Customs Import duty for import of machinery, mechanical appliances, boilers under Indian Budget

Posted on 29 January 2019 Category : Indian Budget 2017-18

Government Customs tax tariff changes for import of machinery, mechanical appliances, boilers under Indian Budget 2017-18

Customs Duty Changes under new Budget 2019-20, click here

Indian Budget 2017-18 is remarkable, as GST is being implemented before September, 2017. Indian Budget 2017-18 is presented along with Railway Budget. The details about changes in import customs duty for machinery, mechanical appliances, boilers as per Budget 2017-18 is given under:

Changes or customs rates as per Budget 2017-18 under this HSN Code list:

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 30^{t 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

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.

Click here to read government notification on changes of import duty tariff rate under Indian Budget 2017-18, HSN code chapter wise.

Customs Duty Changes under Indian Budget 2017-18

Indirect Taxes

I. PROPOSALS INVOLVING CHANGE IN DUTY / TAX RATES:

CUSTOMS:

		Commodity	Rate of Duty
			From	To
I.	Incentivizing domestic value addition, ‘Make in India’
A.	Reduction in Customs duty on inputs and raw materials to reduce costs
		Mineral fuels and Mineral oils
		Liquefied Natural Gas	BCD – 5%	BCD – 2.5%
		Chemicals & Petrochemicals
		Medium Quality Terephthalic Acid (MTA) & Qualified Terephthalic Acid (QTA)	BCD – 7.5%	BCD – 5%
		Metals
		Nickel	BCD – 2.5%	BCD – Nil
		Finished Leather
		Vegetable tanning extracts, namely, Wattle extract and Myrobalan fruit extract	BCD – 7.5%	BCD – 2.5%
		Capital Goods
		Ball screws, linear motion guides and CNC systems for use in the manufacture of CNC machine tools, subject to actual user condition	Ball screws and liner motion guides BCD – 7.5% CNC systems BCD – 10%	BCD – 2.5%
		Renewable Energy
		All items of machinery required for fuel cell based power generating systems to be set up in the country or for demonstration purposes, subject to certain specified conditions	BCD – 10% /7.5% CVD – 12.5%	BCD – 5% CVD – 6%
		All items of machinery required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen, subject to certain specified conditions	BCD – 10% /7.5% CVD – 12.5%	BCD – 5% CVD – 6%
		Miscellaneous
		All parts for use in the manufacture of LED lights or fixtures, including LED lamps, subject to actual user condition	Applicable BCD, CVD	BCD – 5% CVD – 6%
		All inputs for use in the manufacture of LED Driver and MCPCB for LED lights or fixtures, including LED lamps, subject to actual user condition	Applicable BCD	5%
B.	Changes in Customs and Excise / CV duty to address the problem of duty inversions in certain sectors
		Chemicals & Petrochemicals
		o-Xylene	BCD – 2.5%	BCD – Nil
		2-Ethyl Anthraquinone [2914 69 90] for use in manufacture of hydrogen peroxide, subject to actual user condition	BCD – 7.5%	BCD – 2.5%
		Vinyl Polyethylene Glycol (VPEG) for use in manufacture of Poly Carboxylate Ether, subject to actual user condition	BCD – 10%	BCD – 7.5%
		Textiles
		Nylon mono filament yarn for use in monofilament long line system for Tuna fishing, subject to certain specified conditions	BCD – 7.5%	BCD – 5%
		Metals
		Co-polymer coated MS tapes / stainless steel tapes for manufacture of specified telecommunication grade optical fibres or optical fibre cables, subject to actual user condition	BCD – Nil	BCD – 10%
		MgO coated cold rolled steel coils [7225 19 90] for use in the manufacture of CRGO steel, subject to actual user condition	BCD – 10%	BCD – 5%
		Hot Rolled Coils [7208] for use in the manufacture of welded tubes and pipes falling under heading 7305 or 7306, subject to actual user condition	BCD – 12.5%	BCD – 10%
		Automobiles
		Clay 2 Powder (Alumax) for use in ceramic substrate for catalytic convertors, subject to actual user conditon	BCD – 7.5%	BCD – 5%
		Renewable Energy
		Solar tempered glass for use in the manufacture of solar cells/panels/modules	BCD – 5%	BCD – Nil
		Parts/raw materials for use in the manufacture of solar tempered glass for use in solar photovoltaic cells/modules, solar power generating equipment or systems, flat plate solar collector, solar photovoltaic module and panel for water pumping and other applications, subject to actual user condition	CVD – 12.5%	CVD – 6%
		Resin and catalyst for use in the manufacture of cast components for Wind Operated Energy Generators [WOEG], subject to actual user condition	BCD – 7.5% CVD – 12.5% SAD – 4%	BCD – 5% CVD – Nil SAD – Nil
		Miscellaneous
		Membrane Sheet and Tricot / Spacer for use in the manufacture of RO membrane element for household type filters, subject to actual user condition	CVD – 12.5%	CVD – 6%
C.	Changes in Customs duty to provide adequate protection to domestic industry
		Food Processing
		Cashew nut, roasted, salted or roasted and salted	BCD – 30%	BCD – 45%
		Electronics / Hardware
		Populated Printed Circuit Boards (PCBs) for use in the manufacture of mobile phones, subject to actual user condition	SAD – Nil	SAD – 2%
		Miscellaneous
		RO membrane element for household type filters	BCD – 7.5%	BCD – 10%
D.	Promotion of cashless transactions and promote domestic manufacturing of devices used therefor
		a) Miniaturized POS card reader for m-POS (not including mobile phones or tablet computer), b) Micro ATM as per standards version 1.5.1, c) Finger Print Reader / Scanner, and d) Iris Scanner	Applicable BCD, CVD SAD	BCD – Nil CVD – Nil SAD – Nil
		Parts and components for manufacture of: a) miniaturized POS card reader for m-POS (not including mobile phones or tablet computer), b) micro ATM as per standards version 1.5.1, c) Finger Print Reader / Scanner, and d) Iris Scanner	Applicable BCD, CVD SAD	BCD – Nil CVD – Nil SAD – Nil
II.	Imposition of export duty to conserve domestic resources
		Other aluminium ores, including laterite	Nil	15%
III.	Improving ease of doing business and Export Promotion
		De-minimis customs duties exemption limit for goods imported through parcels, packets and letters	Duty payable not exceeding Rs.100 per consignment	CIF value not exceeding Rs.1000 per consignment
		Limit of duty free import of eligible items for manufacture of leather footwear or synthetic footwear or other leather products for use in the manufacture of said goods for export	3% of FOB value of said goods exported during the preceding financial year	5% of FOB value of said goods exported during the preceding financial year
IV.	Anti-avoidance measure
		Silver medallion, silver coins, having silver content not below 99.9%, semi-manufactured form of silver and articles of silver	CVD – Nil	CVD – 12.5%

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

(b) “CVD” means the Additional Duty of Customs levied under sub-section (1) of section 3 of the Customs Tariff Act, 1975.

(c) “SAD” means the Special Additional Duty of Customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975.

(d) “Export duty” means duty of Customs leviable on goods specified in the Second Schedule to the Customs Tariff Act, 1975.

GST rate for machinery, mechanical appliances, boilers also is expected to declare once after introduction of GST this year, before September, 2017.

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Hemant Shah: On 07 August 2020 custome duty on import of machinery %? GST on imported machinery basic value + custom or on basic value what amount is available for credit in gst return pl guide

Customs Import duty for import of machinery, mechanical appliances, boilers under Indian Budget

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