EXPORT IMPORT DATA

India Union Budget 2016 - 2017:

Changes in Customs Import Duty

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Chapter 1 to 7: No change

 

Chapter 8:

1)  Basic Customs Duty on cashew nuts in shell [0801 31 00] is being increased from Nil to 5%.

S.No.22 of notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.12/2016-Customs, dated 1st March, 2016 refers.

 

Chapter 9 to 21: No change

 

Chapter 22:

1)  Basic Customs duty on denatured ethyl alcohol (ethanol) [2207 20 00] is being reduced from 5% to 2.5% for manufacture of excisable goods, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.12/2016- Customs, dated the 1st March, 2016 [New S.No.96A] refers.

 

Chapter 23 to 24: No change

 

Chapter 25:

1)  Basic Customs duty on Silica Sand [2505 10 11, 2505 10 12 and 2505 10 19] is being reduced from 5% to 2.5%. Notification No.12/2012-Customs, dated 17th  March, 2012, as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.109A] refers.

 

Chapter 26:

1)  Export duty on Iron ore lumps (below 58% Fe content) [2601 11 21 and 2601 11 22] is being reduced from 30% to Nil and Iron ore fines (below 58% Fe content) [2601 11 41 and 2601 11 42] is being reduced from 10% to Nil. S.No.20A of notification No. 27/2011-Customs, dated 01.03.2011 as amended by notification No. 15/2016-Customs, dated 01.03.2016 refers.

2)  Export duty on chromium ores and concentrates, all sorts [2610] is being reduced from 30% to Nil. Notification No. 27/2011-Customs, dated 01.03.2011 as amended by notification No. 15/2016-Customs, dated 01.03.2016 [new S. No.24BA refers]

3)  Export duty on bauxite (natural), not calcined [2606 00 10] and bauxite (natural) calcined [2606 00 20] is being reduced from 20% to 15%. S.No.24A, 24B of notification No.27/2011- Customs, dated 01.03.2011   as   amended   by  notification   No.15/2016-Customs, dated 01.03.2016 refers.

 

Chapter 27:

1)  Basic Customs Duty on all goods falling under 2701, 2702 and 2703 is being rationalized at 2.5% BCD. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated 1st March, 2016 [New S.Nos.121B, 121C] refer.

2)  Basic Customs Duty on all goods falling under 2704, 2705 and 2706 is being rationalized at 5% BCD. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.121D] refers.

3)  Basic Customs Duty on all goods falling under 2707 is being rationalized at 2.5% BCD. Notification  No.12/2012-Customs,  dated  17th   March,  2012  as  amended  by  notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.121E] refers.

4)  Basic Customs Duty on all goods falling under 2708 is being rationalized at 5% BCD. Notification  No.12/2012-Customs,  dated  17th   March,  2012  as  amended  by  notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.121F] refers

Consequently, S. No. 122, 122A, 123, 124, 124A, 125, 126, 126A, 126B and 126C are being omitted.

 

 

Chapter 28:

1)  Actual user condition is being prescribed on concessional imports of phosphoric acid for the manufacture of fertilizers. S.No.151 of notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 refers.

2)  Actual user condition is being prescribed on concessional imports of anhydrous ammonia for the manufacture of goods falling under Chapter 31 for use as fertilizers. S.No.152 of notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 refers.

3)  Basic Customs duty on aluminium oxide [2818 20 90] for use in the manufacture of Wash Coat (3824 90 90), for catalytic converters is being reduced from 7.5% to 5% subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.371D] refers.

4)  Basic  customs  duty  on  import  of  Medical  Use  Fission  Molybdenum-99  by  Board  of Radiation and Isotope Technology (BRIT) for manufacture of radio pharmaceuticals is being reduced from 7.5% to Nil. Notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No 12/2016-Customs, dated the 1st March, 2016 [New S.No. 163A] refers.

 

 

Chapter 29:

1)  Basic Customs duty on all acyclic hydrocarbons and all cyclic hydrocarbons falling under 2901 and 2902 [except para-xylene (2902 43 00) which attracts Nil BCD (S.No.174) and styrene (2902 50 00) which attracts 2% BCD (S.No.175)] is being rationalized at 2.5%. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs,  dated  the  1st  March,  2016  [S.No.172A]  refers.  Consequently, S.No.173 is being amended and S.Nos.173A, 173B, 173C, 173D, 173E and 176 are being omitted.

