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NCCD schedule amendment: reclassification of petroleum crude tariff item to a designated central excise heading changes levy application.
Amendment substitutes Central Excise tariff item 2709 20 00 with 2709 00 10, classifying the entry as petroleum crude in the Seventh Schedule to the Finance Act, 2001, via the Finance Bill, 2022, thereby reclassifying the tariff heading for NCCD schedule purposes.
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An additional Basic Excise Duty of Rs. 2 per litre will be levied on petrol and high speed diesel sold to retail consumers without blending, effective from 1 October 2022, to promote petrol blending with ethanol/methanol and diesel blending with bio-diesel by creating a tax differential between blended and unblended fuels.
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Ethanol blend tariff classification updated; new excise tariff entries align Fourth Schedule with Customs Tariff provisions.
Insertion of two new tariff items into the Fourth Schedule to the Central Excise Act, 1944 establishes excise classifications for ethanol-blended petrol conforming to BIS IS 17586 and aligns those Fourth Schedule entries with the proposed corresponding amendment in the First Schedule to the Customs Tariff Act, 1975; amendments take effect on enactment unless otherwise specified.
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End-to-end automation of concessional import regime streamlines electronic filings and introduces monthly compliance reporting on a common portal.
Amendments require submission of all requisite details electronically via a common portal with standardized forms, remove transaction-based permissions and automate claim procedures for notification benefits. Importers must file a Monthly Statement on the portal to monitor use of goods for intended purposes, and may make voluntary payment of duties and interest through the portal, consolidating reporting, payment and compliance within a single electronic system.
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Export duty change: reduction in duty for raw buffalo hides and skins under Notification No.27/2011, altering export tariff treatment.
Amendment to Notification No.27/2011 revises the export duty applicable to raw buffalo hides and skins under the Chapter 41 leather tariff, substituting the prior duty rate with a reduced rate for that specified commodity; the change takes effect from 2 February 2022 and alters the customs export tariff treatment for exporters of raw buffalo hides and skins.
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Anti-dumping duty revocations remove specified steel import remedies and withdraw corresponding notifications under the 2022 finance measures.
The Finance Bill 2022 permanently revokes specified trade remedy measures: Anti-Dumping duty on (a) straight length alloy-steel bars and rods from the People's Republic of China (notification No. 54/2018-Cus), (b) non-cobalt high speed steel from Brazil, the People's Republic of China and Germany (notification No. 38/2019-Cus), and (c) flat rolled steel plated or coated with aluminium or zinc from the People's Republic of China, Vietnam and Korea RP (notification No. 16/2020-Cus). Countervailing duty on certain hot and cold rolled stainless steel flat products from the People's Republic of China (notification No. 1/2017-Cus) is also revoked.
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Concessional duty for EV kits clarified-kits with essential EV character qualify even if some components are absent.
Removal of the SPF requirement for live L. vannamei shrimp places regulation with the Department of Fisheries. Amendments clarify that CKD/SKD EV kits qualify for concessional duty if the presented kit has the essential character of an EV even when some components are missing, and delete unused parts from the two wheeler EV concessional entry.
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Customs cess exemptions expanded: additional cesses removed on specified concessional imports and rare disease drug imports exempted.
Multiple customs notifications granting duty exemptions for specified concessional imports are amended to also exempt Health Cess, Agriculture Infrastructure and Development Cess and Road and Infrastructure Cess as applicable; additionally, a new tariff entry exempts drugs and medicines for treatment of rare diseases when imported by designated Centres of Excellence or on their recommendation, reflecting the National Policy for Rare Diseases.
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Social welfare surcharge exemption changes narrow and withdraw exemptions for specified tariff items, while exempting other listed imports.
Amendment to Notification No. 11/2018-Customs revises Social Welfare Surcharge treatment by granting SWS exemptions for specified tariff subheadings (including certain fruits, oil products and textile yarns/fabrics) while withdrawing or narrowing exemptions for multiple garment and textile tariff items, thereby changing SWS incidence on imports classified under the listed tariff items and sub-headings.
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Duty-free imports for exporters: end-use monitored inputs require timely export of value-added goods under IGCR compliance.
A scheme permits duty-free imports for bonafide exporters on an end-use monitoring basis, requiring use of imported inputs to manufacture value-added export goods within a prescribed period and adherence to the Import of Goods at Concessional Rate Rules, 2017. Operational changes amend conditions for S. No. 257, insert S. No. 257A (decorative and ancillary items for handicrafts), S. No. 257B (fasteners, inlay cards, lining materials, wet blue leather for textile/leather garments), and S. No. 257C (buckles, buttons, locks for footwear/leather products); S. No. 288 is omitted as subsumed.
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Basic customs duty changes revise import duty and health cess rates across multiple tariff items, effective early February.
Proposals amend Basic Customs Duty and Health Cess rates effective 2.2.2022 by specifying revised duties for listed tariff items. The schedule sets prior and proposed rates across commodity groups-agricultural products, fuels and chemicals, paper, gems and jewellery, metals, electrical and electronics, medical devices, toys and capital goods-and includes sector measures such as extension of an iron and steel scrap exemption and changes for camera lenses, PCB inputs, X ray items, surgical needles, recovered paper and capital goods components.
