CBIC makes changes in the Customs Tariff Act



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The Central Board of Indirect Taxes (CBIC) has amended the Customs Tariff Act and related rules concerning anti-dumping duties. These changes specifically address the import of Dimethylacetamide (DMAC). Following a review, DMAC with certain technical specifications, when used in spandex yarn manufacturing, will now be excluded from the scope of goods subject to anti-dumping duty.

The Central Board of Indirect Taxes has made changes in the Customs Tariff Act and Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995, in the matter of anti-dumping duty on imports of “Dimethylacetamide”. Read the official announcement below:

MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 15th December, 2020
No. 47/2020 -Customs (ADD)

G.S.R. 762(E).— Whereas, the designated authority vide notification number 7/11/2019-DGTR, dated the 17th July, 2019, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 17th July, 2019, had initiated review in terms of sub-section (5) of section 9A of the Customs Tariff Act, 1975 (51 of 1975) (hereinafter  referred to as the Customs Tariff Act), read with rule 23 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995 (hereinafter referred to as the said rules), in the matter of anti-dumping duty on imports of “Dimethylacetamide”, falling under the sub-heading 2924 19 of the First Schedule to the Customs Tariff Act, originating in, or exported from China PR and Turkey, imposed vide notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 12/2018-Customs(ADD), dated the 20th March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 249(E), dated the 20th March, 2018;
And whereas, the designated authority, in its final findings in the mid-term review vide notification No. 7/11/2019-DGTR, dated the 14th October, 2020, published in the Gazette of India, Extraordinary, Part I, Section 1, dated the 14th October, 2020, has recommended that “Dimethylacetamide [N, N-Dimethylacetamide] (DMAC)” having following technical specifications, when meant for consumption in spandex yarn manufacturing, shall be excluded from the product under consideration in the final findings notification number 14/41/2016-DGAD dated the 21st February, 2018, read with the corresponding Customs notification, namely-

(i) Minimum Purity (99.9% min.) and Maximum Alkalinity level (0.003% max);
(ii) Maximum Acidity level (0.005% max);
(iii) Maximum iron ppm as (0.05);
(iv) Maximum water (0.01% max or 100 PPM);
(v) Conductivity (0.1 micro-siemens /cm max).

Now, therefore, in exercise of the powers conferred by sub-sections (1) and (5) of section 9A of the Customs Tariff Act, read with rules 18 and 23 of the said rules, the Central Government hereby makes the following amendment in the notification of the Government of India, in the Ministry of Finance (Department of Revenue) No. 12/2018-Customs (ADD), dated the 20th March, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i) vide number G.S.R. 249(E), dated the 20th March, 2018, namely :-

In the said notification, after the Table, the following shall be inserted, namely:-

“Note- For the purpose of this Table, “Dimethylacetamide [N, N-Dimethylacetamide] (DMAC)” having following technical specifications, when meant for consumption in spandex yarn manufacturing, shall be excluded from the scope of description of goods, namely-

(i) Minimum Purity (99.9% min.) and Maximum Alkalinity level (0.003% max);
(ii) Maximum Acidity level (0.005% max);
(iii) Maximum iron ppm as (0.05);
(iv) Maximum water (0.01% max or 100 PPM);
(v) Conductivity (0.1 micro-siemens /cm max).”.

[F. No. 354/66/2018-TRU(Pt-I)]
GAURAV SINGH, Dy. Secy.

FAQ :

The CBIC has made changes to the Customs Tariff Act and the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) Rules, 1995.

The changes specifically concern the anti-dumping duty on imports of 'Dimethylacetamide' (DMAC).

The anti-dumping duty was initially imposed on DMAC originating in or exported from China PR and Turkey.

DMAC will be excluded if it meets specific technical specifications (e.g., minimum purity of 99.9%, maximum alkalinity of 0.003%) and is intended for consumption in spandex yarn manufacturing.

The original anti-dumping duties were imposed via notification No. 12/2018-Customs(ADD) dated 20th March, 2018.




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