TaxTMI 
TaxTMI 
To prescribe effective rates of duty and to carry out changes in the Rules made under the respective Acts.
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.... 2018. A declaration has been made under the Provisional Collection of Taxes Act, 1931 in respect of clauses 101(a), 102(b), 108, 109 and 110 of the Finance Bill, 2018, so that changes proposed therein take effect from the midnight of 1st February / 2nd February, 2018. The remaining legislative changes would come into effect only upon the enactment of the Finance Bill, 2018. 2. Important changes in respect of Customs and Central Excise duties rates and legislative changes are contained in the five Annexures appended to this letter: 1) Annex I contains details of Chapter wise changes in Basic Customs Duty, Social Welfare Surcharge [Clause 108 of the Finance Bill, 2018] and Road and Infrastructure Cess [Clause 109 of the Finance Bill, 2018]; 2) Annex II contains details of Chapter wise changes relating to Central Excise Duty and Road and Infrastructure Cess [Clause 110 of the Finance Bill, 2018]; 3) Annex III contains details of amendments proposed in the Customs Act, 1962: 4) Annex IV contains details of other amendments proposed in the Customs Tariff Act, 1975; and 5) Annex V Miscellaneous provisions in the Finance Bill, 2018. 2.1 The above stated Annexures pro....
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.... prescribe rate of Export Duty on certain goods. These increases will come into effect immediately [from 00 hours on 02.02.2018 owing to a declaration under the Provisional Collection of Taxes Act, 1931. Chapter 1 to 7: No change Chapter 8: 1) BCD on cashew nuts in shell (raw cashew) falling under tariff item 0801 31 00 is being reduced from 5% to 2.5%. S. No.22 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February 2018 refers. Chapter 9 to 14: No change Chapter 15: 1) BCD on crude edible vegetable oils like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil, Coconut oil, Palm Kemel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesame oil, other fixed vegetable fats and oils is being increased from 12.5% to 30%. S. No. 63 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February 2018 refers. 2) BCD on refined edible vegetable oils like Ground nut oil, Olive oil, Cotton seed oil, Safflower seed oil, Saffola oil, Coconut oil, Palm Kernel/Babassu oil, Linseed oil, Maize corn oil, Castor oil, Sesa....
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....cture Cess) leviable under clause 110 of the Finance Bill, 2018 is being exempted on imported motor spirit commonly known as petrol and high speed diesel oil vide notification No. 21/2018-Customs dated 02.02.2018. 1) Further, the Additional Duty of Customs (Road Cess), at the rate of Rs. 6 Per litre, leviable on imported motor spirit commonly known as petrol and high speed diesel oil, are being abolished, by omitting the relevant sections in Finance (No.2) Act, 1998 and Finance Act, 1999, respectively. [Clause 106 of the Finance Bill, 2018 refers]. Till the enactment of the Finance Bill, 2018, the Additional Duty of Customs (Road Cess) leviable on imported motor spirit commonly known as petrol and high speed diesel oil are being fully exempted. [Notification No. 19/2018-Customs and 20/2018-Customs both dated 02.02.2018 refer.] Consequently, notification Nos 57/98-Customs, dated 01-08-1998, 59/99- Customs, dated 11-05-1999, 06/2015-Customs, dated 01-03-2015, 07/2015-Customs, dated 01-03-2015 related to Additional Duty of Customs [Road Cess] are being rescinded vide notification Nos 15/2018-Customs, 16/2018-Customs, 17/2018-Customs, 18/2018-Customs all dated 2nd February, 2018. ....
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....wever, BCD on goods, other than these specified parts or sub-parts or accessories of cellular mobile phones, falling under tariff item 3919 90 90 is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. No. 9 refers]. 2) BCD on specified parts or sub-parts or accessories of cellular mobile phones, namely, Battery Cover, Front Cover, Front Cover (with Zinc Casting), Middle Cover, Back Cover, Main Lens, Camera Lens, falling under tariff item 3920 99 99, is being increased from 10% to 15% by increasing the tariff rate. [Clause 101 (a) of the Finance Bill, 2018 refers]. However, BCD on goods, other than these specified parts or sub-parts or accessories of cellular mobile phones, falling under tariff item 3920 99 99 is being retained at 10%. Notification No.57/2017Customs, dated 30th June, 2017, as amended by notification No.22/2018-Customs, dated 2nd February, 2018 [new S. No. 10 refers]. 3) BCD on specified parts or sub-parts or accessories of cellular mobile phones, namely, PU case, Sealing Gasket, falling under tariff item 3926 90 91, is being increased from 10% to 15% by i....