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Phased customs duty changes on electronic imports introduce staged rates for components and finished devices to incentivise local manufacture.
Proposed amendments establish phased basic customs duty schedules under the Phased Manufacturing Program for wrist wearable devices, hearable devices, and smart meters, specifying year-by-year duty rates for identified components, sub-assemblies and finished units. IGCR conditions apply to enumerated component entries. The schedules distinguish classification-based parts and ''any chapter'' inputs, generally providing lower or nil duties initially for parts to encourage local assembly while setting distinct trajectories for imported finished products and assemblies.
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Customs duty concessions review phases out concessional exemptions across sectors, replacing many with standard duty rates and sunset clauses.
A comprehensive pruning of customs duty concessions withdraws, phases out, or time limits multiple BCD exemptions across sectors under notification No. 50/2017 and related standalone notifications. Sectoral concessions for textiles, power, petroleum, leather, food packaging and others are omitted or scheduled for staged withdrawal; select items are retained. Project imports face a uniform substituted BCD rate for new projects while existing projects are grandfathered for a transitional period. Section 25(4A) end date rules are applied to conditional exemptions and obsolete notifications are rescinded or merged.
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Customs tariff amendments rationalize Basic Customs Duty and consolidate notification based rates into the statutory Schedule.
Amendments to the First Schedule to the Customs Tariff Act, 1975 prescribe immediate provisional increases for selected items and effect a statutory consolidation of applied Basic Customs Duty rates previously administered through notifications. Transitional provisions maintain certain notification based rates for an interim period, after which corresponding entries will be omitted and BCD rates will operate through the Schedule. The package includes sectoral rationalisations across electronics, solar, agriculture, chemicals, textiles, metals and medical instruments, and adds new tariff entries to align with HS 2022 and departmental requests.
News Bills
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Validation of prior customs actions confirms retrospective legality of acts performed pursuant to officers' appointments and assignments.
A provision in the Finance Bill, 2022 introduces a validation clause to validate any action taken or function performed before the commencement of the Finance Act, 2022 by an officer of Customs (as specified in amended Section 3) where such action was in pursuance of that officer's appointment and assignment of functions by the Central Government or the Board under specified Chapters of the Customs Act.
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Assignment of functions to customs officers affirmed, with limits, concurrent powers, revised advance ruling rules, and data protection.
The Finance Bill expressly authorises the Board or the Principal Commissioner/Commissioner to assign functions to officers as proper officers, to impose conditions or limitations (including by territory or goods), and to allow concurrent exercise of powers. Section 3 includes DRI, Audit and Preventive formations within customs officers. Amendments also enable rules imposing additional importer obligations to counter undervaluation, revise advance ruling fees, withdrawal and validity, confirm sole jurisdiction of the original officer for reassessment after inquiries, and criminalise unlawful publication of import/export declaration data.
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Customs duty definitions clarify types of cess and additional duties and state amendments take effect upon enactment.
The memorandum defines principal customs charge types - Basic Customs Duty, Agriculture Infrastructure and Development Cess, Road and Infrastructure Cess, Health Cess, and Social Welfare Surcharge - links each to existing statutory provisions, notes clause numbers in square brackets refer to Bill clauses, and states amendments in the Finance Bill, 2022, take effect on the date of enactment unless otherwise specified.
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Updated return scheme: voluntary disclosure with staged additional tax and required proof of payment for compliance.
A voluntary updated return regime is proposed by inserting section 139(8A) permitting any person to furnish a prescribed updated return within twenty four months from the end of the relevant assessment year, subject to exclusions where it reduces tax or where specified enforcement actions or proceedings exist. The updated return must be accompanied by proof of payment of tax, interest, fee and an additional tax computed as a staged percentage of tax and interest payable; computation rules, credit adjustments and interest calculations are detailed in newly proposed section 140B, and related consequential amendments are proposed.
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Slump sale definition amended to replace 'sales' with 'transfer', clarifying scope of transfers under tax law.
The statutory definition of slump sale is amended to substitute the word "sales" with "transfer", clarifying that a slump sale means the transfer of one or more undertakings for a lump sum consideration without values being assigned to individual assets and liabilities, and the amendment is given retrospective effect to apply to the specified assessment year and subsequent assessment years.
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Goodwill treatment: reduction from block of assets deemed a transfer, triggering capital gains consequences and cost adjustment.
Goodwill is not a depreciable asset and where purchased its purchase price remains the cost of acquisition for capital gains computation, after reducing any depreciation previously claimed; reduction of goodwill from the block of assets is deemed a transfer for capital gains purposes and the clarificatory amendment applies retrospectively to the relevant assessment year and subsequent years.

