1. Introduction of new Common Customs Electronic Portal
(Clause 80 and 91 of Finance Bill, 2021)
In section 2, after clause (7A), the following clause shall be inserted, namely:
'(7B) 'common portal' means the Common Customs Electronic Portal referred to in section 154C;'
After section 154B of the Customs Act, the following section shall be inserted, namely:
'154C. The Board may notify a common portal, to be called the Common Customs Electronic Portal, for facilitating registration, filing of bills of entry, shipping bills, other documents and forms prescribed under this Act or under any other law for the time being in force or the rules or regulations made thereunder, payment of duty and for such other purposes, as the Board may, by notification, specify.'
Comment:
The statutory framework is being provided vide Section 153C for a common online portal, which shall be a common place for all customs related facilities viz. registration, filing of bill of entries, shipping bills and other documents, payment of duties etc. The customs portal is likely to be integrated with GSTN also.
2. Pre-trial disposal of seized gold, the Application shall lie before Jurisdictional Commissioner (Appeals) instead of Magistrate.
(Clause 81, 85 and 88 of Finance Bill, 2021)
In section 5 of the Customs Act, in sub-section (3), for the words and figures 'Chapter XV and section 108', the words, figures, brackets and letter 'Chapter XV, section 108 and subsection (1D) of section 110' shall be substituted.
In section 110 of the Customs Act, after sub-section (1C), the following sub-section shall be inserted, namely:
'(1D) Where the goods seized under sub-section (1) is gold in any form as notified under sub-section (1A), then, the proper officer shall, instead of making an application under sub- section (1B) to the Magistrate, make such application to the Commissioner (Appeals) having
jurisdiction, who shall, as soon as may be, allow the application and thereafter, the proper officer shall dispose of such goods in such manner as the Central Government may determine.'
In section 139 of the Customs Act, in the Explanation, for the words, brackets, figures and letter 'a Magistrate under subsection (1C) of section 110', the words, brackets, figures and letters 'a Magistrate under sub-section (1C), or Commissioner (Appeals) under sub- section (1D), of section 110' shall be inserted.
Comment:
In order to quicken the process of disposal of the seized goods (gold), the application shall now be placed before Commissioner (Appeals) within the appropriate jurisdiction instead of the Magistrate. The inventory drawn before Commissioner (Appeals) shall be presumed to be true for all its contents]
3. Providing sunset period of conditional exemptions under the Customs Act
(Clause 82 of Finance Bill, 2021)
In section 25 of the Customs Act, after sub-section (4), the following sub-section shall be inserted, namely: '(4A) Where any exemption is granted subject to any condition under sub-section (1), such exemption shall, unless otherwise specified or varied or rescinded, be valid up to 31st day of March falling immediately after two years from the date of such grant or variation:
Provided that in respect of any such exemption in force as on the date on which the Finance Bill, 2021 receives the assent of the President, the said period of two years shall be reckoned from the 1st day February 2021.'
Comment:
The Hon'ble Finance Minister mentioned in her budget speech that there are several outdated exemption notifications prevailing under customs which would to be eliminated, certain 80 outdated exemptions were eliminated last year, and 400 exemptions is under pipeline this year.
Further, going forward all the conditional exemptions under the customs shall have sunset period of 2 years from the end of FY in which the exemptions are issued, unless explicitly stated otherwise. For exemptions in force as on the date of Finance Bill 2021, the sunset period shall expire on 31st March 2023.
Several end-use based exemptions, especially the ones utilized under the mega projects package, import for the purpose of manufacturing are likely to be impacted. The life- time exemptions are put to a permanent stop and the trade would require frequent consultations with the MoF in order to ensure time limit of exemptions be fine-tuned timely extended in deserving cases.
4. Prescribing time limit for completion of proceedings of show cause notice
(Clause 83 of Finance Bill, 2021)
After section 28BA of the Customs Act, the following section shall be inserted, namely: '28BB. (1) Any inquiry or investigation under this Act, culminating in the issuance of a notice under sub-section (1) or sub-section (4) of section 28 shall be completed by issuing such notice, within a period of two years from the date of initiation of audit, search, seizure, or summons, as the case may be:
Provided that the Principal Commissioner of Customs or the Commissioner of Customs may, on sufficient cause being shown and for reasons to be recorded in writing, extend the said period to a further period of one year.
(2) For computing the period under sub-section (1), the period during which stay was granted by an order of a court or tribunal, or the period for seeking information from an overseas authority through a legal process, shall be excluded.
Explanation: For the removal of doubts, it is hereby declared that nothing contained in this section shall apply to any such proceeding initiated before the date on which the Finance Bill, 2021 receives the assent of the President.'
