201 20 00] and Myrobalan fruit extract [3201 90 20] is being reduced from 7.5% to 2.5%. Notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated the 2nd February, 2017 [New S.Nos.208A and 208B] refers.

 

Chapter 33: No change

 

Chapter 34:

 

1) Basic Custom Duty on Vinyl Polyethylene Glycol falling under tariff item 3404 20 00 for use in manufacture of Poly Carboxylate Ether is being reduced from 10% to 7.5%, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated the 2nd February, 2017 [New S.No.214A] refers.


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Chapter 35 to 37: No change

 

Chapter 38 and 39:

 

1) Basic Custom Duty (BCD) is being reduced from 7.5% to 5% on Catalyst [3815 90 00] and Resin [3909 40 90] for use in the manufacture of cast components of Wind Operated Electricity Generator [WOEG], subject to actual user condition. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017 [new S. Nos. 230C and 230D] refers.

 

2) SAD is being exempted on Catalyst [3815 90 00] and Resin [3909 40 90] for use in the manufacture of cast components of WOEG, subject to actual user condition. Exemption from SAD will be valid till 30th June, 2017. Notification No. 21/2012-Customs, dated 17th March, 2012 as amended vide Notification No.4/2017- Customs, dated 2nd February, 2017 [new S. Nos. 14H and 14I] refer.

 

Chapter 40 to 53: No change

 

Chapter 54:

   

1) Basic

Customs

Duty on Nylon Monofilament yarn falling under Customs Tariff

Item 5404

19 90

for use

in Monofilament long line systems for tuna fishing is being reduced

from 7.5%

 

to 5%, subject to certain conditions. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide notification No.6/2017- Customs, dated 2nd February, 2017 [new S. No. 294A] refers.

 

Chapter 55 to 69: No change

 

 

 

Chapter 70:

 

1) Basic Customs Duty (BCD) is being reduced from 5% to Nil on solar tempered glass or solar tempered (anti-reflective coated) glass for manufacture of Solar cells/panels/modules, subject to actual user condition. S. No. 305A of Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017 refers.


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Chapter 71

 

1) CVD exemption [under S.No.324 of notification No.12/2012-Customs, dated 17.03.2012] on silver medallions and coins having silver content not below 99.9%, other semi-manufactured forms of silver or articles of silver is being withdrawn. Simultaneously, articles of silver are being excluded from the scope of CVD exemption under this S. No. Notification No. 12/2012-Customs dated 17.03.2012 as amended by Notification No.6/2017-Customs dated 02.02.2017 [S. No. 324] refers.

 

Chapter 72:

 

1) Basic Customs duty on Hot Rolled Coils falling under heading 7208 for use in the manufacture of welded tubes and pipes falling under heading 7305 or 7306 is being reduced from 12.5% to 10%, subject to actual user condition. Notification No. 12/2012-Customs dated 17th March, 2012 as amended by Notification No.6/2017-Customs, dated 2nd February, 2017 [new S. No. 333C] refers.

 

2) Basic Customs duty on Magnesium Oxide (MgO) coated cold rolled steel coils falling under

 

tariff item 7225 19 90 for use in the manufacture of cold rolled grain oriented steel (CRGO) falling under 7225 11 00 is being reduced to 5%, subject to actual user condition. Notification No. 12/2012-Customs dated 17th March, 2012 as amended by Notification

No.6/2017-Customs, dated 2nd February, 2017 [new S. No. 333E] refers.

 

3) Exemption from Basic Customs duty (BCD) on Co-polymer coated MS tape/ stainless steel

 

tape for manufacture of telecommunication grade optical fibres or optical fibre cables is

 

being withdrawn. Accordingly, item No. 23 of List 5 [against S. No 149] of Notification No.12/2012-Customs, dated 17th March, 2012 is being omitted. List 5 of Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017-Customs, dated 2nd February, 2017 refers

 

4) Simultaneously, 10% concessional BCD is being prescribed on Co-polymer coated MS tape/stainless steel tape for manufacture of telecommunication grade optical fibres or optical fibre cables, subject to actual user condition. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017 [New S. No. 333D] refers.

 

Chapter 73 to 74: No change

 

Chapter 75:

 

1) Basic Customs duty on Nickel and articles thereof is being reduced from 2.5% to Nil. S. No.337 of Notification No. 12/2012-Customs dated 17th March, 2012 as amended by Notification No.6/2017-Customs, dated 2nd February, 2017 refers.


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Chapter 76 to 83: No change

 

Chapter 84 and 85:

 

1) Basic Customs duty on Reverse Osmosis (RO) membrane element for household type filters falling under tariff item 8421 99 00 is being increased from 7.5% to 10%. Clause 109 (a) of Finance Bill, 2017 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.

 

2) However, all other goods falling under tariff item 8421 99 00 will, continue to attract BCD at 7.5%. Notification No. 12/2012-Customs dated 17th March, 2012 as amended by Notification No.6/2017-Customs, dated 2nd February, 2017 [new S. No. 400A] refers.

 

3) Concessional Basic Customs duty of 2.5% is being extended to Ball Screws [8483 40 00], Linear Motion Guides [8466 93 90] and CNC Systems [8537 10 00] for use in the manufacture of all types of CNC machine tools falling under headings 8456 to 8463, subject to actual user condition. S. No. 406B, 406C and 406D of Notification No. 12/2012-Customs dated 17th March, 2012 as amended by Notification No.6/2017-Customs, dated 2nd February, 2017 refers.

