CHANGES IN CUSTOMS
The Finance Minister has introduced the
Finance Bill, 2023 in Lok Sabha today, that is February 1, 2023. Changes in
Customs, Central Excise, GST law and rates have been proposed through the
Finance Bill, 2023.
To prescribe effective rates of duty,
following notifications are being issued:
|
|
Notification /Circular Nos. |
Date |
|
Customs (Tariff) |
02/2022-Customs to 12/2022-Customs |
February 1, 2023 |
|
Central Excise (Tariff) |
05/2023-Central Excise |
February 1, 2023 |
Unless otherwise stated, all changes in rates
of duty will take effect from the midnight of
February 1, 2023/February 2, 2023. Amendments
have been proposed through clauses 123 and 124 of the Finance Bill to the
Customs Act, 1962, through clauses 125, 126 and 127 of the Finance Bill to the
Customs Tariff Act, 1975 and through clause 153 of the Finance Bill to section
136 of the Finance Act, 2001.
The changes proposed through
clause 126(a) and clause 153 have been given immediate effect through a
declaration under the Provisional Collection of Taxes Act, 1931. The other
changes proposed in the Finance Bill would come into effect upon its enactment
on the date of assent of the Bill or from the date specified in the Finance
Bill.
This document
summarises the changes made/ proposed under the Customs Act, 1962 andCentral Excise Act, 1973 – Section wise in comparative manner for easy digest.
A. Highlights of
Important Changes in Customs Act, 1962:
I.
Basic
Customs Duty ("BCD”) rate structure:
(a) As part of rationalization of customs duty rate
structure, the number of basic custims duty rates on goods, other than textiles and
agriculture, is being reduced. As a result, there are changes in the rates of BCD as well as in the rates
of AIDC and/ or SWS.
(b) The BCD is being increased on styrene, vinyl
chloride monomer, toys and parts of toys (other than parts of electronic toys),
bicycles, automobiles in SKD and CBU form, Silver bar, Silver dore and naphtha.
(c)
The
BCD and the AIDC /SWS rates are being re- calibrated while maintaining the
existing incidence of customs duties on gold, gold dore, platinum, coal, peat
and lignite. Similarlythe BCD and AIDC on aircraft (other than those at Nil or
2.5%) & aircraft tyres (other thanthose at Nil) are being re-calibrated
while maintaining the same incidence of duty. These
changes will also be effective
fromFebruary 2,2023 through the relevant notifications.
II.
Duty
Rate chages
1. Chemicals
and petrochemicals:
(a)
The BCD on denatured
ethyl alcohol is being reduced from 5% to Nil for use in the manufacture of
industrial chemicals through IGCR route.
(b)
The BCD on acid grade
fluorspar (containing by weight more than 97% of calcium fluoride) is being
reduced from 5% to 2.5% .
(c)
The BCD on crude
glycerin is being reduced from 7.5% to 2.5% for use in manufacture of
epichlorohydrin through IGCR route.
(d)
The BCD on Naphtha is
being increased from 1% to 2.5%.
(e)
The BCD on styrene is
being increased from 2 % to 2.5%.
(f)
The BCD on Vinyl
Chloride monomer is being increased from 2% to 2.5%.
2.
Precious
Metals
(a) The import duty on Dore and bar of gold and platinum
were enhanced in June and October 2022 respectively. While maintaining the
existing incidence of import duty on these items, the BCD rate and AIDC rates
are being recalibrated. The import duty on silver bar and silver Dore is
however being enhanced. The changes are as follows:
|
Commodity
|
BCD |
AIDC |
SWS |
Total duty |
|||
|
From
|
To |
From |
To |
From
|
To |
||
|
Gold
Bars |
12.50% |
10
% |
2.50% |
5.00% |
Nil |
Nil |
15% |
|
Gold
Dore |
11.85% |
10
% |
2.50% |
4.35% |
Nil |
Nil |
14.35% |
|
Platinum |
12.50% |
10% |
1.50% |
5.40% |
1.40 |
Nil |
15.40% |
|
Silver
Bar |
7.50% |
10% |
2.50% |
5.00% |
0.75 |
Nil |
15% |
|
Silver
Dore |
6.10% |
10% |
2.50% |
4.35% |
0.61 |
Nil |
14.35% |
(b) The import duty on articles made of precious metals
falling under CTH 7113 & 7114 is being increased from 22% to 25%. It is
however being exempted from SWS.
