Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters 0/2000
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
Relevance Default Date
    News Bills
    AMENDMENTS IN THE SCHEDULE VII OF THE FINANCE ACT, 2001 (NCCD SCHEDULE)
    News Bills
    CHANGE IN EFFECTIVE RATE OF ADDITIONAL BASIC EXCISE DUTY ON UNBLENDED PETROL AND DIESEL
    News Bills
    AMENDMENTS IN THE FOURTH SCHEDULE
    News Bills
    CHANGES IN RULES UNDER THE CUSTOMS ACT, 1962
    News Bills
    CHANGES IN EXPORT DUTY RATES IN NOTIFICATION NO. 27/2011 - CUSTOMS [with effect from 02.02.2022]
    News Bills
    ANTI-DUMPING DUTY (ADD)/ COUNTERVAILING DUTY (CVD)/SAFEGUARD MEASURES
    News Bills
    OTHER CHANGES (INCLUDING CERTAIN CLARIFICATIONS/TECHNICAL CHANGES BY AMENDING NOTIFICATION NO. 50/20...
    News Bills
    OTHER MISCELLANEOUS CHANGES IN VARIOUS NOTIFICATIONS PROVIDING CONCESSION ON IMPORTS
    News Bills
    REVIEW OF LEVY OF SOCIAL WELFARE SURCHARGE [SWS] ON VARIOUS ITEMS BY AMENDING NOTIFICATION NO. 11/20...
    News Bills
    DUTY CONCESSIONS ON SPECIFIED ITEMS WHEN IMPORTED BY BONAFIDE EXPORTERS
    News Bills
    OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES/HEALTH CESS IN RESPECTIVE NOTIFICATION...
    News Bills
    PROPOSALS INVOLVING CHANGES IN EFFECTIVE BASIC CUSTOMS DUTY RATES IN RESPECT OF PHASED MANUFACTURING...
    News Bills
    PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS
    News Bills
    AMENDMENTS IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975
    News Bills
    OTHER LEGISLATIVE AMENDMENTS PERTAINING TO CUSTOMS
    News Bills
    AMENDMENTS IN THE CUSTOMS ACT, 1962
    News Bills
    EXPLANATORY MEMORANDUM TO THE FINANCE BILL, 2022
    News Bills
    Promoting Voluntary Tax Compliance and Reducing Litigation
    News Bills
    Definition of the term “slump sale”:
    News Bills
    Reduction of Goodwill from block of assets to be considered as ‘transfer’
❯❯
Maximize Maximize Maximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

+

Are you sure you want to delete "My most important" ?

NOTE:

Notes
Showing Results for :
Reset Filters
Results Found:
Show All Summaries Hide All Summaries
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
Additional excise duty on unblended fuel imposed to promote blending from October, affecting petrol and diesel sales.
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.
News Bills
Show AI Summary
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.

TMI Notes

Back

All TMI Notes

Showing Results for :
Reset Filters
No Records Found

TMI Notes

Back

All TMI Notes

whatsapp Join Channel
Showing Results for : Reset Filters

PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

2 February, 2022

Contents
Plus +
Summary
Note

Note

-

Bookmark

Print

Print

IV. PRUNING AND REVIEW OF CUSTOMS DUTY CONCESSIONS/ EXEMPTIONS

A. Review of concessional rates of BCD prescribed to Capital Goods and Project Imports vide notification No. 50/2017 – Customs dated 30.6.2017:

The Customs duty rate structure on capital goods and project imports has been comprehensively reviewed and exemption on capital goods/ project imports are being phased out in a gradual manner. However, certain exemptions on capital goods would continue. Accordingly, the BCD exemption hitherto available on certain goods are being withdrawn by omitting the following entries of notification No. 50/2017Customs dated 30.6.2017, from the dates mentioned against each entry.

S.No.

S. No. of notification No. 50/2017

Description/ HS Code

(1)

(2)

(3)

Textile Sector

1.

399 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in man-made or synthetic fiber or yarn industry (84 or any other Chapter)

1. Concessional BCD rate to be withdrawn for Spindles, Yarn guides, Ballon Control Rings and Travellers [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as Machinery for continuous polymerization plant, Machinery for synthetic fibre plant, Machinery for synthetic filament yarn plant, Machinery for Regular/HWM Viscose Staple Fibre Plant, Machinery for Lyocell Fiber Plant, in this entry [w.e.f 1.4.2023]

2.