Comment:
A new Section 28BB is inserted to act as rigour upon the investigation authorities to conclude the proceedings with a definite a time-period. Going forward, the show cause notices issued in pursuance of audit, search, seizure, or summons shall have to be issued
within 2 years from the initiation of such proceedings. This time-period is extendable to 1 year on approval by Principal Commissioner or Commissioner of Customs after sufficient cause being shown and upon reasons to be recorded in writing. However, finally the show cause notices shall be issued within time limit prescribed under Section 28 of the Customs Act, 1962.
The period of stay obtained from Court or Tribunal or the period during which information is sought from overseas authority shall be excluded from the above period.
5. Advancing the time frame for filing Bill of Entry
(Clause 84 of Finance Bill, 2021)
In section 46 of the Customs Act, in sub-section (3):
- in the opening portion, for the words and brackets 'before the end of the next day following the day (excluding holidays)', the words and brackets 'before the end of the day (including holidays) preceding the day' shall be
- for the words 'Provided that', the following shall be substituted, namely:
'Provided that the Board may, in such cases as it may deem fit, prescribe different time limits for presentation of the bill of entry, which shall not be later than the end of the day of such arrival: Provided further that';
Comment:
The time limit for presentation of import bill of entry has been further advanced to 'end of the day' preceding the day of arrival of the aircraft/ vessel/ vehicle. Discretionary powers extended to the Board to prescribe different time limits for presentation of Bill of Entry.
No change in the late fee's threshold for delayed presentation [which remains INR 5,000 per day for first 3 days and INR 10,000 per day for every day thereafter].
The indication is to improve the clearance timings for import of goods considering the international benchmark.
6. Confiscation power where goods entered for exportation under wrongful claim of remission or refund.
(Clause 86 of Finance Bill, 2021)
In section 113 of the Customs Act, after clause (j), the following clause shall be inserted, namely:
'(ja) any goods entered for exportation under claim of remission or refund of any duty or tax or levy to make a wrongful claim in contravention of the provisions of this Act or any other law for the time being in force;'
Comment:
The goods which are entered for exportation under the wrongful claim of 'remission or refund of any duty or tax or levy to any other wrongful claim under any Customs Act or any other law, shall now be liable to confiscation.
The ramifications are therefore that any goods which are entered for export [under a wrongful claim of] drawback, RODTEP, Advance authorization, EPCG authorization, Rule 96 (10) be liable for confiscation.
It would be noteworthy as to how the claims based on interpretations would be dealt with. As on date, the SEZ unit's claims to RODTEP are not being specifically allowed, therefore the declaration by SEZ unit is as to claiming of RODTEP could land them in ready-made soup, even when the issue might be interpretational one.
7. Penalty for fraudulent utilisation of input tax credit for claiming refund.
(Clause 87 of Finance Bill, 2021)
After section 114AB of the Customs Act, the following section shall be inserted, namely: '114AC. Where any person has obtained any invoice by fraud, collusion, willful misstatement or suppression of facts to utilise input tax credit on the basis of such invoice for discharging any duty or tax on goods that are entered for exportation under claim of refund of such duty or tax, such person shall be liable for penalty not exceeding five times the refund claimed.
Explanation. - For the purposes of this section, the expression 'input tax credit' shall have the same meaning as assigned to it in clause (63) of section 2 of the Central Goods and Services Tax Act, 2017.'
Comment:
Under the new section 114AC, penalty for irregular ITC on an invoice (used for claiming refund) would now be punishable under the Customs Act also. The penalty shall be 5 times of the amount of refund so claimed by virtue of the invoice.
The penalty is in addition to the penalty as imposable under Section 122 (1) of the CGST Act. On an apparent it might appear that a single offence is being postulated under the CGST Act and the Customs Act, on a careful reading it seems that the offence under both legislations is different [1] availing of ITC under the CGST Act and [2] claiming of refund under the Customs Act. Therefore, the principle of dual jeopardy may not kick in, and both penalties might survive legislative competency.
However, the imposition of penalty for GST refunds in cases of export by the Customs Act, 1962 may involve legal challenges before Courts. IGST on imports are governed by the Customs Law not the IGST on Export cases.
8. Broadening the scope of Amendment of documents
(Clause 89 of Finance Bill, 2021)
In section 149 of the Customs Act, after the proviso, the following provisos shall be inserted, namely:
'Provided further that such authorisation or amendment may also be done electronically through the customs automated system on the basis of risk evaluation through appropriate selection criteria: Provided also that such amendments, as may be specified by the Board, may be done by the importer or exporter on the common portal.'
Comment:
With this insertion of proviso, amendments are allowed to be done through the customs automated system on the basis of risk evaluation through appropriate selection criteria and also certain amendments, as may be specified by the Board, may be done by the importer or exporter on the common portal.
