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Review of Customs duty Exemptions

1 February, 2025

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Union Budget 2025-26 (Full) + Finance Bill, 2025

VII. Review of Customs duty Exemptions

A. Review of conditional exemption rates of BCD prescribed in notification No. 50/2017- Customs dated 30.6.2017:

A comprehensive review has been undertaken in respect of 25 conditional exemptions/concessional rate entries in Notification No. 50/2017-Customs dated 30th June, 2017 whose validity is expiring by 31.3.2025. After review, 24 entries are being continued for varying periods with modification in few entries and 1 entry is being lapsed.

(1) The details of exemptions/concessional rates being extended with or without modifications:

S.No

Description

Entry No

End date

1

Ships and vessel for breaking up

S. No. 555A

31.3.2035

2

Raw materials, components, consumables or parts, for use in the manufacture of ships/vessels

S. No. 559

31.3.2035

3

Bulk drugs for manufacture of drugs or medicines [A separate entry is being created for Drugs, medicines, diagnostic kits specified in List 3 with modifications in the list]

S. No. 166

31.3.2029

4

Bulk drugs used in the manufacture of polio vaccine and Monocomponent insulins

S. No. 166A

31.3.2029

5

Bulk drugs used in the manufacture of life saving drugs or medicines [A separate entry is being created for Drugs, medicines, diagnostic kits specified in List 4 with modifications in the list]

S. No. 167

31.3.2029

6

Drugs, Medicines or Food for Special Medical Purposes (FSMP) used for treatment of rare disease

S. No. 167A S. No. 607B

31.3.2029

7

Good specified in List 36 imported by testing agencies specified in List 37, for the purpose of testing and/or certification

S. No. 532A

31.3.2029

8

Crude Glycerin for use in manufacture of Epichlorohydrin

S. No. 81A

31.3.2027

9

Denatured ethyl alcohol for use in manufacture of industrial chemicals

S. No. 104B

31.3.2027

10

Fish meal for use in manufacture of aquatic feed S. No. 104C 31.3.2027

 

 

11

Goods for the manufacture of telecommunication grade optical fibres or optical fibre cables

S. No. 168, S. No. 341, S. No. 341A

31.3.2027

12

Textile machinery (with addition of two new machinery)

S. No. 460 S. No. 460A S. No. 460B S. No. 460C S. No. 460D

31.3.2027

13

Parts and components for use in manufacturing of textile machineries

S. No. 460E

31.3.2027

14

 Goods for use in the manufacture of Open cell of LCD and LED TV panel

S. No. 515B

31.3.2027

15

Seeds for use in manufacturing of rough Lab- Grown Diamonds [IGCR condition removed]

S. No. 345B

31.3.2026

16

Parts of wind operated electricity generators, for the manufacture or the maintenance of wind operated electricity generators [The entry has also been modified]

S. No. 405

31.3.2026

17

Permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity generators

S. No. 406

31.3.2026

Note: Description of entries is indicative. Notification may be referred to for complete description.

(2) The following entry is being allowed to lapse with effect from 01.04.2025:

S. No.

S. No. of 50/2017- Customs

Description

1.

489AA

Heat Coil for use in the manufacture of Electric Kitchen Chimneys falling under tariff item 84146000

(3) Other Changes in notification No. 50/2017 -Customs dated 30.6.2017

Certain entries are being modified as under:

S. No.

S. No. of 50/17-Cus

Brief Description

1.

257A

9 new groups of items such as sea shell, adhesive etc are being added to the list of duty free items for use in manufacture of handicrafts for export. The time period for export of the handicraft items is also being increased from 6 months to 1 year, further extended by another three months.

2.

539

BCD exemption is being extended to imports of ground installations for satellites and payloads and its spares and consumables of such installations.

3.

539A

BCD exemption is being provided on goods for use in the building of launch vehicles and launching of satellites

Note: Description of entries is indicative. Notification may be referred to for complete description.

B. Amendment of Notifications Nos. 16/2017-Customs dated 20.04.2017 and 153/94-Customs dated 13.07.1994

Notification No.

Brief Description

16/2017-customs dated 20.04.2017

The notification exempts specified drugs and medicines from the whole of the duty of customs leviable thereon subject to their being supplied free to cost to patients under Patient Assistance Programme (PAP) run by the pharmaceutical companies.

 

37 new drugs and 13 patient assistance programmes are being added to the list

153/94-customs dated 13.07.1994

Currently, articles of foreign origin can be imported into India for maintenance, repair and overhauling subject to their export within six months extendable to 1 year. The duration for export in the case of railway goods imported for such purpose has been increased from 6 months to 1 year further extendable by 1 year

Note: Description of entries is indicative. Notification may be referred to for complete description.

 


Full Text:

Union Budget 2025-26 (Full) + Finance Bill, 2025

Topics

Acts Income Tax