Customs
As a measure of rationalization of duty structure the rates of 2% and 3% are
being unified
with the median rate of 2.5%. Accordingly basic customs duty on all goods
currently attracting 2%
has been increased to 2.5% and basic customs duty on those goods attracting 3%
has been
decreased to 2.5%.(S. No. 1 & 2 of Notification No. 21/2011-Cus dated the 1st
March 2011 refers)
Chapter 1 and 2
No change
Chapter 3
Basic customs duty is being reduced from 30% to 10% on Live SPF L. Vannamei
(S. No. 2A of
Notification No.21/2002-Cus dated 1st March, 2002, as amended by Notification
No. 21/2011-Cus
dated the 1st March 2011 refers)
Chapter 4 to 7
No change
Chapter 8
8.1 Basic customs duty is being reduced from 30% to 10% on Pistachios (S. No.
14A of
Notification No.21/2002-Cus dated 1st March, 2002, as amended by Notification
No. 21 /2011-Cus
dated the 1st March 2011 refers)
8.2 Basic customs duty is being reduced from 100% to 30% on Sun-dried dark
seedless raisin
(S.No.16A of Notification No.21/2002-Cus dated 1st March, 2002, as amended by
Notification No. 21
/2011-Cus dated the 1st March 2011 refers)
Chapter 9 to 13
No change
Chapter 14
Basic customs duty is being reduced from 30% to 10% on Bamboo for use in the
manufacture of
agarbatti (S. No. 28A of Notification No.21/2002-Cus dated 1st March, 2002, as
amended by
Notification No. 21 /2011-Cus dated the 1st March 2011 refers)
Chapter 15 and 16
No change
Chapter 17
Basic customs duty is being reduced from 25% to 10% on Lactose for use in the
manufacture of
homeopathic medicine (S. No. 39A of Notification No. 21/2002-Cus dated 1st
March, 2002, as
amended by Notification No. 21/2011-Cus dated the 1st March 2011 refers)
Chapter 18 and 19
No change
Chapter 20
Basic customs duty is being reduced from 30% to 10% on Cranberry products (S.
No. 45A of
Notification No.21/2002-Cus dated 1st March, 2002, as amended by Notification
No. 21/2011-Cus
dated the 1st March 2011 refers)
Chapter 21 and 22
No change
Chapter 23
23.1 De-oiled rice bran oil cake is being exempted from Basic customs duty
(S. No. 53AA of
Notification No.21/2002-Cus dated 1st March, 2002, as amended by Notification
No. 21/2011-Cus
dated the 1st March 2011 refers)
23.2 Export duty of 10% is being levied on de-oiled rice bran oil cake
23.3 Fin fish feed is being exempted from Basic customs duty (S. No. 53AB of
Notification
No.21/2002-Cus dated 1st March, 2002, as amended by Notification No. 21
/2011-Cus dated the 1st
March 2011 refers)
Chapter 24
No change
Chapter 25
25.1 Basic customs duty on mineral gypsum is being reduced from 5% to 2.5%
(S. No.584A of
Notification No.21/2002-Cus dated 1st March, 2002 as amended by Notification
No.21 /2011-Cus
dated the 1st March 2011 refers)
Chapter 26
26.1 Basic customs duty is being increased on all ores and concentrates from
2% to 2.5%. (S. No.
518 of Notification No.21/2002-Cus dated 1st March, 2002, as amended by
Notification No. 21/2011-Cus dated the 1st March 2011 refers)
26.2 Basic customs duty is being exempted on the value of gold and silver
content in copper
concentrate. (Notification No. 23 /2011-Cus dated the 1st March 2011 refers)
26.3 Export duty on Iron ore is being increased on both fines and lumps
(other than pellets) to a
unified rate of 20%. Iron ore pellets have been exempted from export duty.
(Notification No. 27
/2011-Cus dated the 1st March 2011 refers).
26.4 Full exemption from the additional duty of customs leviable under
section 3(5) of customs
Tariff Act is being provided to copper dross, copper residues, copper oxide mill
scale, brass dross and
zinc ash (S. No. 76 of Notification No.20/2006-Cus dated 1st March, 2006, as
amended by Notification
No. 20/2011-Cus dated the 1st March 2011 refers).