400 [w.e.f 1.4.2023]

Goods such as Machinery for garment sector, Machinery for manufacture of technical textiles, Woollen machinery items, Machinery for manufacture of non-wovens textiles, Machinery for manufacture of denim fabrics, Machinery for use with shuttleless looms etc. as specified in List 12 to the notification No. 50/2017-Customs, and parts for their manufacture for use in textiles industry

3.

432 [exemption is being phased out as per details in column (3)]

Goods (other than old and used) for use in the textile industry

1. Concessional BCD rate to be withdrawn for item no. 1, List 25: Effluent treatment unit with biopaq reactor, activate sludge process, activated carbon, ultrafiltration ozonisation facilities [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for item no. 3, List 25: Effluent treatment unit with automatic sensing devices, automatic controlled chemical dosing, dissolved air floatation (DAF), reverse osmosis, sludge dewatering, decanters, ultrafilters, vacuum filters to deliver water for reuse [w.e.f 1.4.2022]

3. Concessional BCD rate to be withdrawn for the remaining items such as singeing machines, yarn drying machines, knitting machines etc., in this entry. [w.e.f 1.4.2023]

4.

433 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for handloom sector or handicraft sector

5.

434 [w.e.f 1.4.2023]

Machinery for use in the silk textile industry

6.

460 [w.e.f 1.4.2023]

Shuttle less looms and parts for their manufacture for use in the textile industry

7.

461 [exemption is being phased out as per details in column (3)]

Machineries such as Knitting, weaving machines

1. Concessional BCD rate to be withdrawn for Card Clothing (HS Code 8448 31 00) used in textile machinery i.e., Carding Machine [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as machines for extruding, drawing, texturing, textiles machines, machines for preparing textile fibers, textile spinning machines, textile twisting machines, textile winding machines, weaving machines, knitting machines, auxiliary machines etc., in entry. [w.e.f 1.4.2023]

Power Sector

8.

397 [exemption is being phased out as per details in column (3)]

Goods specified in List 10 required for use in high voltage power transmission project

1. Concessional BCD rate to be withdrawn for 13 items [List 10 in the notification] that include Transformers, Reactor, Circuit Breaker etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as High Voltage DC Divider and CT, High Voltage DC Reactor, High TRV Circuit Breaker for High Voltage DC application, Optical Current Transformer etc. in this entry. [w.e.f 1.4.2023]

9.

405 [exemption is being phased out as per details in column (3)]

Wind operated electricity generators, its parts and raw material, thereof

1. Concessional BCD rate to be withdrawn for item No. (1) & (3) of this entry that include wind operated electricity generators (WOEG) upto 30 kW, wind operated battery chargers upto 30kW and blades for the rotors of WOEG [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items, such as parts of wind operated electricity generators including special bearings, gear box, yaw components, wind turbine controllers etc. and parts thereof and parts of blades, raw materials of blades etc. in this entry. [w.e.f 1.4.2023]

10.

406 [w.e.f 1.4.2023]

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

11.

413 [w.e.f 1.4.2022]

All goods, for renovation or modernization of a power generation plant (other than captive power generation plant)

12.

414 [w.e.f 1.4.2022]

All goods, imported by a manufacturer-supplier for the manufacture and supply of machinery and equipment to a power generation plant (other than captive power generation plant)

Petroleum Sector

13.

403 [w.e.f 1.4.2023]

Parts and raw materials for manufacture of goods to be supplied in connection with the purposes of off- shore oil exploration or exploitation

14.

409 [exemption is being phased out as per details in column (3)]

Goods specified in List 13 required for setting up crude petroleum refinery

1. Concessional BCD rate to be withdrawn for 11 items of List 13 that include utility systems, water treatment systems, air handling systems, boilers etc. [w.e.f 1.4.2022]

2. Concessional BCD rate to be withdrawn for the remaining items such as all types of Refinery Process Units, All types of Hydrogen Generation, Recovery and Purification Plants, All types of Process Subsystems, All types of Effluent Solids/Liquids/Gaseous Processing etc. in this S. No. [w.e.f 1.4.2023]

15.

410 [w.e.f 1.4.2022]

Kits and its parts required for the conversion of motor- spirit or diesel driven vehicles into Compressed Natural Gas driven or Propane driven or Liquefied Petroleum Gas driven vehicles

Leather Sector

16.