(c) The import duty on imitation jewellery classified
under Heading 7117 is being increased from 22% or Rs. 400/kg, whichever is
higher’ to ‘25% or Rs. 600/kg, whichever is higher’. It is however being
exempted from SWS.
3.
Export
Promotion
(a)
The BCD on ‘seeds’ for use in manufacture of rough lab grown
diamond is being reduced to Nil subject to IGCR condition for a period of two
years.
(b)
The BCD on certain ingredients/inputs for use in the manufacture
of aquatic feed is being reduced subject to IGCR condition as follows:
|
Description of goods |
From |
To |
|
|
|
|
|
Fish
meal |
15% |
5% |
|
|
|
|
|
Krill
meal |
15% |
5% |
|
|
|
|
|
Fish
lipid oil |
30% |
15% |
|
|
|
|
|
Algal
Prime (flour) |
30% |
15% |
|
|
|
|
|
Mineral
and Vitamin Premixes |
15% |
5% |
|
|
|
|
4.
Electronic
goods
(a) The BCD on
camera lens for camera module and input/sub parts for lens of camera module of
mobile phone is being reduced from 2.5% to Nil subject to IGCR condition.
(b) Exemption
from BCD is being provided to specified chemicals/items for manufacture of
Pre-calcined Ferrite Powder as is available for Ferrites (S. No 17 of
Notification no 25/1999 -Customs).
(c) Exemption
from BCD is being provided to Palladium Tetra Amine Sulphate for manufacture of
parts of connectors as is available for manufacture of connectors. (S.No 225 of
Notification no 25/1999 -Customs).
(d) The BCD on
parts for manufacture of open cells of TV panels is being reduced from 5% to
2.5% subject to IGCR condition.
5.
Electrical
appliances
(a)
The BCD on electric kitchen chimney is being increased from 7.5%
to 15% .
(b)
The BCD on heat coils for use in manufacture of electric kitchen
chimney is being reduced from 20% to 15% subject to IGCR condition.
6.
Automobiles
(a) Exemption
from BCD is being provided to vehicles, specified automobile parts/components,
sub-systems and tyres, when imported by notified testing agencies for the
purpose of testing and/ or certification , subject to specified conditions.
(b) The BCD on
vehicle (including electric vehicles) in Semi-Knocked Down (SKD) form is being
increased from 30% to 35%. However it is being exempted from SWS
(c) The BCD on
vehicles in Completely-Built Unit (CBU) form is being increased from 60% to
70%. However it is being exempted from SWS.
7.
Capital Goods
(a)
Customs duty exemption is being provided to import of specified
capital goods and machinery required for manufacture of lithium-ion cells for
batteries used in electric vehicles as is available for manufacture of
lithium-ion cells for batteries used in mobile handsets.(S.No 69 of
Notification no 25/2002 -Customs )
8.
Others
(a)
The BCD on bicycles is being increased from 30% to 35%. However it
is being exempted from SWS.
(b)
The BCD on toys and its parts is being increased from 60% to 70%.
However it is being exempted from SWS . There are no changes to the effective
rate on parts covered under S. No 591 of Notification No. 50/2017-Customs.
(c)
The BCD on aircraft (other than those at Nil or 2.5%) and aircraft
tyres (other than those at Nil) is being reduced from 3% to 2.5% but they will
attract AIDC of 0.5%.
(d)
The BCD on coal, peat and lignite is being increased to 2.5% but
these are being exempted from AIDC.
(e)
The BCD on compounded rubber is being increased from 10% to ‘25%
or Rs. 30/kg whichever is lower’.
(f)
The BCD on pecan nuts is being reduced from 100% to 30%. The SWS
exemption is being withdrawn.
(g)
The BCD on Warm blood horse imported by sports person of
outstanding eminence for training purpose for equestrian sports is being
reduced from 30% to Nil subject to conditions.
9.
Social
welfare surcharge (SWS)
The
following goods are being exempted from levy of Social Welfare Surcharge in
order to maintain the total effective duty owing to rationalization of basic
customs duty rate structure:
|
1. |
Silver (HSN 7106), Gold ( HSN 7108) & Imitation Jewellery
(HSN 7117)
|
|
2. |
Platinum (HSN 7110) other than rhodium and goods covered under
S. Nos. 415(a) and 415A of the Table annexed to the notification No.
50/2017-Customs, dated the June 30, 2017, published in the Gazette of India
vide number G.S.R. 785(E), dated the June 30, 2017.
|
|
3 |
All goods falling under HSN 7113, other than the goods covered
under S. Nos. 356, 357 and 364C of the Table in the notification No.
