Project Import Provisions

[ROHIT GOEL]

Dear everyone,

I have a query regarding Customs Notification No. 02/2022 wherein, the Government has made a number of amendments to the earlier notification No. 50/2017.

My query is that, under S. 158 of Notification No. 02/2022, it is written that,

'against S. No. 601 (of Notification No. 50/2017), -
(a) in column (3), the following proviso shall be inserted at the end, namely:-

“Provided that nothing contained in this S. No. shall have effect after the 30th September 2023.”

Does this mean that the project import benefits under the above-mentioned serial number are over post- 30th September 2023?

Further, in Letter No. D.O. F. No. 334/01/2022-TRU by Joint Secretary, Shri G.D. Lohani, it is stated that 'with effect from 30th September 2023, all projects registered under project imports will attract 7.5% BCD rate.'

This is now raising confusion as the literal analysis of Notification No. 02/2022 tells us that the benefits provided under the project import scheme will be stopped post-30th September 2023 but, as per the letter by Joint Secretary, the said benefits will still be valid but at a higher BCD of 7.5% from the earlier BCD of 5%.

Please clarify.

Regards,

CA ROHIT GOEL

AI Summary

Customs Notification Update: Project Import Benefits to Continue with Higher Duty Rate from 30th September 2023 A participant raised a query regarding Customs Notification No. 02/2022, which amends Notification No. 50/2017. The concern was whether project import benefits under Serial No. 601 would cease post-30th September 2023, as the notification implies. However, a letter from a Joint Secretary suggests benefits will continue but with a higher Basic Customs Duty (BCD) rate of 7.5% instead of 5%. The response clarified that new project contracts registered after 30th September 2022 will attract a 7.5% BCD, and existing contracts will maintain a 5% rate until 30th September 2023, after which all will be subject to 7.5%.