396 [w.e.f 1.4.2022]

Machinery or equipment for effluent treatment plant for leather industry

17.

439 [w.e.f 1.4.2023]

292 goods specified in List 27 to notification No. 50/2017Customs, designed for use in the leather industry or the footwear industry, like Air blast dust removing machine, Automatic Drying machine etc.

Food Packaging Sector

18.

455 [w.e.f 1.4.2023]

Machinery for filling, closing, sealing or labelling bottles, cans, boxes, bags or other containers

19.

458 [w.e.f 1.4.2023]

Machinery for the industrial preparation or manufacture of food or drink, other than machinery for the extraction or preparation of animal or fixed vegetable fats or oils

Other Sectors

20.

393 [w.e.f 1.4.2023]

(i) Cricket bat and hockey stick splice joining machine

(ii) Rugby ball or soccer ball stitching Machine

(iii) Moulds for soccer ball, basketball and volley ball

21.

394 [w.e.f 1.4.2023]

Bacteria removing clarifier

22.

395 [w.e.f 1.4.2023]

Marine seawater pumps with fibre impellers and Automatic fish/prawn feeder

23.

407 [w.e.f 1.4.2023]

Goods required for, -

(a) the substitution of ozone depleting substances (ODS);

(b) the setting up of new capacity with non – ODS technology.

24.

408 [w.e.f 1.4.2023]

Goods required for renovation, modernization or maintenance of a fertilizer plant

25.

436 [w.e.f 1.4.2023]

Spares, supplied with outboard motors for maintenance of such outboard motors

26.

440 [w.e.f 1.4.2023]

Fogging machines imported by a Municipal Committee, District Board etc.

27.

443 [w.e.f 2.2.2022]

Goods to be imported by or on behalf of security printing and minting corporation of India limited (SPMCIL) that include Plant or machinery or equipment, related spares and consumables for printing of banknotes, etc.

28.

444 [w.e.f 1.4.2023]

Geothermal ground source heat pumps

29.

445 [w.e.f 1.4.2023]

Goods for making of gem and jewellery –

(1) Automatic Chain Making machine,

(2) chain twisting machine,

(3) Spiral making machine,

(4) Rolling machine (combined Profile Groovers/Strip Making)

(5) Automatic Investing Machine/casting Machine

30.

448 [w.e.f 1.4.2023]

Specific agricultural implements and parts used for their manufacture that include paddy transplanter, sugarcane harvester, cotton picker etc.

31.

469 [w.e.f 1.4.2023]

Atmospheric water generator

32.

470 [w.e.f 1.4.2023]

Machinery for making wooden fiberboards

Project Imports

33.

597, 598, 599, 600, 601, 602, 603, 604, 605, 606

a. Project Imports for project such as

(i) Power Projects, including Nuclear and Solar Power

(ii) Coal Projects

(iii) Gas Projects

(iv) Iron Ore Projects

(v) Water Supply Projects

(vi) Mandi and Warehousing Projects for Food Grains

(vii) Other Projects

b. New projects registered after 30th September 2022 under project imports will attract 7.5% BCD rate with change in BCD Tariff rate to 7.5%.

c. Existing projects registered till 30th September 2022 under project imports will be grandfathered till 30th September 2023 attracting old BCD rates of 0%/2.5%/5% as applicable.

d. After 30th September 2023, all projects registered under project imports will attract 7.5% BCD rate.

B. Review of concessional rates of BCD prescribed in notification No. 50/2017 – customs dated 30.06.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting some of the entries of notification No. 50/2017Customs dated 30.6.2017 as shown below. Additionally, modifications have also been made with respect to some of the entries of notification No. 50/2017-Customs dated 30.6.2017, wherein end-dates have been prescribed, and partial changes has been made to the exemptions. These changes are detailed below.

S. No.

S. No. of notification No. 50/ 2017

Description

 

Entries to be immediately omitted

 

1.

4

Atlantic Salmon

 

2.

26

Hazelnuts or filberts, shelled and in-shell

 

3.

28

Other nuts, shelled and in-shell

 

4.

33

Durians, other fresh fruits like Pomegranates, Tamarind, Sapota, Custard- apple, Bore, Lichi, etc. other than currants and gooseberries

 

5.

50

Seed Lac

 

6.