Chapter 27
27.1 An explanation is being inserted to define coking coal as coal of
Crucible Swelling Number
(CSN) of above 2 and mean reflectance of above 0.85 have been prescribed for
“Coking coal” for the
purposes of this exemption. (S. No.68 & 68A of Notification No.20/2002-Cus dated
1st March, 2002,
as amended by Notification No. 21 /2011-Cus dated the 1st March 2011 refers)
27.2 Basic customs duty on carbon black feed stock is being reduced from 5%
to 2.5%. (S. No. 541
of Notification No.20/2002-Cus dated 1st March, 2002, as amended by Notification
No. 21 /2011-Cus
dated the 1st March 2011 refers)
27.3 Basic customs duty on petroleum coke is being reduced from 5% to 2.5%.
(S. No. 596 of
Notification No.21/2002-Cus dated 1st March, 2002, as amended by Notification
No. 21/2011-Cus
dated the 1st March 2011 refers);
27.4 Basic customs duty on bio-based asphalt sealer and preservation agent
(CTH: 2715), millings
remover and crack filler (CTH: 2715), asphalt remover and corrosion protectant
(CTH: 3402.90) and
sprayer system for bio-based asphalt (CTH 8705) imported for bio-based asphalt
road construction is
being fully exempted (S. No.230A of Notification No.21/2002-Cus dated 1st March,
2002, as
amended by Notification No. 21/2011-Cus dated the 1st March 2011 refers)
Chapter 28
No change
Chapter 29
29.1 Basic customs duty on Acrylonitrile is being reduced from 5% to 2.5%.
(S. No. 476 of
notification No. 21/2002-Customs as inserted vide notification No. 21
/2011-Customs, dated 1st
March, 2011 refers)
29.2 Basic customs duty on Diphenylmethane 4, 4-diisocyanate (MDI) is being
reduced from 7.5%
to 5% subject to actual user condition. (S. No.553D of notification No.
21/2002-Customs as inserted
vide notification No. 21 /2011-Customs, dated 1st March, 2011 refers)
29.3 Basic customs duty on Caprolactam is being reduced from 10% to 7.5 %. (
S. No. 553E of
notification No. 21/2002-Customs as inserted vide No. 21 /2011-Customs, dated
1st March, 2011
refers)
Chapter 30
30.1 Concessional rate of 5% of basic customs duty is being provided on four
live saving drugs,
with Nil CVD along with on bulk drugs used in the manufacture of said drugs. (S.
No. 171 to 174 in list
2 appended to notification No. 21/2002-Customs as inserted vide No. 21
/2011-Customs, dated 1st
March, 2011 refers).
Chapter 31 to 37
No change
Chapter 38
38.1 Basic customs duty on Crude Palm Stearin imported for the manufacture of
laundry soap, is
being reduced from 20% to nil on actual user basis (S. No. 491A of notification
No. 21/2002-Customs
as inserted vide No. 21 /2011-Customs, dated 1st March, 2011 refers)
Chapter 39
39.1 Basic customs duty on Sodium Polyacrylate is being reduced from 7.5% to
5%. (S. No. 559B
of notification No. 21/2002-Customs as inserted vide notification No. 21
/2011-Customs, dated 1st
March, 2011 refers)
39.2 Basic customs duty on Polytetrametylene ether glycol (PT MEG) is being
reduced from 7.5%
to 5% subject to actual user condition. (S. No. 559C of notification No.
21/2002-Customs as inserted
vide No. 21 /2011-Customs, dated 1st March, 2011 refers)
39.3 Basic customs duty on nylon chips is being reduced from 10% to 7.5%. (S.
No. 559D of
notification No. 21/2002-Customs as inserted vide No. 21 /2011-Customs, dated
1st March, 2011
refers).
Chapter 40
40.1 Basic customs duty on pneumatic tyres and retreaded tyres of kind used
for aircrafts is being
decreased from 3% to 2.5% (S. No. 605 of Notification No.21/2002-Cus dated 1st
March, 2002, as
amended by Notification No. 21/2011-Cus dated the 1st March, 2011 refers)
Chapters 41 to 46
No change
Chapter 47
47.1 Basic customs duty on Rayon grade wood pulp is being reduced from 5% to
2.5%. (S. No. 606
of Notification No.21/2002-Cus dated 1st March, 2002, as amended by Notification
No.21/2011-Cus
dated the 1st March 2011 refers)
47.2 Similarly, Basic customs duty on waste paper is being reduced from 5% to
2.5% (S. No. 152 of
Notification No.21/2002-Cus dated 1st March, 2002, as amended by Notification
No. 21/2011-Cus
dated the 1st March 2011 refers)
Chapter 49
49.1 Customs exemption to printed books is being restricted to tariff items
4901 10 10, 49019100 and 49019900. (S. No. 160 of Notification No.21/2002-Cus dated 1st March,
2002, Notification
No. 21/2011-Cus dated the 1st March 2011 refers)
Chapter 50
50.1 Basic customs duty on raw silk (not thrown), of all grades is being
reduced to 5%.( S. No.