2)  Special Additional Duty (SAD) on orthoxylene [2902 41 00] for use in manufacture of phthalic anhydride is being reduced from 4% to 2%, subject to actual user condition. Notification No.21/2012-Customs, dated 17th March, 2012 as amended by notification No.16/2016-Customs, dated the 1st March, 2016 [new S.Nos.45AA] refers.

 

Chapter 30 to 38: No change

 

Chapter 39:

1)  Basic  Customs  duty  on  Polypropylene  granules  /  resins  [3902]  for  the  manufacture  of capacitor grade plastic films is being reduced  from 7.5% to  Nil, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No. 238A] refers.

2)  Basic Customs duty on Super Absorbent Polymer (SAP) [3906 90 90] for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.]  is being reduced from 7.5% to 5%, subject to actual user condition. S.No 242 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016- Customs, dated the 1st March, 2016 [S.No. 242] refers.

 

Chapter 40:

1)  Basic Customs duty on Natural latex rubber made balloons [4016 95 90, 4016 99 90] is being increased from 10% to 20%. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. Further, Basic Customs duty of 10% is being retained for all goods other than natural rubber latex made balloons falling under tariff lines 4016 95 90, 4016 99 90.

 

Chapter 41 to 43: No change

 

Chapter 44:

1)  Basic Customs duty on wood in chips or particles for manufacture of paper, paperboard and news print is being reduced from 5% to Nil subject to actual user condition. Since, there is no excise/CV duty on wood in chips or particles, this will also result in exemption from SAD on such wood chips/particles. Notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No.12/2016-Customs, dated the 1st  March, 2016 [new S.No.259A] refers.

 

Chapter 47:

1)  Basic Customs duty on Pulp of wood [4701-4706] for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.] is being reduced from 5% to 2.5% subject to actual user condition. S.No 260 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 refers.

 

Chapter 48:

1)  Basic Customs duty on Braille paper [4823 90 11] is being reduced from 10% to Nil. List 32 of Notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 refers.

 

Chapter 49:

1)  Exemption from Basic Customs duty on plans, drawings and designs is being withdrawn.

Such goods will now attract 10% BCD.   S. No. 275 of notification No.12/2012-Customs, dated 17th  March, 2012 is being omitted by notification No. 12/2016-Customs, dated the 1st March, 2016.

 

Chapter 50, 52, 54, 55 or any other chapter:

1)  Basic Customs Duty is being exempted on import of specified fabrics, of value equivalent to 1% of FOB value of exports in the preceding financial year, for manufacture of textile garments for exports, subject to the specified conditions. The entitlement for the month of March 2016 shall be one twelfth of one per cent. of the FOB value of exports in the financial year 2014-15. Notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No.284A] refers.

 

Chapter 51 and 53: No change

 

Chapter 54 and 55:

1)  Basic Customs Duty on specified fibres, filaments/yarns is being reduced from 5% to 2.5%. Notification  No.12/2012-Customs,  dated  17th   March,  2012  as  amended  by  notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No. 290A] of refers.

 

Chapter 56 to 69: No change

 

Chapter 70:

1)  Exemption from Basic Customs Duty is being withdrawn on solar tempered glass/solar tempered (anti-reflective coated) glass for use in manufacture solar cells/modules/panels. Such   solar  tempered   glass/solar  tempered   (anti-reflective   coated)  glass   for  use  in manufacture solar cells/modules/panels will now attract 5% BCD, subject to actual user condition.  S.  No.  39  of  Notification  No.24/2005-Customs,  dated  1st  March,  2005  as amended by notification No. 19/2016-Customs, dated the 1st March, 2016 and Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notification No. 12/2016- Customs, dated 1st March, 2016 [new S.No. 305A and Condition No. 5] refer.

2)  Basic customs duty exemption is being withdrawn on preform of silica [Chapter 70] for use in manufacture of telecommunication grade optical firbre/cables. It will now attract 10% BCD. S.No. 306 of Notification No.12/2012-Customs, dated 17th March, 2012 is omitted by notification No.12/2016- Customs dated 1st March, 2016 refers.

 

Chapter 71:

1)  Basic Customs duty on imitation jewellery [7113] is being increased from 10% to 15%.

Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.

2)  Concessional CVD on Gold dore bar is being increased from 8% to 8.75%. S. No 318 of Notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No. 12/2016-Customs, dated the 1st March, 2016 refers.