While it is not entirely clear, but this amendment might be sou moto done by the Customs risk evaluation criterion i.e., an exporter's claim may be changed to 'non refund claim', RODTEP declaration may be rejected, there might be increase of the valuation of goods (load) etc.
9. Additional mode for service of notice through portal
(Clause 90 of Finance Bill, 2021)
In section 153 of the Customs Act, in sub-section (1), after clause (c), the following clause shall be inserted, namely:
'(ca) by making it available on the common portal;'
Comment:
This amendment enables to serve order, summons, notice, etc. by making it available on the common portal as in like the GST law. So, the importers and exporters are required to monitor their portal regularly otherwise they may miss the attention of service of notices or orders which may be appealable within time bound manners.
10. Introduction of Agriculture Infrastructure and Development Cess (AIDC)
A new levy, namely AIDC is introduced as duties of customs vide Section 115 (1) of the Finance Bill, 2021, for the purpose of financing agriculture infrastructure and other development expenditure. The AIDC shall be levied at the same rate as the rate of BCD provided in the First Schedule to the Customs Tariff Act, 1975.
The value for the purpose of AIDC shall be calculated in the same manner as is done for the purpose of BCD under Section 14 of the Customs Act i.e., the CIF value along with necessary inclusions under the Customs Valuation Rules.
Comment:
With introduction of new duty, the tax structure on import of certain goods has been changed. For certain products, the effective customs duty rate has been maintained by imposing AIDC and reducing BCD, whereas for certain other products, the effective duty is increased overall by introduction of the new Cess. Overall, the AIDC is applicable on few of the products, mainly agricultural products.
The import exemption by virtue of debit in MEIS/ SEIS scrip is not extended to AIDC i.e., if the goods are leviable to AIDC, the duty would have to be remitted in cash and MEIS/ SEIS cannot be used for payment of AIDC. The import exemption shall however be allowed against advance authorization.
11. Allowing job work and outsourcing vis-à-vis ICGR [allowing job workers to participate in Make in India scheme]
Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 [IGCR Rules] have been amended to provide the following facilities:
- to allow job-work of the materials (except gold and jewellery and other precious metals) imported under concessional rate of duty
- to allow 100% out-sourcing for manufacture of goods on job-work
- to allow imported capital goods that have been used for the specified purpose to be cleared on payment of differential duty, along with interest, on the depreciated value. The depreciation norms would be the same as applied to EOUs, as per Foreign Trade
12. Notification of Common Portal for Customs
KEY CHANGES TO FIRST SCHEDULE OF CUSTOMS TARIFF ACT
|
AMENDMENTS |
||||
|
A. |
Tariff rate changes for Basic Customs Duty [to be effective from 02.02.2021, unless otherwise specified] * [Clause [95 (i)] of the Finance Bill, 2021] |
Rate of Duty |
||
|
S. No. |
Heading, sub- heading tariff item |
Commodity |
From |
To |
|
Chemicals |
||||
|
1. |
2803 00 10 |
Carbon Black |
5% |
7.5% |
|
Plastic items |
||||||||||
|
2. |
3925 |
Builder's ware of Plastics |
10% |
15% |
||||||
|
Gems and Jewellery Sector |
||||||||||
|
3. |
7104 |
Cut and Polished Synthetic stones, including Cut and Polished Cubic Zirconia |
10% |
15% |
||||||
|
Electrical and Electronics Sector |
||||||||||
|
4. |
8414 30 00 |
Compressors equipment of a kind used in refrig eratin g |
12.5% |
15% |
||||||
|
5. |
8414 80 11 |
Compressors of a kind used in air- conditioning equipment |
12.5% |
15% |
||||||
|
6. |
8504 90 90 |