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..... No 284 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6 /2018-Customs, dated 2nd February, 2018refer. Chapter 41-47: No Change Chapter 48: 1) BCD on kites falling under tariff item 4823 90 90 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101 (a) of the Finance Bill, 2018 refers]. However, BCD on all goods other than kites, falling under tariff item 4823 90 90, is being retained at 10%. notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6 /2018-Customs, dated 2nd February, 2018 [new S. No. 297A] refers. Chapter 49: No Change Chapter 50: 1) BCD on silk fabrics falling under heading 5007 is being increased from 10% to 20%, by amending Notification No. 82/2017-Customs dated 27th October, 2017, vide notification No. 14/2018-Customs, dated the 2nd February, 2018 [new S.No.2A refers]. Chapter 51-63: No Change Chapter 64: 1) BCD on all goods falling under heading 6401 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101 (a) of the Finance Bill, 2018 refers] 2) BCD on all goods falling under heading 6402 is being increased from 1....
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.... notification No. 6 /2018-Customs, dated 2nd February, 2018 refers. Chapter 71: 1) BCD on cut and polished coloured gemstones falling under chapter 71 is being increased from 2.5% to 5%. S.No.349 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6 /2018-Customs, dated 2nd February, 2018 refers. 2) BCD on diamonds including lab grown diamonds-semi processed, half-cut or broken falling under chapter 71 is being increased from 2.5% to 5%. S.No.350 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6 /2018-Customs, dated 2nd February, 2018 refers. 3) BCD on non-industrial diamonds including lab-grown diamonds (other than rough diamonds) falling under chapter 71 is being increased from 2.5% to 5%. S.No.351 of notification No.50/2017-Customs, dated 30th June, 2017, as amended notification No. 6 /2018-Customs, dated 2nd February, 2018 refers. 4) Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured form, or in powder form is being exempted from the newly imposed Social Welfare Surcharge in excess of an amount calculated at 3% of the aggregate of duties of custo....
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...., 8703, 8704 or 8711, is being increased from 7.5% to 15% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, the existing rates of 7.5% of BCD on all goods [other than the engines of motor vehicle falling under headings 8702, 8703, 8704 or 8711] shall continue [New S. Nos. 448 C of notification No. 50/2017-Cus, dated the 30^th June, 2017, as amended by notification No. 6 /2018-Customs, dated 2nd February, 2018 refers]. 3) BCD on parts falling under heading 8409 and suitable for use solely or principally with the engines, of heading 8407 or 8408, of a kind used in motor vehicles, falling under heading 8702 or 8704, motor cars falling under heading 8703, or motor cycles falling under heading 8711 is being increased from 7.5% to 15%, by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, BCD of 7.5% for all other parts [other than parts of engines of said motor vehicles/ motor cars/ motor cycles] falling heading 8409 shall continue [New S. No. 448 D of notification No. 50/2017-Cus, dated the 30^th June, 2017, as amended by notification No. 6 /2018-Customs, dated 2nd February, 2018 refers]. 4) BCD on Crank ....
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....7/2017-Customs, dated 30th June, 2017, as amended by notification No. 22/2018-Customs, dated 2nd February, 2018 [new S. Nos. 14 refer]. 9) BCD on battery pack [other than Lithium-ion battery] of cellular mobile phones is being increased from 10% to 15% by increasing the tariff rate on goods falling under heading 8507 (other than tariff item 8507 60 00 and sub-heading 8507 90). [Clause 101 (a) of the Finance Bill, 2018 refers]. Further, effective rate of BCD on goods [other than battery pack of cellular mobile phones], falling under heading 8507, is being retained at 10%. Notification No.57/2017Customs, dated 30th June, 2017, as amended by notification No. 22/2018-Customs, dated 2nd February, 2018 [new S. Nos. 15 refer]. 10) BCD on Lithium-ion battery falling under tariff item 8507 60 00 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. The effective rate on lithium ion battery of cellular mobile phones is being increased from 10% to 15%. However, the effective rate of BCD on goods, other than lithium ion battery of cellular mobile phones, falling under tariff item 8507 60 00, is being retained at 10%. Notificat....