3)  Concessional CVD on Silver dore bar is being increased from 7% to 7.75%.  S .No 320 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12 /2016-Customs, dated the 1st March, 2016 refers.

 

Chapters 72 to 73: No Change.

 

Chapter 74:

1)  Basic  Customs  Duty on  brass  scrap  [7402  00  22]  is  being reduced  from  5% to  2.5%. notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No.335C] refers.

 

Chapter 75: No change. Chapter 76:

1) Basic Customs duty on primary aluminium products [7601, 7603, 7604, 7605, 7606 and 7607] is being increased from 5% to 7.5%. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect.

2) Basic Customs duty on other aluminium products [7608 and 7609 00 00] is being increased from 7.5% to 10%. S. No. 339 of notification No. 12/2012-Customs as omitted by notification No. 12/2016-Customs, dated 1st March, 2016 refers.

 

Chapters 77 to 78: No change.

 

Chapter 79:

1) Basic Customs duty on zinc alloys [7901 20] is being increased from 5% to 7.5%. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect.

 

Chapter 80 to 83: No change.

 

Chapter 84 and 85:

1)  Tariff rate of BCD is being increased from 7.5% to 10% on 206 specified tariff lines falling in Chapters 84 and 85. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. The effective rates for 96 specified tariff lines will be 10%.

2)  However, the effective rate for the remaining 110 tariff lines will continue to be 7.5%.  S. No 422A to 422H of notification 12/2012- Customs as inserted by notification No. 12/2016 refers

3) CVD  exemption  on  specified  machinery  required  for  construction  of  roads  is  being withdrawn.  S.No.368  of  notification  No.12/2012-Customs,  dated  17th   March,  2012  as amended by notification No.12/2016-Customs, dated the 1st March 2016 refers.

2)  Basic Customs duty on industrial solar water heater [8419 19 20] is being increased from 7.5% to 10%. Clause 138 (i) of the Finance Bill 2016 refers. Further, Basic Customs duty of 7.5% is being retained on other water heaters [with other than solar heating source] falling under 8419 19 20.

4)  Basic customs duty is being exempted on specified raw materials for use in manufacture of Micro fuses, Sub-miniature fuses, Resettable fuses, and Thermal fuses. S .No. 93 & 190 of Notification No.25/99-Customs, dated 28th February, 1999 as amended by notification No. 17/2016- Customs dated 1st March, 2016 refers.

5)  Further, Basic customs duty is also being exempted on specified capital goods for use in manufacture of Micro fuses, Sub-miniature fuses, Resettable fuses, and Thermal fuses. S.No. 64 of Notification No.25/2002-Customs, dated 1st March, 2002 as amended by notification No. 18/2016- Customs dated 1st March, 2016 refers.

6)  Exemption from Special Additional Duty (SAD) is being withdrawn on populated printed circuit boards [PCBs] for manufacture of personal computers (laptop or desktop) including tablet computer. Such populated PCBs will now attract 4% SAD.  S.No. 14A of Notification No.21/2012-Customs, dated 17th March, 2012 is being omitted by notification No. 16/2016- Customs  dated  1st  March,  2016  refers.  All  other  goods  for  manufacture  of  personal computers (laptop or desktop) including tablet computer will continue to be exempt from SAD under S.No. 14D of Notification No.21/2012-Customs, dated 17th March, 2012.

7)  Populated PCBs of mobile phone or tablet computer are being excluded from the purview of Nil SAD under S. No 1 of notification No 21/2012-Customs [which exempts SAD on item, which are exempt from BCD and CVD]. S. No. 1 of Notification No. 21/2012-Customs dated17th March, 2012 as amended by notification No. 16/2016- Customs dated 1st March, 2016 refers.  Simultaneously, 2% concessional SAD of is being prescribed on populated PCBs for use in manufacture of mobile phone or tablet computer, subject to actual user condition. Notification No. 21/2012-Customs dated 17th March, 2012 as amended by notification No.16/2016- Customs dated 1st March, 2016[ new S.No. 85A] refers.

8)  Basic Customs Duty and Special Additional Duty (SAD) are being exempted on machinery, electrical equipments, other instruments and their parts [except populated Printed Circuit Boards] falling under chapter 84, 85, 90 for fabrication of semiconductor wafer and Liquid Crystal Display (LCD), subject to actual user condition. Notification No. 12/2012-Customs dated 17th March, 2012 as amended by notification No.12/2016- Customs dated 1st March, 2016[ new S.No. 372A] refers. Notification No. 21/2012-Customs dated 17th March, 2012 as amended by notification No. 16/2016- Customs dated 1st March, 2016 [new S.No. 82A] refers.