Printed Circuit Board Assembly [PCBA] of charger or adapter (All goods under this tariff item, other than above, will continue to attract the existing effective rate of BCD at 10%) |
10% |
15% |
||||||
|
Parts of Automobiles |
||||||||||
|
7. |
7007 |
Safety glass, consisting of toughened (tempered) or laminated glass. (All goods under this heading, other than those used with motor vehicles, will continue to attract the existing effective rate of BCD at 10%) |
10% |
15% |
||||||
|
8. |
8512 90 00 |
Parts of Electrical lighting and signaling equipment, windscreen wipers, defrosters, and demisters, of a kind used for cycles or motor vehicles |
10% |
15% |
||||||
|
9. |
8544 30 00 |
Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft, or ships |
10% |
15% |
||||||
|
10. |
9104 00 00 |
Instrument Panel Clocks and Clocks of a similar type for vehicles, Aircraft, Spacecraft or Vessels |
10% |
15% |
||||||
|
B. |
Tariff rate changes (without any change in the effective rates of Basic Customs Duty) |
Rate of Duty |
||||||||
|
S. No. |
Heading, sub- heading tariff item |
Commodity |
From |
To |
||||||
|
1. |
8414 40 |
Air compressors mounted on a wheeled chassis for towing |
7.5% |
15% |
||||||
|
2. |
8414 80 (except 8414 80 11) |
Gas Compressors (other than of a kind used in air- conditioning equipment), free-piston generators for gas turbine, turbo charger and other compressors |
7.5% |
15% |
|
3. |
8501 10 to 8501 53 |
Electric Motors |
10% |
15% |
|
4. |
8536 41 00 and 8536 49 00 |
Relays |
10% |
15% |
|
5. |
8537 |
Boards, panels, consoles, etc. for electric control or distribution of electricity |
10% |
15% |
|
6. |
9031 80 00 |
Other instruments, appliances, and machines |
7.5% |
15% |
|
7. |
9032 89 |
Electronic automatic regulators and other controlling instruments or apparatus |
10% |
15% |
|
C. |
New entries added to the First Schedule [Clause 95 (ii) and 95 (iii) of the Finance Bill, 2021] |
|||
|
1. |
Harmonizing the Customs Tariff Act 1975 with the HSN 2022 a) Changes to the first schedule to the Customs Tariff Act are being proposed that are to come into effect from 01.01.2022. This is in accordance with HSN 2022, which proposes 351 amendments to the existing harmonized nomenclature, covering a wide range of goods moving across borders. b) The amendments are necessary to adapt to the current trade through the recognition of new product streams, the changing nature of commodities being traded, advent of new technologies and addressing the environmental and social issues of global concern- all with a prime focus on the larger goal of ease of doing business and trade facilitation. |
|||
|
2. |
New tariff lines under the heading 2709 in the Customs Tariff Act, 1975#: 2709 00 10 -- petroleum crude 2709 00 20 -- other # Will come into effect on 1.4.2021. * Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931. |
|||
13. OTHER PROPOSALS INVOLVING CHANGES IN BASIC CUSTOMS DUTY RATES IN RESPECTIVE NOTIFICATIONS [with effect from 2.2.2021, unless specified otherwise]
|
S. No |
Chapter, Heading, sub- heading, tariff item |
Commodity |
From |
To |
|
Agricultural Products and By Products |
||||
|
1. |
2207 20 00 |
Denatured Ethyl Alcohol (ethanol) for use in manufacture of excisable goods |
2.5% |
5% |
|
2. |
23 |
All goods except dog and cat food and shrimp |
Nil/ |
15% |
|
larvae feed |
5%/ |
|||
|
10%/ |
||||
|
15%/ |
||||
|
20%/ |
||||
|
30% |
||||
|
Minerals |
||||
|
3. |
2528 |
Natural borates and concentrates thereof |
Nil/5 % |
2.5% |
|
Fuels, Chemicals and Plastics |
||||
|
3. |
2710 |
Naphtha |
4% |
2.5% |
|
5. |
2907 23 00 |
Bis-phenol A |
Nil |
7.5% |
|
6. |
2910 30 00 |
Epichlorohydrin |
2.5% |
7.5% |
|
7. |
2933 71 00 |
Caprolactam |
7.5% |
5% |
|
8. |
3907 40 00 |
Polycarbonates |
5% |
7.5% |
|
9. |
3908 |
Nylon chips |
7.5% |
5% |
|
10. |
3920 99 99 |
Other plates, sheets, films, etc. of other plastics |
10% |
15% |
|
Leather |
||||
|
11 |
41 |
