Indirect Taxes Proposals Involving Change In Duty/Tax Rates: Customs & Excise Duty - EXIM TUTOR

PROPOSALS INVOLVING CHANGE IN DUTY / TAX RATES:

CUSTOMS:

		Commodity	Rate of Duty
			From	To
I.	Incentivizing domestic value addition, ‘Make in India’
A.	Reduction in Customs duty on inputs and raw materials to reduce costs
		Mineral fuels and Mineral oils
	1.	Liquefied Natural Gas	BCD – 5%	BCD – 2.5%
		Chemicals & Petrochemicals
	2.	Medium Quality Terephthalic Acid (MTA) & Qualified Terephthalic Acid (QTA)	BCD – 7.5%	BCD – 5%
		Metals
	3.	Nickel	BCD – 2.5%	BCD – Nil
		Finished Leather
	4.	Vegetable tanning extracts, namely, Wattle extract and Myrobalan fruit extract	BCD – 7.5%	BCD – 2.5%
		Capital Goods
	5.	Ball screws, linear motion guides and CNC systems for use in the manufacture of CNC machine tools, subject to actual user condition	Ball screws and liner motion guides BCD – 7.5% CNC systems BCD – 10%	BCD – 2.5%
		Renewable Energy
	6.	All items of machinery required for fuel cell based power generating systems to be set up in the country or for demonstration purposes, subject to certain specified conditions	BCD – 10% /7.5% CVD – 12.5%	BCD – 5% CVD – 6%
	7.	All items of machinery required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen, subject to certain specified conditions	BCD – 10% /7.5% CVD – 12.5%	BCD – 5% CVD – 6%
		Miscellaneous
	8.	All parts for use in the manufacture of LED lights or fixtures, including LED lamps, subject to actual user condition	Applicable BCD, CVD	BCD – 5% CVD – 6%
	9.	All inputs for use in the manufacture of LED Driver and MCPCB for LED lights or fixtures, including LED lamps, subject to actual user condition	Applicable BCD	5%
B.	Changes in Customs and Excise / CV duty to address the problem of duty inversions in certain sectors
		Chemicals & Petrochemicals
	10.	o-Xylene	BCD – 2.5%	BCD – Nil
	11.	2-Ethyl Anthraquinone [29146990] for use in manufacture of hydrogen peroxide, subject to actual user condition	BCD – 7.5%	BCD – 2.5%
	12.	Vinyl Polyethylene Glycol (VPEG) for use in manufacture of Poly Carboxylate Ether, subject to actual user condition	BCD – 10%	BCD – 7.5%
		Textiles
	13.	Nylon mono filament yarn for use in monofilament long line system for Tuna fishing, subject to certain specified conditions	BCD – 7.5%	BCD – 5%
		Metals
	14.	Co-polymer coated MS tapes / stainless steel tapes for manufacture of specified telecommunication grade optical fibres or optical fibre cables, subject to actual user condition	BCD – Nil	BCD – 10%
	15.	MgO coated cold rolled steel coils [7225 19 90] for use in the manufacture of CRGO steel, subject to actual user condition	BCD – 10%	BCD – 5%
	16.	Hot Rolled Coils [7208] for use in the manufacture of welded tubes and pipes falling under heading 7305 or 7306, subject to actual user condition	BCD – 12.5%	BCD – 10%
		Automobiles
	17.	Clay 2 Powder (Alumax) for use in ceramic substrate for catalytic convertors, subject to actual user conditon	BCD – 7.5%	BCD – 5%
		Renewable Energy
	18.	Solar tempered glass for use in the manufacture of solar cells/panels/modules	BCD – 5%	BCD – Nil
	19.	Parts/raw materials for use in the manufacture of solar tempered glass for use in solar photovoltaic cells/modules, solar power generating equipment or systems, flat plate solar collector, solar photovoltaic module and panel for water pumping and other applications, subject to actual user condition	CVD – 12.5%	CVD – 6%
	20.	Resin and catalyst for use in the manufacture of cast components for Wind Operated Energy Generators [WOEG], subject to actual user condition	BCD – 7.5% CVD – 12.5% SAD – 4%	BCD – 5% CVD – Nil SAD – Nil
		Miscellaneous
	21.	Membrane Sheet and Tricot / Spacer for use in the manufacture of RO membrane element for household type filters, subject to actual user condition	CVD – 12.5%	CVD – 6%
C.	Changes in Customs duty to provide adequate protection to domestic industry
		Food Processing
	22.	Cashew nut, roasted, salted or roasted and salted	BCD – 30%	BCD – 45%
		Electronics / Hardware
	23.	Populated Printed Circuit Boards (PCBs) for use in the manufacture of mobile phones, subject to actual user condition	SAD – Nil	SAD – 2%
		Miscellaneous
	24.	RO membrane element for household type filters	BCD – 7.5%	BCD – 10%
D.	Promotion of cashless transactions and promote domestic manufacturing of devices used therefor
	25.	a) Miniaturized POS card reader for m-POS (not including mobile phones or tablet computer), b) Micro ATM as per standards version 1.5.1, c) Finger Print Reader / Scanner, and d) Iris Scanner	Applicable BCD, CVD SAD	BCD – Nil CVD – Nil SAD – Nil
	26.	Parts and components for manufacture of: a) miniaturized POS card reader for m-POS (not including mobile phones or tablet computer), b) micro ATM as per standards version 1.5.1, c) Finger Print Reader / Scanner, and d) Iris Scanner	Applicable BCD, CVD SAD	BCD – Nil CVD – Nil SAD – Nil
II.	Imposition of export duty to conserve domestic resources
	27.	Other aluminium ores, including laterite	Nil	15%
III.	Improving ease of doing business and Export Promotion
	28.	De-minimis customs duties exemption limit for goods imported through parcels, packets and letters	Duty payable not exceeding Rs.100 per consignment	CIF value not exceeding Rs.1000 per consignment
	29.	Limit of duty free import of eligible items for manufacture of leather footwear or synthetic footwear or other leather products for use in the manufacture of said goods for export	3% of FOB value of said goods exported during the preceding financial year	5% of FOB value of said goods exported during the preceding financial year
IV.	Anti-avoidance measure
	30.	Silver medallion, silver coins, having silver content not below 99.9%, semi-manufactured form of silver and articles of silver	CVD – Nil	CVD – 12.5%

