Basic Customs Duty Changes under Indian Union Budget 2021-22

 

Indian Budget 2021-22, Customs changes 


According to Indian Budget 2021-22, Customs duty changes are given below;

 

 

 

CUSTOMS 

 

Note:

 

(a)        “Basic Customs Duty” means the customs duty levied under the Customs Act, 1962.

 

(b)        Clause nos. in square brackets [ ] indicate the relevant clause of the Finance Bill, 2021.

 

(c)        Amendments carried out through the Finance Bill, 2021 will come into effect on the date of its enactment, unless otherwise specified.

 

 

  1. I.                   AMENDMENTS IN THE CUSTOMS ACT, 1962

 

 

 

 

 

Clause of the

S. No.

 

Amendment

Finance Bill,

 

 

 

2021

 

 

 

1.

In Section 2, a new clause 7(B) is being introduced defining a “common

[80]

 

portal” (Common Customs Electronic Portal )

 

 

 

 

 

2.

Sub-section  (3)  to  section  5  of  Customs  Act  is  being  amended  to

 

 

empower Commissioner (Appeals) to carry out functions specified under

[81]

 

Chapter XV, Section 108 and the new sub-section (1D) of Section 110

 

 

 

of Customs Act

 

 

 

 

3.

Section 25 of the Customs Act is being amended to prescribe that all

 

 

conditional  exemptions,  unless  otherwise  specified  or  varied  or

 

 

rescinded, given under Customs Act shall come to an end on 31st March

 

 

falling immediately two years after the date of such grant or variation.

[82]

 

All existing conditional exemptions in force as on the date on which the

 

 

 

Finance Bill 2021 receives the assent of the President unless having a

 

 

prescribed end date, shall come to an end on 31st  March, 2023 (if not

 

 

specifically extended/ rescinded earlier) on review.

 

 

 

 

4.

A new section 28BB is being introduced prescribing a two-year time-

 

 

limit,

further  extendable  by  one  year  by  the  Commissioner,  for

[83]

 

completion of any proceedings under this act which would culminate in

 

 

 

issuance of a notice under section 28 of the Customs Act, 1962.

 

 

 

 

5.

Sub section (3) of section 46 is being amended so as to-

 

 

a)

mandate filing of bill of entry before the end of the day preceding

[84]

 

 

the day (including holidays) of arrival of goods.

 

 

b)  A new proviso is being introduced therein, to enable the Board to

 

 

 

 

 

 

 

 

 

 

 

notify the time period for presenting bill of entry in certain cases as it may deem fit.

 

  1. Section 110 of the Customs Act is being amended so as to revise the procedure for pre-trial disposal of seized gold, in any form as notified. Commissioner (Appeals) having jurisdiction, to certify the correctness of

 

inventory  of  the  seized  goods  and  carry  out

other

procedures  as

[85]

prescribed,  before  the  disposal  of  the  gold  in  a  manner  as  may be

 

determined   by   the   Central   Government.

Other

consequential

 

amendments to give effect to this provision are also being carried out.

 

 

  1. Sub-section  (ja)  is  being  added  to  section  113  to  provide  for  the

 

 

confiscation  of  any  goods  entered  for  exportation  under  claim  of

 

 

remission or refund of any duty or tax or levy, so as to make a wrongful

[86]

 

claim in contravention of the provisions of the Customs Act, 1962 or any

 

 

other law for the time being in force.

 

 

 

 

8.

A new section 114AC is being inserted in Customs Act to prescribe

 

 

penalty in specific case where any person has obtained any invoice by

 

 

fraud, collusion, willful misstatement or suppression of facts to utilize

[87]

 

Input Tax Credit on the basis of such invoice for discharging any duty or

 

 

 

tax on goods that are entered for exportation under claim of refund of

 

 

any duty or tax.

 

 

 

 

9.

Explanation to section 139 of Customs Act is being amended so as to

 

 

include inventories, photographs and lists certified by the Commissioner

[88]

 

(Appeals) under the new sub-section (1D) to the documents within the

 

 

 

meaning of that section to give evidentiary value to such documents.

 

 

 

 

10.

Section 149 is being amended so as to-

 

 

a)      introduce a second proviso which would allow amendments to be done through the customs automated system on the basis of risk

evaluation through appropriate selection criteria.

[89]

 

b)      introduce a third proviso so that certain amendments, as may be specified by the Board, may be done by the importer or exporter on the common portal.

 

  1. Section 153 is being amended so as to insert a new clause „(ca)? under

 

sub section (1) thereof so as to enable service of order, summons, notice,

[90]

 

etc. by making it available on the common portal.

 

 

 

 

 

12.  Chapter XVII is being amended so as to insert a new section 154C for

 

 

notification of a common portal for facilitating registration, filing of bills

 

 

of entry, shipping bills, any other document or form prescribed under

[91]

 

this act or under any other law for the time being in force or the rules and

 

 

 

regulations made thereunder, payment of duty and for carrying out such

 

 

other functions and for such purposes as may be specified.