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AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975

3 February, 2020

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Budget 2020-21 + FINANCE BILL, 2020

AMENDMENTS

A.

Tariff rate changes for Basic Customs Duty [to be effective from 02.02.2020] * [Clause 115 (a) of the Finance Bill, 2020]

Rate of Duty

S.No.

Heading, sub-heading, tariff item

Commodity

From

To

 

 

Food processing

 

 

1.

0802 32 00

Walnuts, shelled

30%

100%

 

 

Chemicals

 

 

2.

3824 99 00

Other Chemical products and preparations of the chemical or allied industries, not elsewhere specified

10%

17.5%

 

 

Footwear

 

 

3.

6401, 6402,

6403, 6404, 6405

Footwear

25%

35%

4.

6406

Parts of footwear

15%

20%

 

 

Household Items

 

 

5.

6911 10, 6911 90 20, 6911 90 90

Tableware, kitchenware, water filters (of a capacity not exceeding 40 litres) and other household articles, of porcelain of china.

10%

20%

6.

6912 00 10, 6912 00 20, 6912 00 40, 6912 00 90

Ceramic tableware, kitchen-ware, clay articles and other household articles

10%

20%

7.

7013

Glassware of a kind used for table, kitchen, toilet, office, indoor decoration or Similar purposes (other than that of heading 7010 or 7018)

10%

20%

8.

7323

Table kitchen or other household articles and parts thereof, of iron or steel, iron or steel wool; pot scourers and scouring or polishing pads, gloves and the like, of iron or steel, including pressure cookers pans utensils, misc articles such as iron & steel wool, polishing pads, gloves etc.

10%

20%

9.

7418 10

Table, kitchen or other household articles and parts thereof, of copper; pot scourers and scouring or polishing pads, gloves and the like, of copper.

10%

20%

10.

7615 10

Table, kitchen or other household articles and parts thereof, of aluminum; pot scourer and scouring or polishing pads, gloves and the like, of aluminum.

10%

20%

11.

8301

Padlocks and locks (key, combination or electrically operated) of base metal; Clasps and frames with clasps, incorporating locks of base metals; keys for any of the foregoing articles, of base metals (Other than lock of a kind used for automobiles.)

10%

20%

12.

9603

Brooms, brushes, hand operated mechanical floor sweepers, not motorized, mops and feather dusters; prepared knots and tufts for broom or brush making; paint pads and rollers; Squeegees (other than roller squeegees).

10%

20%

13.

9604 00 00

Hand sieves and hand riddles.

10%

20%

14.

9615

Combs, hair-slides and the like, hairpins curling pins, curling grips, hair curlers and the like other than those of heading 8516 and parts thereof.

10%

20%

15.

9617

Vacuum flasks and other vacuum vessels, complete with cases; parts thereof other than glass inners.

10%

20%

16.

8414 51 10

Table Fans

10%

20%

17.

8414 51 20

Ceiling Fans

10%

20%

18.

8414 51 30

Pedestal Fans

10%

20%

19.

8414 59 20

Blowers, Portable

10%

20%

20.

8509 40 10

Food Grinders

10%

20%

21.

8509 40 90

Other grinders and Mixer

10%

20%

22.

8509 80 00

Other Appliances

10%

20%

23.

8510 10 00

Shavers

10%

20%

24.

8510 20 00

Hair Clippers

10%

20%

25.

8510 30 00

Hair-removing appliances

10%

20%

26.

8516 10 00

Water heaters and immersion heaters

10%

20%

27.

8516 21 00

Storage heating radiators

10%

20%

28.

8516 29 00

Other electrical space heating apparatus

10%

20%

29.

8516 31 00

Hair Dryers

10%

20%

30.

8516 32 00

Other hair dressing apparatus

10%

20%

31.

8516 33 00

Hand Drying apparatus

10%

20%

32.

8516 40 00

Electric smoothing irons

10%

20%

33.

8516 60 00

Other ovens, cookers, cooking plates, boiling rings, grillers and roasters

10%

20%

34.

8516 71 00

Coffee and Tea Makers

10%

20%

35.

8516 72 00

Toasters

10%

20%

36.

8516 79 10

Electro-thermic fluid heaters

10%

20%

37.

8516 79 20

Electrical or electronic devices for repelling insects

10%

20%

38.

8516 79 90

Other electro-thermic appliances used for domestic purposes

10%

20%

39.

