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Union Budget 2023-24 + FINANCE Bill, 2023
CUSTOMS
Note:
(a) “Basic Customs Duty (BCD)” means the customs duty levied under the Customs Act, 1962.
(b) “Agriculture Infrastructure and Development Cess (AIDC)” means a duty of customs that is levied under Section 124 of the Finance Act, 2021.
(c) “Social Welfare Surcharge (SWS)” means a duty of customs that is levied under Section 110 of the Finance Act, 2018.
(d) Clause Nos. in square brackets [ ] indicate the relevant clause of the Finance Bill, 2023.
(e) Amendments carried out through the Finance Bill, 2023, will come into effect on the date of its enactment, unless otherwise specified.
I. AMENDMENTS TO THE CUSTOMS ACT, 1962
S. No. | Amendment | Clause of the Finance Bill, 2023 |
1. | Section 25(4A) of the Customs Act is being amended to insert a Proviso to the effect that the validity period of two years shall not apply to exemption notifications issued in relation to multilateral or bilateral trade agreements; obligations under international agreements, treaties, conventions including with respect to UN agencies, diplomats, international organizations; privileges of constitutional authorities; schemes under Foreign Trade Policy; Central Government schemes having a validity of more than two years; re-imports, temporary imports, goods imported as gifts or personal baggage; any duty of customs under any law for the time being in force including integrated tax leviable under sub-section (7) of Section 3 of the Customs Tariff Act, 1975, other than duty of customs leviable under section 12. | [123] |
2 | A new sub section (8A) to section 127 C is being inserted so as to specify a time limit of 9 months from the date of application, for disposal of the application filed before the Settlement Commission. | [124] |
II. AMENDMENTS TO THE CUSTOMS TARIFF ACT, 1975
S. No. | Amendment | Clause of the Finance Bill, 2023 |
A. | Retrospective Amendments (w.e.f. 01.01.1995) | [125] |
1. | Sub-section (6) and sub-section (7) of section 9 of the Customs Tariff Act, 1975 is being amended to remove ambiguity and clarify that determination and review for countervailing duty refers to determination and review of countervailing duty in a manner prescribed by rules under the Act. | [125] |
2. | Sub-section (5) and sub-section (6) of section 9A of the Customs Tariff Act, 1975 is being amended to remove ambiguity and clarify that determination and review for anti-dumping duty refers to determination and review in a manner prescribed by rules under the Act. | [125] |
3. | Section 9 C of the Customs Tariff Act, 1975 is being amended to remove ambiguity and clarify that appeals under this section lie against the determination or review thereof made by an authority in a manner as specified by rules notified under Sections 8 B, 9, 9A and 9B of the Act. It also seeks to insert an explanation to provide the meaning of determination or review thereof. | [125] |
B. | Prospective Amendment |
|
4. | The First Schedule to the Customs Tariff Act, 1975 is being amended to increase the tariff rates on certain tariff items with effect from 2.2.2023. | [126 (a)] read with Second Schedule |
5. | The First Schedule to the Customs Tariff Act, 1975 is being amended to modify the tariff rates on certain tariff items as part of rationalization of customs duty rate structure with effect from the date of assent. | [126 (b)] Read with Third Schedule |
6. | The heading 9801 of the first schedule of Customs Tariff Act, 1975 is being amended to exclude solar power plant/solar power project from the purview of Project Imports with effect from the date of assent. | |
7. | The First Schedule to the Customs Tariff Act, 1975 is also being amended to modify the tariff entries with effect from 1st May,2023 | [126(c)] read with Fourth Schedule |
III. AMENDMENTS TO THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975
(i) The First Schedule to the Customs Tariff Act, 1975 is being amended to introduce new tariff lines or modify existing tariff lines. The proposed changes are in chapter 3, chapter 4, chapter 9, chapter 10, chapter 12, chapter 13, chapter 19, chapter 27, chapter 29, chapter 31, chapter 38, chapter 39, chapter 48, chapter 52, chapter 54, chapter 57, chapter 61, chapter 62, chapter 63, chapter 69, chapter 71, chapter 84, chapter 85, and chapter 87.
(ii) The General explanatory note to the General Rules for interpretation of the Schedule is being amended to carry out some changes which inter alia, include changes to align the abbreviations and the tariff with complementary amendments to the HS 22.
(iii) The First Schedule to the Customs Tariff Act, 1975 is also being amended to modify the tariff rates on certain tariff items as part of rationalization of customs duty rate structure.