 

 

 

 

  1. II.                AMENDMENTS IN THE CUSTOMS TARIFF ACT, 1975

 

 

 

 

Clause of the

S. No.

Amendment

Finance Bill,

 

 

2021

 

 

 

1.

Section 8B of the Customs Tariff Act is being amended to incorporate

[92]

 

certain technical changes.

 

 

 

 

 

2.

Section  9  of  the  Customs  Tariff  Act  is  being  amended  to  include

 

 

provisions  for  anti-absorption,  retrospective  levy  from  the  date  of

 

 

initiation   of   investigation   in   anti-circumvention   cases,   aligning

 

 

countervailing  duty  provisions  with  those  in  safeguard  measures  in

 

 

respect of levy on goods cleared from EOU and SEZ into Domestic Tariff

[93]

 

Area, stipulating that when countervailing duty is revoked temporarily,

 

 

such revocation shall be for a period not exceeding one year at a time and

 

 

to provide for imposing Countervailing duty on review for period not

 

 

exceeding 5 years at a time, instead of the 5 years at present

 

 

 

 

3.

Section  9A  of  the  Customs  Tariff  Act  is  being  amended  to  include

 

 

provisions for anti-absorption, retrospective levy in anti-circumvention

 

 

cases,  aligning  anti-dumping  duty  provisions  with  those  in  safeguard

 

 

measures in respect of levy on goods cleared from EOU and SEZ into

[94]

 

Domestic Tariff Area, stipulating that when anti-dumping duty is revoked

 

 

 

temporarily, such revocation shall be for a period not exceeding one year

 

 

at a time and to provide for imposing ADD on review for period not

 

 

exceeding 5 years at a time, instead of the 5 years at present.

 

 

 

 

 

 

  1. III.             AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

 

 

 

 

AMENDMENTS

 

 

 

 

 

 

 

A.

Tariff rate changes for Basic Customs Duty [to be effective

Rate of Duty

 

from 02.02.2021, unless otherwise specified] * [Clause [95 (i) ]

 

 

 

of the Finance Bill, 2021]

 

 

 

 

 

 

 

S. No.

Heading,

Commodity

From

To

 

sub-heading

 

 

 

 

tariff item

 

 

 

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

 

 

1.

2803 00 10

Carbon Black

5%

7.5%

 

 

 

 

 

 

 

Plastic items

 

 

 

 

 

 

 

2.

3925

Builder?s ware of Plastics

10%

15%

 

 

 

 

 

 

 

Gems and Jewellery Sector

 

 

 

 

 

 

 

3.

7104

Cut and Polished Synthetic stones, including Cut

10%

15%

 

 

and Polished Cubic Zirconia

 

 

 

 

 

 

 

 

 

Electrical and Electronics Sector

 

 

 

 

 

 

 

4.

8414 30 00

Compressors  of  a  kind  used  in  refrigerating

12.5%

15%

 

 

equipment

 

 

 

 

 

 

 

5.

8414 80 11

Compressors  of  a  kind  used  in  air-conditioning

12.5%

15%

 

 

equipment

 

 

 

 

 

 

 

6.

8504 90 90

Printed  Circuit  Board  Assembly  [PCBA]  of

10%

15%

 

 

charger or adapter

 

 

 

 

(All goods under this tariff item, other than above,

 

 

 

 

will continue to attract the existing effective rate of

 

 

 

 

BCD at 10%)

 

 

 

 

 

 

 

 

 

Parts of Automobiles

 

 

 

 

 

 

 

7.

7007

Safety glass, consisting of toughened (tempered)

10%

15%

 

 

or laminated glass.

 

 

 

 

(All  goods  under this heading, other  than those

 

 

 

 

used with motor vehicles, will continue to attract

 

 

 

 

the existing effective rate of BCD at 10%)

 

 

 

 

 

 

 

8.

8512 90 00

Parts   of   Electrical   lighting   and   signaling

10%

15%

 

 

equipment,  windscreen  wipers,  defrosters  and

 

 

 

 

demisters,  of  a  kind  used  for  cycles  or  motor

 

 

 

 

 

 

vehicles

 

 

 

 

 

 

 

9.

8544 30 00

Ignition wiring sets and other wiring sets of a kind

10%

15%

 

 

used in vehicles, aircraft or ships

 

 

 

 

 

 

 

10.

9104 00 00

Instrument Panel Clocks and Clocks of a similar

10%

15%

 

 

type for vehicles, Aircraft, Spacecraft or Vessels

 

 

 

 

 

 

 

B.

Tariff rate changes (without any change in the effective rates

Rate of Duty

 

of Basic Customs Duty)

 

 

 

 

 

 

 

S. No.

Heading,

Commodity

From

To

 

sub-heading

 

 

 

 

tariff item

 

 

 

 

 

 

 

 

1.