50/2017-Customs, dated June 30, 2017, published in the Gazette of India vide
number G.S.R. 785(E), dated the June 30, 2017. |
|
4. |
All goods falling under HSN 7114, other than the goods covered
under S. Nos. 356 and 357 of the Table in the notification No.
50/2017-Customs, dated the June 30, 2017, published in the Gazette of India
vide number G.S.R. 785(E), dated the June 30, 2017. |
|
5 |
Bicycles (HSN 8712 00 10) |
|
6 |
Motor vehicle including electrically operated vehicles falling
under HSN 8703 covered under S. No. 526 (1)(b), 526 (2)(b), 526A(1)(b) and
526A(2)(b) of the Table in Notification No. 50/2017-Customs dated the June
30, 2017, published in the Gazette of India vide no G.S.R. 785(E) dated the June 30, 2017. |
|
7 |
Aeroplane and other aircrafts falling under tariff items 8802
2000, 8802 3000 and 8802 4000 covered under S. No. 543 A of the Table in
Notification No. 50/2017-Customs dated the June 30, 2017, published in the
Gazette of India vide no G.S.R.
785(E) dated the June 30, 2017. |
|
8 |
Toys and parts of toys (HSN 9503) other than goods covered under
S. No. 591of the Table annexed to Notification No. 50/2017-Customs dated June
30,2017
|
The following
notifications are being rescinded on account of being redundant owing to BCD
rate structure rationalization:
|
1 |
No.
13/2021-Customs, dated the February 1, 2021, published in the Gazette of
India, Extraordinary, Part II, Section 3, Sub-section (i), vide number
G.S.R.71(E), dated the February 1, 2021 |
|
2 |
No. 34/2022-Customs,
dated the June 30, 2022, published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i), vide number G.S.R. 487(E), dated the
June 30, 2022 |
Note:
Description of entries is indicative, notification may be referred for complete
description.
10.
Agriculture
Infrastructure and Development Cess (AIDC)
(a) AIDC rate
changes (with changes to the effective rate of customs duty)
|
S.No |
Commodity |
From |
To |
|
|
|
|
|
|
1. |
Silver
bar |
2.5% |
5% |
|
|
|
|
|
|
2. |
Silver
Dore |
2.5% |
4.35% |
|
|
|
|
|
Note:
Description of entries is indicative, notification may be referred for complete
description.
(b) Changes
to AIDC (without any change to the effective rate of customs duty)
|
S. No |
Commodity |
From |
To |
|
|
|
|
|
|
1. |
Coal,
peat, lignite |
1.5% |
Nil |
|
|
|
|
|
|
2. |
New
pneumatic tyres, of rubber , of a kind used on |
Nil |
0.5% |
|
|
aircraft
as mentioned in Entry 280 A of Notification |
|
|
|
|
No.
50/2017-Cus |
|
|
|
|
|
|
|
|
3. |
Gold
bar |
2.5% |
5% |
|
|
|
|
|
|
4. |
Gold
Dore |
2.5% |
4.35% |
|
|
|
|
|
|
5. |
Platinum other
than rhodium and
goods covered |
1.5% |
5.4% |
|
|
under S.
Nos. 415(a) and
415A of the
Table in |
|
|
|
|
notification
No. 50/2017-Customs, dated the 30th |
|
|
|
|
June,
2017. |
|
|
|
|
|
|
|
|
6. |
Aero
planes and other aircraft covered under S.No. |
Nil |
0.5% |
|
|
543A
of Notification No. 50/2017-Cus |
|
|
|
|
|
|
|
Note:
Description of entries is indicative, notification may be referred for complete
description.
11.
Review of
Exemptions
Out of 196
exemptions, 146 exemptions are being extended for a period of one year i.e. up
to March 31, 2024 for the purpose of undertaking review. Of the remaining, a
few are being extended for five years, two years and one year while some
exemption entries are being discontinued with effect from March 31, 2023.
