CUSTOMS
Chapter 1 to 7: No change
Chapter 8
8.1 The basic customs duty (BCD) on hazel nuts is being reduced from 30% to 10%.
Notification No.12/2012-Customs, dated 1st March, 2012 as amended by
notification No. 12/2013-Customs, dated 1st March, 2013 refers. S. No. 23A
contains the changes.
8.2 In notification No 12/2012-Customs, at S. No. 24 of the Table, sub-heading
0802 50 00 (Pistachios) is being replaced by sub-headings 0802 51 00 and 0802 52
00. This is a technical rectification.
Chapter 9 to 10: No change
Chapter 11
11.1 The BCD on de-hulled oat grain is being reduced from 30% to 15%.
Notification No.12/2012-Customs, dated 1st March, 2012 as amended by
notification No. 12/2013-Customs, dated 1st March, 2013 refers. S. No. 38A
contains the changes.
Chapter 12 and 14: No change.
Chapter 15
15.1 Peanut butter is presently classified under sub-heading 1517 90 20 of the
Customs Tariff whereas, under the Harmonised System, peanut butter is classified
under sub-heading 2008 11. To align our Tariff Schedule with HSN, an amendment
has been proposed in the Finance Bill, 2013 (Clause 76 read with Third Schedule)
to delete the current sub-heading 1517 90 20 and entries relating thereto from
the Tariff. By virtue of this amendment, hereafter, the peanut butter will fall
under sub-heading 2008 11, which is the correct classification as per the HSN.
15.2 Presently, peanut butter attracts a concessional BCD of 7.5% under
notification No. 12/2012-Customs (S. No 71 of the Table). In view of the
amendment referred to above, sub-heading 1517 90 20 is being deleted from S. No.
71. However, the concessional duty is being continued under notification No.
12/2012-Customs at new S. No. 88A. In the connection, notification No.
12/2013-Customs refers.
Chapter 16: No change
Chapter 17
17.1 Raw sugar, white or refined sugar (1701) has been included in the Second
Schedule to the Customs Tariff Act, 1975 (Export Schedule) vide Clause 77 read
with Fourth Schedule of the Finance Bill, 2013 with a tariff rate of 20%.
Exemption is however provided under notification No 27/2011-Customs dated
1.3.2011, as amended by notification No 15/2013-Customs, dated the 1st March
2013. Thus, raw sugar, white or refined sugar will not attract any export duty.
Chapter 18-22: No change
Chapter 23
23.1 De-oiled rice bran oil cake is being exempted from export duty. S. No. 12
of notification No. 27/2011-Customs, dated 1st March 2011, as amended by
notification No.15/2013-Customs, dated 1st March 2013 refers.
Chapter 24 and 25: No change
Chapter 26
26.1 Bauxite and ilmenite are being incorporated in the Second Schedule to the
Customs Tariff Act, 1975 (Export Schedule) with a tariff rate of 30%. (Clause 77
read with the Fourth Schedule to the Finance Bill, 2013). However, the effective
duty is being prescribed at 10% on bauxite (2606 0010 and 2606 0020) and
unprocessed ilmenite (2614 0010) and at 5% on upgraded ilmenite (2614 00 20). In
this connection, notification No. 27/2011-Customs dated the 1st March as amended
by notification No.15/2013-Customs, dated 1st March 2013 refers. New S. Nos.
24A, 24B, 24C and 24D contain the changes. By virtue of the Provisional
Collection of Taxes Act, 1931, the levies will come into force with immediate
effect.
Chapter 27
27.1 The BCD on bituminous coal is being reduced from 5 % to 2 % and CVD from 6
% to 2 %. The BCD on steam coal is being raised from Nil to 2% and CVD from 1%
to 2%. Hereafter, both steam coal and bituminous coal will attract a uniform
rate of 2% BCD and 2% CVD. Notification No.12/2012-Cus, as amended by
notification No. 12/2013-Customs refers. Changes are contained in S. Nos 122 A,
123 and 124 of the Table.
Chapter 28-49: No change.
Chapter 50
50.1 The BCD on raw silk is being increased from 5% to 15%. S. No.276 of
notification No.12/2012-Customs, as amended by notification No.12 /2013-Customs,
dated the 1st March 2013 refers.