8414 40

Air compressors mounted on a wheeled chassis for

7.5%

15%

 

 

towing

 

 

 

 

 

 

 

2.

8414 80

Gas Compressors (other than of a kind used in air-

7.5%

15%

 

(except

conditioning equipment), free-piston generators for

 

 

 

8414 80 11)

gas turbine, turbo charger and other compressors

 

 

 

 

 

 

 

3.

8501 10 to

Electric Motors

10%

15%

 

8501 53

 

 

 

 

 

 

 

 

4.

8536 41 00

Relays

10%

15%

 

and

 

 

 

 

8536 49 00

 

 

 

 

 

 

 

 

5.

8537

Boards, panels, consoles, etc. for electric control or

10%

15%

 

 

distribution of electricity

 

 

 

 

 

 

 

6.

9031 80 00

Other instruments, appliances and machines

7.5%

15%

 

 

 

 

 

7.

9032 89

Electronic   automatic   regulators   and   other

10%

15%

 

 

controlling instruments or apparatus

 

 

 

 

 

 

 

 

  1. C.              New entries added to the First Schedule [Clause 95 (ii) and 95 (iii) of the Finance Bill, 2021]

 

  1. Harmonizing the Customs Tariff Act 1975 with the HSN 2022

 

a)       Changes to the first schedule to the Customs Tariff Act are being proposed that are to come into effect from 01.01.2022. This is in accordance with HSN 2022, which proposes 351 amendments to the existing harmonized nomenclature, covering a wide range of goods moving across borders.

 

b)      The amendments are necessary to adapt to the current trade through the recognition of new product streams, the changing nature of commodities being traded, advent of new technologies and addressing the environmental and social issues of global concern- all with a prime focus on the larger goal of ease of doing business and trade facilitation. 

 

 

  1. New tariff lines under the heading 2709 in the Customs Tariff Act, 1975#: 2709 00 10 -- petroleum crude

 

2709 00 20  -- other

 

#  Will come into effect on 1.4.2021.

 

 

*   Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

 

 

IV.        CHANGES IN CUSTOMS RULES

 

 

  1. A.               Trade Facilitation- Amendment to IGCR rules, 2017

 

  1. 1.                Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 [IGCR Rules] are being amended to provide the following facilities:

 

  1. to allow job-work of the materials (except gold and jewellery and other precious metals) imported under concessional rate of duty

 

  1. to allow 100% out-sourcing for manufacture of goods on job-work

 

  1. to allow imported capital goods that have been used for the specified purpose to be cleared on payment of differential duty, along with interest, on the depreciated value. The depreciation norms would be the same as applied to EOUs, as per Foreign Trade Policy.

 

 

  1. V.                OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES IN RESPECTIVE NOTIFICATIONS [with effect from 2.2.2021, unless specified otherwise]

 

 

 

S. No

Chapter,

Commodity

From

To

 

Heading,

 

 

 

 

sub-

 

 

 

 

heading,

 

 

 

 

tariff item

 

 

 

 

 

 

 

 

 

 

Agricultural Products and By Products

 

 

 

 

 

 

 

1.

2207 20 00

Denatured  Ethyl  Alcohol  (ethanol)  for  use  in

2.5%

5%

 

 

manufacture of excisable goods

 

 

 

 

 

 

 

2.

23

All goods except dog and cat food and shrimp larvae

Nil/

15%

 

 

feed

5%/

 

 

 

 

10%/

 

 

 

 

15%/

 

 

 

 

 

 

 

 

 

 

 

 

20%/

 

 

 

 

 

30%

 

 

 

 

 

 

 

 

 

 

Minerals

 

 

 

 

 

 

 

 

3.

2528

 

Natural borates and concentrates thereof

Nil/5%

2.5%

 

 

 

 

 

 

 

 

 

Fuels, Chemicals and Plastics

 

 

 

 

 

 

 

 

3.

2710

 

Naphtha

4%

2.5%

 

 

 

 

 

5.

2907 23 00

Bis-phenol A

Nil

7.5%

 

 

 

 

 

6.

2910 30 00

Epichlorohydrin

2.5%

7.5%

 

 

 

 

 

7.

2933 71 00

Caprolactam

7.5%

5%

 

 

 

 

 

8.

3907 40 00

Polycarbonates

5%

7.5%

 

 

 

 

 

 

9.

3908

 

Nylon chips

7.5%

5%

 

 

 

 

 

10.

3920 99 99

Other plates, sheets, films, etc. of other plastics

10%

15%

 

 

 

 

 

 

 

 

 

Leather

 

 

 

 

 

 

 

 

11

41

 

Wet  blue  chrome  tanned  leather,  crust  leather,

Nil

10%

 

 

 

finished leather of all kinds, including splits and sides

 

 

 

 

 

of the aforesaid

 

 

 

 

 

 

 

 

 

 

 

Textiles

 

 

 

 

 

 

 

 

12.