(iv) The Second Schedule is being amended to align the entries under heading 1202 with that of the First Schedule with effect from 1st May,2023. [clause 127 read with Fifth Schedule of the Finance Bill 2023]
AMENDMENTS | ||||
Tariff Rate Changes | ||||
A. | Increase in Tariff rate (to be effective from 02.02.2023) * [Clause 126(a) ] of the Finance Bill, 2023] *Will come into effect immediately through a declaration under Provisional Collection of Taxes Act,1931 | Rate of Duty | ||
S. No. | Heading, sub-heading tariff item | Commodity | From | To |
|
| Chemicals |
|
|
1. | 2902 50 00 | Styrene | 2% | 2.5% |
2. | 2903 21 00 | Vinyl Chloride Monomer | 2% | 2.5% |
|
| Rubber |
|
|
3. | 4005 | Compounded Rubber | 10% | 25% or Rs. 30 per kg., whichever is lower |
|
| Gems and Jewellery Sector |
|
|
4. | 7113, 7114 | Articles of precious metals | 20% | 25% |
5. | 7117 | Imitation Jewellery | 20% or Rs. 400 per kg., whichever is higher | 25% or Rs. 600 per kg., whichever is higher |
|
| Electrical Goods |
|
|
6. | 8414 60 00 | Electric Kitchen Chimney | 7.5% | 15% |
|
| Automobiles and Toys |
|
|
7. | 8712 00 10 | Bicycles | 30% | 35% |
8. | 9503 | Toys and parts of toys (other than parts of electronic toys) | 60% | 70% |
B. | Tariff rate changes (without any changes to the effective rate of Customs Duty) [Clause 126(b)] of the Finance Bill, 2023] Note: In order to simplify the tax structure, number of BCD rates are being reduced. This rationalization of BCD rate structure is being carried out in a manner so as to maintain the existing incidence of duty in certain items. These changes need to be read with appropriate changes in AIDC/SWS rates | Rate of Duty | ||
S. No. | Heading, sub-heading tariff item | Commodity | From | To |
1. | 4011 30 00 | New or retreaded pneumatic tyres, of rubber, of a kind used on aircraft of heading 8802 | 3% | 2.5% |
2. | 7107 00 00 | Base metals clad with silver, not further worked than semi-manufactured | 12.5% | 10% |
3. | 7108 | Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form | 12.5% | 10% |
4. | 7109 00 00 | Base metals or silver, clad with gold, not further worked than semi-manufactured | 12.5% | 10% |
5. | 7110 11 10 7110 11 20 7110 19 00 7110 21 00 7110 29 00 7110 41 00 7110 49 00 | Platinum, unwrought or in semi-manufactured form, or in powder form | 12.5% | 10% |
6. | 7111 00 00 | Base metals, silver or gold, clad with platinum, not further worked than semi- manufactured | 12.5% | 10% |
7. | 7112 | Waste and scrap of precious metal or of metal clad with precious metal; other waste and scrap containing precious metal or precious metal compounds, of a kind used principally for the recovery of precious metal other than goods of heading 8549 | 12.5% | 10% |
8. | 7118 | Coin | 12.5% | 10% |
9. | 8802 20 00 8802 30 00 8802 40 00 | Aero planes and other aircrafts | 3% | 2.5% |
C. | Tariff rate changes (with changes to the effective rate of Customs Duty) [Clause 126(b)] of the Finance Bill, 2023] | Rate of duty | ||
1. | 7106 | Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form | 12.5% | 10% |
IV OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES IN NOTIFICATIONS
A. | Changes in Basic Customs Duty (to be effective from 02.02.2023) | Rates of Duty | ||
S. No | Chapter, Heading, subheading, tariff item | Commodity | From | To |
|
| Agricultural Products and By Products |
|
|
1. | 0802 99 00 | Pecan nuts | 100% | 30% |
2. | 1504 20 | Fish lipid oil for use in manufacture of aquatic feed | 30% | 15% |
3. | 1520 00 00 | Crude glycerin for use in manufacture of Epichlorohydrin | 7.5% | 2.5% |
4. | 2102 20 00 | Algal Prime (flour) for use in manufacture of aquatic feed | 30% | 15% |
5. | 2207 20 00 | Denatured ethyl alcohol for use in manufacture of industrial chemicals | 5% | Nil |
6. | 2301 20 | Fish meal for use in manufacture of aquatic feed | 15% | 5% |
7. | 2301 20 | Krill meal for use in manufacture of aquatic feed | 15% | 5% |
8. | 2309 90 90 | Mineral and Vitamin Premixes for use in manufacture of aquatic feed | 15% | 5% |
|
| Minerals |
|
|
9. | 2529 22 00 | Acid grade fluorspar (containing by weight more than 97% of calcium fluoride) | 5% | 2.5% |
|
| Petrochemicals |
|
|
10. | 2710 12 21, 2710 12 22, 2710 12 29 | Naphtha | 1% | 2.5% |
|
| Gems and Jewellery Sector |
|
|
11. | 7102, 7104 | Seeds for use in manufacturing of rough lab-grown diamonds | 5% | Nil |
12. | 7106 | Silver (including silver plated with gold or platinum), unwrought or in semimanufactured forms, or in powder form | 7.5% | 10% |
13. | 7106 | Silver Dore | 6.1% | 10% |
|
| IT, Electronics |
|
|
14. | 25, 28, 32, 39, 40, 69, 73, 85 | Specified chemicals/items for manufacture of Pre-calcined Ferrite Powder | 7.5% | Nil |