9)  Basic Customs Duty and Special Additional Duty (SAD) are being exempted on machinery, electrical equipments, other instruments and their parts [except populated PCBs]   falling under chapter 84, 85, 90 for assembly, testing, marking and packaging of semiconductor chips (ATMP), subject to actual user condition. Notification No. 12/2012-Customs dated 17th March, 2012 as amended by notification No. 12/2016- Customs dated 1st March, 2016 [new S.No.372B] refers. Notification No. 21/2012-Customs dated 17th March, 2012 as amended by notification No. 16/2016- Customs dated 1st March, 2016 [new S.No. 82B] refers.

10) Basic Customs Duty and CVD exemptions are being withdrawn on charger/Adapter, Battery and Wired Headsets/Speakers for use in manufacture of mobile handsets including cellular phone. S.No. 431 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No. 12/2016-Customs dated 1st March, 2016 refers and S.No. 39 of Notification No.24/2005-Customs, dated 1st March, 2005 as amended by notification No. 19/2016-Customs dated 1st March, 2016 refers.

11) Further, SAD exemption on charger/Adapter, Battery and Wired Headsets/Speakers for use in manufacture of mobile handsets including cellular phone is being withdrawn. S.No. 14D of Notification No.21/2012-Customs, dated 17th March, 2012 as amended by notification No. 16/2016-Customs dated 1st March, 2016 refers.

12) Further, Basic Customs Duty and Excise Duty [and thus CVD] are being exempted on inputs and parts for manufacture of charger/adapter, battery and wired headsets/speakers of mobile handsets including cellular phone and inputs and sub-parts for use in manufacture of parts of charger/adapter, battery and wired headsets/speaker. Consequently, these goods will also be exempt  from  SAD,  under  S.  No.  1  of  Notification  No.  21/2012-Customs.  All  these exemptions will be subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notification No. 12/2016-Customs dated 1st March, 2016 [new S. Nos. 431A to 431D] refers.

13) Basic  Customs  Duty  and  Excise  Duty  [and  thus  CVD]  are  being  exempted  on  parts, components and accessories for use in the manufacture of Routers, broadband Modems, Set- top boxes for gaining access to internet, set top boxes for TV, digital video recorder (DVR) / network video recorder (NVR), CCTV camera / IP camera, lithium ion battery [other than those for mobile handsets]. Further, Basic Customs Duty and Excise Duty [and thus CVD] are also being exempted on sub-parts for use in manufacture of parts, components and accessories of these Consumer Premise Equipments. Consequently, these goods will also be exempt  from  SAD,  under  S.  No.  1  of  Notification  No.  21/2012-Customs.  All  these exemptions will be subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notification No. 12/2016-Customs; dated 1st March, 2016 [new S.Nos. 431E to 431K] refers.

14) Exemption from BCD under S. No. 372 of Notification No. 12/2012-Customs on specified telecommunication equipment [Soft switches and Voice over Internet   Protocol (VoIP) equipment namely VoIP phones, media gateways, gateway controllers and session border controllers, Optical Transport equipment; combination of one / more of Packet Optical Transport Product/Switch (POTP/POTS), Optical Transport Network(OTN) products, and  IP Radios,  Carrier  Ethernet  Switch,  Packet  Transport  Node  (PTN)  products,  Multiprotocol Label Switching-Transport Profile (MPLS-TP) products, Multiple Input / Multiple Output (MIMO) and Long Term Evolution (LTE) Products] is being withdrawn.   S.No 372 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended vide notification No.12/2016-Customs; dated 1st March, 2016 refers.

15) Basic Custom Duty is being withdrawn on Magnetic - Heads (all types), Ceramic / Magnetic cartridges and stylus, Antennas, EHT cables, Level meters/level indicators/ tuning indicators/ peak level meters/ battery meter/VC meters / Tape counters, Tone arms and Electron guns. Items (4), (5), (7), (9), (10), (11) and (17) of List 21 of  Notification No.12/2012-Customs, dated 17th March, 2012 as omitted  vide notification No. 12/2016-Customs, dated 1st March, 2016 refers

16) Basic Customs Duty exemption on LCD (Liquid Crystal Display), LED (Light Emitting Diode) or OLED (Organic LED) panels is being restricted to imports for manufacture of TVs, subjected to actual user condition. S.No. 432 of Notification No.12/2012-Customs, dated  17th  March,  2012  as  amended  vide  notification  No.  12/2016-Customs,  dated  1st March, 2016 refers.