The details of exemption entries/ notifications extended by five
years, two years and one year are as follows:
|
S.No |
S.No.in Notification No50/2017- cus/ Notification No |
Commodity |
From |
To |
|
|
|
ExtendedbyfiveyearsuptoMarch 31,
2028 |
||||
|
1. |
S.No609of 50/2017- Customs |
Usedbonafidepersonal andhouseholdeffectsofadeceased person |
|||
|
2. |
33/2017- Customs |
Exemptiontoimport/reimportofchallengecupsandtrophieswonby a unit
of Defence Force or its members. |
|||
|
3. |
41/2017- Customs |
Exemption to import of cups, trophies to be awarded to winning
teams in international tournament /world cup to be held in India. |
|||
|
4. |
146/94- Customs |
Exemption to import of specified sports goods imported by
National Sports Federation or by a Sports person of outstanding eminence for
training. |
|||
|
5. |
90/2009- Customs |
Exemption to imports from Antarctica of goods used for or
related to Indian Antarctic Expedition or Indian Polar Science Programme. |
|||
|
|
Extendedby twoyearsuptoMarch 31, 2025 |
|
|||
|
1. |
168 |
Specific inputs and sub-parts for use in manufacture of
telecommunication grade optical fibre or optical fibre cables |
Nil |
Nil |
|
|
2. |
341 |
Preformofsilicaforuseinthemanufacture
oftelecommunicationgradeopticalfibresor optical fibre cables |
5% |
5% |
|
|
3. |
341A |
InputsformanufactureofPreformofsilica |
Nil |
Nil |
|
|
4. |
405,
406 |
Raw materials and parts for manufacture of Wind operated
electricity generators, including permanentmagnets for
manufactureofPMsynchronousgenerators above 500KW for use in wind operated
electricity operators |
5% |
5% |
|
|
5. |
559 |
Rawmaterialandparts(includingDredger) for use in the manufacture
of ships/vessels |
Nil |
Nil |
|
|
6. |
166 |
SpecifiedDrugs,medicines,diagnosticskits |
5% |
5% |
|
|
7. |
167 |
Lifesavingdrugsetc |
Nil |
Nil |
|
|
|
Extendedby oneyearuptoMarch 31, 2024 |
|
|||
|
1. |
368 |
Ferrouswasteandscrap |
Nil |
Nil |
|
|
2. |
374,375 |
Rawmaterialsforuseinmanufactureof CRGO steel |
Nil |
Nil |
|
|
3. |
527A |
Lithium-ion cell for use in the manufacture ofbatteryor
batterypack of cellular mobile phone |
5% |
5% |
|
|
4. |
527B |
Lithium-ioncellforuseinthemanufactureof
battery or battery pack of electrically operated vehicle (EVs) or hybrid
motor vehicle |
5% |
5% |
|
|
5. |
237 |
Specified inputs for use in the manufacture
ofEVAsheetorbacksheetswhichareused in the manufacture of solar cell or
modules |
Nil |
Nil |
|
|
6. |
340 |
Solar tempered glass for use in the manufacture of solar cell or
solar module |
Nil |
Nil |
|
Note:
Description of entries is indicative, notification may be referred for complete
description.
B. Legislative changes in the Customs
Act, 1962, Customs Tarff Act, 1975 and Rules made thereunder:
I.
Amendment
in Customs Act, 1962:
(i)
Section25oftheCustomsActisbeingamendedtoinsertaProvisotosubsection(4A)to
provide that the validity of two years shall not applyto exemption
notificationsissued in relation tomultilateral or bilateral trade agreements;
obligations under international agreements, treaties, conventions; UN agencies,
diplomats, international organizations; privileges of constitutional
authorities; schemes under Foreign Trade Policy or other Central Government schemes
having a validity of more than two years; re-imports, temporary imports, goods
imported as gifts or personal baggage; any duty of customs imposed under any
law in force including integrated tax leviable under sub-section 7 of
Section3oftheCustomsTariffAct,1975,otherthanunderSection12oftheCustomsAct;
(ii)
Section 127 C of the Customs Act is being amended
to insert sub section (6) to specify a time limit of9 months from the date of
application, for disposal of the application filed before the Settlement Commission.
II.
Amendments in Customs Tariff Act, 1975
(i).
Sections 9, 9A, 9 C of the Customs Tariff Act are
being amended to clearly amplify the intent and scope of these provisions. They
are also being validated retrospectively with effect from January 1, 1995.
(ii).
The First Schedule to the Customs Tariff Act,
1975 is being amended to introduce new tariff lines or modify existing tariff
lines. The proposed changes are in chapter 3, chapter 4, chapter 9, chapter 10,
chapter 12, chapter 13, chapter 19, chapter 27, chapter 29, chapter 31, chapter
38, chapter 39, chapter 48, chapter 52, chapter 54, chapter 57, chapter 61,
chapter 62, chapter 63, chapter 69, chapter 71, chapter 84, chapter 85, and
chapter 87. Changes which does not involve change in rate of duty would come
into effect from May 1, 2023.