15. | 3824 99 00 | Palladium Tetra Amine Sulphate for manufacture of parts of connectors | 7.5% | Nil |
16. | Any Chapter | Camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone | 2.5% | Nil |
17. | 8529 | Specified parts for manufacture of open cell of TV panel | 5% | 2.5% |
|
| Electronic appliances |
|
|
18. | 8516 80 00 | Heat Coil for use in the manufacture of Electric Kitchen Chimneys | 20% | 15% |
|
| Automobiles |
|
|
19. | 8703 | Vehicle (including electric vehicles) in Semi-Knocked Down (SKD) form . | 30% | 35% |
20. | 8703 | Vehicle in Completely Built Unit (CBU) form , other than with CIF more than USD 40,000 or with engine capacity more than 3000 cc for petrolrun vehicle and more than 2500 cc for diesel-run vehicles, or with both | 60% | 70% |
21. | 8703 | Electrically operated Vehicle in Completely Built Unit (CBU) form, other than with CIF value more than USD 40,000 | 60% | 70% |
22. | 39,40,58,70,72 73,83,84,85, 87,90 | Vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies for the purpose of testing and/ or certification , subject to conditions | As applicable | Nil |
|
| Capital goods |
|
|
23. | 84, 85 | Specific capital goods/machinery for manufacture of Lithium ion cell for use in battery of electrically operated vehicle (EVs) | As applicable | Nil |
B. | Changes in Basic Customs Duty (without any change in the effective rate of Customs Duties i.e., BCD+AIDC+SWS) Note: In order to simplify the tax structure, number of BCD rates are being reduced. This rationalization of BCD rate structure is being carried out in a manner so as to maintain the existing incidence of duty on certain items. These changes need to be read with appropriate changes in AIDC/SWS rates | Rate of Duty | ||
S. No | Chapter, Heading, subheading, tariff item | Commodity | From | To |
1. | 2701, 2702, 2703 | Coal, peat, lignite | 1% | 2.5% |
2. | 7108 | Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form | 12.5% | 10% |
3. | 7108 | Gold Dore | 11.85% | 10% |
4. | 7110 11 10 7110 11 20 7110 19 00 7110 21 00 7110 29 00 7110 41 00 7110 49 00 | Platinum, unwrought or in semi-manufactured form, or in powder form other than those used in manufacture of noble metal compounds, noble metal solutions and catalytic converters | 12.5% | 10% |
C. | Change in end date of exemption (No change in effective rate of duty). | Rate of duty | ||
S. No | S. No in Notification no 50/2017Customs | Commodity | From | To |
1 | 368 | Ferrous waste and scrap | Nil | Nil (up to 31.03.2024) |
2 | 374, 375 | Raw materials for use in manufacture of CRGO steel | Nil | Nil (up to 31.03.2024) |
3 | 527A | Lithium-ion cell for use in the manufacture of battery or battery pack of cellular mobile phone | 5% | 5% (up to 31.03.2024) |
4 | 527B | Lithium-ion cell for use in the manufacture of battery or battery pack of electrically operated vehicle (EVs) or hybrid motor vehicle | 5% | 5% (up to 31.03.2024) |
5 | 168 | Specified inputs and sub-parts for use in manufacture of telecommunication grade optical fibre or optical fibre cables | Nil | Nil (up to 31.03.2025) |
6 | 341 | Preform of silica for use in the manufacture of telecommunication grade optical fibres or optical fibre cables | 5% | 5% (up to 31.03.2025) |
7 | 341A | Inputs for manufacture of Preform of silica | Nil | Nil (up to 31.03.2025) |
8 | 237 | Specified inputs for use in the manufacture of EVA sheet or back sheets which are used in the manufacture of solar cell or modules | Nil | Nil (up to 31.03.2024) |
9 | 340 | Solar tempered glass for use in the manufacture of solar cell or solar module | Nil | Nil (up to 31.03.2024) |
10 | 405, 406 | Raw materials and parts for manufacture of wind operated electricity generators, including permanent magnets for manufacture of PM synchronous generators above 500KW for use in wind operated electricity operators | 5% | 5% (up to 31.03.2025) |
11. | 559 | Raw material and parts (including Dredger) for use in the manufacture of ships/vessels | Nil | Nil (up to 31.03.2025) |
12 | 166 | Specified Drugs, medicines, diagnostics kits or equipment, bulk drugs used in manufacture of drugs or medicines | 5% | 5% (up to 31.03.2025) |
13 | 167 | Lifesaving drugs/ medicines and diagnostic test kits, bulk drugs used in manufacture of life-saving drugs or medicines | Nil | Nil (up to 31.03.2025) |
V. Review of customs duty concessions/ exemptions:
A. Review of conditional exemption rates of BCD prescribed in notification No. 50/2017 – customs dated 30.6.2017:
(a). The BCD exemption for the goods covered under following serial numbers of the notification are being extended for a period of one year i.e. upto 31st March 2024, unless specified otherwise.
