Press Information Bureau

Government of India

Ministry of Finance

16-March-2012 14:17 IST

Manufacturing Sector Provided Relief in Customs Duty

Customs Duties on Imported Plant and Machinery for Iron Ore Plants Reduced to 2.5 Per Cent

The Union Finance Minister ShriPranab Mukherjee while presenting the Union Budget for 2012-13 has announced to reduce basic customs duties on plant and machinery imported for setting-up of iron ore pellet plants or iron ore beneficiation plants from 7.5 percent to 2.5 percent. In his Budget Speech in LokSabha today, the Finance Minister proposed to reduce basic customs duty on coating material for manufacturing of electrical steel from 7.5 percent to 5.0 percent. On nickel ore and concentrate and nickel oxide/ hydroxide, the duties have been reduced to NIL from 2.5 percent or 7.5 percent. In other proposals, export duty on chromium ore has been enhanced from Rs. 3,000/- per tonne to 30 percent ad valorem. Basic customs duty on non-alloy, flat rolled steel has been proposed to enhance from 5 percent to 7.5 percent.

Shri Mukherjee said that relief has been proposed for sectors such as steel, textiles, branded readymade garments, low-cost medical devices, labour intensive sectors producing items of mass consumption and matches produced by semi-mechanised units. He proposed to fully exempt automatic shuttle-less looms from basic customs duty of 5 per cent. Similarly, full exemption on basic duty is being accorded to automatic silk reeling and processing machinery as well as its parts.

Full exemption from basic customs duties has been proposed on waste paper, LCD and LED TV Panels and parts of memory card for mobile phones in the Budget 2012-13.

DSM/YSK/nb/1

Customs duty reductions on imported plant and machinery for iron ore plants broaden targeted tariff relief for manufacturing sectors. The Union Budget 2012-13 revises tariff treatment: basic customs duty on plant and machinery for iron ore pellet and beneficiation plants is reduced to 2.5 percent; coating material for electrical steel reduced to 5 percent; duties on nickel ores and nickel compounds set to nil. Basic duty on non-alloy flat rolled steel is increased to 7.5 percent and export duty on chromium ore raised to an ad valorem rate. Full exemptions from basic customs duty are proposed for automatic shuttle-less looms, automatic silk reeling and processing machinery and their parts, waste paper, LCD and LED TV panels, and memory card parts for mobile phones.