164A Of notification No. 21/2002-Customs as inserted vide No. 21 /2011-Customs,
dated 1st March,
2011 refers)
Chapter 51
No change
Chapter 52
50.2 Basic customs duty on cotton waste is being reduced from 10% to nil. (S.
No. 587 of
notification No. 21/2002-Customs as inserted vide No. 21 /2011-Customs, dated
1st March, 2011
refers)
Chapter 53
No change
Chapter 54
54.1 Basic customs duty on nylon yarn is being reduced from 10% to 7.5%. (S.
No. 534A of
notification No. 21/2002-Customs as inserted vide No. 21 /2011-Customs, dated
1st March, 2011
refers).
Chapter 55
55.1 Basic customs duty on nylon fibre is being reduced from 10% to 7.5%. (S.
No. 535B of
notification No. 21/2002-Customs as inserted vide No. 21 /2011-Customs, dated
1st March, 2011
refers).
Chapter 56 to 63
No change
Chapter 64 to 70
No change
Chapter 71
71.1. An import duty structure of ‘Nil basic customs duty, CVD of Rs.140 per
10 gram and Nil SAD is
being prescribed for gold dore bars having gold content not exceeding 80%,
imported for refining
and manufacturing serially numbered gold bars in India. (S. No. 518B of
notification No. 21/2002-
Customs dated 01.03.2002 as inserted by notification No. 21/2011-Customs dated
01.03.2011 refers)
Chapter 72
72.1 Basic customs duty is being fully exempted on Stainless steel Scrap (S.No.
202 of the
notification No. 21/2002-Customs, dated 01.03.2006 as inserted vide Notification
No. 21/2011
Customs dated 01.03.2011 refers).
72.2 Basic customs duty on Ferro-nickel is being reduced from 5% to 2.5%. (S.No.
197A of the
notification No. 21/2002-Customs, dated 01.03.2006 as inserted vide Notification
No. 21/2011
Customs dated 01.03.2011 refers).
Chapter73-83
No change
CHAPTER 84
84.1 Basic customs duty is being reduced from 5% to 2.5% on specified
Agriculture Machinery
such as Paddy Transplanter, Laser land Leveller, Cotton Picker, Reaper-cum-
binder, Straw or fodder
balers, Sugarcane Harvesters, Track used for manufacture of Track-type Combine
Harvester etc.
Basic Customs Duty on the parts and components required for manufacture of the
said equipment is
being reduced from 7.5% to 2.5% (Notification No. 21/2002-Customs as amended
vide notification
No. 21/2011-Customs refers].
84.2 Full exemption from Basic Customs Duty and additional duty of customs
(CVD) on tunnel
boring machines and parts and components thereof for use in the assembly of
Tunnel boring
machines used for highway development projects is being provided. [List 18 of
Notification No.
21/2002-customs as amended vide notification No. 21/2011-Customs refers].
84.3 Excise duty/ CVD is being reduced to 5% and SAD to NIL on parts of
inkjet & laser jet printers
imported by actual users for manufacture of printers.
84.4 The concessional rate of duty of 5% BCD, 5% Excise Duty/CVD & Nil SAD
presently applicable to
High speed machinery (>70000 copies per hour) is being extended to mailroom
equipment viz.
overhead conveyor gripper, stacker, wrapper, labeler, strapper, inserters and
delivery conveyors
designed for use with high speed printing machines with a minimum speed of 70000
copies per hour,
imported by newspapers registered with Registrar of Newspapers of India (RNI).
[S. No. 267C of
notification No. 21/2002-Customs inserted vide notification No. 21/2011-Customs
refers]
84.5 Import of parts & components for manufacture of 23 specified high
voltage transmission
equipments (List 44 of Notification No. 21/2002-Customs dated 01.03.2003) is
being allowed at a
concessional rate of 5% BCD+4% CVD +Nil SAD subject to actual user condition.
[S. No. 424A of
notification No. 21/2002 inserted vide notification No. 21/2011-Customs refers].
84.6 CVD / excise duty on the parts of optical disc drives viz. DVD Drives/
Writers, CD Drives and
Combo Drives is being reduced to 5% and NIL SAD subject to actual user
condition.
84.7 Basic Customs Duty is being reduced from 7.5% to 5% on Micro Irrigation
equipment
classifiable in 84248100 [S. No. 607 of notification No. 21/2002-Customs
inserted vide notification
No. 21/2011-Customs refers].
84.8 Basic customs duty on cash dispensers is being reduced to nil. Parts of
cash dispensers
required for manufacture of cash dispensers are also being fully exempted from
basic customs duty
subject to actual user condition [S. No. 608 and 609 of notification No.