S. No. | S. No. of Notfn | Description |
Extension up to 31. 03. 2024 | ||
S. No. | S. No. of Notfn | Description |
1. | 90 | Lactose for use in the manufacture of homeopathic medicine |
2. | 133 | Gold ores and concentrates for use in manufacture of Gold |
3. | 139 | Specified bunker Fuel for use in ships or vessels |
4. | 150 | Goods of Heading 2710 or 271490 for manufacture of Fertilisers |
5. | 155 | Excess Liquefied petroleum gases (LPG) returned by DTA unit to SEZ unit |
6. | 164 | Electrical energy supplied to DTA by power plants of 1000MW or above |
7. | 165 | Electrical energy supplied to DTA by power plant less than 1000MW |
8. | 183 | Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceutical |
9. | 184 | Pharmaceutical Reference Standard |
10. | 188 | Specified goods for manufacture of ELISA Kits |
11. | 204 | Anthraquinone or 2-Ethyl Anthraquinone, for use in manufacture of Hydrogen Peroxide |
12. | 212A | Medicines/drugs/vaccines supplied free by United Nations International Children's Emergency Fund (UNICEF), Red Cross or an International Organization |
13. | 213 | Drugs and materials |
14. | 238 | Organic or inorganic coating material for manufacture of electrical steel |
15. | 253 | Goods for manufacture of Brushless Direct Current (BLDC) motors |
16. | 254 | Catalyst for manufacture of cast components of Wind Operated Electricity Generator |
17. | 255 | Resin for manufacture of cast components of Wind Operated Electricity Generator |
18. | 258 | Security fibre, security threads, Paper based taggant including M-feature for manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore. |
19. | 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 |
20. | 260 | Goods for the manufacture of orthopaedic implants falling under 902110 |
21. | 261 | Alatheon and copper wire |
22. | 269 | Super absorbent polymer for manufacture adult diapers, tampons, sanitary pads etc (9619) |
23. | 271 | Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn |
24. | 276 | Ethylene – propylene – non-conjugated diene rubber (EPDM) for manufacture of insulated wires and cables |
25. | 277A | Calendared plastic sheet for manufacturing of Smart Card (8523) |
S. No. | S. No. of Notfn | Description |
26. | 279 | Pneumatic tyres of rubber for MRO of aircraft used in scheduled air service |
27. | 280 | Pneumatic tyres of rubber for MRO of aircraft used by training, aeroclub etc. |
28. | 333 | Moulds, tools and dies for manufacture of parts of electronic components/equipment |
29. | 334 | Graphite Felt or graphite pack for growing silicon ingots; Thin steel wire used in wire saw for slicing of silicon wafers |
30. | 339 | Toughened glass for solar thermal collectors or heaters |
31. | 353 | Foreign currency coins when imported into India by a Scheduled Bank |
32. | 364A | Spent catalyst or ash containing precious metals |
33. | 378 | Metal parts for manufacture of electrical insulators falling under heading 8546 |
34. | 379 | Pipes and tubes for use in manufacture of boilers |
35. | 380 | Forged steel rings for manufacture of special bearings for use in wind operated electricity generator |
36. | 381 | Flat copper wire for use in the manufacture of photo voltaic ribbon for solar cell/modules |
37. | 387 | Zinc metal recovered by toll smelting or toll processing from zinc concentrates exported from India for such processes |
38. | 392 | Dies for drawing metal, when imported after repairs in exchange of similar worn out dies exported out for repairs |
39. | 415 | Parts/inputs for manufacture of catalytic convertors or its parts |
40. | 415A | Platinum or Palladium for manufacture of all goods including Noble Metal Compounds & Noble Metal Solutions falling under 2843 and goods of heading 381512 |
41. | 416 | Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters |
42. | 417 | Cerium compounds for use in the manufacture of washcoat for catalytic converters |
43. | 418 | Zeolite for use in the manufacture of washcoat for catalytic converters |
44. | 419 | Aluminium Oxide for use in the manufacture of washcoat for catalytic converters |
45. | 420 | Clay 2 Powder (Alumax) for use in ceramic substrate for catalytic convertors |
46. | 421 | Goods required for basic telephone /internet service and their parts |
47. | 426 | Specified goods for the manufacture of goods falling under 8523 5200, 8541, 8542, 8543 9000 or 8548 00 00 |