5002

 

Raw Silk (not thrown)

10%

15%

 

 

 

 

 

13.

5004, 5005,

Silk yarn, yarn spun from silk waste (whether or not

10%

15%

 

5006

 

put up for retail sale)

 

 

 

 

 

 

 

 

14.

5201

 

Raw Cotton

Nil

5% +

 

 

 

 

 

5%

 

 

 

 

 

AIDC*

 

 

 

 

 

 

15.

5202

 

Cotton  waste  (including  yarn  waste  or  garneted

Nil

10%

 

 

 

stock)

 

 

 

 

 

 

 

 

16.

5402,

5403,

Nylon Fibre and Yarn

7.5%

5%

 

5404,

5405

 

 

 

 

00 00, 5406,

 

 

 

 

5501 to 5510

 

 

 

 

 

 

 

 

 

 

 

 

Gems and Jewellery Sector

 

 

 

 

 

 

 

 

17.

7106

 

Silver

12.5.%

7.5%+

 

 

 

 

 

2.5%

 

 

 

 

 

AIDC*

 

 

 

 

 

 

18.

7106

 

Silver Dore

11%

6.1% +

 

 

 

 

 

2.5%

 

 

 

 

 

 

 

 

 

 

 

 

AIDC*

 

 

 

 

 

 

19.

7108

 

Gold

12.5%

7.5%+

 

 

 

 

 

2.5%

 

 

 

 

 

AIDC*

 

 

 

 

 

 

20.

7108

 

Gold Dore

11.85%

6.9%+

 

 

 

 

 

2.5%

 

 

 

 

 

AIDC*

 

 

 

 

 

 

21.

7107

00 00,

Base metals or precious metals clad with precious

12.5%

10%

 

7109

00 00,

metals

 

 

 

7111

00 00

 

 

 

 

 

 

 

 

 

22.

7110

 

Other precious metals like Platinum, Palladium, etc.

12.5%

10%

 

 

 

 

 

 

23.

7112

 

Waste and scrap of precious metals or metals clad

12.5%

10%

 

 

 

with precious metals

 

 

 

 

 

 

 

 

24.

7112

 

Spent catalyst or ash containing precious metals

11.85%

9.17%

 

 

 

 

 

 

25.

7113

 

Gold or Silver Findings

20%

10%

 

 

 

 

 

 

26.

7118

 

Coin

12.5%

10%

 

 

 

 

 

 

 

 

 

Metals

 

 

 

 

 

 

 

 

27.

7204

 

Iron and steel scrap, including stainless steel scrap

2.5%

Nil

 

 

 

[up to 31.03.2022]

 

 

 

 

 

 

 

28.

7206 and

Primary/Semi-finished products of non-alloy steel

10%

7.5%

 

7207

 

 

 

 

 

 

 

 

 

29.

7208, 7209,

Flat products of non-alloy and alloy steel

10%

7.5%

 

7210, 7211,

 

/12.5%

 

 

7212, 7225

 

 

 

 

(except 7225

 

 

 

 

11 00) and

 

 

 

 

7226

(except

 

 

 

 

7226

11 00)

 

 

 

 

 

 

 

 

30.

7213, 7214,

Long product of non-alloy, stainless and alloy steel

10%

7.5%

 

7215, 7216,

 

 

 

 

7217, 7221,

 

 

 

 

7222, 7223,

 

 

 

 

7227 and

 

 

 

 

7228

 

 

 

 

 

 

 

 

 

 

31.

7225

 

Raw materials for use in manufacture of CRGO steel

2.5%

Nil

 

 

 

[up to 31.03.2023]

 

 

 

 

 

 

 

 

32.

7404

 

Copper Scrap

5%

2.5%

 

 

 

 

 

 

33.

7318

 

Screw, bolts, nuts, etc. of iron and steel

10%

15%

 

 

 

 

 

 

 

 

 

 

Capital Goods

 

 

 

 

 

 

 

34.

8430

Tunnel boring machines

Nil

7.5%

 

 

 

 

 

35.

8431

Parts  and  components  for  manufacture  of  tunnel

Nil

2.5%

 

 

boring machines with actual-user condition

 

 

 

 

 

 

 

 

 

IT, Electronics and Renewable

 

 

 

 

 

 

 

36.

8544 (other

Specified insulated wires and cables

7.5%

10%

 

than 8544 70

 

 

 

 

and 8544 30

 

 

 

 

00)

 

 

 

 

 

 

 

 

37.

39, 74 and

Former,   bases,   bobbins,   brackets;   CP   wires;

Nil

Applica

 

85

P.B.T.; Phenol resin moulding powder; Lamination/

 

ble rate

 

 

El  silicon  steel  strips for  use  in  manufacture  of

 

 

 

 

transformers  (entry  at  S.No.  198  of  25/1999-

 

 

 

 

Customs)

 

 

 

 

 

 

 

38.