Wet blue chrome tanned leather, crust leather, finished leather of all kinds, including splits and sides of the aforesaid |
Nil |
10% |
|
Textiles |
||||
|
12. |
5002 |
Raw Silk (not thrown) |
10% |
15% |
|
13. |
5004, 5005, |
Silk yarn, yarn spun from silk waste (whether |
10% |
15% |
|
5006 |
or not put up for retail sale) |
|
14. |
5201 |
Raw Cotton |
Nil |
5% + 5% AIDC* |
|
15. |
5202 |
Cotton waste (including yarn waste or garneted stock) |
Nil |
10% |
|
16. |
5402, 5403, |
Nylon Fibre and Yarn |
7.5% |
5% |
|
5404, 5405 |
||||
|
00 00, 5406, |
||||
|
5501 to 5510 |
||||
|
Gems and Jewellery Sector |
||||
|
17. |
7106 |
Silver |
12.5. |
7.5%+ |
|
% |
2.5% |
|||
|
AIDC* |
||||
|
18. |
7106 |
Silver Dore |
11% |
6.1% + 2.5% AIDC* |
|
19. |
7108 |
Gold |
12.5 |
7.5%+ |
|
% |
2.5% |
|||
|
AIDC* |
||||
|
20. |
7108 |
Gold Dore |
11.85 |
6.9%+ |
|
% |
2.5% |
|||
|
AIDC* |
||||
|
21. |
7107 00 00, |
Base metals or precious metals clad with |
12.5 |
10% |
|
7109 00 00, |
precious metals |
% |
||
|
7111 00 00 |
||||
|
22. |
7110 |
Other precious metals like Platinum, Palladium, |
12.5 |
10% |
|
etc. |
% |
|||
|
23. |
7112 |
Waste and scrap of precious metals or metals |
12.5 |
10% |
|
clad with precious metals |
% |
|||
|
24. |
7112 |
Spent catalyst or ash containing precious |
11.85 |
9.17 |
|
metals |
% |
% |
||
|
25. |
7113 |
Gold or Silver Findings |
20% |
10% |
|
26. |
7118 |
Coin |
12.5 % |
10% |
|
Metals |
||||
|
27. |
7204 |
Iron and steel scrap, including stainless steel scrap [up to 31.03.2022] |
2.5% |
Nil |
|
28. |
7206 and 7207 |
Primary/Semi-finished products of non-alloy steel |
10% |
7.5% |
|
29. |
7208, 7209, 7210, 7211, 7212, 7225 (except 7225 11 00) and 7226 (except 7226 11 00) |
Flat products of non-alloy and alloy steel |
10% /12.5 % |
7.5% |
|
30. |
7213, 7214, 7215, 7216, 7217, 7221, 7222, 7223, 7227 and 7228 |
Long product of non-alloy, stainless and alloy steel |
10% |
7.5% |
|
31. |
7225 |
Raw materials for use in manufacture of CRGO steel [up to 31.03.2023] |
2.5% |
Nil |
|
32. |
7404 |
Copper Scrap |
5% |
2.5% |
|
33. |
7318 |
Screw, bolts, nuts, etc. of iron and steel |
10% |
15% |
|
Capital Goods |
||||
|
34. |
8430 |
Tunnel boring machines |
Nil |
7.5% |
|
35. |
8431 |
Parts and components for manufacture of tunnel boring machines with actual-user condition |
Nil |
2.5% |
|
IT, Electronics and Renewable |
||||
|
36. |
8544 (other than 854470 and 8544 3000) |
Specified insulated wires and cables |
7.5% |
10% |
|
37. |
39, 74 and 85 |
Former, bases, bobbins, sb rackets; CP wires; P.B.T.; Phenol resin moulding powder; Lamination/ El silicon steel strips for use in manufacture of transformers (entry at S.No. 198 of 25/1999- Customs) |
Nil |
Applia ble rate |
|
38. |
Any Chapter |
Inputs or parts for manufacture of Printed Circuit Board Assembly (PCBA) of cellular mobile phone (w.e.f. 1.4.2021) |
Nil |
2.5% |
|
39. |
Any Chapter |
Inputs or parts for manufacture of camera module of cellular mobile phone (w.e.f. 1.4.2021) |
Nil |
2.5% |
|
40. |
Any Chapter |
Inputs or parts for manufacture of connectors of cellular mobile phone (w.e.f. 1.4.2021) |
Nil |
2.5% |
|
41. |
Any Chapter |
Inputs or raw material for manufacture of specified parts like back cover, side keys etc. of cellular mobile phone (w.e.f. 1.4.2021) |
Nil |
2.5% |
|
42. |
Any Chapter |
Inputs or raw material (other than PCBA and moulded plastics) for manufacture of charger or adapter of cellular mobile phones |
Nil |
10% |
|
43. |
8504 90 90 or 3926 90 99 |
Moulded plastics for manufacture of charger or adapter |
10% |
15% |
|
44. |
Any Chapter |
Inputs or parts of Printed Circuit Board Assembly of charger or adapter of cellular mobile phones |
Nil |
10% |
|
45. |
Any Chapter |
Inputs or parts of Moulded Plastic of charger or adapter of cellular mobile phones |
Nil |
10% |
|
46. |
Any Chapter |
Inputs or raw materials (other than Lithium-ion cell and PCBA) of Lithium-ion battery or battery pack (w.e.f. 1.4.2021) |