48. | 428 | Specified goods imported by accredited press cameraman |
49. | 429 | Specified goods, imported by accredited journalist |
S. No. | S. No. of Notfn | Description |
50. | 435 | Capital goods/ Machinery for printing industry |
51. | 441 | Spinnerettes made interalia of Gold, Platinum and Rhodium or any one or more of these metals, when imported in exchange of worn out or damaged spinnerettes exported out of India |
52. | 462 | Ball screws for use in the manufacture of CNC Lathes, Machining Centres or all type of CNC machine tools falling under 8456 to 8463 |
53. | 463 | Linear Motion Guides for use in the manufacture of CNC Lathes, Machining Centres or all type of CNC machine tools falling under 8456 to 8463 |
54. | 464 | CNC Systems for use in the manufacture of CNC Lathes, Machining Centres or all type of CNC machine tools falling under 8456 to 8463 |
55. | 467 | Cash dispenser and parts thereof |
56. | 468 | Micro ATM; fingerprint reader/scanner other than for use in manufacturing cellular mobile phones; miniaturized POS card reader for mPOS (other than Mobile phone or Tablet Computer); parts and components for manufacture of the above items |
57. | 471 | All parts for use in the manufacture of LED lights or fixtures including LED lamps |
58. | 472 | All inputs for use in the manufacture of LED driver or MCPCB for LED lights and fixtures or LED lamps |
59. | 475 | Specified goods including scramblers, descramblers, encoders, jammers, network firewall, SMS monitoring system etc |
60. | 476 | Television equipment, cameras and other equipment for taking films, imported by a foreign film unit or television team |
61. | 477 | Photographic, filming, sound recording and radio equipment, raw films, video tapes and sound recording tapes of foreign origin if imported into India after having been exported therefrom. |
62. | 478 | The wireless apparatus, parts imported by a licensed amateur radio operator |
63. | 480 | Goods imported for being tested in specified test centers |
64. | 482 | Newspaper page, transmission and reception facsimile system or equipment; telephoto transmission and reception system or equipment |
65. | 489B | Specified goods for manufacturing of microphones |
66. | 495 | Batteries for electrically operated vehicles, including two and three wheeled electric motor vehicles |
67. | 497 | Active Energy Controller (AEC) for use in manufacture of Renewable Power System (RPS) inverters |
68. | 504 | Parts and Components of Digital Still Image Video Cameras |
69. | 509 | Parts, components and accessories for manufacture of Digital Video Recorder /Network Video Recorder (NVR) falling under 85219090 and sub-parts for manufacture of these items |
S. No. | S. No. of Notfn | Description |
70. | 510 | Parts, components and accessories for use in manufacture of reception apparatus for television and sub-parts for manufacture of these items |
71. | 511 | Parts, components and accessories for manufacture of CCTV Camera /IP camera and sub-parts for manufacture of these items |
72. | 512 | Specified Parts, components and subparts for use in manufacture of Lithium-ion battery and battery pack |
73. | 512A | Inputs ,parts or subparts for manufacture of PCBA of Lithium ion battery and battery pack |
74. | 515A | Open cell for use in manufacture of LCD and LED TV panels of heading 8524 |
75. | 516 | Specified goods for use in the manufacture of Liquid Crystal Display (LCD) and LED TV panel |
76. | 519 | Raw materials or parts for use in manufacture of e-Readers |
77. | 523A | Parts, sub-parts, inputs or raw material for use in manufacture of Lithium ion cells |
78. | 527 | Lithium ion cell used in manufacture of battery or battery pack of items other than cellular mobile phone, electrically operated vehicle or hybrid motor vehicle |
79. | 534 | Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders) |
80. | 535 | Raw materials for manufacture of aircraft (except unmanned aircraft used as television camera, digital camera or video camera recorder) or its parts |
81. | 535A | Components or parts of aircraft for manufacture of aircraft (except unmanned aircraft used as television camera, digital camera or video camera recorder) or for manufacture of parts of aircraft imported by PSUs under Ministry of Defence |