52

Dammar Batu

 

7.

82

Crude glycerin for use in the manufacture of soaps

 

8.

96

Tapioca and substitutes therefor prepared from starch

 

9.

122

Silica Sands

 

10.

124

Marble, travertine, granite other than rough marble and travertine blocks and marble slabs

 

11.

151

Kerosene imported by the Indian IOCL. BPCL, HPCL and IBP Company Limited for ultimate sale through the Public Distribution System

 

12.

159

Bio-based asphalt sealer and preservation agent; Millings remover and crack filler; Asphalt remover and corrosion protectant; Sprayer system for bio-based Asphalt and condition no. 14

 

13.

171

The goods specified in List 7, for the manufacture of laser and laser-based instrumentation and condition No. 17

 

14.

173

Goods used in manufacture of telecommunication grade impregnated glass reinforcement roving, namely: E-glass roving/ yarn, liquid absorbent polymer, polyurethane polymer and vinyl polymer

 

15.

175

Common Salt (including Rock salt, Sea salt and Table salt)

 

16.

187

Raw materials intermediates and consumables supplied by UNICEF for manufacture of DTP vaccines and condition No. 19

 

17.

233

Myrobalan fruit extract

 

18.

234

Triband Phosphor

 

19.

235

Ceramic Colours

 

20.

236

Glass frit and other glass, in the form of powder, granules or flakes

 

21.

241

Vinyl Polyethylene Glycol for use in manufacture of Poly Carboxylate Ether

 

22.

242

The following goods for use in the manufacture of Plasma Volume Expanders, namely: Hydroxyethyl starch and Dextran

 

23.

277

Mica glass tape for use in manufacture of insulated wire and cables

 

24.

293

Grape guard paper (paper used for packaging grapes)

 

25.

324

Monofilament long line system for tuna fishing and condition No. 34

 

26.

327

Samples of hand knotted carpets and condition No. 36

 

27.

328

Polyester Tyre Cord Fabric

 

28.

332

Parts of Umbrella

 

29.

216 & 481

Artificial Kidney (Dialyzer)

 

30.

216A & 481A

Parts for manufacture of Artificial Kidney

 

31.

402

Goods, for use in the manufacture of static converters of automatic data processing machines: PCBA, Transformer, Battery and Copper enameled wires

 

32.

424

Listed goods for paging goods and its parts

 

33.

425

Listed goods for Public Mobile Radio Trunked Service (PMRTS) and its parts

 

34.

431

Goods used for Research and development in Agro-Chemical Sector Unit

 

35.

449

Goods for use in the manufacture of refrigerator compressor namely: -

(i) C-Block compressor;

(ii) Crankshafts.

 

36.

450

Over Load Protector (OLP) and positive thermal coefficient for use in the manufacture of refrigerator compressor

 

37.

501

Recorded magnetic tapes and floppy diskettes, imported by the University Grants Commission for use in Computers

 

38.

588

Synthetic tracks and equipment to lay synthetic tracks.

 

39.

589

(i) Asphalt resurfacer;

(ii) Acrylic resurfacer;

(iii) Cushion coat;

(iv) Acrylic colour concentrate;

(v) Acrylic marking paint; and

(vi) Polytan in powder or granule form

 

40.

590

Requisites for games and sports

 

Entries where End-dates are prescribed

 

41.

289

Wood in chips for use in manufacture of paper, paperboard & newsprint [End-date of 31.03.2023 is prescribed]

 

42.

430

Goods used for Research and Development purpose in pharmaceutical and bio- technology sector. [End-date of 31.03.2023 is prescribed]

 

43.

479

Mono or Bi polar Membrane electrolysers and parts; Membrane and parts; Parts, other than those for caustic soda unit or caustic potash unit [End-date of 31.03.2024 is prescribed]

 

44.

594

Snow-skis and other snow-ski Equipment; Water-skis, surfboards, sailboards and other water-sport equipment [End-date of 31.03.2023 is prescribed]

 

Section 25 (4A) of the Customs Act, inserted vide Finance Act, 2021, prescribes that where any exemption is granted subject to any condition under sub section (1), such exemption shall, unless otherwise specified or varied or rescinded, be valid up to 31st day of March falling immediately after two years from the date of such grant or variation. Accordingly, conditional exemptions will have validity in terms of this subsection. Therefore, entry being impacted on account of this clause have been identified and an explanation has been inserted in the notification No. 50 /2017-Customs.