Nil |
2.5% |
|
47. |
Any Chapter |
Parts or components of PCBA of Lithium-ion battery or battery pack (w.e.f. 1.4.2021) |
Nil |
2.5% |
|
48. |
Any Chapter |
Inputs or raw materials of following goods: - (i) Other machines capable of connecting to an automatic data processing machine or to a network (8443 32 90) (ii) Ink cartridges, with print head assembly (8443 99 51) (iii) Ink cartridges, without print head assembly (8443 99 52) (iv) Ink spray nozzle (8443 99 53) (w.e.f. 1.4.2021) |
Nil |
2.5% |
|
49. |
Any Chapter |
Inputs and parts of LED lights or fixtures including LED Lamps |
5% |
10% |
|
50. |
Any Chapter |
Inputs for use in the manufacture of LED driver or MCPCB (Metal Core Printed Circuit Board) for LED lights or fixtures including LED Lamps |
5% |
10% |
|
51. |
9405 50 40 |
Solar lanterns or solar lamps |
5% |
15% |
|
52. |
8504 40 |
Solar Inverters |
5% |
20% |
|
53. |
9503 |
Parts of Electronic Toys for manufacture of electronic toys |
5% |
15% |
|
Aviation Sector |
||||
|
54. |
Any Chapter |
Components or parts, including engines, for manufacture of aircrafts or parts of such aircrafts, by Public Sector Units under Ministry of Defence subject to condition specified. |
2.5% |
0% |
|
Medical devices |
||||
|
55. |
9018-9022 |
Medical Devices imported by International Organization and Diplomatic Missions |
Healt h Cess @ 5% |
Healt h Cess @ Nil |
|
Goods imported under Project Import Scheme |
||||
|
56. |
9801 |
High Speed Rail Projects being brought under project imports |
Applic able Rate |
5% |
|
57. |
8714 91 00, |
All goods other than Bicycle parts and components |
10% |
15% |
|
8714 92, |
||||
|
8714 93, |
||||
|
8714 94 00, |
||||
|
8714 95, |
||||
|
8714 96 00, |
||||
|
8714 99 |
* Agriculture Infrastructure and Development Cess
14. Other miscellaneous changes
|
S. No. |
Notification No. |
Notificatio n Subject |
|
1. |
42/1996 - Customs dated 23rd July, 1996 |
High Speed Rail Projects are being included in list of projects to which Project Imports Scheme is applicable |
|
2. |
230/1986 - Customs dated 3rd April, 1986 |
National High Speed Rail Corporation Ltd. is being nominated as the 'Sponsoring Authority‟ under Project Import Regulations, 1986 for approving the items required to be imported under the Project Imports Scheme for High-Speed Rail Projects |
15. Pruning and review of customs duty concessions/ exemptions:
Review of concessional rates of BCD prescribed in notification No. 50/2017 - customs dated 6.2017: The BCD exemption hitherto available on certain goods are being withdrawn by omitting following entries of notification No. 50/2017-Customs dated 30.6.2017.
|
S. No. |
S. No. of Notfn |
Description/ CTH |
|
1. |
209 |
Diphenylmethane 4, 4-diisocyanate (MDI) for use in the manufacture of spandex yarn |
|
2. |
230 |
Ink cartridges, ribbon assembly, ribbon gear assembly, ribbon gear carriage, for use in printers for computers |
|
3. |
229 [w.e.f 1.4.2021] |
71 items like wax items, wood polish materials, prints for photo frames, velvet fabric/paper, handles/blades for cutlery, jigat, wine tools etc. |
|
4. |
311 [w.e.f 1.4.2021] |
35 items like fasteners, zippers, shoulder pads, buckles, rivets, Velcro tape, toggles, stud, elastic cloth and band, bobbin, hooks, anglets etc. |
|
5. |
312 [w.e.f 1.4.2021] |
42 items like buckles, buttons, stamping foil, sewing thread, Loop rivets, Glove Liners, shoelaces, inlay cards etc. |
|
6. |
313 [w.e.f 1.4.2021] |
18 items like lace, Velcro tape, curtain hooks, Tassel, Beads, Sequins, sewing threads, poly wadding materials, quilted wadding materials etc. |
Prescribing the condition of observance of the Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017 (IGCR Rules, 2017) for certain conditional entries in notification No. 50/2017-Customs dated 30.06.2017, in lieu of certain exiting conditions. Besides certain other conditions for imports are being rationalized/simplified.