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....nd February, 2018 refers. 15) BCD on wrist wearable devices (commonly known as smart watches) falling under tariff item 8517 62 90 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, the effective rate of BCD on goods [other than wrist wearable devices], falling under tariff item 8517 62 90, is being retained at 10%. Notification No.57/2017-Customs, dated 30th June, 2017, as amended by notification No. 22/2018-Customs, dated 2nd February, 2018 [new S. No. 20 refers]. 16) Concessional 5% BCD on parts of Cellular Phones under S. No 499 of notification No 50/2017 is being withdrawn. Consequently, parts of Cellular Phones will attract applicable BCD. S.No.499 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018, refers. 17) Exemption from BCD on Printed Circuit Board Assembly (PCBA) falling under tariff item 8504 90 90 for manufacture of charger or adapter of cellular mobile phone is being withdrawn, and they will now attract at tariff rate of 10% BCD, without any actual user condition. S.No.7 and 7A of notification No.57/2017-C....
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....S. No. 516 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018 refers. 23) Concessional 2.5% BCD is being extended to Ball Screws [8483 40 00], Linear Motion Guides [8466 93 90] and CNC Systems [8537 10 00] for manufacture of all types of CNC machine tools falling under headings 8456 to 8463, subject to actual user condition. S. No. 462, 463 and 464 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No. 6/2018-Customs, dated 2nd February, 2018 refers. 24) The Second Schedule (Export Tariff) to the Customs Tariff Act, 1975, is being amended so as to prescribe a tariff rate of export duty of 20% for 'Carbon Electrodes of a kind used for furnaces' falling under tariff item 8545 11 00. [Clause 102(b) of the Finance Bill, 2018 refers]. The effective rate of Export duty on Carbon Electrodes of a kind used for furnaces' falling under tariff item 8545 11 00, however, will be Nil. Notification No. 27/2011 -Customs, dated 1st March, 2011, as amended by notification No.23/2018-Customs, dated 2nd February, 2018 [new S. No. 62A refers]. Chapter 86: No Change ....
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....l devices falling under headings 9018, 9019, 9020, 9021 or 9022. For example, medical devices [falling under tariff lines 9018 32 30, 9018 50 20, 9018 90 21, 9018 90 24, 9018 90 43, 9018 90 95, 9018 90 96, 9018 90 97, 9018 90 98, 9019 10 20, 9022 90 10 or 9022 90 30 will continue to attract BCD of 5%. [S. No. 563 of notification No.50/2017-Customs, dated 30th June, 2017 refers]. Other medical devices falling under 9018, 9019, 9020, 9021 or 9022 will also continue to attract 7.5% effective rate of BCD. Notification No. 50/2017 -Customs, dated 30th June, 2017, as amended by notification No.6/2018-Customs, dated 2nd February, 2018 [new S. No. 563A refers]. There is no change in effective rate of BCD for other goods falling under these headings also. 2) BCD on raw materials, parts or accessories for the manufacture of Cochlear Implants, is being reduced from 2.5% to Nil, subject to actual user condition. Notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No.6/2018-Customs, dated 2nd February, 2018 [New S. No 578A of refers]. 3) BCD rate on sunglasses, falling under tariff item 9004 10 is being increased from 10% to 20% by increasing the tariff rate....
