BCD on machinery, machinery parts, boilers, mechanical appliances etc, as per Indian Budget 2020-21

Indian Budget 2020-21, Import BCD on machinery, machinery parts, boilers, mechanical appliances etc

 

 

 

Basic Customs  Tax changes on goods under Chapter 84

The below information provides the details of changes in basic Customs duty as per Indian Union Budget 2020-21 on machinery, machinery parts, boilers, mechanical appliances etc .

The Union Budget for financial year 2020-21 presented in the parliament by Union Finance Minister Nirmala Sitharaman on February 1. The Union Budget 2020 presented in parliament around 11 am on February 1. Usually the duration to present the Union Budget is 90 to 120 minutes. Till 2016, the Union Budget was presented on the last working day of February. Former finance minister Arun Jaitley changed the tradition in 2017 when he presented the Budget on February 1.

As per Indian Budget 2020-21, the basic customs duty changes on goods under chapter84is shown below.  If no changes on present customs basic duty on products under chapter 84,under Budget 2020-21 the same is mentioned:

 

BCD on compressors of Refrigerators falling under tariff item 8414 30 00 and compressors of Air Conditioner falling under tariff item 8414 80 11, is being increased from 10% to 12.5% by increasing the tariff rate. [Clause 115 (a) of the Finance Bill, 2020 refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.

BCD on all goods (refrigerating equipment like Freezers etc.) falling under tariff items 8418 10 10, 8418 30 10, 8418 30 90, 8418 40 10, 8418 40 90, 8418 50 00, 8418 61 00, 8418 69 10, 8418 69 20, 8418 69 30, 8418 69 40, 8418 69 50, 8418 69 90, is being increased from 7.5%/10% to 15% by increasing the tariff rate. [Clause 115 (a) of the Finance Bill, 2020 refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.

Vide entry at Sr. No. 447 of the notification No. 50/2017-Customs, dated 30th June, 2017, BCD exemption is provided on the specified goods required for manufacture of Optical disk drives (ODD). On review, the said entry is being omitted vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. Consequently, the said items will attract the applicable BCD rate.

Vide entry at Sr. No. 459 of the notification No. 50/2017-Customs, dated 30th June, 2017, BCD exemption is provided on the parts falling under heading 8443 (except 8443 99 51, 8443 99 52 and 8443 99 53) for manufacture of printers falling under sub-heading 8443 32. On review, the said entry is being omitted vide notification No. 1/2020, dated 2nd February, 2020. BCD exemption on parts of said printers will continue in view of similar exemption available in the notification No. 24/2005-Customs, dated the 1st March, 2005 (entries at S.No. 2A to 2F of notification No. 24/2005-Customs, dated the 1st March, 2005).

Vide entry at Sr. No. 465 of the notification No. 50/2017-Customs, dated 30th June, 2017, BCD exemption is provided on CD-Writers falling under heading 8471. On review, the said entry, is being omitted vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. BCD exemption on said items will continue in view of similar exemption available in the notification No. 24/2005-Customs dated 1′ March, 2005 (S.No.8 of notification No. 24/2005-Customs refers).

 The entry at S. No. 415 of Notification No. 50/2017-Customs dated 30th June, 2017 is being amended vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020 so as to:

a) withdraw concessional 5% BCD on Platinum, Palladium, Noble Metal Compounds and Noble Metal Solution and these goods will now attract applicable BCD when imported for manufacture of Catalytic convertors and its parts subject to actual user condition;

b) increase BCD from 5% to 7.5% on (i) parts of catalytic convertors, and (ii) Raw Substrate (ceramic), Washcoated Substrate (ceramic), Raw Substrate (metal), Washcoated Substrate (metal), Stainless Steel wire cloth stripe, Wash Coat used in manufacture of catalytic convertors and its parts subject to actual user condition;

c) Rhodium attracts 2.5% BCD under S. No. 364 notification No. 50/2017-Customs dated 30th June, 2017, accordingly, entry relating to Rhodium is being omitted as it is redundant entry.