Chapter 51 and 52: No change
Chapter 53
53.1 Presently, coir yarn (53.08) is mentioned at S. No. 43 of notification No.
27/2011-Customs. In column (4), which is presently blank, the entry Nil is being
inserted. This is a technical rectification. In this connection, notification
No.15 /2013-Customs, dated the 1st March 2013 refers.
Chapter 54 - 70: No change
Chapter 71
71.1 Basic customs duty is being reduced on pre-forms of precious and
semi-precious stones from 10% to 2%. Notification No.12/2012-Customs, dated 1st
March, 2012 as amended by notification No.12/2013-Customs, dated 1st March, 2013
refers. S. No.312A contains the changes.
71.2. Under the Foreign Trade Policy (paragraph 4A.2.2), an exporter with annual
export turnover of Rs 5 crore for each of the last three years is allowed to
export cut & polished diamonds (each of 0.25 carat or more) abroad to any of the
designated laboratories/agencies with re-import facility at zero duty within 3
months from the date of export. In this regard, a variance not exceeding +_1mm
in height and circumference and not exceeding +_1 cent in weight is allowed
between exported and re-imported cut and polished diamonds. In this connection,
Explanation 1 of notification No. 9/2012-Customs, dated the 9th March, 2012
refers. This limit is being revised in respect of height and circumference from
+_1 mm to +_0.01 mm. The variation in respect of weight shall remain unchanged.
Notification No. 9/2012-Customs, dated the 9th March, 2012 as amended by
notification No. 11/2013-Customs, dated the 1st March, 2013 may be referred to
for details.
Chapter 72
72.1 Flat rolled products of iron or non-alloy steel, plated or coated with zinc
(sub-headings 7210 30 10, 7210 30 90, 7210 41 00, 7210 49 00, 7212 20 10, 7212
20 90, 7212 30 10 and 7212
30 90) are being exempted from export duty retrospectively from 1st March 2011.
In this connection, clauses 75 and 77 of the Finance Bill, 2013 may be referred
to for details. The changes will come into force upon enactment of the Finance
Bill. In the meanwhile, export duty may not be collected on the afore-cited
product. Prior to 1st March 2011, this product was exempt from export duty under
notification No. 77/2008-Customs, dated 13th June 2008.
Chapter 73
73.1. Under notification No 12/2012-Customs (S No. 371), specified goods for
manufacture of catalytic convertors and their parts attract a concessional BCD
of 5%. Stainless Steel Wire Cloth Stripe (sub-heading 7314 14 10) and Wash Coat
(sub-heading 3824 90 90) are being added to the list for availing of
concessional duty of 5%.
Chapter 74-83: No change.
Chapter 84
84.1 The BCD on 20 specified machinery for use in the leather industry or
footwear industry is being reduced from 7.5% to 5%. Descriptions of certain
leather and footwear machinery items are being modified. S No 390 (List 29) of
notification No. 12/2012-Cus, as amended by notification No. 12/2013-Customs,
dated the 1st March 2013 refers.
84.2 The BCD on all textile machinery and parts thereof falling under headings
8444 to 8449 is being reduced from 7.5% to 5%. Notification No.12/2012-Customs,
dated 1st March, 2012 as amended by notification No. 12/2013-Customs, dated 1st
March, 2013 refers. S. No. 406A contains the changes.
Chapter 85
85.1 The BCD on Integrated Decoder Receiver, also known as Set Top Box, is being
increased from 5% to 10%. S. No411 of notification No.12/2012-Customs, as
amended by notification No. 12 /2013-Customs, dated the 1st March 2013 refers.
85.2 LCD and LED TV Panels of 19” and above are presently exempt from BCD under
notification No 12/2012-Customs (S. No. 432). In this connection, a doubt has
been raised whether this exemption is available for LCD and LED TV Modules or
otherwise. It is clarified that LCD and LED TV Panels and LCD and LED TV Modules
are one and the same thing for the purpose of exemption under this notification.
85.3 Presently, all goods required for the manufacture of the goods falling
under heading 8541 are exempt from BCD subject to actual user condition. Solar
cells and solar modules are classified under heading 85.41. It has been brought
to the notice of the Ministry that this exemption has been denied at certain
places although the imported goods are required for the manufacture of solar
cells and solar modules. It is clarified that the BCD exemption under S No 39 of
notification No. 24/2005-Customs, dated 1st March, 2005 is available to all
goods including chemicals and electronic parts required for the manufacture of
solar cells whether or not assembled in modules or panels.