21/2002-Customs inserted by
notification no 21/2011-customs refers].
84.9 Basic Customs Duty on specified gems and jewellery machinery is being
reduced from 7.5%
to 5% [S. No. 610 of notification No. 21/2002-Customs inserted by notification
no 21/2011-customs
refers].
CHAPTER 85:
85.1 Full exemption from basic customs duty, additional duty of customs
equivalent to excise
duty presently available on parts, components and accessories of mobile handsets
including cellular
phones is being extended to parts, components for manufacture of PC connectivity
cable and subparts
of parts and components of PC connectivity cable, battery chargers and
hands-free
headphones of mobile handsets including cellular phones. [Notification No.
23/2010-Customs as
amended vide notification No. 19/ 2011-Customs refers].
85.2 Full exemption from Special Additional Duty of customs on parts,
components and
accessories of mobile handsets including cell phones is now being extended to
parts, sub-parts and
components of battery chargers, PC connectivity cable and hands-free headphones
of mobile
handsets including cellular phones. Validity of this exemption is also being
extended upto 31.3.2012.
[Notification No. 22/2011-Customs refers].
85.3 The list of specified raw materials for use in electronics/IT industry,
eligible for custom duty
exemption is being expanded to include some more items (S. Nos. 38, 133, 190,
234, 235, 236 and
237 of notification No. 25/99-Customs as amended vide notification No.
14/2010-Customs refers).
85.4 LEDs used for manufacture of LED lights and light fixtures are being
fully exempted from
levy of special duty of customs leviable under Section 3(5) of the Customs
Tariff Act, 1975.
85.5 Full exemption from payment of Additional duty of Customs ( CVD) is
being granted on the
portion of value representing the consideration paid or payable for the transfer
of the right to use
such goods to those packaged or canned software, which do not require affixation
of RSP under
The Legal Metrology Act, 2009 or the rules made there under, subject to the
Importer being
registered under the Service Tax.
Chapter-86
No change
Chapter-87
87.1 The definition of “Completely Knocked Down (CKD) unit” for vehicles of
CTH 8703 & 8711
(Motor cars and other motor vehicle including two wheelers) is being inserted to
exclude such units
which contain a pre-assembled engine or gearbox or transmission mechanism or a
chassis where
such parts or sub-assemblies is installed. ( Explanation in S.No. 344 & 345 of
the notification No.
21/2002- Customs, dated 01.03.2006 inserted vide Notification No. 21/2011
Customs dated
01.03.2011 refers).
87.2 A concessional rate of Nil BCD CVD @ 5% and full exemption from SAD is
being extended to
specified parts of the hybrid vehicles, namely, battery pack, battery charger,
AC/DC electric motors, and motor controllers. (S.No. 345A of the notification
No. 21/2002-Customs, dated 01.03.2006 as
amended vide Notification No. 21/2011- Customs dated 01.03.2011 refers).
87.3 A concessional rate of CVD @ 5% and full exemption from basic custom
duty and Special
Countervailing duty (Special CVD) is being extended to spare battery pack to
such importers who are
registered with Indian renewable energy development agency (IREDA) or any State
Nodal agencies
notified for Central Financial Assistance (CFA) scheme of the Ministry of Non-
Conventional &
Renewable Energy (MNRE). (S.No. 613 of the notification No. 21/2002-Customs,
dated 01.03.2006 as
inserted vide Notification No. 21/2011- Customs dated 01.03.2011 refers).
Chapter 88
88.1 A basic customs duty @ 2.5 % is being imposed on imports of aircrafts
for Non- scheduled
operations while exemption from CVD and SAD would continue in this category. The
restriction on
the inter-changeability of aircraft imported for non-scheduled operations
(passenger) and nonscheduled
operations (charter) is also being removed. (S.No. 347B of the notification No.
21/2002-
Customs, dated 01.03.2006 as inserted vide Notification No. 21/2011- Customs
dated 01.03.2011
refers).
88.2 The education cess and secondary and higher education cess is being
imposed on aircrafts
falling under 8802 20 00, 8802 30 00 and 8802 40 00 (S. No 1 Notification No.
69/2004-Customs,
dated 09.07.2004 as inserted vide Notification No. 17/2011- Customs dated
01.03.2011 refers).
Chapter 89
89.1 Full exemption is being extended on imports of spares and consumables
required for repair of
ocean going vessels by ship owners for such vessels which are registered in
India. (S.No. 351Aof the
notification No. 21/2002-Customs, dated 01.03.2006 as inserted vide Notification
No. 21/2011-
Customs dated 01.03.2011 refers).