17) Basic  Customs  Duty is  being exempted  on  Neodymium  Magnet  (before Magnetization) [8505 11 90] and Magnet Resin (Strontium Ferrite compound/before formed, before magnetization) [3824 90 32] for use in manufacture of BLDC motors, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No. 12/2016- Customs dated 1st March, 2016 [new S.No. 230B] refers.

18) Basic Customs Duty exemption on E-Readers [8543] is being withdrawn. They will now attract BCD of 7.5%.   S.No.433A of notification No.12/2012-Customs, dated 17th March, 2012 as omitted by notification No. 12/2016-Customs, dated the 1st March 2016 refers. Also, Basic Customs duty on parts and raw material for manufacture of E-readers is being reduced to 5% subject to actual user condition. Notification No.12/2012-Customs, dated 17th March,2012 as amended by notification No.12/2016-Customs, dated the 1st March 2016 [new S.No.433C] refers.

19) Nil Basic Custom Duty is being extended to magnetron of capacity above 1KW but not exceeding 1.5 KW used for the manufacture of domestic microwave ovens. S. No. 433 of notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No. 12/2016-Customs, dated 1st March, 2016 refers.

20) Basic Customs Duty, CVD and Special Additional Duty (SAD) are being exempted on Foreign  Satellite data  on  storage  media  [Heading  8523]  imported  by  National  Remote Sensing Centre (NRSC), Hyderabad. Notification No. 12/2012-Customs, dated 17th March, 2012 as amended vide notification No. 12/2016- Customs, dated 1st March, 2016 [new S. No. 428B] refers.

21) Basic Custom Duty is being reduced from 2.5% to Nil on electrolysers, membranes and their parts required by caustic soda / potash unit based on membrane cell technology.  S.No.417 of notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No. 12/2016-Customs, dated 1st March, 2016 refers.

 

Chapter 86:

1) Basic Customs duty on refrigerated containers [8609 00 00] is being reduced from 10% to 5%. Notification No. 12/2012-Customs as amended by notification No. 12/2016-Customs, dated 1st March, 2016 [new S.No. 435A] refers.

 

Chapter 87:

1) Basic Customs duty on golf cars [8703] is being increased from 10% to 60%. S. No. 441 of notification No.12/2012-Customs as omitted by notification No. 12/2016-Customs, dated 1st March, 2016 refers.

2)  The validity period of exemption granted to specified goods for the use in the manufacture of electrically  operated  vehicles  and  hybrid  vehicles  is  being  extended  without  time  limit. Clauses (g) and (h) of proviso to notification No. 12/2012-Customs, as omitted by notification No. 12/2016-Customs, dated 1st March, 2016  refers.

3) The description “Engine for HV(Atkinson cycle)” appearing in S. No. 440 of notification No. 12/2012-Customs is being changed to “Engine for xEV(hybrid  electric vehicle)”. Notification No. 12/2012-Customs as amended by notification No. 12/2016-Customs, dated 1st  March, 2016 refers.

4) The entry of 6% appearing in column 5 of Sl. No. 439 and 440 of notification No. 12/2012- Customs is being omitted. Notification No. 12/2012-Customs as amended by notification No. 12/2016-Customs, dated 1st  March, 2016 refers. 6% Concessional CVD on imports will, however, continue by virtue of 6% concessional excise duty under S. No. 296 and 297 of the Notification No. 12/2012-Central Excise dated 17.03.2012.

 

Chapter 88:

1)  Basic Customs duty on tools and tool kits for maintenance, repair, and overhauling of aircraft are being exempted. Further, the procedure for availment of the customs duties exemption under S.No.448 of notification No.12/2012-Customs, dated 17.03.2012 is being simplified. Moreover, the restriction of one year for utilization of duty free parts [as also the testing equipment, tools and tool kits] for maintenance, repair and overhaul of aircraft is being done away with. S.No.448 and Condition No.73 of notification No.12/2012-Customs, dated 17.03.2012 as amended by notification No. 12/2016-Customs, dated 1st  March, 2016 refers.