[“Explanation: Under the provisions of subsection (4A) of section 25 of the Customs Act, 1962, it is hereby specified that the conditional exemptions granted under the S. Nos. of the Table to the notification, mentioned under column (2) of the Table below, for which period of validity is not specified otherwise, shall unless varied or rescinded, be valid up to the date mentioned in the corresponding entry in column (3) of the said Table. ….” ]

 

The following entries, unless varied, will have validity up to 31.03.2023.

 

45.

16, 90, 133, 139, 150, 155, 164, 165, 168, 183, 184, 188, 204, 213, 237, 238, 253, 254, 255, 258, 259, 260, 261, 269, 271, 276, 277A, 279, 280, 325, 333, 334, 339, 340, 341, 341A, 353, 364A, 374, 375, 378, 379, 380, 381, 387, 392, 415, 415A, 416, 417, 418, 419, 420, 421, 426, 428, 429, 441, 462, 463, 464, 471, 472, 475, 478, 482, 489B, 495, 497, 504, 509, 510, 511, 512, 512A, 516, 519, 534, 535, 535A, 536, 538, 540, 542, 543, 544, 546, 549, 550, 559, 565, 566, 567, 568, 570, 575, 577, 578A, 579, 580, 581, 583, 593, 612

 

The following entries [having been reviewed in this exercise done this year], unless varied, will have validity up to 31.03.2024.

 

46.

17, 80A, 104, 172, 191, 257, 257A, 257B, 257C, 264A, 290, 292, 293A, 296A, 326, 329, 345A, 354, 355, 356, 357, 422, 423, 442, 446, 451, 465, 517, 591

 

Entries omitted being in the nature of technical change

 

47.

31

Dried Grapes (Raisins, Other)

 

48.

161

Electrical Energy originating from Nepal and Bhutan

 

49.

192

Alkyl esters of long chain fatty acids obtained from vegetable oils, commonly known as bio- diesels

 

50.

215

The Blood group sera, namely: -Anti C., anti E., anti c., anti e., anti M., anti N., anti Le., anti-Pl., anti S., antihuman globulin sera, anti F., anti kell, anti cellane, anti Jka., and anti I

 

51.

224

Potassium Nitrate, in a form indicative of its use for manurial purpose

 

52.

248

Dipping oil, Paclobutrazol (Cultar)

 

53.

466

Parts/ sub-parts, components or accessories for use in the manufacture of tablet computer.

 

54.

485

Deflection components for use in colour monitors for computers or for use in PCBs of colour monitors for computers

55.

496

Stepper Motors for use in the manufacture of goods falling under heading 8471

56.

505

Parts of Set-top box for use in its manufacture

57.

506

Parts/sub-parts, components for use in manufacture of broadband modem Other than PCBA, charger.

58.

507

Parts/ sub-parts, components and accessories for use in manufacture of routers other than PCBA, charger.

59.

508

Parts/ sub-parts, components and accessories for use in manufacture of set top boxes for gaining access to internet other than PCBA, charger.

Entries with partial changes

60.

15

Frozen Semen and Frozen semen equipment

[Exemption to continue only for bovine semen]

61.

104

List of specified goods used in the processing of sea-foods

[Exemption to continue for selected items and accordingly, exemption has been continued for 16 items and 4 new items has been added to the list]

62.

132

List A items:

1. Aluminous cement

2. Silicon metal (99%)

3. Micro/fumed silica

4. Brown fused alumina

5. Sintered/tabular alumina

6. Fused zirconia

7. Sodium hexameta phosphate

8. Silicon carbide

9. Boron carbide

10. Reactive alumina

11. Fused silica; and List B items: Phenolic resin

[Exemption to continue for list A with end-date of 31.03.2023 and discontinue for list B immediately]

63.

166

(A) Drugs, medicines, diagnostic kits or equipment specified in List 3.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A)

[Exemptions under List-3 is being rationalized]

Note: Items included in List 3 under S. No. 166 provides for a conditional concessional rate of 5% on the imports of drugs, medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such drugs or medicines. The items in the said list has been reviewed. Accordingly, 35 items have been removed from the List and 1 item [influenza vaccine] in the List would be omitted after 18 months. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

64.

167

(A) Lifesaving drugs/medicines including their salts and esters and diagnostic test kits specified in List 4.