Any Chapter

Inputs  or  parts  for  manufacture  of  Printed  Circuit

Nil

2.5%

 

 

Board Assembly (PCBA) of cellular mobile phone

 

 

 

 

(w.e.f. 1.4.2021)

 

 

 

 

 

 

 

39.

Any Chapter

Inputs or parts for manufacture of camera module of

Nil

2.5%

 

 

cellular mobile phone

 

 

 

 

(w.e.f. 1.4.2021)

 

 

 

 

 

 

 

40.

Any Chapter

Inputs  or  parts  for  manufacture  of  connectors  of

Nil

2.5%

 

 

cellular mobile phone

 

 

 

 

(w.e.f. 1.4.2021)

 

 

 

 

 

 

 

41.

Any Chapter

Inputs or raw material for manufacture of specified

Nil

2.5%

 

 

parts like back cover, side keys etc. of cellular mobile

 

 

 

 

phone

 

 

 

 

(w.e.f. 1.4.2021)

 

 

 

 

 

 

 

42.

Any Chapter

Inputs  or  raw  material  (other  than  PCBA  and

Nil

10%

 

 

moulded  plastics)  for  manufacture  of  charger  or

 

 

 

 

adapter of cellular mobile phones

 

 

 

 

 

 

 

43.

8504 90 90

Moulded  plastics  for  manufacture  of  charger  or

10%

15%

 

or

adapter

 

 

 

3926 90 99

 

 

 

 

 

 

 

 

44.

Any Chapter

Inputs or parts of Printed Circuit Board Assembly of

Nil

10%

 

 

charger or adapter of cellular mobile phones

 

 

 

 

 

 

 

45.

Any Chapter

Inputs  or  parts  of  Moulded  Plastic  of  charger  or

Nil

10%

 

 

adapter of cellular mobile phones

 

 

 

 

 

 

 

 

 

 

46.

Any Chapter

Inputs or raw materials (other than Lithium-ion cell

Nil

2.5%

 

 

and PCBA) of Lithium-ion battery or battery pack

 

 

 

 

(w.e.f. 1.4.2021)

 

 

 

 

 

 

 

47.

Any Chapter

Parts or components of PCBA of Lithium-ion battery

Nil

2.5%

 

 

or battery pack

 

 

 

 

(w.e.f. 1.4.2021)

 

 

 

 

 

 

 

48.

Any Chapter

Inputs or raw materials of following goods: -

Nil

2.5%

 

 

(i)  Other  machines  capable  of  connecting  to  an

 

 

 

 

automatic  data  processing  machine  or  to  a

 

 

 

 

network (8443 32 90)

 

 

 

 

(ii) Ink cartridges, with print head assembly (8443 99

 

 

 

 

51)

 

 

 

 

(iii)Ink cartridges, without print head assembly (8443

 

 

 

 

99 52)

 

 

 

 

(iv) Ink spray nozzle (8443 99 53) (w.e.f. 1.4.2021)

 

 

 

 

 

 

 

49.

Any Chapter

Inputs and parts of LED lights or fixtures including

5%

10%

 

 

LED Lamps

 

 

 

 

 

 

 

50.

Any Chapter

Inputs for use in the manufacture of LED driver or

5%

10%

 

 

MCPCB (Metal Core Printed Circuit Board) for LED

 

 

 

 

lights or fixtures including LED Lamps

 

 

 

 

 

 

 

51.

9405 50 40

Solar lanterns or solar lamps

5%

15%

 

 

 

 

 

52.

8504 40

Solar Inverters

5%

20%

 

 

 

 

 

53.

9503

Parts   of   Electronic   Toys   for   manufacture   of

5%

15%

 

 

electronic toys

 

 

 

 

 

 

 

 

 

Aviation Sector

 

 

 

 

 

 

 

54.

Any Chapter

Components   or   parts,   including   engines,   for

2.5%

0%

 

 

manufacture of aircrafts or parts of such aircrafts, by

 

 

 

 

Public  Sector  Units  under  Ministry  of  Defence

 

 

 

 

subject to condition specified.

 

 

 

 

 

 

 

 

 

Medical devices

 

 

 

 

 

 

 

55.

9018-9022

Medical    Devices    imported    by    International

Health

Health

 

 

Organization and Diplomatic Missions

Cess @

Cess @

 

 

 

5%

Nil

 

 

 

 

 

 

 

Goods imported under Project Import Scheme

 

 

 

 

 

 

 

56.

9801

High Speed Rail Projects being brought under project

Applica

5%

 

 

imports

ble Rate

 

 

 

 

 

 

 

 

57.

