Government has been keeping a close watch on the flood situation in Bihar and has already declared it a "national calamity" and pledged financial assistance.

2. As a further measure of relief, Government has decided to,-

       (i) Fully exempt from basic customs duty and additional duty of customs, goods imported for donation for the relief and rehabilitation of people affected by the floods in Bihar. Since exemption is being provided from basic customs duty and additional duty of customs, such goods would be automatically exempt from 4% CV duty;

     (ii) Fully exempt from basic excise duty, goods donated or purchased out of cash donations for the relief and rehabilitation of people affected by the floods in Bihar.

These exemptions are subject to certification conditions and procedural requirements provided in the notification and would be valid till 28^th February, 2009. They come into force with immediate effect.

3. Notifications 101/2008-Customs and 48/2008-Central Excise, both dated 2.9.2008 have been issued in this regard.

Full duty exemption for flood relief goods: customs and excise duties waived subject to certification and procedures. Full duty exemption applies to goods imported for donation and to goods donated or purchased out of cash donations for Bihar flood relief: imports are exempt from basic customs duty and additional duty (with automatic exemption from countervailing duty), and relief goods are exempt from basic excise duty. Exemptions are subject to certification and procedural requirements and are effective immediately until 28 February 2009 under Notifications 101/2008 Customs and 48/2008 Central Excise dated 2 September 2008.