- Accordingly, the condition Nos. 22, 24, 30, 38, 51, 52, 53, 54, 60, 61 and 74, in the said customs notification have been amended to prescribe condition of
- In addition, it has been prescribed that the changed jurisdictional authority under IGCR Rules, 2017, shall also issue the end use certificate for the past period after due verification as per the
Customs duty exemptions, including those which have been granted through certain other stand-alone notifications, have also been reviewed by rescinding the notification:
|
S. No. |
Notification No. |
Notification Subject |
|
1. |
1/2011- Customs, dated the 6.1.2011 |
Exemption to all items of machinery, instruments, appliances, components, or auxiliary equipment for initial setting up of solar power generation project or facility |
|
2. |
34/2017- Customs dated 30th June, 2017 |
This notification provided exemption to tags or labels (whether made of paper, cloth, or plastic), or printed bags (whether made of polyethene, polypropylene, PVC, high molecular or high density polyethene) imported for fixing on articles for export or for the packaging of such articles. Similar exemption exists at S. No.257 of notification No. 50/2017-Cus. These have been merged in the said S. No.257 and notification No 34/2017-Cus has been omitted. |
|
3. |
75/2017- Customs dated 13th September, 2017 |
Exemption for goods imported for organizing FIFA Under- 17 World Cup, 2017. |
16. IMPOSITION OF AGRICULTURE INFRASTRUCTURE AND DEVELOPMENT CESS ON IMPORT OF CERTAIN ITEMS [to be effective from 02.02.2021] [Clause [115] of the Finance Bill, 2021]
An Agriculture Infrastructure and Development Cess (AIDC) has been proposed on import of specified goods. To ensure that imposition of cess does not lead to additional burden in most of these items on the consumer, the BCD rates has been lowered. This cess shall be used to finance the improvement of agriculture infrastructure and other development expenditure. The list of items on which cess has been imposed and the applicable duty and AIDC on them would be as follows:
|
S. No |
Heading, sub- heading tariff item |
Commodity |
Basic customs duty |
AIDC |
|
1. |
0808 10 00 |
Apples |
15% |
35% |
|
2. |
1511 10 00 |
Crude Palm Oil |
15% |
17.5% |
||
|
3. |
1507 10 00 |
Crude Soya-bean oil |
15% |
20% |
||
|
4. |
1512 11 10 |
Crude Sunflower seed oil |
15% |
20% |
||
|
5. |
0713 10 |
Peas (Pisum sativum) |
10% |
40% |
||
|
6. |
0713 20 10 |
Kabuli Chana |
10% |
30% |
||
|
7. |
0713 20 20 |
Bengal Gram (desichana) |
10% |
50% |
||
|
8. |
0713 20 90 |
Chickpeas (garbanzos) |
10% |
50% |
||
|
9. |
0713 40 00 |
Lentils (Mosur) |
10% |
20% |
||
|
10. |
2204 |
All goods (Wine) |
50% |
100% |
||
|
11. |
2205 |
Vermouth and other wine of fresh grapes, flavoured |
50% |
100% |
||
|
12. |
2206 |
Other fermented beverages for example, Cider, Perry, Mead, sake, mixture of fermented beverages or fermented beverages and nonalcoholic beverages |
50% |
100% |
||
|
13. |
2208 |
All goods (Brandy, Bourbon whiskey, Scotch etc.) |
50% |
100% |
||
|
14. |
2701 |
Various types of coal |
1% |
1.5% |
||
|
15. |
2702 |
Lignite, whether agglomerated |
or |
not |
1% |
1.5% |
|
16. |
2703 |
Peat, whether agglomerated |
or |
not |
1% |
1.5% |
|
17. |
3102 10 00 |
Urea |
Nil |
5% |
||
|
18. |
3102 30 00 |
Ammonium nitrate |
2.5% |
5% |
||
|
19. |
31 |
Muriate of potash, for use as manure or for the production of complex fertilisers |
Nil |
5% |
||
|
20. |
3105 30 00 |
Diammonium phosphate, for use as manure or for the production of complex fertilisers |
Nil |
5% |
|
21. |
5201 |
Cotton (not carded or combed) |
5% |
5% |
|
22. |
7106 |
Silver (including imports by eligible passengers) |
7.5% |
2.5% |
|
23. |
7106 |
Silver Dore |
6.1% |
2.5% |
|
24. |
7108 |
Gold (including imports by eligible passengers) |
7.5% |
2.5% |
|
25. |
7108 |
Gold Dore |
6.9% |
2.5% |
17. OTHER CHANGES (INCLUDING CERTAIN CLARIFICATIONS/ TECHNICAL CHANGES BY AMENDING NOTIFICATION NO. 50/2017- CUSTOMS DATED 30.06.2017
|
S.No. |
S.No. of Notfn |
Description |
|
1. |
20 |
a) The HS [0713 20 00] was split into [0713 20 10], [0713 20 20] and [0713 20 90] vide notification 22/2018-Cus dated 20.03.2020. However, the transposition of the same has not been done for entry 20 of notification No. 50/2017-Cus. b) It is proposed to specifically mention Kabuli Chana & Bengal gram (desichana) in the exclusions to this entry. |
|
2. |
21E |
The entry is redundant (was valid only upto 31.12.2020 and is proposed to be omitted. |
|
3. |
44 |
The entry is redundant (was valid only upto 30.09.2017) and is proposed to be omitted. |
|
4. |
131 |
Acid grade fluorspar attracts 5% BCD vide serial numbers 120 and S.N. 131 of notification No. 50/2017-Customs dated 30.06.2017. Entry at S.No. being redundant is being omitted. |
|
5. |
175 |
'Any Chapter' mentioned in the Chapter/heading etc. of this entry is being replaced by the specific entry heading 2501. |
|
6. |
284 |
An explanation is being inserted in Sr. No. 284 of the notification no. 50/2017-Customs dated 30th June 2017 so as to clarify that the said exemption entry does not cover toy balloons made of natural rubber latex as such toy balloons are classified under customs heading 9503, so as to avoid misclassification. |
|
7. |
293A & 293B |
The language of exemption entries providing concessional rates on newsprint & other uncoated paper conforming to the specifications of newsprint (other than its surface roughness) is being simplified so as to remove any doubts regarding the specification of uncoated papers used for printing of newspapers on which the concessional rates apply. |