CHAPTER 90
90.1 Basic Customs Duty has been reduced from 10% to 5%, Additional Customs
Duty(CVD) from
10% to 5% and Special Additional Duty of Customs (Special CVD) to Nil on
Polypropylene, Stainless
Steel Strip and Stainless Steel capillary tube for manufacture of syringe,
needle, catheters, cannulae
on actual user basis. [S. No. 357C of notification No. 21/2002-Customs inserted
vide notification No.
21/2011-Customs refers].
90.2 Endovascular stents have been fully exempted from Basic Customs Duty of
5%; [S. No.
543A of notification No. 21/2002-Customs inserted vide notification No.
21/2011-Customs refers].
Chapter 97
ART AND CULTURE
97.1 At present specified categories of works of art and antiquities are
exempted from customs
duty. The scope of the exemption is being expanded by including,-
- works or arts or antiquities for exhibition or display in private art
galleries or similar
premises that are open to general public;
- works of art created by an Indian artist abroad, irrespective of the fact
whether such
works are imported along with the artist or the sculptor on their return to
India.
(Notification No. /2011-Customs dated 01.03.2011 refers)
MISCELLANEOUS:
M.1 Full exemption from Basic Customs Duty is being provided for Toughened
Glass & silver
paste imported for manufacture of Solar cells/Modules subject to actual user
condition; [S. No. 38 of
notification No. 25/1999-Customs as amended/inserted vide notification No.
14/2011-Customs
refers].
M.2 Basic customs duty on solar lantern/ lamps is being reduced from 10% to
5%. [S. No. 612 of
notification No. 21/2002-Customs inserted vide notification No. 21/2011-Customs
refers].
M.3 The benefit of exemption available on Ultra Mega Power Projects is being
extended for
development of facilities such as Ash disposal system including ash dyke, water
intake including
treatment and storage facilities and coal transportation, both inside and also
outside the power
plant’s designated boundary except the township.
M.4 It is being clarified that the Cement & steel going into construction
activity of the power
project are not eligible for the benefit of customs duty and excise duty
exemptions and that the
special power cables connecting generators and right upto the transformer within
the power
generation plant would be eligible for the benefits of the said exemptions.
M.5 Water Pumping Station and Water Reservoir are being included in the scope
of projects
eligible for such exemption. [Notification Nos. 13/2011-Customs and
16/2011-Customs refers].
M.6 Safeguard Duty: The levy of safeguard duty on imports of caustic soda
lye, when imported
into India during the period 01.04.2009 to 30.03.2010 is being incorporated in
the Finance bill for
validating or confirming the provisional safeguard duty already imposed vide
Notification
no.131/2009-Custom, dated 04.12.2009.
M.7 Acetate Tow: The notification under section 11 of the Customs Act, 1962
is being issued for
restricting the imports of Acetate Tow for manufacture of Filter Rods and Filter
Rods for
manufacture of Filter cigarettes. (Notification No. --/2011-Customs (NT)
refers).
M.8 SPECIAL ECONOMIC ZONES:
M.8.1 All clearances from SEZ into DTA are being exempted from SAD charged at
4% provided they
are not exempt from the levy of VAT/Sales Tax. (Notification No. 45/2005 dated
16.05.05 as
amended by 18/2011-Cus dated 01.03.2011 refers).
M.8.2 CVD exemption currently available to Plastic materials reprocessed in
India out of the scrap
or the waste of goods falling under specified chapters is being extended to
domestic tariff area
clearances of such plastic materials manufactured in SEZ units also. (S.No. 78
of notification No.
4/06-CE dated 01.03.06 as amended by 04/2011-CE dated 01.03.2011 refers)
M.9 EXPORT PROMOTION:
M.9.1 The list of specified goods, allowed to be imported duty free for use
in the manufacture of
leather goods, for export is being expanded.
M.9.2 The list of specified goods, allowed to be imported duty free for use
in the manufacture of
textile and leather garments, is being expanded by including anti-theft devices
like labels, tags and
sensors therein.
M.9.3 Description of some items is being changed in the list of items that
are allowed to be
imported duty free for manufacture of textile/leather garments and other leather
goods for export.
M.9.4 Benefit of duty free import is being extended to trimmings,
embellishments, components
etc. against exports of leather goods, footwear and textile garments by merchant
exporters also
subject to certain conditions.
M.9.5 Specified tools used in the handicrafts sector are being included in
the list of specified goods,
allowed to be imported duty free to the Handicrafts exporters.
(S. Nos. 114, 167, 167A, 583 and Condition No 21 of notification No
21/2002-Customs date
01.03.2002 as amended by notification by 21/2011-Customs dated 01.03.2011
refer).