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....ling under heading 9504 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101 (a) of the Finance Bill, 2018 refers]. 3) BCD on all goods falling under tariff item 9505 90 10 is being increased from 10% to 20% by increasing the tariff rate [goods falling under tariff items 9505 10 00 and 9505 90 90 are already at 20%]. [Clause 101(a) of the Finance Bill, 2018 refers]. With this change, all goods falling under heading 9505 will attract BCD of 20% (Balloons falling under this heading already attract 20% BCD). S. No. 284 of notification No.50/2017-Customs, dated 30th June, 2017, as amended by notification No.6/2018-Customs, dated 2nd February, 2018 refers. 4) BCD on all goods falling under heading 9506 is being increased from 10% to 20% by increasing the tariff rate. [Clause 101(a) of the Finance Bill, 2018 refers]. However, effective rate of BCD on articles and equipment for general physical exercise, gymnastics or athletics falling under sub-heading 9506 91 is being retained at 10%. Notification No.50/2017Customs, dated 30th June, 2017, as amended by notification No.6/2018-Customs, dated 2nd February, 2018 [new S. No. 594A refers]. 5) BCD on all goods....
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....Compensation Cess on imported goods is being fully exempted by way of notification. Notification No. 13/2018-Customs dated 02.02.2018 refers] 5) Motor spirit commonly known as petrol and high speed diesel oil are being exempted from the newly imposed Social Welfare Surcharge in excess of amount calculated at 3% of the aggregate of duties of customs [Notification No. 12/2018-Customs dated 02.02.2018 refers.] 6) Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured form, or in powder form is being exempted from the newly imposed Social Welfare Surcharge in excess of amount calculated at 3% of the aggregate of duties of customs [Notification No. 12/2018-Customs dated 02.02.2018 refers.] 7) Gold (including gold plated with platinum), unwrought or in semi-manufactured form, or in powder form is being exempted from the newly imposed Social Welfare Surcharge in excess of amount calculated at 3% of the aggregate of duties of customs [Notification No. 12/2018-Customs dated 02.02.2018 refers.] ANNEXURE - II EXCISE Chapter 24: No change. Chapter 27: 1) A Road and Infrastructure Cess, as an Additional Duty of Excise, is being imposed ....
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.... petrol and diesel manufactured in and cleared from specified refineries in the North East Region is being rescinded vide Notification No. 6/2018-CE dated 02.02.2018 and a new notification No. 10/2018-CE dated 02.02.2018 is being issued exempting 50% of Basic Excise Duty, Road and Infrastructure Cess and Special Additional Excise Duty on petrol and diesel manufactured in and cleared from four specified oil refineries located in the North East Region. 6) Table below summarizes the changes in various duties applicable to petrol and diesel: Item Duty rates applicable prior upto 01.02.2018 [RS. per litre] Duty rates applicable with effect from 02.02.2018 [Rs. Per litre] Product Basic Excise Duty (BED) AED (Road Cess) SAED Total Excise Duty Basic Excise Duty (BED) Road and Infrastructure Cess SAED Total Excise Duty Petrol (unbranded) 6.48 6 7 19.48 4.48 8 7 19.48 Petrol (branded) 7.66 6 7 20.66 5.66 8 7 20.66 Diesel (unbranded) 8.33 6 1 15.33 6.33 8 1 15.33 Diesel (branded) 10.69 6 1 17.69 8.69 8 1 17.69 Thus, total excise duty on motor sp....
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....(6), in view of the new dedicated Chapter for Audit; [58] 6. Section 18 is being amended so as to: (a) cover export consignments under provisional assessment of duty by amending sub-section (1); (b) insert a new sub-section (1A) to empower the Board to issue regulation for providing time-limit for the importer or exporter to submit the documents and information, if required, for finalization of provisional assessments and for the proper officer to finalize the provisional assessment; (c) substitute the reference to section 28AB [which does not exist] with the reference to section 28AA retrospectively; [59] 7. A new section 25A is being inserted, so as to empower the Central Government to exempt goods imported for repair, further processing or manufacture ['Inward Processing of Goods'] from payment of whole or any part of duty of customs, leviable thereon subject to certain conditions. [60] 8. A new section 25B is being inserted so as to empower Central Government to exempt goods re-imported after export for repair, further processing or manufacture ['Outward Processing of Goods'] from payment of whole or any part of duty of cust....