82. | 536 | Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft (except unmanned aircraft used as television camera, digital camera or video camera recorder) or its parts |
83. | 537 | All goods of Heading 8802 (except 88026000-spacecraft) |
84. | 538 | Components or parts, including engines, of aircraft of heading 8802 |
85. | 539 | (a) Satellites and payloads; (b) Ground equipments brought for testing of (a) |
86. | 539A | Scientific and technical instruments, apparatus etc required for launch vehicles and satellites and payloads |
87. | 540 | Specified goods under heading 8802 imported by scheduled air transporter |
88. | 542 | Specified goods imported by Aero Club, Flying Training Institutes |
89. | 543 | Specified goods imported by non-scheduled air transporter |
90. | 544 | Parts (other than rubber tubes) of aircraft of heading 8802 for operating scheduled air transport/air cargo services |
S. No. | S. No. of Notfn | Description |
91. | 546 | Parts (other than rubber tubes) of aircraft of heading 8802 for non- scheduled passenger/charter services, aero club, training purpose etc |
92. | 548 | Barges or pontoons imported along with ships |
93. | 549 | Capital goods and spares, raw materials, parts, material handling equipment and consumables for repairs of ocean-going vessels by a ship repair unit |
94. | 550 | Spare parts and consumables for repairs of ocean-going vessels registered in India. |
95. | 551 | Cruise ships, excursion ships (excluding vessels and floating structures imported for breaking up) |
96. | 553 | Fishing vessels, Tugs and Pusher crafts, light vessels (excluding vessels and floating structures imported for breaking up) |
97. | 555 | Vessels such as warships, lifeboats (excluding vessels and floating structures imported for breaking up) |
98. | 565 | Specified goods for use in the manufacture of Flexible Medical Video Endoscope |
99. | 566 | Polypropylene, Stainless-steel Strip and stainless steel capillary tube for manufacture of syringes, needles, catheters and cannulae |
100. | 567 | Stainless steel tube and wire, cobalt chromium tube, Hayness alloy-25 and polypropylene mesh required for manufacture of coronary stents / coronary stent system and artificial heart valve |
101. | 568 | Parts and components required for manufacture of Blood Pressure Monitors and blood glucose monitoring system (Glucometers) |
102. | 569 | Ostomy products, its accessories and parts required for manufacture of such medical equipment |
103. | 570 | Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof |
104. | 575 | Hospital Equipment (excluding consumables) for use in specified hospitals |
105. | 577 | Lifesaving medical equipment including accessories or spare parts or both of such equipment for personal use |
106. | 578A | Raw materials, parts or accessories for manufacture of Cochlear Implants |
107. | 579 | Survey (DGPS) instruments, 3D modeling software cum equipment for surveying and prospecting of minerals |
108. | 580 | X-Ray Baggage Inspection Systems and parts thereof |
109. | 581 | Portable X-ray machine / system |
110. | 583 | Parts and cases of braille watches, for the manufacture of Braille watches |
111. | 593 | Parts of video games for the manufacture of video games |
112. | 607 | Specified Life Saving drugs/medicines including medicines for Spinal Muscular Atrophy or Duchenne Muscular Dystrophy, for personal use |
S. No. | S. No. of Notfn | Description |
113. | 607A | Lifesaving drugs/medicines for personal use supplied free of cost by overseas supplier |
114. | 611 | Archaeological specimens, photographs, plaster casts or antiquities for exhibition for public benefit in a museum managed by ASI or by State Govt. |
115. | 612 | Specified raw material for sports goods |
Note: Description of entries is indicative. Notification may be referred to for complete description.
(b). The BCD exemption for the goods covered under following serial number of the notification no 50/2017-Customs is being extended for a period of five years i.e. upto 31st March 2028.
S. No. | S. No. of Notfn. | Subject |
1. | 609 | Used bonafide personal and household effects of a deceased person |
B. Review of exemptions prescribed by other notifications:
(a). The BCD exemptions for the goods covered under following notifications are being extended for a period of one year i.e. upto 31st March 2024.
