CUSTOMS DUTY PROPOSALS
1. The peak rate of customs duty has been reduced from 30% to 25%. No
reduction is, however, effected on agricultural and dairy products.
2. Petroleum
Additional customs duty on motor spirit and high speed diesel oil has
been increased from Re.1 per litre to Rs.1.50 per litre.
Customs duty on LNG regassification plants has been reduced from 25%
to 5%.
3. Customs duty on baggage has been reduced from 60% to 50%.
4. Transport
Except in CKD form, cars in all other forms, including completely
built unit will attract customs duty at 60%. The second hand cars would continue to
attract customs duty at 105%.
Customs duty on loco simulators has been reduced from 25% to 5%.
Customs duty on spares for diesel locomotives, parts for conversion
of DC locos to AC locos has been reduced from 25% to 15%.
5. Tea
An additional duty of customs on tea and tea waste @ Re. 1 per Kg has
been proposed.
6. Export Promotion Measures
Customs duty on gold bars, serially numbered and weight expressed in
metric units (except tola bars) and gold coins has been reduced from Rs.250 to Rs.100 per
10 grammes.
Customs duty on cut and polished diamonds/gemstones has been reduced
from 15% to 5%.
Rough coloured gemstones and semi-processed, half cut or broken
diamonds have been exempted from customs duty.
Customs duty on refrigerated trucks has been reduced from 25% to 20%.
7. National Calamity Contingent Fund
For replenishment of the above fund, a duty of Rs.50 per metric tonne
has been imposed on imported crude oil. A duty of 1% also has been imposed on polyester
filament yarn, two-wheelers and motor cars. The imposition on these items will be valid
for one year (upto 29.2.2004).
8. It is proposed to amend section 3 and section 3A of the Customs
Tariff Act so as to make it very clear that for computation of additional duty of customs,
only the c.i.f. price, landing charges and basic customs duty will be included. Similarly
for determining special additional duty of customs (SAD), only the c.i.f. price, landing
charges, basic customs duty and the additional duty of customs will be included. Other
duties such as anti-dumping duty, safeguard duty, etc. shall not be taken into account.
This amendment will have effect from 1.3.2002.
9. Non-Ferrous Metals
Customs duty on nickel has been unified at 10% from 5% and 15%,
irrespective of the class of importer.
Customs duty on lead has been reduced from 25% to 20%.
10. Information Technology
Customs duty on 12 specified electronic components has been reduced
as per commitments under Information Technology Agreement.
Customs duty on specified telecom capital equipment has been reduced
from 25% to 15%.
Customs duty on optical fibre cables has been reduced from 25% to
20%.
Concessional customs duty of 5% on specified telecom equipment for
basic telephony, cellular mobile telephony etc. has been continued up to 31.3.2004.
Customs duty on specified raw materials for manufacture of E-glass
roving has been reduced from 30% to 15%.
Customs duty on routers, modems and fixed wireless terminals has been
reduced from 15% to 10%.
11. Special Additional Duty
Rock phosphate as also crude or unrefined sulphur have been exempted
from SAD.
12. Health
Customs duty on specified life saving drugs and life saving equipment
has been reduced to 5%. CVD on these items has been reduced to Nil by exempting them from
excise duty.
CVD on 88 specified life saving drugs and specified life saving
medical equipment, presently attracting 5% customs duty, has been reduced to Nil by
exempting them from excise duty.
Customs duty on glucometers and glucometer test strips has been
reduced from 10% to 5%.
Customs duty on rough ophthalmic blanks has been reduced from 25% to
5%.
Customs duty on specified veterinary drugs has been reduced from 15%
to 10%.
Customs duty on imports of reference standards by the pharmaceutical
industry has been reduced to 5%.
Customs duty on parts of CAPD fluid system has been reduced to 5%.
Drugs and materials for clinical trial have been exempted from
customs duty.
Import of specified goods by Regional Cancer Research Centers
registered with Department of Scientific and Industrial Research (DSIR) has been allowed
at a concessional rate of customs duty of 5%.
Customs duty on hearing aids and their parts has been reduced from
15% to 5%. These have been exempted from SAD also.
Customs duty on crutches, wheel chairs, walking frames and tricycles
(whether or not motorised) for disabled has been reduced to 5%. These have been exempted
from SAD and CVD also.
Customs duty on parts of wheel chairs has been reduced to 5%. These
have been exempted from SAD and CVD also.
Customs duty on Braillers and artificial limbs has been reduced to
5%. These have been exempted from SAD.
13. Textiles
Customs duty on apparel grade raw wool has been reduced from 15% to
5%.
Customs duty on specified textile machinery and their parts has been
reduced from 25% to 5%.
Customs duty on paraxylene has been reduced from 10% to 5%.
14. International Commitments
Customs duty on liquors has been reduced from 182% to the WTO bound
rate of 166%.
Customs duty on dried grapes and preparations based on odoriferous
substances, used in the manufacture of alcoholic beverages have been reduced to the
nearest multiple of 5 % below the WTO bound rate.
Preferential rates of customs duty under the Bangkok Agreement and
under Preferential Area Agreement, have been reduced in respect of those goods where the
MFN rate of duty has been reduced.
15. Bio-technology
Specified pharmaceutical and bio-technology equipment for R&D
have been exempted from customs duty subject only to their being registered with
Department of Scientific and Industrial Research. The condition of minimum export turnover
of Rs.20 crores, and restriction on availability of exemption only up to 1% of export
value has been removed.
Customs duty has been exempted on specified pharmaceutical and
bio-technology equipment imported by a manufacturer having a registered R&D laboratory
up to 25% of his export turnover.
16. Power
Customs duty exemption on specified mega power projects has been
extended to all mega power projects.
Customs duty on specified equipment for high voltage power
transmission has been reduced from 25% to 5%.
17. Miscellaneous changes in duty rates
Concessional customs duty of 5% on four specified parts of wind
operated electricity generators has been withdrawn.
Customs duty on conch shells has been reduced from 30% to 5%.
Customs duty on seed lac has been reduced from 30% to 5%.
Customs duty on oleo pine resin has been reduced from 15% to 10%.
Customs duty on shrimp larvae feed and fish feed in pellet has been
reduced from 30% to 5%.
Customs duty on artemia cyst, including wet artemia, has been reduced
from 15% to 5%.
Customs duty on high transmittivity glass plates for use in solar
collectors / heaters, steel wires of specified grade for slicing of silicon wafers and
high purity graphite felt / graphite pack for growing silicon ingots has been reduced to
5%.
Customs duty on bio-pesticides based on saccharopolyspora spinosa has
been reduced from 30% to 5%.
Customs duty on metcoke has been rationalized at 10% , as against 5%
for use in making steel / ferro-alloys and 15% for others.
Customs duty on cash dispenser has been reduced from 30% to 15%.
Customs duty on carbon black feed stock has been reduced from 25% to
20%.
Value limit for exemption from customs duty on bonafide commercial
samples and gifts has been raised from Rs.5,000 to Rs.10,000.
Customs duty on mono or bi-polar membrane electrolysers, parts
thereof and membrane cells used in caustic soda industry has been reduced from 15% to 5%.
Books, manuals imported in the form of transparencies have been
exempted from customs duty.
Cinematographic films (developed) are proposed to be assessed to
customs duty on the cost of the print, freight and insurance charges incurred in respect
of the print.
Aerial passenger rope way projects have been notified under the
Project Import Scheme, with a total customs duty of 5%.
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