List of certain goods on which CVD is not levied

[Guest]

FM in Budget 2006 has proposed to levy CVD on all imports except certain goods. I would like to know the list of the goods proposed which are out of purview of CVD.

[Surender Gupta]

CVD for countervailing local taxes is imposed under section 3(5) of the Customs Tariff Act, 1975. By virtue of this section Central Government has issued two notifications as not. no. 19/2006 Cus dated 1/3/2006 lavying the CVD on all the goods imported in India and not. no. 20/2006 Cus dated 1/3/2006 exempting certain goods from such CVD. There are 61 entries in the notification no. 20/2006 granting such exemption. An illustrative list of these goods are: ....Some categories of imports, however, have been exempted from this special CVD. These are: ...(a) Goods exempt from VAT; ...(b) Goods exempted both from basic and CV duty (including CV duty exemption by way of excise duty exemption);... (c) Petroleum crude, kerosene for PDS, LPG for domestic supply, petrol, diesel, coal, coke and petroleum gases and fuels of Chapter 27;...(d) Passenger baggage ;...(e) Fertilizers and inputs for fertilizers;...(f) DTA clearances of EOUs/EHTP/STP/SEZ units, provided such goods are not exempted from VAT/sales tax;...(g) Gold concentrate;...(h) Gold silver, rough and cut diamonds, precious metals, precious and semiprecious stones; and other goods of Chapter 71 excluding articles of jewellery;...(i) Ships for breaking up ; ...(j) Non-mega power projects; transmission and distribution projects; and high voltage transmission equipments...............For complete detail you are advised to refer these two notifications.

AI Summary

Countervailing duty on imports limited by exemptions for VAT exempt goods, fuels, metals, fertilizers, and specified clearances. CVD was broadly imposed on imports under section 3(5) of the Customs Tariff Act, 1975, but two notifications implemented the levy and an exemption schedule. The exemption notification lists categories excluded from CVD, including VAT exempt goods, items exempt from basic or countervailing excise duty, petroleum products and fuels, passenger baggage, fertilizers and inputs, specified DTA clearances from EOUs/EHTP/STP/SEZs (where not VAT exempt), gold concentrate and certain precious metals and stones (excluding jewellery), ships for breaking up, and specified power and transmission equipment.