S. No. | Notification No. | Subject |
1 | 16-Customs dated 23.1.65 | Exemption to goods exported to foreign countries for display in showrooms of Govt of India |
2. | 80/1970-Customs | Exemption to articles supplied free under warranty as replacement for defective ones |
3. | 46-Customs (1974) | Pedagogic material for educational or vocational training courses |
4. | 248/76-Customs | Exemption to precious stones imported by posts on ‘approval or return’ basis |
5. | 207/89-Customs | Exemption to foodstuff and provisions, imported by foreigners |
6. | 134/94-Customs | Exemption to goods for carrying out repairs, reconditions , testing calibration or maintenance |
7. | 147/94-Customs | Exemptions to firearms & ammunition by renowned shot |
8. | 148/94-Customs | Exemptions to specified free gifts, donations, relief and rehabilitation material imported by charitable trusts, Red Cross, CARE and Govt of India |
9. | 151/94-Customs | Exemption to aircraft equipment, tanks, fuel and lubricating oils by Indian Airlines, United Arab Airlines, Indian Air Force |
10. | 152/94-Customs | Exemption to imports for handicapped person, charitable or social |
S. No. | Notification No. | Subject |
|
| welfare purposes and research and education programme |
11. | 153/94-Customs | Exemption to goods for foreign origin imported for repair and return |
12. | 39/96-Customs | Imports relating to defence, internal security forces& air forces |
13. | 50/96-Customs | Exemption to specified equipment, instruments, raw material etc imported for R&D projects |
14. | 51/96-Customs | Exemption to research equipment by publicly funded and research institutions, Govt. Dept., laboratory, IIT etc |
15. | 25/98- Customs | Effective rate of duty for goods of Chapter 70,84,85 or 90 |
16. | 97/99- Customs | Exemption to Gold bars under Gold Deposit Scheme of RBI |
17. | 113/2003-Customs | Exemption to castor oil cake and castor de-oiled cake manufactured from indigenous castor oil seeds on indigenous plant and machinery by unit in SEZ and brought to DTA |
18. | 30/2004-Customs | Exemptions to second-hand computers/accessories received as donation by schools, charitable institutions |
19. | 45/2005-Customs | Exemption from Special Additional duty of Customs to goods cleared from SEZ and brought to any other place in India |
20. | 81/2005-Customs | Exemption to machinery/components for initial setting up of nonconventional power generation plants |
21. | 102/2007-Customs | Exemption from Special CVD to all goods imported for subsequent sale when IGST, CGST, SGST or UTGST paid by importers. |
22. | 26/2011-Customs | Exemption to work of art, antiques in museum or art gallery imported for public exhibition |
23. | 23/2016-Customs | Effective rates for parts of aircraft imported under the Standard Exchange Scheme |
24. | 05/2017-Customs | Exemption to machinery, components for setting up fuel cell based power generation plant. |
25. | 16/2017-Customs | Exemption to specified drugs & medicines supplied free of cost to patients under Patient Assistanceprogram of Pharma Companies |
26. | 29/2017-Customs | Exemption to specimen, models, wall pictures and diagrams for instructional purposes |
27. | 30/2017-Customs | Exemption to motion picture, music, gaming software for use in gaming console printed or recorded on media |
28. | 32/2017-Customs | Exemption to art work created abroad by Indian artist, sculptor, antiques books more than 100 years |
29. | 37/2017-Customs | Imports relating to defence & internal security forces |
30. | 49/2017-Customs | Exemption to special Additional Duty on specified goods of fourth schedule to Central Excise Act |
31. | 52/2017-Customs | Effective rate of Additional duty for goods under Chapter 27 |
(b). The BCD exemptions for the goods covered under following notifications are being extended for a period of five years i.e. upto 31st March 2028.
1 | 41/2017-Customs | Exemption to import of cups, trophies to be awarded to winning teams in international tournament /world cup to be held in India. |
2 | 33/2017-Customs | Exemption to import of challenge cups and trophies won by a unit of Defence Force or its members. |
3 | 146/94- Customs | Exemption to imports by specified sports goods imported by National Sports Federation or by a Sports person of outstanding eminence for training. |
4 | 90/2009-Customs | Exemption to imports from Antarctica of goods used for or related to Indian Antarctic Expedition or Indian Polar Science Programme. |
VI. Other Notification changes
S. No. | Notification No. | Subject |
1. | Notification No. 22/2022Customs, dated 30.04.2022 | The India-UAE CEPA Tariff notification is being amended as a consequential change to rationalization of basic customs duty rate structure. |
2. | Notification No. 57/2000Customs, dated 08.05.2000 | This notification relating to jewellery export promotion is being amended consequent to changes in import duty structure on Gold and increase in duty rate of Silver. |
3. | Notification No. 146/94Customs, dated 13.07.1994 | Benefit of the existing exemption notification No. 146/94-Customs, dated 13.07.1994, is being extended w.e.f. 02.02.2023 to imports of ‘Warm Blood horse’ when imported by Sportsperson of eminence for training. |
VII. Customs duty exemptions /concessions being discontinued
Certain BCD exemptions under notification No. 50/2017-Customs dated 30.6.2017 and other notification are being discontinued with effect from 31.03.2023.