2)  S.No.448 of notification No.12/2012-Customs, dated 17.03.2012 prescribes Nil CVD. There is a corresponding excise duty exemption under S.No. 305 of notification No.12/2012- Central  Excise,  dated  17.03.2012.  S.No.448  of  notification  No.12/2012-Customs  is amended so as to remove CVD exemption prescribed therein. CVD exemption, however, will flow from the excise duty exemption under S.No. 305 of notification No.12/2012- Central  Excise,  dated  17.03.2012.  S.No.448  of  notification  No.12/2012-Customs,  dated 17.03.2012 as amended by notification No. 12/2016-Customs, dated 1st March, 2016 refers.

3)  The existing condition of stay of foreign aircraft, for maintenance repair and overhaul, upto 60 days is being relaxed, so as to provide for stay up to 6 months of the foreign aircraft for maintenance, repair or overhaul, which can be further extended by DGCA?s as deemed fit. Such aircrafts are also being allowed to carry passengers in the flights at the beginning and end of the stay period in India, but not during the stay period for maintenance, repair or overhaul, servicing. New S.No.448A and Condition No.73A of notification No.12/2012- Customs,  dated  17.03.2012  as  inserted  by notification  No.  12/2016-Customs,  dated  1st March, 2016 refers.

4) Notification No. 72/94-Customs dated 01.03.1994 provides for import of repaired or overhauled parts of aircraft under exchange / advance exchange as per Standard Exchange Scheme. This notification is being superceded by notification No. 23/2016 – Customs dated 1st March, 2016 so as to provide also for import of air craft parts for repair or overhaul and for export of repaired or overhauled parts of aircraft under said scheme.

 

Chapter 89: No change.

1)  The procedure for availment of exemption from Basic Customs Duty, CVD and SAD by ship repair units is being simplified, by omitting the Condition No.79 under S.No.459A of notification No.12/2012-Customs, dated 17.03.2012. Such imports will now be subject to actual used condition. S.No.459A of notification No.12/2012-Customs, dated 17.03.2012 as amended notification No. 12/2016-Customs, dated 1st March, 2016 refers.

2)  CVD is exempted under S.No.459A of notification No.12/2012-Customs, dated 17.03.2012. This CVD exemption is being withdrawn. It will now be available by way of an excise duty exemption, under new S. No. 305A, as inserted  in notification No.12/2012-Central Excise, dated   17.03.2012,   vide   amending   notification   No.   12/2016-Central   Excise,   dated01.03.2016.

 

Chapter 90

1)  Tariff rate of BCD is being increased from 7.5% to 10% on 5 specified tariff lines falling in Chapter 90. Clause 138 (i) of the Finance Bill refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect.   However, the effective rates for 5 tariff lines are being maintained at 7.5%. Notification No.12/2012- Customs as amended by notification No. 12/2016 [new S. No. 422I] refers.

 

Chapter 91 to 94: No change

 

Chapter 95:

1)  Basic Customs duty on natural latex rubber made balloons [9503 00 90, 9505 10 00 & 9505 90 90] is being increased from 10% to 20%. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. Further, Basic Customs duty of 10% is being retained for all goods other than natural rubber latex made balloons falling under tariff lines 9503 00 90, 9505 10 00 & 9505 90 90.

 

Chapter 96 to 97: No change

 

Chapter 98:

1)  Concessional  5%  BCD  is  being  extended  to  „cold chain  including  pre-cooling  unit, packhouses, sorting and grading lines and ripening chambers? also. S.No. 41 of Notification No. 42/96-Customs, dated 23.07.1996 as amended vide notification No. 21/2016- Customs, dated 1st March, 2016 refers. Consequently, the Project Import Regulations, 1986 is also being amended suitably. Notification No.20/2016-Customs, dated 1st March, 2016 refers.

2)  Duty free allowance for bonafide gifts is being increased from Rs. 10,000 to Rs. 20,000. Notification No.171/1993-Customs, dated 16th September, 1993 as amended by notification No. 13/2016-Customs, dated the 1st March, 2016 refers.

 

Miscellaneous:

1)  Disposable sterilized dialyzer and micro barrier [Chapter 84 or 90] of artificial kidney is being exempted from BCD, excise / CVD, and SAD. CVD exemption will flow from excise exemption. Notification No.12/2012- Customs as amended by notification No. 12/2016 [new S. No. 418A] refers.