 

4) Populated PCBs of mobile phones are being excluded from the purview of Nil SAD under S. No. 1 of Notification No. 21/2012-Customs [which exempts SAD on items, which are exempt from BCD and CVD]. S. No. 1 of Notification No. 21/2012-Customs dated 17th March, 2012 as amended vide Notification No.4/2017- Customs, dated 2nd February, 2017

 

refers. Simultaneously, 2% concessional SAD is being prescribed on populated PCBs for use in manufacture of mobile phones, subject to actual user condition. The concessional SAD will be valid till 30t h June, 2017. Notification No. 21/2012-Customs dated 17th March, 2012 as amended vide Notification No.4/2017- Customs, dated 2nd February, 2017, [new S. No. 85B] refers.

 

5) Basic Custom Duty (BCD), CVD (by way of excise duty exemption) and consequently SAD are being exempted on Micro ATMs as per standards version 1.5.1, fingerprint reader / scanner, and Iris Scanner. Further, BCD, CVD (by way of excise duty exemption) and consequently SAD are also being exempted on parts and components for manufacture of these devices, subject to actual user condition. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017, [new S. No. 408A] refers.

 

6) Basic Custom Duty (BCD), CVD (by way of excise duty exemption) and consequently SAD are being exempted on miniaturised POS card reader for mPOS (other than Mobile phone or Tablet Computer). Further BCD, CVD (by way of excise duty exemption) and consequently SAD are also being exempted on parts and components for manufacture of miniaturised POS card reader for mPOS [other than Mobile phone or Tablet Computer], subject to actual user


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condition. Notification No. 12/2012-Customs, dated Notification No.6/2017- Customs, dated 2nd February,


 

17th March, 2012 as amended vide 2017, new S. No. 408A refers.


 

Chapter 86 to 97: No change

 

Chapter 98

 

 

1) Goods imported through postal parcels, packets and letters, of CIF value not more than one thousand rupees per consignment are being exempted from BCD, CVD and consequently from SAD. S. No. 519 of Notification No. 12/2012-Customs dated 17.03.2012 as amended by Notification No.6/2017-Customs dated 02.02.2017 refers

 

Miscellaneous:

 

1) Condition No.40A [S.No.357A] of notification No.12/2012-Customs dated 17.03.2012 is being amended so as to allow the goods imported for petroleum or coal bed methane operations by availing of the benefit of the exemption, which are no longer required for the said purpose, to be disposed of on payment of applicable customs duties, on the depreciated value calculated as per straight line method (subject to depreciated value not being less than

 

30% of the original value) of such goods. Condition No.40A of notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.6/2017-Customs, dated

2nd February, 2017 refers. Further, it is also clarified

that this relaxation shall, mutatis

mutandis, apply for domestically manufactured goods

supplied against International

 

Competitive Bidding at Nil excise duty under notification No.12/2012- Central Excise, dated 17.03.2012 [S.No.336, Condition No.41]. It is also clarified that goods allowed to be cleared on payment of duty under this provision include unused, surplus, condemned and obsolete items.

 

2) The exemption limit for duty free imports [exempted from BCD, CVD, and SAD] of

 

Buckles; ‘D’ rings; eyes; rivets; studs; etc. imported by a manufacturer of leather footwear or

 

synthetic footwear or other leather products for exports by that manufacturer is being increased from 3% of the FOB value of goods exported during the preceding financial year to 5% of the FOB value of goods exported during the preceding financial year. S. No. 283 of Notification No. 12/2012-Customs dated 17.03.2012 as amended by Notification No.6/2017-

Customs dated 02.02.2017 refers

   

3) 5% concessional

basic

custom duty (BCD) is being

prescribed on

all parts for use in the

manufacture of

LED

lights or fixtures including

LED Lamps,

subject to actual user

 

condition. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017, [new S. No. 410 A] refers.

 

4) 5% concessional BCD is also being prescribed on imports of inputs for use in the manufacture of LED (Light Emitting Diode) driver or MCPCB (Metal Core Printed Circuit

9

 

Board) for LED lights and fixtures or LED Lamps, subject to actual user condition. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide Notification No.6/2017- Customs, dated 2nd February, 2017, [new S. No. 410 B] refers.

 

5) Basic Customs Duty (BCD) is being reduced from 10%/7.5% to 5% on all items of

machinery,

including,

instruments, apparatus and appliances, transmission equipment and

auxiliary

equipment

(including those

required

for testing and quality control) and

components, required

for initial setting up

of fuel

cell based system for generation of power

 

or for demonstration purposes subject to certain conditions. Notification No.5/2017 -Customs dated 2nd February, 2017 refers.

 

6) Basic Customs Duty (BCD) is being reduced from 10%/7.5% to 5% on all items of

machinery, including, instruments, apparatus and

appliances,

transmission

equipment

and

auxiliary equipment (including those required

for testing

and quality

control)

and

 

components, required for balance of systems operating on biogas or bio-methane or by-product hydrogen subject to certain conditions. Notification No.5/2017 -Customs dated 2nd February, 2017 refers.

 

Learn Exports Imports free: www.howtoexportimport.com

IGST exemption on re-import of engine and parts

No import duty and IGST on unclaimed postal articles reimported

Exemption of IGST on works of art specified under Cus notification 26/2011

Exemption of IGST on imports for recondition, reengineering, testing etc.

IGST exemption on re-import of goods exported under schemes, treatment etc.

IGST and import duty exemption on movement of goods under Notfn 241/82

Import duty and IGST exemption on reimport of goods after repairs, remake, recondition etc.

Import duty and IGST exemption under Customs notification 174/66



Comments


Hemant: The cvd in 71 section is withdrawn only for 99.9 % above medallions and coins or it is withdrawn from all type of silver jewellery...pls clarify

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