8714

91 00,

All goods other than Bicycle parts and components

10%

15%

 

8714

92,

 

 

 

 

8714

93,

 

 

 

 

8714

94 00,

 

 

 

 

8714

95,

 

 

 

 

8714

96 00,

 

 

 

 

8714

99

 

 

 

 

 

 

 

 

 

*  Agriculture Infrastructure and Development Cess

 

VI

 

 

Other miscellaneous changes

 

 

 

 

 

 

 

S.

 

Notification No.

 

Notification Subject

No.

 

 

 

 

 

 

 

 

 

 

 

 

1.

 

42/1996 –

High Speed Rail Projects are being included in list of projects to which

 

 

Customs dated

Project Imports Scheme is applicable

 

 

23rd July, 1996

 

 

 

 

 

 

2.

 

230/1986 –

National  High  Speed  Rail  Corporation  Ltd.  is  being  nominated  as  the

 

 

Customs dated

„Sponsoring  Authority?  under  Project  Import  Regulations,  1986  for

 

 

3rd April, 1986

approving  the  items  required  to  be  imported  under  the  Project  Imports

 

 

 

 

 

Scheme for High-Speed Rail Projects

 

 

 

 

VII

Pruning and review of customs duty concessions/ exemptions:

 

  1. A.                Review of concessional rates of BCD prescribed in notification No. 50/2017 – customs dated 30.6.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting following entries of notification No. 50/2017-Customs dated 30.6.2017.

 

S. No.

S. No. of Notfn

Description/ CTH

 

 

 

1.

209

Diphenylmethane  4,  4-diisocyanate  (MDI)  for  use  in  the

 

 

manufacture of spandex yarn

 

 

 

2.

230

Ink cartridges, ribbon assembly, ribbon gear assembly, ribbon

 

 

gear carriage, for use in printers for computers

 

 

 

3.

229

71 items like wax items, wood polish materials, prints for photo

 

[w.e.f 1.4.2021]

frames, velvet fabric/paper, handles/blades for cutlery, jigat, wine

 

tools etc.

 

 

 

 

 

4.

311

35 items like fasteners, zippers, shoulder pads, buckles, rivets,

 

[w.e.f 1.4.2021]

Velcro tape, toggles, stud, elastic cloth and band, bobbin, hooks,

 

anglets etc.

 

 

 

 

 

5.

312

42  items  like  buckles,  buttons,  stamping  foil,  sewing  thread,

 

 

 

 

 

 

 

 

 

 

 

[w.e.f 1.4.2021]

Loop rivets, Glove Liners, shoe laces, inlay cards etc.

 

 

 

6.

313

18 items like lace, Velcro tape, curtain hooks, Tassel, Beads,

 

[w.e.f 1.4.2021]

Sequins,  sewing  threads,  poly  wadding  materials,  quilted

 

wadding materials etc.

 

 

 

 

 

 

  1. B.       Prescribing the condition of observance of the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR Rules, 2017) for certain conditional entries in notification No. 50/2017-Customs dated 30.06.2017, in lieu of certain exiting conditions. Besides certain other conditions for imports are being rationalized/simplified.

 

  • §    Accordingly, the condition Nos. 22, 24, 30, 38, 51, 52, 53, 54, 60, 61 and 74, in the said customs notification have been amended to prescribe condition of IGCR.

 

  • §    In addition, it has been prescribed that the changed jurisdictional authority under IGCR Rules, 2017, shall also issue the end use certificate for the past period after due verification as per the rules.

 

 

 

  1. C.  Customs duty exemptions, including those which have been granted through certain other stand-alone notifications, have also been reviewed by rescinding the notification:

 

S. No.

Notification No.

Notification Subject

 

 

 

1.

1/2011-Customs,

Exemption  to  all  items  of  machinery,  instruments,  appliances,

 

dated the

components or auxiliary equipment for initial setting up of solar

 

6.1.2011

power generation project or facility

 

 

 

2.

34/2017-

This notification provided exemption to tags or labels (whether made

 

Customs dated

of  paper,  cloth,  or  plastic),  or  printed  bags  (whether  made  of

 

30th June, 2017

polyethene,  polypropylene,  PVC,  high  molecular  or  high  density

 

 

polyethene)  imported  for  fixing on  articles  for  export  or  for  the

 

 

packaging of such articles. Similar exemption exists at S. No.257 of

 

 

notification No. 50/2017-Cus. These have been merged in the said S.

 

 

No.257 and notification No 34/2017-Cus has been omitted.

 

 

 

3.

75/2017-

 

 

Customs dated

Exemption for goods imported for organizing FIFA Under-17 World

 

13th September,

 

Cup, 2017.

 

2017

 

 

 

 

 

 

VIII. IMPOSITION OF AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS ON IMPORT OF CERTAIN ITEMS [to be effective from 02.02.2021] [Clause [115] of the Finance Bill, 2021]

 

 

An Agriculture Infrastructure and Development Cess (AIDC) has been proposed on import of specified goods. To ensure that imposition of cess does not lead to additional burden in most of these items on the consumer, the BCD rates has been lowered. This cess shall be used to  

finance the improvement of agriculture infrastructure and other development expenditure. The list of items on which cess has been imposed and the applicable duty and AIDC on them would be as follows:

 

S.