2)  S.No.9, 9A, 10, 10A, of the notification No.39/96-Customs, dated 23.07.1996 are being omitted with effect from 01.04.2016. Consequently, with effect from 01.04.2016, direct imports by Government of India or State Governments [under S. Nos. 9 and 10] will attract customs duties at applicable rates. Similarly, with effect from 01.04.2016, imports [under S.Nos.  9A  and  10A]  will  also  attract  BCD.  Notification  No.  39/96-Customs,  dated 23.07.1996 as amended by notification No. 14/2016-Customs, dated the 1st  March, 2016refers.

3)  S.Nos.356, 358, 359, 359A and 360 of notification No.12/2012-Customs, dated 17.03.2012 which exempt BCD and CVD on specified goods imported for petroleum exploration under various types of licenses or mining leases, pre-NELP contracts, NELP contracts, Marginal Fields Policy and the Coal Bed Methane Policy are being merged into a single new S.No.357A. Also, the list of specified goods is being unified into a single List 34 and the conditions  are  also  being  unified  into  a  single  Condition  No.  40A.  Further,  the  said exemption is being extended on imports of goods required for exploration & production of hydrocarbon activities undertaken under Petroleum Exploration Licenses (PEL) or Mining Leases  (ML)  issued  or  renewed  before  1st  April  1999  also.  Notification  No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs dated 1st March, 2016 [new S.No.357A] refers.

Consequently, S.Nos.356, 358, 359, 359A and 360; Condition Nos.41, 43 and 44; and List 13 and 14 are being omitted.

4)  In case of power generation project based on municipal and urban waste, valid agreement between producer of power with urban local body for processing of municipal solid waste for not less than ten years from the date of commissioning of project is being prescribed for availing customs and excise duty concessions as an alternative to the existing condition of “production of valid power purchase agreement between the importer/producer of power and the purchaser, for the sale and purchase of electricity generated using non-conventional materials”. Notification No.81/2005-Customs, dated 8th September, 2005 as amended by notification No. 22/2016-Customs, dated 1st March, 2016 refers.

 

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CUSTOMS

 

ANNEX I

 

 

 

Chapter 1 to 7: No change

 

 

Chapter 8:

1)  Basic Customs Duty on cashew nuts in shell [0801 31 00] is being increased from Nil to 5%.

S. No.22 of notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.12/2016-Customs, dated 1st March, 2016 refers.

 

 

Chapter 9 to 21: No change

 

 

Chapter 22:

1)  Basic Customs duty on denatured ethyl alcohol (ethanol) [2207 20 00] is being reduced from

5% to 2.5% for manufacture of excisable goods, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012, as amended by notification No.12/2016- Customs, dated the 1st March, 2016 [New S.No.96A] refers.

 

 

Chapter 23 to 24: No change

 

 

Chapter 25:

1)  Basic Customs duty on Silica Sand [2505 10 11, 2505 10 12 and 2505 10 19] is being reduced from 5% to 2.5%. Notification No.12/2012-Customs, dated 17th  March, 2012, as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.109A] refers.

 

 

Chapter 26:

1)  Export duty on Iron ore lumps (below 58% Fe content) [2601 11 21 and 2601 11 22] is being reduced from 30% to Nil and Iron ore fines (below 58% Fe content) [2601 11 41 and 2601 11

42] is being reduced from 10% to Nil. S.No.20A of notification No. 27/2011-Customs, dated

01.03.2011 as amended by notification No. 15/2016-Customs, dated 01.03.2016 refers.

2)  Export duty on chromium ores and concentrates, all sorts [2610] is being reduced from 30%

to Nil. Notification No. 27/2011-Customs, dated 01.03.2011 as amended by notification No.

15/2016-Customs, dated 01.03.2016 [new S. No.24BA refers]

3)  Export duty on bauxite (natural), not calcined [2606 00 10] and bauxite (natural) calcined [2606 00 20] is being reduced from 20% to 15%. S.No.24A, 24B of notification No.27/2011- Customs,   dated  01.03.2011   as   amended   by  notification   No.15/2016-Customs,   dated

01.03.2016 refers.

 

 

Chapter 27:

1)  Basic Customs Duty on all goods falling under 2701, 2702 and 2703 is being rationalized at

2.5% BCD. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated 1st March, 2016 [New S.Nos.121B, 121C] refer.