Chapter 86: No change
Chapter 87
87.1 The validity period of exemption granted to identified parts of hybrid and
electric vehicles is being extended by two more years up to 31st March, 2015.
Clauses (g) and (h) of Proviso to notification No.12/2012-Customs, as amended by
notification No. 12/2013-Customs, dated the 1st March 2013 refers.
87.2 BCD is being exempted on lithium ion automotive battery for manufacture of
lithium ion battery packs for supply to the manufacturers of hybrid and electric
vehicles. Notification No.12/2012-Customs (S. No 438), as amended by
notification No. 12/2013-Customs, dated the 1st March 2013 refers.
87.3 At present, cars and other motor vehicles, new with FOB value more than US
$ 40,000 and with engine capacity more than 3000 cc for petrol-run vehicles and
more than 2500 cc for diesel-run vehicles attract a BCD of 75%. In this
connection, notification No 12/2012- Customs (S No 437, (2) (a) of the Table)
refers. The entry is being amended to read: “...with CIF value more than US $
40,000 or with engine capacity more than 3000 cc for petrol-run vehicles and
more than 2500 cc for diesel-run vehicles or with both”. Further, the BCD on
these cars/motor vehicles is being increased from 75% to 100%. Thus, hereafter,
these cars/ motor vehicles with CIF value more than US $ 40,000 would attract
100% BCD regardless of engine capacity. Similarly, regardless of value,
cars/motor vehicles with engine capacity more than 3000 cc for petrol-run
vehicles and more than 2500 cc for diesel-run vehicles would attract BCD at
100%. S.
No 437 of notification No.12/2012-Cus, as amended by notification No.
12/2013-Cus, dated the 1st March 2013 refers.
87.4 The BCD on import of old cars is being increased from 100% to 125%. Clause
76 of the Finance Bill 2013 refers. By virtue of the Provisional Collection of
Taxes Act, 1931, the levy will come into force with immediate effect.
87.5 The BCD on new motorcycles with engine capacity of 800cc or more is being
increased from 60% to 75%. Notification No.12/2012-Customs (S No 443), as
amended by notification No. 12 /2013-Customs, dated the 1st March 2013 may be
referred to for details.
Chapter 88
88.1 Exemption from education cess and secondary & higher education cess is
being withdrawn on aeroplanes, helicopters and their parts. For this purpose, S
Nos 51 and 52 and entries relating thereto are being deleted from notification
No 69/2004-Customs, dated 9th July 2004. The relevant entry at S. No 1 is also
being deleted. In this connection, notification No. 9/2013- Customs, dated 1st
March 2013 refers.
88.2 The time period for consumption/installation of parts and testing equipment
imported for maintenance, repair and overhaul (MRO) of aircraft by units engaged
in such activities is being increased from 3 months to 1 year. S. No.448 of
notification No.12/2012-Customs (Condition 73), as amended by notification No.
12/2013-Customs, dated the 1st March 2013 refers.
88.3 The customs duty exemption on parts and testing equipment for maintenance,
repair and overhauling of aircraft is being extended to parts and testing
equipment for maintenance repair & overhauling of aircraft and aircraft parts.
S. No.448 of notification No.12/2012-Customs, as amended by notification No.
12/2013-Customs, dated the 1st March 2013 refers.
88.4 Private category aircrafts are being included in the list of eligible
categories of aircrafts for the purpose of availing of the exemption under
notification No 12/2012- Customs. S. No.448 of notification No.12/2012-Customs,
as amended by notification No. 12/2013-Customs, dated the 1st March 2013 refers.
88.5 The terms “scheduled air transport service” and “scheduled air cargo
service” are explained in condition No. 75 of notification No. 12/2012-Cus dated
17.3.2012. In this connection, a doubt has been raised whether exemption granted
to parts and testing equipment imported for servicing, repair or maintenance of
scheduled airlines includes foreign airlines or otherwise. Under S. Nos. 448 and
454 of the notification No. 12/2012-Customs read with condition Nos. 73 and 21
respectively, exemption has been provided for servicing, repair or maintenance
of aircraft used for operating “scheduled air transport service” and “scheduled
air cargo service”. The term “scheduled air transport service”/ “scheduled air
cargo service”, as defined under condition No 75 of the afore-said notification,
does not exclude foreign airlines. It is as such clarified that the aforesaid
exemption available for “scheduled air transport service” and “scheduled air
cargo service” includes foreign airlines that meet the definition of scheduled
air transport and air cargo service.