(iii).
The General explanatory note to the General Rules
for interpretation of the Schedule is being amended to carry out some changes
which inter alia, include changes to align the abbreviations and the tariff
with complementary amendments to the HS 22. These changes would come into
effect from May 1, 2023.
(iv).
The First Schedule to the Customs Tariff Act,
1975 is also being amended to modify the tariff rates on certain tariff items
as part of rationalization of customs duty rate structure.
Wherever there are
increase in duty rates, they would come into effect from February 2, 2023 and
the others would come into effect from the date of assent of the Bill.
(v).
The Second Schedule is being amended to align the
entries under heading 1202 with that of the First Schedule. These changes would
come into effect from May 1, 2023.
A. Proposed Amendments in the Customs
Act, 1962 (“the Customs Act”)
|
Proposed provisions |
Effect of changes made |
|
|
Clause 123 - Section – 25 (Power to grant exemption from duty) |
||
|
(4A) Where any exemption is granted subject to
any condition under sub-section (1), such exemption shall, unless otherwise
specified or varied or rescinded, be valid up to 31st day of March falling
immediately after two years from the date of such grant or variation: Provided that in respect of any such exemption in
force as on the date on which the Finance Bill, 2021 receives the assent of
the President, the said period of two years shall be reckoned from the 1st
day of February, 2021; |
Provided further that
nothing contained in this subsectionshall apply to any such exemption granted
to, or inrelation to,––
(a)
any multilateral or bilateral trade agreement; (b)
obligations under international agreements, treaties, conventions
or such other obligations including with respect to United Nations agencies,
diplomats and international organisations; (c)
privileges
of constitutional authorities; (d)
schemes
under the Foreign Trade Policy; (e)
the
Central Government schemes having validity of more than two years; (f)
re-imports, temporary imports, goods imported as gifts or personal
baggage; (g)
any duty of customs under any law for the time being in force,
including integrated tax leviable under sub-section (7) of section 3 of the
Customs Tariff Act,1975, other than duty of customs leviable under section
12. |
Section 25 of the Customs Act is being amended to
insert a Proviso to subsection (4A) toprovide that the validity of two years
shall not apply to exemption notifications issued inrelation to multilateral
or bilateral trade agreements; obligations under internationalagreements,
treaties, conventions; UN agencies, diplomats, international
organizations;privileges of constitutional authorities; schemes under Foreign
Trade Policy or otherCentral Government schemes having a validity of more
than two years; re-imports,temporary imports, goods imported as gifts or
personal baggage; any duty of customsimposed under any law in force including
integrated tax leviable under sub-section 7 ofSection 3 of the Customs Tariff
Act, 1975, other than under Section 12 of the Customs Act. |
|
Clause
124 - Section –127C (Procedure on receipt of application under section 127B) |
||
|
|
“(8A) The order under sub-section (5) shall be passed within a period of nine months from the last day of the monthin
which the application under section 127B is made, and if,no order is passed
within the said period, the settlement proceedings shall abate, and the adjudicating authority beforewhom
the proceeding at the time of making the applicationwas pending shall dispose
of the application in accordancewith the provisions of this Act as if no
application under thesaid section had been made:
Provided that the period specified under this sub-sectionmay, for
reasons to be recorded in writing, be extended by theSettlement Commission
for a further period not exceedingthree months.
Provided further that in respect of any applicationpending under
sub-section (5) as on the date on which theFinance Bill, 2023 receives the
assent of the President, thesaid period of nine months shall be reckoned from
the date onwhich the said Finance Bill receives the assent of the President.”.
