Changes in the customs duty structure in respect of ships-for breaking up falling under heading No. 89.08 and the excise duty structure in respect of ship breaking scrap falling under heading Nos. 72.15 and 73.09

Customs duty split for ships-for-breaking triggers excise levy on ship-breaking scrap unless prior higher duty was paid.

Customs duty on ships-for-breaking is divided into a basic customs duty per Light Displacement Tonnage and a separate additional duty, with auxiliary duty nil. Excise duty is imposed on ship-breaking scrap derived from ships that have paid the restructured customs duties, while scrap made from ships that paid the earlier higher basic duty is exempted to prevent double taxation; such scrap is also specified as an input qualifying downstream products for excise exemption.