88.6 Under S. No. 450 of the notification No. 12/2012-Customs read with
condition 75 (ii), a foreign registered aircraft, that is brought into India for
the purpose of “a flight to or across India” and which is intended to be removed
within the time period specified for the purpose, is exempt from customs duty.
In this connection, doubts have been raised whether the term “a flight to India”
means “one landing and one take off” or it entitles the aircraft to fly to
different destinations within India during the stipulated period of stay in
India. The matter has been examined and it is clarified that the term “a flight
to India” by a foreign registered non-scheduled aircraft shall mean a flight
which after completion of its itinerary (which may include multiple destinations
in India) leaves India within the stipulated period of 15 days, or as extended
by the competent authority in the Ministry of Civil Aviation, not exceeding 60
days from the date of entry.
Chapter 89
89.1 By virtue of excise duty exemption on ships and vessels (89.01, 89. 04,
89.05 and 89.06 90 00), there will no CVD leviable on these ships and vessels.
Notification Nos. 19/2012-Customs and 20-2012-Customs, both dated 17th March
2012 and S. No 462 of notification No. 12/2012-Customs, which have become
redundant due to excise duty exemption, are being rescinded.
89.2 Basic customs duty on yachts and other vessels (89.03) is being increased
from 10% to 25%. Clause 76 of the finance Bill, 2013 refers. By virtue of the
Provisional Collection of Taxes Act, 1931, the levy will come into force with
immediate effect.
89.3 The time limit for consumption of imported goods for the purpose of repair
of ocean going vessels by ship repair units is being increased from 3 months to
1 year. S. Nos.459 and 460 of notification No.12/2012-Customs (Conditions 79 and
80), as amended by notification No. 12/2013-Customs, dated the 1st March 2013
refers.
Chapter 90-98: No change.
Miscellaneous:
(i) Full exemption is being provided to trophy when imported into India by
National Sports Federation recognized by the Central Government or any Sports
Body registered under any law for the time being in force in connection with
international tournament to be held in India. Notification No. 146/1994-Customs,
dated the 13th July, 1994 as amended by notification No. 14/2013-Customs, dated
the 1st March 2013 refers.
(ii) Notification No 75/2005-Customs, dated 22nd July 2005 (India- Singapore
FTA) is being amended to replace the sub-heading 2920 90 90 with the sub-heading
2920 90 99. This is a technical rectification.
(iii) Exemption from education cess and secondary & higher education cess is
being withdrawn on soya bean oil, olive oil and a few other items. Accordingly,
S. Nos. 5, 6, 7, 8, 13, 51& 52 and entries relating thereto are being deleted
from notification No 69/2004-Customs, dated 9th July 2004. In the said
notification, at various places, references have been made to exemptions
contained in erstwhile notification No. 21/2002-Customs, dated 1st March, 2002.
The entries showing notification No. 21/2002-Customs (S. Nos. 9, 10, 12, 55) are
being replaced by the relevant S. Nos. of notification No.12/2012 –Customs. This
is a technical rectification. Notification No.69/2004-Customs as amended by
notification No. 9/2013 –Customs, dated 1st March, 2013 may be referred to for
details.
Baggage Rules
Presently, under Rule 6 of the Baggage Rules, 1998, an Indian passenger, who has
been residing abroad for over one year, is permitted to bring jewellery without
payment of duty up to an aggregate value of Rs 10,000/- in case of a gentleman
passenger and Rs 20,000/- in case of a lady passenger. Under Rule 8 of the
Baggage Rules,1998, a person who is transferring his residence ( Transfer of
Residence) to India is also allowed to bring jewellery without payment of duty
up to an aggregate value of Rs 10,000/- in case of a gentleman passenger and Rs
20,000/- in case of a lady passenger. The duty free limits are being raised to
Rs 50,000/- in case of a gentleman passenger and Rs 100,000/- in case of a lady
passenger.
Presently, under Rule 10 of the Baggage Rules, 1998, a crew member of the
vessel/aircraft is allowed to bring duty free items like chocolates, cheese,
cosmetics etc. for their personal or family use up to a value of Rs 600. The
duty free allowance is being increased from Rs 600 to Rs 1500.
Notification No 25/2013-Customs (NT), dated 1st March, 2013 which contains these
changes may be referred to for details.