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

[Abhijeet Mane]

The D.O. F. No. 334/01/2022-TRU clarified

1] The new project contracts registered with concerned customs ports after 30th September 2022 attract BCD Rate 7.5% under chapter heading 9801 and

2] the existing project contracts register on or before 30th September 2022 attract BCD Rate 5% up to 30th September 2023.

So all project imports whether it is an existing or new contract attracts BCD Rate 7.5% after 30th September 2023.

Refer the Finance bill 2022, Third schedule

"(68) in Chapter 98, for the entry in column (4) occurring against all the tariff items of heading 9801, the entry “7.5%” shall be substituted."

The Customs Tariff under Chapter Heading 9801 effective from 01-05-2022 attract BCD rate 7.5%. Before it was 10%. For this purposes, the contracts under project imports must be registered with the concerned customs ports where the goods are to be imported.

Hope it clarifies your doubt.

AI Summary

Project import BCD rate: transitional registration dates determine lower rate until cutoff, thereafter higher rate applies. Amendments provide that the project import benefit in the specified serial number ceases after 30 September 2023. Transitional rules: contracts registered on or before 30 September 2022 retain the earlier lower duty rate until 30 September 2023; contracts registered after that date attract the revised duty rate under chapter heading 9801 immediately. After 30 September 2023, all project imports are subject to the revised chapter 9801 duty rate. Registration at the importing customs port determines transitional eligibility.