Tally

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


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.

Key Changes in Customs Act

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:

  1. to allow job-work of the materials (except gold and jewellery and other precious metals) imported under concessional rate of duty
  2. to allow 100% out-sourcing for manufacture of goods on job-work
  3. 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.


Tags :



Category Union Budget, Other Articles by - Namrata 



Comments


update