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        Case ID :

        Review of Customs duty Exemptions - Review of conditional exemption rates of BCD

        24 July, 2024

        📋
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        Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

        (i) The BCD exemption for the goods covered under following serial numbers of the notification are being extended upto 31st March, 2026 unless specified otherwise.

        S. No.

        S N of 50/17-Cus

        Brief Description

        1.

        17

        Specified Planting materials, namely, oilseeds, seeds of vegetables, tubers, etc.

        2.

        80A

        Algal oil for manufacturing of aquatic feed

        3.

        90

        Lactose for use in manufacture of homeopathic medicines

        4.

        104

        Specified goods used in processing of sea-food

        5.

        133

        Gold ores and concentrates

        6.

        139

        Bunker Fuels namely: (i). IFO 180 CST; (ii). IFO 380 CST; (iii). VLSFO (CTH 27)

        7.

        150

        Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha)

        8.

        155

        Liquefied petroleum gases (LPG) received from unit in SEZ and returned by the DTA unit to the SEZ unit

        9.

        164

        Electrical energy supplied from SEZ unit to DTA

        10.

        165

        Electrical energy supplied from SEZ to DTA

        11.

        172

        Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module

        12.

        183

        Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals

        13.

        184

        Pharmaceutical Reference Standard

        14.

        188

        Goods for manufacture of ELISA Kits

        15.

        191

        Maltol for manufacture of deferiprone

        16.

        204

        Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide

        17.

        237

        Specified material for manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules (Scope of materials which can be imported is being increased)

        18.

        253

        Specified Goods for manufacture of Brushless Direct Current (BLDC) motors

        19.

        257

        Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters

        20.

        257A

        Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter

        21.

        257B

        Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter

        22.

        257C

        Specified goods used in manufacture of leather or synthetic footwear or other leather products for export when imported by bonafide exporter

        23.

        258

        Security fibre, threads, Paper based Taggant, M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore.

        24.

        259

        Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper

        25.

        260

        Goods for the manufacture of specified orthopedic implants (902110)

        26.

        261

        Raw material for manufacture of Copper-T Contraceptive

        (i) Alatheon

        (ii) Copper Wire

        27.

        265

        Capacitor grades polypropylene granules for manufacture of Capacitor grade plastic

        28.

        269

        Super absorbent polymer for manufacture of adult diapers and specified goods

        29.

        271

        Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn

        30.

        276

        Ethylene- propylene- non-conjugated diene rubber (EPDM) for manufacture of insulated wire and cables

        31.

        279

        New or retreated Pneumatic tyres of rubber for use in servicing, repair of maintenance of aircrafts used for operating scheduled air transport service or scheduled air cargo service etc

        32.

        280

        New or retreated Pneumatic tyres of rubber for use in servicing, repair or maintenance of aircraft imported or procured by Aero Club of India/ for flying training purpose/ operating non-scheduled (passenger or charter) services/ AAI for flight calibration purpose

        33.

        290

        Wood pulp for manufacture of newsprint, paper or paperboard

        34.

        292

        Goods imported for manufacture of paper, paper boards, newsprint

        35.

        293A

        Newsprint and uncoated paper imported for printing of newsprint

        36.

        296A

        Lightweight coated paper imported by actual users for printing of magazines

        37.

        326

        Hydrophilic /Hydrophobic Non- Woven, imported for use in the manufacture of Adult Diapers

        38.

        329

        Pile fabrics for the manufacture of toys

        39.

        333

        Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment

        40.

        334

        (i) Graphite Felt or Graphite pack for growing silicon ingots (ii) Thin Steel wire used in wire saw for slicing of silicon wafers

        41.

        345A

        Simply Sawn Diamonds

        42.

        364A

        Spent catalyst or ash containing precious metals

        43.

        368

        Ferrous Scrap

        44.

        374

        Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel

        45.

        375

        Specified items for manufacture of cold rolled grain-oriented steel (CRGO) steel

        46.

        378

        Metal parts for manufacture of electrical insulators falling under heading 8546

        47.

        379

        Pipes and tubes for use in manufacture of boilers

        48.

        380

        Forged steel rings for manufacture of special bearings for use in wind operated electricity generators

        49.

        381

        Flat copper wire for use in the manufacture of photo voltaic ribbon for manufacture of solar photovoltaic cell or modules

        50.

        392

        Dies for drawing metal, where imported after repairs from abroad

        51.

        403

        Parts and raw materials for offshore oil exploration

        52.

        404

        Specified items including capital goods and raw materials for off shore oil exploration

        53.

        415

        Parts for manufacture of catalytic convertors

        54.

        415A

        Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions

        55.

        416

        Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters

        56.

        417

        Cerium compounds for use in the manufacture of washcoat for catalytic converters

        57.

        418

        Zeolite for use in the manufacture of washcoat for catalytic converters

        58.

        422

        Machinery, electrical equipment for use in semiconductor wafer and LCD

        59.

        423

        Machinery, electrical equipment for use in marking and packaging of semiconductor chips

        60.

        426

        Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell

        61.

        435

        Capital goods for printing industry

        62.

        442

        Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India

        63.

        446

        Parts and components for manufacture of tunnel boring machines

        64.

        451

        Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater

        65.

        462

        Ball screws for use in the manufacture of CNC Lathes

        66.

        463

        Linear Motion Guides for use in the manufacture of CNC Lathes

        67.

        464

        CNC Systems for use in the manufacture of CNC Lathes

        68.

        464A

        Goods for manufacture of plastic processing machineries

        69.

        467

        Parts and components of cash dispenser or automatic bank note dispenser

        70.