|
Section 127
C of the Customs Act is being amended to insert sub section (8A) to specify
atime limit of 9 months from the date of application, for disposal of the
application filedbefore the Settlement Commission. |
B. Proposed Amendments in the Customs
Tariff Act, 1975(“the Customs Tariff Act”)
|
Current
provisions |
Proposed
provisions |
Effect
of changes made |
|
Clause
125(i) - Section – 9 (Countervailing duty on subsidized articles) |
||
|
(6) The countervailing duty imposed under this section shall,
unless revoked earlier, cease to have effect on the expiry up to five
years from the date of such imposition : Provided that if the Central Government, in a review, is of the
opinion that the cessation of such duty is likely to lead to continuation or
recurrence of subsidization and injury, it may, from time to time, extend the
period of such imposition for a further period of five years and such further
period shall commence from the date of order of such extension : Provided further that where a review initiated before the expiry
of the aforesaid period of five years has not come to a conclusion before
such expiry, the countervailing duty may continue to remain in force pending
the outcome of such a review for a further period not exceeding one year. Provided also that if the said duty is revoked temporarily, the
period of such revocation shall not exceed one year at a time
|
(6) The countervailing duty imposed under this section shall,
unless revoked earlier, cease to have effect on the expiry up to five
years from the date of such imposition : Provided that if the Central Government, Provided further that where a review initiated before the expiry
of the aforesaid period of five years has not come to a conclusion before
such expiry, the countervailing duty may continue to remain in force pending
the outcome of such a review for a further period not exceeding one year. Provided also that if the said duty is revoked temporarily, the
period of such revocation shall not exceed one year at a time
|
Section
9 (6) of the Customs Tariff Act, 1975is being amended to
remove the ambiguity and clarify that determination and review for
countervailing duty refers todetermination and review of countervailing duty
in a mannerprescribed by rules under the Custom Tariff Act. The amendment is beingvalidated retrospectively
witheffect from January 1, 1995.
|
|
(7) The amount of any such subsidy as referred to in sub-section
(1) or sub-section (2) shall, from time to time, be ascertained and
determined by the Central Government, after such inquiry as it may consider
necessary and the Central Government may, by notification in the Official
Gazette, make rules for the identification of such article and for the
assessment and collection of any countervailing duty imposed upon the
importation thereof under this section. |
(7) The amount of any such subsidy as referred to in sub-section
(1) or sub-section (2) shall, from time to time, be ascertained |
Section
9 (7) of the Customs Tariff Actis being amended to omit
the word ‘and determined’to clearly amplify the intent and scope of this
provision. The amendment is beingvalidated retrospectively witheffect from
January 1, 1995.
. |
|
Clause
125(ii) - Section – 9A (Anti-dumping duty on dumped articles) |
||
|
(5) The anti-dumping duty imposed under this section shall,
unless revoked earlier, cease to have effect on the expiry of five years from
the date of such imposition : Provided that if the
Central Government, in a review, is of the opinion that the cessation of such
duty is likely to lead to continuation or recurrence of dumping and injury,
it may, from time to time, extend the period of such imposition for a further
period 9[up to five years] and such further period shall commence from the
date of order of such extension : Provided further that
where a review initiated before the expiry of the aforesaid period of five
years has not come to a conclusion before such expiry, the anti-dumping duty
may continue to remain in force pending the outcome of such a review for a
further period not exceeding one year. Provided also that if the said duty is revoked temporarily, the
period of such revocation shall not exceed one year at a time |
(5) The anti-dumping duty imposed under this section shall,
unless revoked earlier, cease to have effect on the expiry of five years from
the date of such imposition : Provided that if the
Central Government, Provided further that
where a review initiated before the expiry of the aforesaid period of five
years has not come to a conclusion before such expiry, the anti-dumping duty
may continue to remain in force pending the outcome of such a review for a
further period not exceeding one year. Provided also that if the said duty is revoked temporarily, the
period of such revocation shall not exceed one year at a time |
Section
9 A (5) of the Customs Tariff Actis amended to remove the
ambiguity and clarify that determination and review for anti-dumping duty
refers todetermination and review in a mannerprescribed by rules under the
Custom Tariff Act. The amendment is beingvalidated retrospectively
witheffect from January 1, 1995.
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(6) The margin of dumping as referred to in sub-section (1) or
sub-section (2) shall, from time to time, be ascertained and determined by
the Central Government, after such inquiry as it may consider necessary and
the Central Government may, by notification in the Official Gazette, make
rules for the purposes of this section, and without prejudice to the
generality of the foregoing, such rules may provide for the manner in which
articles liable for any anti-dumping duty under this section may be identified,
and for the manner in which the export price and the normal value of, and the
margin of dumping in relation to, such articles may be determined and for the
assessment and collection of such anti-dumping duty. |
(6) The margin of dumping as referred to in sub-section (1) or
sub-section (2) shall, from time to time, be ascertained |
Section
9 A (6) of the Customs Tariff Actis being amended to omit
the word ‘and determined’ to clearly amplify the intent and scope of this
provision. The amendment is beingvalidated retrospectively
witheffect fromJanuary 1, 1995. |
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Clause
125(iii) - Section – 9C (Appeal) |
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(1) An appeal against the order of determination or review
thereof shall lie to the Customs, Excise and Service Tax Appellate Tribunal
constituted under section 129 of the Customs Act, 1962 (52 of 1962.)
