Changes in Custom Duty rates - Budget 2008

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. )   (9017 Points)

25 March 2008  

Changes in Custom Duty rates - Budget 2008
 

1. Reduction in customs duty rate (effective from 1 March 2008)
In pursuit of correction of inverted duty structure and provide fillip to selected industries/ , customs duty has been reduced on  selected commodities by change in tariff rate/ by issue of exemption notifications. These changes are effective from 1 March 2008.
Detailed list of items and the duty rates .
Sr. No.
Name of item
Changes in duty rates
1
Un worked corals
BCD from 10% to 5%
2
Rough Cubic Zirconia
BCD from 5% to 0%
3
Feed Additives or premixes
BCD from 30% to 20%
4
Unrefined sulphur
BCD from 5% to 2%
5
Phosphoric Acid
BCD from 7.5% to 5%
6
Specified items used for manufacture of Elisa Kit
BCD reduced to 5%
7
Specified life saving drugs
BCD from 5% to 0%
8
Chlorobutyl rubber and bromobutyl rubber
BCD from 10% to 5%
9
Polyester tyre cord fabric
BCD from 10% to 5%
9
Polyester Filament Yarn
NCCD reduced to 0%
10
Melting scrap of iron and steel
BCD from 5% to 0%
11
Aluminium scrap
BCD from 5% to 0%
12
Specified machinery required for manufacture and export of sport goods
BCD from 7.5% to 5%
13
Specified raw materials for manufacture of sport goods and export subject to limit of  3% of FOB value of exports of previous year
BCD 10% to 0%
15
Simulators of Helicopters
BCD from 10% to Nil
2. Increase in customs duty rates (effective from 1 March 2008)
To protect domestic industry, restrict import of selected commodities and augment revenue collections, customs duty has been increased on various items / exemptions have been withdrawn/ amended. These changes are effective from 1 March 2008. Detailed list of items and increase rates .
Sr. No.
Name of item
Changes in duty rates
1
Cigars, cheroots
BCD from 30% to 60%
2
Naptha used for manufacture of polymers
Exemption withdrawn. Applicable duty payable
3
Electrical energy
BCD from Nil to Rs. 2000 per kWH.  Exemption provided. Hence effective rate is 0%.
4
Mobile phones
NCCD from 0% to 1%
5
Power generation projects (other than mega power projects), transmission, sub transmission and distribution projects and specified goods for High Voltage transmission projects
ADC from 0% to 4%
6
Wireless data modem cards with PCMCIA/USB/PCI port
ADC from 0% to 4%