BCD on catalytic converter falling under tariff items 8421 39 20 and 8421 39 90 is being increased from 10% to 15%, by increasing the tariff rate [Clause 115 (a) of the Finance Bill 2020 refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. 7.5% BCD on all goods other than catalytic converter, falling under tariff items 8421 39 20 and 8421 39 90 will continue [S. No. 452A of notification No 50/2017-dated 30th June, 2017 refers]

Following changes are being made for goods falling under sub-heading 8414 51:

a) BCD on different kinds of fans falling under sub heading 8414 51 (except “Railway carriage fans” under tariff item 8414 51 40) is being increased from 10% to 20% by increasing the tariff rate.

b) BCD on Railway carriage fans under tariff item 8414 51 40 is being increased from 7.5% to 10%.

c) A new tariff line 84 [4 51 50 has been carved out from tariff item 8414 51 90 for “Wall fans” and BCD is being increased on Wall fans from 7.5% to 20%.

d) BCD on all other remaining goods under tariff item 8414 51 90 is being increased from 7.5% to 20%.

[ Clause 115 (a) and (b) of the Finance Bill, 2020 refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.

 Following changes are being made for goods falling under sub-heading 8414 59:

a) BCD on all goods falling under sub heading 8414 59 (except “Blowers, portable” under tariff item 8414 59 20), is being increased from 7.5% to 10% by increasing the tariff rate;

b) BCD on Blowers, portable under tariff item 8414 59 20 is being increased from 10% to 20%.

[Clause 115 (a) of the Finance Bill, 2020 refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.

BCD on specified goods as per List 10 of the notification No. 50/2017-Customs, dated 30th June, 2017, required for use in high voltage power transmission project, is being increased from 5% to 7.5% by amending S. No. 397 of notification No. 50/2017- Customs, dated 30th June, 2017, vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020.

Entry at S. No. 398 of notification No. 50/2017-Customs dated 30th June, 2017, provides concessional 5% BCD on parts and components of the specified goods (as mentioned in List 10) required for use in high voltage power transmission project. On review, this entry is being omitted vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. Consequently, these items will now attract BCD applicable otherwise.

Exemption from BCD available on goods specified for construction of roads as per List 14 of the notification No. 50/2017-Customs, dated 30th June, 2017 is being withdrawn by omitting the entry at S. No. 411 and the List 14 of the notification No. 50/2017-Customs, dated 30th June, 2017. Consequently, these items will now attract BCD applicable otherwise.

Exemption from BCD on goods specified for construction of roads as per List 15 of the notification No, 50/2017-Customs, dated 30th June, 2017 is being withdrawn by omitting the entry at S. No. 412 and the List 15 of the notification No. 50/2017-Customs, dated 30th June, 2017, refer CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. Consequently, these items will now attract BCD applicable otherwise.

 Exemption from BCD available on rotary tiller/ weeder falling under tariff item 8432 80 20 is being withdrawn by omitting entry at S. No. 448 (A) (x) of notification No. 50/2017-Customs, dated 30th June, 2017, vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. Consequently, rotary tiller/ weeder will now attract 7.5% BCD.

BCD on pressure vessel falling under tariff item 8419 89 10, is being increased from 7.5% to 10% by increasing the tariff rate. [Clause 115 (a) of the Finance Bill, 2020 refers]. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. The existing 7.5% BCD on all goods other than the pressure vessels of tariff item 8419 89 10 shall continue. Notification No. 50/2017-Customs, dated 30th June, 2017, as amended vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020.

Entry at S. No. 456 of notification No. 50/2017-Customs dated 30th June, 2017, provides concessional 5% BCD on (a) Sprinklers and drip irrigation systems for agricultural and horticultural purposes and (b) Micro Irrigation equipment. On review, this entry is being omitted vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. Consequently, these items will now attract 7.5% BCD.

Entry at S. No. 457 of notification No. 50/2017-Customs dated 30th June, 2017, provides concessional 5% BCD on poultry incubators and brooders falling under tariff item 8436 21 00. On review, this entry is being omitted vide CUSTOMS Notification No 01 of 2020 dated 02nd February, 2020. Consequently, this item will now attract 7.5% BCD.

 Notification No. 11/2018-Custom, dated the 2nd February, 2018 provided exemption from Social Welfare surcharge (SWS) on specified items of Chapter 84 under entries at S. No. 1, 9, 10, 12, 15, 16, 18, 19, 20. The exemption from SWS, on the said items, is being withdrawn by omitting said entries. [Notification No. 11/2018-Customs, dated 2nd February, 2018, as amended vide CUSTOMS Notification No 09 of 2020 dated 02nd February, 2020. Consequently, all items of Chapter 84 will attract SWS at the rate of 10% of BCD payable.

The above information explains about basic customs duty changes on import of goods under chapter 84, under Indian Union Budget 2020-21.Discuss below your thoughts about customs duty on goods under chapter 84, as per Indian Budget 2020-21.

 

 

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