(hereinafter referred to as the Appellate Tribunal), in respect of the
existence, degree and effect of- (i) any subsidy or dumping in relation to import of any article;
or (ii) import of any article into India in such increased
quantities and under such condition so as to cause or threatening to cause
serious injury to domestic industry requiring imposition of safeguard duty in
relation to import of that article. |
(1) An appeal against the (i) any subsidy or dumping in relation to import of any article;
or (ii) import of any article into India in such increased
quantities and under such condition so as to cause or threatening to cause
serious injury to domestic industry requiring imposition of safeguard duty in
relation to import of that article. |
Section
9 C (1) of the Customs Tariff Actis amended to omit the
word ‘order of’ toremove ambiguity and clarify that appeals under this
section lieagainst the determination or review thereof made by an authority
ina manner as specified by rules notified under Sections 8 B, 9, 9Aand 9B of
the Custom Tariff Act.The amendment is beingvalidated retrospectively witheffect
from January 1, 1995.
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(2) Every appeal under this section shall be filed within ninety
days of the date of order under appeal : Provided that the Appellate Tribunal may entertain any appeal
after the expiry of the said period of ninety days, if it is satisfied that
the appellant was prevented by sufficient cause from filing the appeal in
time.
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(2) Every appeal under this section shall be filed within ninety
days of the date of Provided that the Appellate Tribunal may entertain any appeal
after the expiry of the said period of ninety days, if it is satisfied that
the appellant was prevented by sufficient cause from filing the appeal in
time.
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Section
9 C (2) of the Customs Tariff Actis amendedtoremove
ambiguity and clarify that appeals under this section lieagainst the
determination or review thereof made by an authority ina manner as specified
by rules notified under Sections 8 B, 9, 9Aand 9B of the Custom Tariff Act.The
amendment is beingvalidated retrospectively witheffect from January 1, 1995. |
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(3 ) The Appellate Tribunal may, after giving the parties to the
appeal, an opportunity of being heard, pass such orders thereon as it thinks
fit, confirming, modifying or annulling the order appealed against. |
(3 ) The Appellate Tribunal may, after giving the parties to the
appeal, an opportunity of being heard, pass such |
Section
9 C (3) of the Customs Tariff Actis being amended toremove
ambiguity and clarify that appeals under this section lieagainst the
determination or review thereof made by an authority ina manner as specified by
rules notified under Sections 8 B, 9, 9Aand 9B of the Custom Tariff Act.The
amendment is beingvalidated retrospectively witheffect from January 1, 1995. |
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(5) Every appeal under sub-section (1) shall be heard by a
Special Bench constituted by the President of the Appellate Tribunal for
hearing such appeals and such Bench shall consist of the President and not
less than two members and shall include one judicial member and one technical
member. |
Explanation.––For the purposes of this section, “determination” or
“review” means the determination or review done in such manner as may be
specified in the rules made under sections 8B, 9, 9A and 9B. |
Explanation
has been inserted after Section 9 C (5) of the Customs Tariff Actto
providethe meaning of determination or review thereof.The amendment is
beingvalidated retrospectively witheffect from January 1, 1995. |
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Clause
126-AMENDMENTS IN FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975 |
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In the
Customs Tariff Act, the First Schedule shall–– (a) be amended in the manner specified
in the Second Scheduleto the Finance Bill 2023 to increase the tariff rates
on certain tariff items with effectfrom February 2, 2023. (b) be amended in the following manner
specified in Third Schedule to the Finance Bill 2023: Ø to modify the tariff rates on
certain tariff items as part of rationalization of customs duty rate
structure with effect from thedate of assent to the Finance Bill 2023. Ø to exclude solar power plant/solar
power project from the purview of Project Imports under heading 9801 with
effect from the date ofassent to the Finance Bill 2023. (c) also be amended in the manner
specified in the Fourth Shedule to the Finance Bill, 2023 to align
theabbreviations and the tariff with complementary amendments to the HS 22. The amendment will come into effect from
May 1, 2023. |
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Clause
127-AMENDMENTS IN SECOND SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975 |
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In the
Customs Tariff Act, the Second Schedule shall–– (a) be amended in the manner specified
in the Fifth Schedule of the Finance Bill 2023 to align the entries under
heading 1202 with thatof the First Schedule of the Cutsom Tariff Act, 1975.