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.... (g) insert an explanation that a notice issued for non-levy, not paid, short-levy or short paid of duty or erroneous refund after 14^th May, 2015 but before the date on which the Finance Bill, 2018 receives the assent of the President, shall continue to be governed by the provisions of section 28 as it stood immediately before the date on which such assent is received.; [61] 10. Section 28E is being amended so as to, - (a) omit clause (a) defining 'activity' as it is no longer relevant; (b) substitute the existing definition of advance ruling so as to cover subjects beyond mere determination of duty; (c) include a definition of 'appellate authority'; (d) substitute the definition of 'applicant' in order to make it broad based; (e) define 'authority' as Customs Authority for Advance Ruling as referred to in section 28EA; (f) substitute "Appellate Authority" in place of "authority" in clause (f) and (g). [62] 11. A new section 28EA relating to 'Customs Authority for Advance Rulings' is being inserted, which provides for the Board to appoint officers of the rank of Principal Commissioner of Customs or....
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....tis mutandis to appeal proceedings. (c) provide that the changes inserted vide this section shall come into force only when customs authority for advance ruling is appointed under section 28EA. [68] 17. Section 28L is being amended so as to substitute the word "Authority" with the words "Authority or Appellate Authority" [69] 18. Section 28M is being substituted so as to, - (a) provide that the procedure to be followed by the Authority shall be as prescribed. (b) provide that Appellate Authority shall, subject to provisions of this chapter, have power to regulate its own procedure in all matters arising out of the exercise of its powers under this act. [70] 19. Section 30 is being amended so as to: (a) include export goods in addition to imported goods as part of the information provided in the manifest; (b) provide for prescribing the manner of delivery of manifest through regulations. [71] 20. Section 41 is being amended so as to: (a) include imported goods in addition to export goods as part of the information provided in the manifest; (b) provide penalty provisions for late filing....
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.... would enable payment of duties, taxes, fee, interest, and penalty through electronic cash ledger. [78] 27. Section 54 is being amended so as to empower the Board to make Regulations provide manner of presenting a bill of transshipment and declaration for transshipment. [79] 28. Section 60 is being amended so as to have a provision for clearance of goods by Customs Automated System in addition to existing clearance by the proper officer. [80] 29. Section 68 is being amended so as to have a provision for clearance of goods by Customs Automated System in addition to existing clearance by the proper officer. [81] 30. Section 69 is being amended so as to have a provision for clearance of goods by Customs Automated System in addition to existing clearance by the proper officer. [82] 31. Clause (iii) of sub-section (1) of Section 74 is being amended so as to substitute the reference to section 82 with the reference to clause (a) of section 84, as section 82 stands omitted vide section 104 of Finance Act, 2017; [83] 32. Sub-section (1) of Section 75 is being amended so as to substitute the reference to section 82 with the reference to ....
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....se notice under such circumstances and in such manner as may be prescribed through regulations.; [92] 41. Section 125 of the Customs Act is being amended so as to: (a) insert a proviso to sub-section (1) to provide that where the demand proceedings against a noticee / co-noticees have been closed on grounds of having paid the dues mentioned in section 28, then the provisions of this section shall not be applicable if the goods are not prohibited or restricted; (b) insert sub-section (3) to provide that where redemption fine has not been paid within a period of one hundred and twenty days from the date of option given under sub-section (1), then such option shall become void, except in cases where any appeal against such order is pending.; (c) insert an explanation that for an order passed under sub-section (1) before the date on which the Finance Bill, 2018 receives the assent of the President, and no appeal against such order is pending, such option may be exercised within one hundred and twenty days from the date on which such assent is received.; [93] 42. Section 128A is being amended to allow Commissioner (Appeals) to remand back the....
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.... for purposes of verification of compliance in identified cases, the Board shall specify the procedure for such exchange, the conditions subject to which such exchange shall be made and designation of the person through whom such information shall be exchanged.; (e) insert a deeming provision that any agreement entered into or any other arrangement made by the Central Government prior to the date on which the Finance Bill, 2018 receives the assent of the President, shall be deemed to have been done or taken under the provisions of this Section.; (f) insert a definition of "contracting state" and "corresponding law" referred to in this section.; [96] 45. Section 153 is being substituted so as to align it with the provisions of the section 169 of the CGST Act to include Speed Post, Courier, and registered email as valid modes of delivery and in case of non-service by such means, to also provide for affixing it at some conspicuous place at the last known place of business or residence in addition to affixing it on the notice board of the Customs House etc. [97] 46. Section 157 is being amended so as to empower the Board to make regulations relating ....