2)  Basic Customs Duty on all goods falling under 2704, 2705 and 2706 is being rationalized at

5% BCD. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.121D] refers.

3)  Basic Customs Duty on all goods falling under 2707 is being rationalized at 2.5% BCD.

Notification  No.12/2012-Customs,  dated  17th   March,  2012  as  amended  by  notification

No.12/2016-Customs, dated the 1st March, 2016 [New S.No.121E] refers.

4)  Basic Customs Duty on all goods falling under 2708 is being rationalized at 5% BCD.

Notification  No.12/2012-Customs,  dated  17th   March,  2012  as  amended  by  notification

No.12/2016-Customs, dated the 1st March, 2016 [New S.No.121F] refers

Consequently, S. No. 122, 122A, 123, 124, 124A, 125, 126, 126A, 126B and 126C are being omitted.

 

 

Chapter 28:

1)  Actual user condition is being prescribed on concessional imports of phosphoric acid for the manufacture of fertilizers. S.No.151 of notification No.12/2012-Customs, dated 17th  March,

2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 refers.

2)  Actual user condition is being prescribed on concessional imports of anhydrous ammonia for the manufacture of goods falling under Chapter 31 for use as fertilizers. S.No.152 of notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 refers.

3)  Basic Customs duty on aluminium oxide [2818 20 90] for use in the manufacture of Wash Coat (3824 90 90), for catalytic converters is being reduced from 7.5% to 5% subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [New S.No.371D] refers.

4)  Basic  customs  duty  on  import  of  Medical  Use  Fission  Molybdenum-99  by  Board  of Radiation and Isotope Technology (BRIT) for manufacture of radio pharmaceuticals is being reduced from 7.5% to Nil. Notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No 12/2016-Customs, dated the 1st March, 2016 [New S.No. 163A] refers.

 

 

Chapter 29:

1)  Basic Customs duty on all acyclic hydrocarbons and all cyclic hydrocarbons falling under

2901 and 2902 [except para-xylene (2902 43 00) which attracts Nil BCD (S.No.174) and styrene (2902 50 00) which attracts 2% BCD (S.No.175)] is being rationalized at 2.5%. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs,  dated  the  1st  March,  2016  [S.No.172A]  refers.  Consequently,

 

 

S.No.173 is being amended and S.Nos.173A, 173B, 173C, 173D, 173E and 176 are being omitted.

2)  Special Additional Duty (SAD) on orthoxylene [2902 41 00] for use in manufacture of phthalic anhydride is being reduced from 4% to 2%, subject to actual user condition. Notification No.21/2012-Customs, dated 17th March, 2012 as amended by notification No.16/2016-Customs, dated the 1st March, 2016 [new S.Nos.45AA] refers.

 

 

Chapter 30 to 38: No change

 

 

Chapter 39:

1)  Basic  Customs  duty  on  Polypropylene  granules  /  resins  [3902]  for  the  manufacture  of capacitor grade plastic films is being reduced  from 7.5% to  Nil, subject to actual user condition. Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016-Customs, dated the 1st March, 2016 [new S.No. 238A] refers.

2)  Basic Customs duty on Super Absorbent Polymer (SAP) [3906 90 90] for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.]  is being reduced from 7.5% to 5%, subject to actual user condition. S.No 242 of Notification No.12/2012-Customs, dated 17th March, 2012 as amended by notification No.12/2016- Customs, dated the 1st March, 2016 [S.No. 242] refers.

 

 

Chapter 40:

1)  Basic Customs duty on Natural latex rubber made balloons [4016 95 90, 4016 99 90] is being increased from 10% to 20%. Clause 138 (i) of the Finance Bill 2016 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, these changes will come into force with immediate effect. Further, Basic Customs duty of 10% is being retained for all goods other than natural rubber latex made balloons falling under tariff lines 4016 95 90,

4016 99 90.

 

 

Chapter 41 to 43: No change

 

 

Chapter 44:

1)  Basic Customs duty on wood in chips or particles for manufacture of paper, paperboard and news print is being reduced from 5% to Nil subject to actual user condition. Since, there is no excise/CV duty on wood in chips or particles, this will also result in exemption from SAD on such wood chips/particles. Notification No.12/2012-Customs, dated 17th  March, 2012 as amended by notification No.12/2016-Customs, dated the 1st  March, 2016 [new S.No.259A] refers.