Heading,

Commodity

 

 

 

Basic customs

AIDC

No

sub-heading

 

 

 

 

 

 

duty

 

 

tariff item

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.

0808 10 00

Apples

 

 

 

 

 

15%

35%

 

 

 

 

 

 

 

2.

1511 10 00

Crude Palm Oil

 

 

15%

17.5%

 

 

 

 

 

 

3.

1507 10 00

Crude Soya-bean oil

 

15%

20%

 

 

 

 

 

4.

1512 11 10

Crude Sunflower seed oil

15%

20%

 

 

 

 

 

 

5.

0713 10

Peas (Pisum sativum)

 

10%

40%

 

 

 

 

 

 

 

 

6.

0713 20 10

Kabuli Chana

 

 

 

10%

30%

 

 

 

 

 

7.

0713 20 20

Bengal Gram (desichana)

10%

50%

 

 

 

 

 

 

8.

0713 20 90

Chick Peas (garbanzos)

 

10%

50%

 

 

 

 

 

 

 

9.

0713 40 00

Lentils (Mosur)

 

 

10%

20%

 

 

 

 

 

 

 

10.

2204

All goods (Wine)

 

 

50%

100%

 

 

 

 

 

11.

2205

Vermouth and other wine of

50%

100%

 

 

fresh grapes, flavoured

 

 

 

 

 

 

 

 

 

12.

2206

Other  fermented

beverages

50%

100%

 

 

for  example,

Cider,  Perry,

 

 

 

 

Mead,

sake,

mixture

of

 

 

 

 

fermented

beverages

or

 

 

 

 

fermented

beverages

and

 

 

 

 

nonalcoholic beverages

 

 

 

 

 

 

 

 

13.

2208

All goods (Brandy, Bourbon

50%

100%

 

 

whiskey, Scotch etc.)

 

 

 

 

 

 

 

 

 

14.

2701

Various types of coal

 

1%

1.5%

 

 

 

 

 

 

 

 

 

15.

2702

Lignite,

 

whether

or

not

1%

1.5%

 

 

agglomerated

 

 

 

 

 

 

 

 

 

 

 

 

 

16.

2703

Peat,

whether

or

not

1%

1.5%

 

 

agglomerated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17.

3102 10 00

Urea

 

 

 

 

 

Nil

5%

 

 

 

 

 

 

18.

3102 30 00

Ammonium nitrate

 

2.5%

5%

 

 

 

 

 

19.

31

Muriate of potash, for use as

Nil

5%

 

 

manure or for the production

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

of complex fertilisers

 

 

 

 

 

 

 

20.

3105 30 00

Diammonium phosphate, for

Nil

5%

 

 

use  as  manure  or  for  the

 

 

 

 

production

ofcomplex

 

 

 

 

fertilisers

 

 

 

 

 

 

 

 

 

21.

5201

Cotton   (not

carded   or

5%

5%

 

 

combed)

 

 

 

 

 

 

 

 

22.

7106

Silver (including imports by

7.5%

2.5%

 

 

eligible passengers)

 

 

 

 

 

 

 

 

23.

7106

Silver Dore

 

6.1%

2.5%

 

 

 

 

 

24.

7108

Gold (including imports by

7.5%

2.5%

 

 

eligible passengers)

 

 

 

 

 

 

 

 

25.

7108

Gold Dore

 

6.9%

2.5%

 

 

 

 

 

 

 

 

IX. OTHER CHANGES (INCLUDING CERTAIN CLARIFICATIONS/ TECHNICAL CHANGES BY AMENDING NOTIFICATION NO. 50/2017-CUSTOMS DATED 30.06.2017

 

 

S.No.

S.No. of Notfn

Description

 

 

 

1.

20

a) The HS [0713 20 00] was split into [0713 20 10], [0713 20 20]

 

 

and   [0713   20   90]   vide   notification   22/2018-Cus   dated

 

 

20.03.2020. However, the transposition of the same has not been

 

 

done for entry 20 of notification No. 50/2017-Cus.

 

 

b) It is proposed to specifically mention Kabuli Chana & Bengal

 

 

gram (desichana) in the exclusions to this entry.

 

 

 

2.

21E

The  entry is  redundant  (was  valid  only upto  31.12.2020  and  is

 

 

proposed to be omitted.

 

 

 

3.

44

The entry is redundant (was valid only upto 30.09.2017) and is

 

 

proposed to be omitted.

 

 

 

4.

131

Acid grade fluorspar attracts 5% BCD vide serial numbers 120 and

 

 

S.N. 131 of notification No. 50/2017-Customs dated 30.06.2017.

 

 

Entry at S.No. being redundant is being omitted.

 

 

 

5.