(B) Bulk drugs used in the manufacture of drugs or medicines at (A).

[Exemptions under List-4 is being rationalized in the manner as detailed in the Note at S. No. 63 above; Entry at S. No. 167 (C) has been omitted as a similar exemption is available under S. No. 607 (b) of notification No. 50/2017 – Customs]

Note: Items included in List 4 under S. No. 167 provides for customs duty exemption on the imports of Lifesaving drugs/medicines, diagnostic kits, etc. along with bulk drugs used in the manufacture of such goods. The items in the said list has been reviewed. Accordingly, 3 items in List 4 [Diagnostic agent for detection of Hepatitis B antigen, Diagnostic kits for detection of HIV antibodies, Enzyme Linked Immuno absorbent Assay kits (ELISA kits)] have been transferred to List 3, 2 bulk drugs [bulk drug substance for poliomyelitis vaccine (inactivated and live) and Monocomponent Insulin] that are currently included in List 4 would be transferred to List 3 after 2-3 years, and 36 items from List 4 have been omitted. For further details, please refer to notification No. 02/2022 – Customs dated the 1st February, 2022.

65.

404

Goods required in connection with Petroleum operations.

[Rationalization of the exemption provided for goods used in petroleum operations as specified in List 33 under S. No. 404, and simplification of the associated condition no. 48 for availing such exemption and disposal of such goods]

Note: A definition has been provided for a licensee, lessee, contractor or sub-contractor for the purpose of this entry. Also, the requirement of producing a certificate from Directorate General of Hydrocarbons (DGH) for import or each transaction under this entry has been dispensed with. Further, the list of items falling under List 33 has been pruned down and have been made more specific by prescribing the concerned HS Codes.

66.

513

Parts or components for use in manufacture of populated printed circuit board of various telecom and electronics related products, and its sub-parts.

[Exemption to continue for Digital Video Recorder(DVR)/Network Video Recorder(NVR) falling under tariff item 8521 90 90; CCTV Camera/IP Camera falling under tariff item 8525 20 80; Reception apparatus for television but not designed to incorporate a video display falling under tariff item 85287100]

C. Customs duty exemptions which have been granted through certain other standalone notifications, have also been reviewed:

S.No.

Notification No.

Amendment

I. The following notifications have been modified in the manner as detailed below:

1.

39/1996-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on items relating to Defence and internal security forces. Upon review of exemption, entries under S. Nos. 14, 15, 17, 18, 19, 24, 29, 30, 31, 31A, 31B, 32, 33, 35, 36, 38, 39, 40, 41, 42, 43 have been omitted.

[Sunset date of 31.03.2023 has been prescribed for the remaining entries as per Section 25(4A) of the Customs Act, 1962]

2.

25/1999-Customs dated 28.02.1999

This notification prescribes concessional rate of customs duty on items relating to import of raw materials and parts for use in manufacture of electronic items.

Upon review of exemption, it has been pruned to remove redundant exemption entries and exemptions related to obsolete items and accordingly, more than 125 entries have been omitted.

[Sunset date of 31.03.2024 been applied for the remaining entries]

3.

25/2002-Customs dated 01.03.2002

This notification prescribes concessional rate of customs duty on import of items relating to capital goods used in manufacture of electronic items. [Sunset date of 31.03.2024 been applied for the all entries]

4.

27/2011-Customs dated 01.03.2011

This notification prescribes concessional rate of customs duty on export of goods. Upon review of the exemption, the entries under S. Nos. 20B, 63 and 64 have been omitted as these entries have become obsolete.

5.

37/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on import of items relating to internal security agencies. Upon review of exemption entries, the entries under S. Nos. 6 and 7 have been omitted as their validity has expired.

II. The following obsolete/expired notifications have been rescinded as detailed below:

S.No.

Notification No.

Description

1.

190/1978-Customs dated 22.09.1978

These notification provides for additional duty of customs on import of transformer oil equivalent to such portion of the excise duty leviable on the raw material commonly known as transformer oil base stock or transformer oil feedstock.

2.

191/1978-Customs dated 22.09.1978

3.

10/1995-Customs dated 7.3.1995

This notification prescribes concessional rate of customs duty on import inputs imported for manufacturing of Iron & Steel intermediates.

4.