|
8. |
First Proviso |
Clauses (b), (c) and (e) are being omitted as they are redundant. |
18. Review of levy of Social Welfare Surcharge on various items.
- Notification No. 12/2018-Customs, dated 02.02.2018 prescribing effective rates of 3% on certain items, including gold and silver, is being
- SWS is also being rescinded on goods falling under heading 2515 11 and 2515
- SWS is being exempted on the value of AIDC imposed on gold and silver. Accordingly, these items would attract SWS, at normal rate, only on value plus basic customs
19. Other Miscellaneous changes pertaining to Anti-Dumping Duty (ADD)/ Countervailing Duty (CVD)/ Safeguard Measures
|
1. |
Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 provide for manner and procedure for investigation into dumping of goods that cause injury to domestic industry. Changes are being made in the Rules, to provide that with effect from 01.07.2021, to provide that final findings are to be issued by the designated authority, in review cases, at least three months prior to expiry of the ADD under review. The ADD Rules are also being amended to provide for provisional assessment in cases of |
|
anti-circumvention investigation. Certain other changes are being made for bringing clarity in the scope of these rules. |
|
|
2. |
Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 provide for manner and procedure for causing investigation into the cases of imports of subsidized goods that cause injury to domestic industry. Changes are being made in the Rules to provide that with effect from 01.07.2021, the final findings are to be issued by the designated authority, in review cases, at least three months prior to expiry of the CVD under review. The CVD Rules are also being amended to provide for provisional assessment in cases of anti- circumvention investigation. Certain other changes are being made for bringing clarity in the scope of these rules. |
|
3 |
Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997 (Safeguard Duty being changed to Safeguard Measures) provide for manner and procedure for causing investigation into the cases of imports in increased quantity that cause injury to domestic industry. Changes in the rules are being proposed to elaborate in detailed manner the modalities of implementation of safeguard measure, along with technical modifications consequent to the changes made earlier in section 8B of the Customs Tariff Act vide Finance Act, 2020. |
|
4. |
Anti-Dumping duty is being temporarily revoked for the period commencing from 2.2.2021 till 30.09.2021, on imports of the following- a) Straight Length Bars and Rods of alloy-steel, originating in or exported from People‟s Republic of China, imposed vide notification No. 54/2018-Cus (ADD) dated 18.10.2018; b) High Speed Steel of Non-Cobalt Grade, originating in or exported from Brazil, People‟s Republic of China and Germany, imposed vide notification No. 38/2019- Cus (ADD) dated 25.09.2019; c) Flat rolled product of steel, plated, or coated with alloy of Aluminum or Zinc, originating in or exported from People‟s Republic of China, Vietnam, and Korea RP, imposed vide notification No. 16/2020-Cus (ADD) dated 23.06.2020. |
|
5. |
Countervailing duty is being temporarily revoked for the period commencing from 2.2.2021 till 30.09.2021, on imports of Certain Hot Rolled and Cold Rolled Stainless Steel Flat Products, originating in or exported from People‟s Republic of China, |
|
imposed vide Notification No. 1/2017-Cus (CVD) dated 07.09.2017. |
|
|
6. |
Provisional Countervailing duty is being revoked on imports of Flat Products of Stainless Steel, originating in, or exported from Indonesia, imposed vide notification No. 2/2020- Customs (CVD) dated 9.10.2020. |
|
7. |
In Sunset Review, anti-dumping duty on Cold-Rolled Flat Products of Stainless Steel of width 600 mm to 1250 mm and above 1250 mm of non bonafide usage originating in or exported from People's Republic of China, Korea RP, European Union, South Africa, Taiwan, Thailand and United States of America has been discontinued upon expiry of the anti-dumping duty hitherto leviable vide notifications no. 61/2015-Customs (ADD) dated 11th December 2015 and 52/2017-Customs (ADD) dated 24th October 2017. |
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