        468

        Parts for manufacture of Micro ATM, Fingerprint reader/scanner, Iris scanner, Miniaturised POS (Scope of exemption is being limited to import of raw materials only)

        71.

        471

        All parts for use in the manufacture of LED lights

        72.

        472

        All inputs for use in the manufacture of LED driver or MCPCB for LED lights

        73.

        476

        Television equipment, cameras etc for taking films, imported by a foreign film unit or television team

        74.

        477

        Filming equipment of foreign origin if imported into India after having been exported therefrom.

        75.

        480

        Goods imported for being tested in specified test centers

        76.

        489B

        Goods for manufacturing of Microphones

        77.

        504

        Parts and Components of Digital Still Image Video Cameras

        78.

        509

        Parts, components and accessories for manufacture of Digital Video Recorder

        79.

        510

         Parts, components and accessories for use in manufacture of reception apparatus for television

        80.

        511

        Parts, components and accessories for manufacture of CCTV Camera

        81.

        512

        Specified Parts, components and for use in manufacture of Lithium-ion battery and battery pack

        82.

        512A

        Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly

        83.

        515A

        Open Cell for manufacture of TV Panel

        84.

        516

        The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel

        85.

        517

        Magnetrons for manufacture of domestic microwave ovens

        86.

        519

        Raw materials or parts for use in manufacture of e-Readers

        87.

        523A

        Parts, sub-parts, inputs or raw material for use in manufacture of Lithium-ion cells

        88.

        527

        Lithium-ion cell use in manufacture of battery or battery pack

        89.

        527A

        Lithium-Ion Cell for use in manufacture of battery or battery pack of cellular mobile

        90.

        527B

        Lithium-Ion Cell manufacture of battery or battery pack of EV

        91.

        534

        Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)

        92.

        535

        Raw materials for manufacture of aircraft and parts of aircraft

        93.

        535A

        Parts of aircraft for manufacture of aircraft or for manufacture of parts of aircraft by PSU under Min of Defence

        94.

        536

        Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft, components or parts of aircrafts

        95.

        537

        All goods of Heading 8802 (except 88026000-spacecraft)

        96.

        538

        Components or parts, including engines, of aircraft of heading 8802

        97.

        539

        (a) Satellites and payloads; (b) Ground equipment brought for testing of (a)

        98.

        539A

        Scientific and technical instruments etc for launch vehicles and satellites

        99.

        540

        Specified goods imported by scheduled air transporter

        100.

        542

        Specified goods imported by Aero Club, Flying Training Institutes

        101.

        543

        Specified goods imported by non-scheduled air transporter

        102.

        544

        Parts (other than rubber tubes), of aircraft of heading 8802

        103.

        546

        Parts (other than rubber tubes), of aircraft of heading 8802

        104.

        548

        Barges or pontoons imported along with ships

        105.

        551

        Cruise ships, Excursion ships

        106.

        553

        Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up

        107.

        555

        Vessels like warships, lifeboats excluding vessels and floating structure imported for break up

        108.

        567

        Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve

        109.

        569

        Parts required for manufacture of Ostomy products

        110.

        570

        Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof

        111.

        575

        Specified Hospital Equipment for use in specified hospitals

        112.

        578A

        Raw materials, for the manufacture of Cochlear Implants

        113.

        580

        X-Ray Baggage Inspection Systems and parts thereof

        114.

        581

        Portable X-ray machine / system

        115.

        583

        Parts and cases of braille watches, for the manufacture of Braille watches

        116.

        591

        Parts of electronic toys

        117.

        593

        Parts of video games for the manufacture of video games

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

        (ii) The BCD exemption for the goods covered under following serial numbers of the notification no 50/2017-Customs is being extended upto 31st March 2029.

        S. No.

        S. No. of 50/2017Cus

        Brief Description

        1.

        212A

        Medicines/drugs/vaccines supplied free by United  Nations International Children's Emergency Fund (UNICEF), Red Cross etc

        2.

        213

        Drugs and materials

        3.

        428

        Specified goods imported by accredited press cameraman

        4.

        429

        Specified goods, imported by accredited journalist

        5.

        549

        Capital goods, raw materials and spares for repairs of ocean-going vessels

        6.

        550

        Spare parts and consumables for repairs of ocean going vessels registered in India.

        7.

        577

        Lifesaving medical equipment for personal use

        8.

        607

        Life Saving drugs like Keytruda etc

        9.

        607A

        Lifesaving drugs/medicines for personal use

        10.

        611

        Archaeological artefacts for exhibition in a museum

        11.

        612

        Specified raw material for sports goods

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


        Full Text:

        Union Budget 2024-25 (Full) + FINANCE (No.2) Bill, 2024

        BCD exemption extensions preserve duty-free treatment for specified imports, with targeted scope adjustments for certain inputs. The Finance measure extends conditional Basic Customs Duty (BCD) exemptions for numerous specified goods-inputs, parts, capital goods, and medical supplies-preserving duty-free import treatment subject to existing notification conditions, while narrowing or broadening the scope of certain entries and maintaining targeted provisions for SEZ-related supplies and bona fide exporters; stakeholders must refer to the notification for full descriptive and documentary eligibility requirements.
                        Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                          Provisions expressly mentioned in the judgment/order text.

                              BCD exemption extensions preserve duty-free treatment for specified imports, with targeted scope adjustments for certain inputs.

                              The Finance measure extends conditional Basic Customs Duty (BCD) exemptions for numerous specified goods-inputs, parts, capital goods, and medical supplies-preserving duty-free import treatment subject to existing notification conditions, while narrowing or broadening the scope of certain entries and maintaining targeted provisions for SEZ-related supplies and bona fide exporters; stakeholders must refer to the notification for full descriptive and documentary eligibility requirements.





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