26/1999-Customs dated 28.2.1999

This notification prescribes concessional rate of basic customs duty on import of kerosene imported by a manufacturer of linear alkyl benzene for extracting N-Paraffin.

5.

27/2004-Customs dated 23.01.2004

This notification prescribes concessional rate of customs duty on import of specified goods imported for use in manufacture of certain chemicals.

6.

14/2006-Customs dated 01.03.2006

This notification prescribes concessional rate of customs duty on import of specified varieties of woven fabrics falling under Chapters 52, 54, 55 and 58.

The entries of this notification have been merged in notification No. 82/2017-Customs.

7.

48/2006-Customs dated 26.05.2006

This notification prescribes concessional rate of customs duty on import of woven fabrics of carded/combed wool or fine animal hair. The entries of this notification have been merged in notification No. 82/2017-Customs.

8.

90/2007-Customs dated 26.07.2007

This notification prescribes concessional rate of additional duty of customs on import of items related to Electronics and Information Technology goods.

9.

08/2011-Customs dated 14.02.2011

This notification prescribes exemption from the whole of the additional duty of customs, leviable thereon under subsection (1) of section 3 of the said Customs Tariff Act, on jute products imported from Bangladesh or Nepal.

The notification has been rescinded as post introduction of GST, the jute products attract integrated tax on imports.

10.

24/2011-Customs dated 1.03.2011

This notification exempts Basic Customs Duty on copper concentrate as is equivalent to the duty of customs leviable on the value of Gold and silver contained in such copper concentrate.

11.

49/2013-Customs dated 29.11.2013

This notification prescribed concessional rate of customs duty on import of Anti-Tuberculosis Drugs, Diagnostics and Equipment and had lapsed on 1st April, 2016.

12.

23/2014-Customs dated 11.07.2014

This notification prescribed concessional rate of customs duty on import of Drugs & equipment imported for National AIDS Control Programme and had lapsed on 1st April, 2015.

13.

37/2015-Customs dated 10.06.2015

This notification prescribed concessional rate of customs duty on import of Anti-Retroviral Drugs (ARV Drugs) and had lapsed on 1st April, 2016.

14.

11/2016-Customs dated 01.03.2016

This notification prescribes concessional rate of customs duty on import of software recorded media.

15.

20/2020-Customs dated 9.04.2020

This notification prescribes concessional rate of customs duty on import of Face Masks, Surgical Masks, Ventilators, COVID-19 Testing Kits, etc. and had lapsed on 30th September, 2020.

16.

40/2020-Customs dated 28.10.2020

This notification prescribes concessional rate of customs duty on import of Potatoes under Tariff Rate Quota (TRQ) and had lapsed on 31st January, 2021.

D. Inclusion of End-date as per Section 25(4A) of the Customs Act, 1962, in certain stand-alone notifications:

S.No.

Notification No./ Entry of the notification No.

Amendment

1.

146/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on specified sports goods, equipment and requisites imported by National Sports Federation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

2.

147/94-Customs dated 13.07.1994

This notification prescribes concessional rate of customs duty on exemption to Fire arms and ammunition for renowned shot

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

3.

50/96-Customs dated 23.07.1996

This notification prescribes concessional rate of customs duty on equipment, instrument, raw materials, components, pilot plants, computer software for R&D project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

4.

30/2004-Customs dated 28.01.2004

This notification prescribes concessional rate of customs duty on import of second hand computers as donation

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

5.

81/2005-Customs dated 08.09.2005

This notification prescribes concessional rate of customs duty on machinery/components for initial setting up of power generation project

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

6.

5/2017-Customs dated 02.02.2017

This notification prescribes concessional rate of customs duty on machinery, equipment, apparatus, components and appliances for initial setting up of fuel cell based system for generation of power

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

7.

16/2017-Customs dated 20.04.2017

This notification prescribes concessional rate of customs duty on specified drugs and medicines supplied free of cost to patients

[All the entries in the notification, unless varied or rescinded, will have validity up to 31.03.2023.]

8.

Serial No. 2 of 32/2017-Customs dated 30.06.2017

This notification prescribes concessional rate of customs duty on art work created abroad by Indian artist and sculptures, antique books more than 100-year-old.

[The entry, unless varied or rescinded, will have validity up to 31.03.2023.]

 


Full Text:

Budget 2022-23 + FINANCE Bill, 2022

Topics

Acts Income Tax