175

“Any Chapter” mentioned in the Chapter/heading etc. of this entry

 

 

is being replaced by the specific entry heading 2501.

 

 

 

6.

284

An explanation is being inserted in Sr. No. 284 of the notification

 

 

 

no. 50/2017-Customs dated 30th June 2017 so as to clarify that the

 

 

said exemption entry does not cover toy balloons made of natural

 

 

 

 

 

 

 

 

S.No.

S.No. of Notfn

Description

 

 

 

 

 

rubber  latex  as  such  toy  balloons  are  classified  under  customs

 

 

heading 9503, so as to avoid misclassification.

 

 

 

7.

293A & 293B

The language of exemption entries providing concessional rates on

 

 

 

 

newsprint & other uncoated paper conforming to the specifications

 

 

of newsprint (other than its surface roughness) is being simplified

 

 

so as to remove any doubts regarding the specification of uncoated

 

 

papers used for printing of newspapers on which the concessional

 

 

rates apply.

 

 

 

8.

First Proviso

Clauses (b), (c) and (e) are being omitted as they are redundant.

 

 

 

 

 

  1. X.                Review of levy of Social Welfare Surcharge on various items.

 

 

 

  1. Notification No. 12/2018-Customs, dated 02.02.2018 prescribing effective rates of 3% on certain items, including gold and silver, is being rescinded.

 

  1. SWS is also being rescinded on goods falling under heading 2515 11 and 2515 12

 

  1. SWS is being exempted on the value of AIDC imposed on gold and silver. Accordingly, these items would attract SWS, at normal rate, only on value plus basic customs duty.

 

XI. Other Miscellaneous changes pertaining to Anti-Dumping Duty (ADD)/ Countervailing Duty (CVD)/ Safeguard Measures

 

 

 

  1. Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 provide for manner and procedure for investigation into dumping of goods that cause injury to domestic industry. Changes are being made in the Rules, to provide that with effect from 01.07.2021, to provide that final findings are to be issued by the designated authority, in review cases, at least three months prior to expiry of the ADD under review. The ADD Rules are also being amended to provide for provisional assessment in cases of anti-circumvention investigation. Certain other changes are being made for bringing clarity in the scope of these rules.

 

  1. Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 provide for manner and procedure for causing investigation into the cases of imports of subsidized goods that cause injury to domestic industry. Changes are being made in the Rules to provide that with effect from 01.07.2021, the final findings are to be issued by the designated authority, in review cases, at least three months prior to expiry of the CVD under review. The CVD Rules are also being amended to provide for provisional assessment in cases of anti-circumvention investigation. Certain other changes are being made for bringing clarity in the scope of these rules.

 

3              Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 (Safeguard Duty being changed to Safeguard Measures) provide for manner and procedure for causing investigation into the cases of imports in increased quantity that cause injury to domestic industry. Changes in the rules are being proposed to elaborate in detailed manner the modalities of implementation of safeguard measure, along with technical modifications consequent to the changes made earlier in section 8B of the Customs Tariff Act vide Finance Act, 2020.

 

  1. Anti-Dumping duty is being temporarily revoked for the period commencing from 2.2.2021 till 30.09.2021, on imports of the following-

 

a)      Straight Length Bars and Rods of alloy-steel, originating in or exported from People?s

 

Republic of China, imposed vide notification No. 54/2018-Cus (ADD) dated 18.10.2018;

 

b)      High Speed Steel of Non-Cobalt Grade, originating in or exported from Brazil, People?s Republic of China and Germany, imposed vide notification No. 38/2019-Cus (ADD) dated 25.09.2019;

 

c)      Flat rolled product of steel, plated or coated with alloy of Aluminum or Zinc, originating in or exported from People?s Republic of China, Vietnam and Korea RP, imposed vide notification No. 16/2020-Cus (ADD) dated 23.06.2020.

 

  1. Countervailing duty is being temporarily revoked for the period commencing from 2.2.2021 till 30.09.2021, on imports of Certain Hot Rolled and Cold Rolled Stainless Steel Flat

 

Products, originating in or exported from People?s Republic of China, imposed vide notification No. 1/2017-Cus (CVD) dated 07.09.2017.

 

  1. Provisional Countervailing duty is being revoked on imports of Flat Products of Stainless Steel, originating in or exported from Indonesia, imposed vide notification No. 2/2020-Customs (CVD) dated 9.10.2020.

 

  1. In Sunset Review, anti-dumping duty on Cold-Rolled Flat Products of Stainless Steel of width 600 mm to 1250 mm and above 1250 mm of non bonafide usage originating in or exported from People?s Republic of China, Korea RP, European Union, South Africa, Taiwan, Thailand and United States of America has been discontinued upon expiry of the anti-dumping duty hitherto leviable vide notifications no. 61/2015-Customs (ADD) dated 11th December, 2015 and 52/2017-Customs (ADD) dated 24th October, 2017.

 


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