8516 80 00

Electric heating resistors

10%

20%

 

 

Precious Metals

 

 

40.

7118

Coin

10%

20%

 

 

Machinery

 

 

41.

8414 51 40

Railway Carriage fans

7.5%

10%

42.

8414 51 90

Other fans with a self-contained electric motor not exceeding 125W

7.5%

20%

43.

8414 59 10

Air Circulator

7.5%

10%

44.

8414 59 30

Industrial fans blowers and similar blowers

7.5%

10%

45.

8414 59 9

Other industrial fans

7.5%

10%

46.

8414 30 00, 8414 80 11

Compressor of Refrigerator and Air conditioner

10%

12.5%

47.

8419 89 10

Pressure vessels

7.5%

10%

48.

8418 10 10

Commercial type combined refrigerator freezers, fitted separate external doors

7.5%

15%

49.

8418 30 10

Commercial freezer of chest type, not exceeding 800 litre capacity

7.5%

15%

50.

8418 30 90

Other chest type freezers

10%

15%

51.

8418 40 10

Electrical freezers of upright type, not exceeding 800 litre capacity

7.5%

15%

52.

8418 40 90

Other freezers of upright type, not exceeding 800 litre capacity

7.5%

15%

53.

8418 50 00

Refrigerating or freezing display counters, cabinets, Show-cases and the like

7.5%

15%

54.

8418 61 00

Heat pumps other than air conditioning machines

7.5%

15%

55.

8418 69 10

Ice making machinery

7.5%

15%

56.

8418 69 20

Water cooler

10%

15%

57.

8418 69 30

Vending machine, other than automatic

10%

15%

58.

8418 69 40

Refrigerating equipment/devices used in leather industry

7.5%

15%

59.

8418 69 50

Refrigerated farm tanks, industrial ice cream freezer

7.5%

15%

60.

8418 69 90

Others (like freezers of capacity 800 litres and more etc.]

7.5%

15%

61.

8515 (except 8515 90 00)

Welding and Plasma cutting machines

7.5%

15%

 

 

Other Electronic goods

 

 

62.

8504 40 (except 8404 40 21)

Static Converters

15%

20%

63.

8504 40 21

Dip bridge rectifier

10%

20%

64.

8517 70 10

Populated, loaded or stuffed printed circuit boards

10%

20%

 

 

Automobile and automobile parts

 

 

65.

8421 39 20, 8421 39 90

Catalytic Convertor

10%

15%

 

 

Furniture Goods

 

 

66.

9401

Seats and parts of seats (other than aircraft seats and their parts)

20%

25%

67.

9403

Other Furniture and parts thereof

20%

25%

68.

9404

Mattress supports: Articles of bedding and similar furnishing

20%

25%

69.

9405

Lamps and lighting fittings including searchlights and spotlights and pads thereof; Illuminated signs, illuminated name plates and the like, having a permanently fixed light source, and parts thereof (except solar lantern and solar lamps).

20%

25%

 

 

Toys

 

 

70.

9503

Tricycles, scooters, pedal-cars and similar wheeled-toys; dolls' carriages; dolls; other toys; reduced-Size (“scale”) models and similar recreational models, working or not; puzzles of all kinds

20%

60%

 

 

Stationary items

 

 

71.

8304 00 00

Filing, cabinets. card-index cabinets, paper-trays, paper rests, pen trays, office-stamp stands and similar office or desk equipment of base metal, Other than office furniture of heading 9403

10%

20%

72.

8305

Fittings for loose-leaf binders or files, letter clips, letter corners, paper clips, indexing tags and similar office articles, of base metal; staples in strips (for example, for offices, upholstery, packaging), of base metal

10%

20%

73.

8310

Sign-plates, name-plates, address-plates and similar plates, numbers, letters and other symbols, of base metal, excluding those of heading 9405

10%

20%

 

 

Miscellaneous

 

 

74.

6702

Artificial Flowers

10%

20%

75.

7018 10 20

Glass Beads

10%

20%

76.

8306

Bells, gongs, statuettes, trophies and like, non-electric of base metal; statuettes and other ornaments of base metal; photograph, picture or similar frames, of base metal; mirrors of base metal.

10%

20%

B.

New entries added to the First Schedule [to be effective from 02.02.2020] * [Clause 115(b) of the Finance Bill, 2020]

S. No

Tariff Item

Description

Tariff Rate

Effective rate

1.

8414 51 50

Wall fans

20%

20%

2.

8529 90 30

Open cell for television set

15%

0%

3.

8541 40 11

Solar cells, not assembled

20%

0%

4.

8541 40 12

Solar cells, assembled in modules or made up in panels

20%

0%

*Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

 


Full Text:

Budget 2020-21 + FINANCE BILL, 2020

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Acts Income Tax