The amendment will come into effect from May 1, 2023. |
C. Gist of Various
Customs and Central Excise Notifications
Following are the gist of the notifications which makes
amendment in Customs Tariff with effect from midnight of February 1, 2023.
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Customs |
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S. No. |
Notification No. |
Description |
|
1. |
Seeks
to further amend notification No. 50/2017-Customs, dated the June 30, 2017, so
as to revise/provide exemption(s) on the specified goods. |
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2. |
Seeks to
further amend notification No. 11/2021-Customs dated February 1, 2021, so
as to levy/exempt Agriculture and Infrastructure Development Cess (AIDC) on certain
items. |
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3. |
Seeks to
further amend notification No. 11/2018-Customs, dated February 2, 2018, to
revise/provide Social Welfare Surcharge (SWS) exemption(s) on specified goods. |
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4. |
Seeks to
rescind notification No. 13/2021-Customs and 34/2022-Customs, related to
Social Welfare Surcharge (SWS). |
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5. |
Seeks to
further amend notification No. 25/1999- Customs, 25/2002-Customs and
57/2017-Customs related to certain electronic items. |
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6. |
Seeks to
further amend notification No. 230/86- Customs related to Project Import
Regulations. |
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7. |
Seeks to
further amend notification No. 22/2022- Customs regarding India-UAE
Comprehensive Economic Partnership Agreement. |
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8. |
Seeks to
further amend notification No. 57/2000- Customs which exempts gold, silver
and platinum imported under specified schemes. |
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9. |
Seeks to
further amend notification No. 146/94- Customs, dated the July 13, 1994 to
extend the exemption benefit to Warm blood horse for equestrian sports and
extend the validity of said notification up to the March 31, 2028. |
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10. |
Seeks to
amend the notification Nos. 90/2009- Customs, dated the September 7, 2009,
33/2017- Customs, dated the June 30, 2017, and 41/2017- Customs, dated the 30
June, 2017 to extend the validity of said notifications up to the March 31,
2028 |
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11. |
Seeks to
amend 32 notifications in order to provide a specific end date for these
notifications. |
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CHANGES IN CENTRAL EXCISE
D. Proposed changes in the Central Excise Act, 1944 (“the Central
Excise Act”)
Following are the gist of the Notification
which made amendment in the Central Excise Tariff with effect from February 2,
2023, unless otherwise specified:
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Central Excise |
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S. No. |
Notification No. |
Description |
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1. |
Seeks to
exempt Compressed Natural Gas (CNG) from so much of the duty of excise
leviable on amount of GST paid on Biogas or Compressed Biogas which is
blended with CNG. |
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Clause 153-Amendments in the Schedule VII of the Finance Act, 2001
(NCCD SCHEDULE)
The Seventh Schedule of the Finance Act, 2001, is being
amended amended w.e.f. February 2, 2023[1]
torevise the NCCD rates on specified cigarettes under HS 2402 as detailed
below:
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Tariff
item |
Description |
Unit |
NCCD
rates (in Rs. Per thousand) |
|
|
From |
To |
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|
(1) |
(2) |
(3) |
(4) |
(5) |
|
2402 20 10 |
Other than filter igarettes, of length notexceeding 65 millimetres |
Tu |
200 |
230 |
|
2402 20 20 |
Other than filter cigarettes, of length exceeding 65 millimetres but not exceeding 70 millimetres |
Tu |
250 |
290 |
|
2402 20 30 |
Filter cigarettes of length (including the length of the filter, the length of
filterbeing 11 millimetres or its actual length,whichever is more) not
exceeding 65 millimetres |
Tu |
440 |
510 |
|
2402 20 40 |
Filter cigarettes of length (including the length of the filter, the length of
filterbeing 11 millimetres or its actual length,whichever is more) exceeding
65millimetres but not exceeding 70millimetres |
Tu |
440 |
510 |
|
2402 20 50 |
Filter cigarettes of length (including
thelength of the filter, the length of filterbeing 11 millimetres or its
actual length,whichever is more) exceeding 70millimetres but not exceeding 75 millimetres |
Tu |
545 |
630 |
|
2402 20 90 |
Other |
Tu |
735 |
850 |
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2402 90 10 |
Cigarettes of tobacco substitutes |
Tu |
600 |
690 |
Bimal Jain FCA, FCS, LLB, B. Com (Hons) Author of a book on Goods and Services Tax, titled, “GST Law and Commentary (with Analyses and Procedures)” [7th Edition] Email: bimaljain@a2ztaxcorp.com Connect With Us: | |||
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