The following are being discontinued as they are redundant :
S. No. | S. No. of Notfn | Description |
1. | S. No. 16 of 50/2017Customs | This exemption entry pertaining to ‘Human Embryo’ is being withdrawn as it is redundant on account of prohibition of import of Human Embryo under the Assisted Reproductive Technology (Regulation) Act, 2021 and The Surrogacy (Regulation) Act, 2021. [notification No. 22/2015-20 dated 20th July, 2022 of DGFT refers] |
2. | S. No. 325 of 50/2017Customs | This exemption entry pertaining to ‘Monofilament Yarn’ is being withdrawn as tariff rate is also at 5% and hence redundant |
3. | 48/2017-Customs | Exemption to catering cabin equipment, food and drinks on reimportation by aircrafts of the Indian Airlines Corporation from foreign flights is being withdrawn. |
VIII. SOCIAL WELFARE SURCHARGE (SWS)
A. | AMENDMENT TO NOTIFICATION NO. 11/2018 – CUSTOMS, DATED 02.02.2018 (w.e.f. 02.02.2023) |
S. No. | Description |
Following goods are being exempted from levy of Social Welfare Surcharge in order to maintain the total effective duty owing to rationalization of basic customs duty rate structure: | |
1. | Silver (HSN 7106), Gold ( HSN 7108) & Imitation Jewellery (HSN 7117). |
2. | Platinum (HSN 7110) other than rhodium and goods covered under S. Nos. 415(a) and 415A of the Table in notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. |
3. | All goods falling under HSN 7113, other than the goods covered under S. Nos. 356, 357 and 364C of the Table in notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. |
4. | All goods falling under HSN 7114, other than the goods covered under S. Nos. 356 and 357 of the Table in notification No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India vide number G.S.R. 785(E), dated the 30th June, 2017. |
5. | Bicycles (HSN 8712 00 10) |
6. | Motor vehicle including electrically operated vehicles falling under HSN 8703 covered under S. No. 526 (1)(b), 526 (2)(b), 526A(1)(b) and 526A(2)(b) of the Table in Notification No. 50/2017-Customs dated the 30th June, 2017, published in the Gazette of India vide no G.S.R. 785(E) dated the 30th June, 2017 |
7. | Aeroplane and other aircrafts falling under tariff items 8802 2000, 8802 3000 and 8802 4000 covered under S. No. 543 A of the Table in Notification No. 50/2017-Customs dated the 30th June, 2017, published in the Gazette of India vide no G.S.R. 785(E) dated the 30th June, 2017. |
8. | Toys and parts of toys (HSN 9503) other than goods covered under S. No. 591of the Table in Notification No. 50/2017-Customs dated the 30th June,2017 |
B. | RESCINDING OF NOTIFICATION RELATING TO SWS These notifications are being rescinded on account of being redundant due to basic customs duty rate structure rationalization: |
1 | No. 13/2021-Customs, dated the 1st February, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 71(E), dated the 1st February, 2021 |
2 | No. 34/2022-Customs, dated the 30thJune, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 487(E), dated the 30thJune, 2022 |
IX. AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS (AIDC)
Notification No. 11/2021 – Customs, dated 01.02.2021 is being amended to revise the AIDC rates on the following goods (w.e.f. 02.02.2023): | ||||
A. | AIDC rate changes (with changes to the effective rate of Customs Duty) | Rate of Duty | ||
S. No | Chapter, Heading, subheading, tariff item | Commodity | From | To |
1. | 7106,98 | Silver (including silver plated with gold or platinum), unwrought or in semi-manufactured forms, or in powder form | 2.5% | 5% |
2. | 71 | Silver Dore | 2.5% | 4.35% |
B. | Changes to AIDC (without any change to the effective rate of Customs Duty) | Rate of Duty | ||
S. No | Chapter, Heading, subheading, tariff item | Commodity | From | To |
1. | 2701, 2702, 2703 | Coal, peat, lignite | 1.5% | Nil |
2. | 40113000 | New pneumatic tyres, of rubber , of a kind used on aircraft as mentioned in Entry 280 A of Notification No. 50/2017-Cus | Nil | 0.5% |
3. | 7108 or 98 | Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form | 2.5% | 5% |
4. | 71 | Gold Dore | 2.5% | 4.35% |
5. | 7110 | Platinum other than rhodium and goods covered under S. Nos. 415(a) and 415A of the Table in notification No. 50/2017Customs, dated the 30th June, 2017. | 1.5% | 5.4% |
6. | 8802 20 00 8802 30 00 8802 40 00 | Aero planes and other aircraft covered under S.No. 543A of Notification No. 50/2017-Cus | Nil | 0.5% |
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