Note: (a) “Basic Customs Duty” means the customs duty levied under the Customs Act, 1962.

(b) “CVD” means the Additional Duty of Customs levied under sub-section (1) of section 3 of the Customs Tariff Act, 1975.

(c) “SAD” means the Special Additional Duty of Customs levied under sub-section (5) of section 3 of the Customs Tariff Act, 1975.

(d) “Export duty” means duty of Customs leviable on goods specified in the Second Schedule to the Customs Tariff Act, 1975.

EXCISE

		Commodity	Rate of Duty
			From	To
I.	Public Health
A.	Tobacco and Tobacco Products
	1.	Cigar and cheroots	12.5% or Rs.3755 per thousand, whichever is higher	12.5% or Rs.4006 per thousand, whichever is higher
	2.	Cigarillos	12.5% or Rs.3755 per thousand, whichever is higher	12.5% or Rs.4006 per thousand, whichever is higher
	3.	Cigarettes of tobacco substitutes	Rs.3755 per thousand	Rs.4006 per thousand
	4.	Cigarillos of tobacco substitutes	12.5% or Rs.3755 per thousand, whichever is higher	12.5% or Rs.4006 per thousand, whichever is higher
	5.	Others of tobacco substitutes	12.5% or Rs.3755 per thousand, whichever is higher	12.5% or Rs.4006 per thousand, whichever is higher
	6.	Paper rolled biris – handmade	Rs.21 per thousand	Rs.28 per thousand
	7.	Paper rolled biris – machine made	Rs.21 per thousand	Rs.78 per thousand
II.	Incentivizing domestic value addition, ‘Make in India’
A.	Renewable Energy
	8.	All items of machinery required for balance of systems operating on biogas/ bio-methane/ by-product hydrogen	12.5%	6%
B.	Miscellaneous
	9.	Membrane Sheet and Tricot/Spacer for use in the manufacture of RO membrane element for household type filters, subject to actual user condition	12.5%	6%
	10.	All parts for use in the manufacture of LED lights or fixtures, including LED lamps, subject to actual user condition	Applicable duty	6%
	11.	a. Waste and scrap of precious metals or metals clad with precious metals arising in course of manufacture of goods failing in Chapter 71 b. Strips, wires, sheets, plates and foils of silver c. Articles of silver jewellery, other than those studded with diamond, ruby, emerald or sapphire d. Silver coin of purity 99.9% and above, bearing a brand name when manufactured from silver on which appropriate duty of customs or excise has been paid	Nil	Nil, subject to the condition that no credit of duty paid on inputs or input services or capital goods has been availed by manufacturer of such goods
III.	Promotion of cashless transactions and promote domestic manufacturing of devices used therefor
	12.	a) Miniaturized POS card reader for m-POS (not including mobile phones or tablet computers), b) micro ATM as per standards version 1.5.1, c) Finger Print Reader / Scanner, and d) Iris Scanner	Applicable duty	Nil
	13.	Parts and components for manufacture of: a) Miniaturized POS card reader for m-POS (not including mobile phones or tablet computers), b) Micro ATM as per standards version 1.5.1, c) Finger Print Reader / Scanner, and d) Iris Scanner	Applicable duty	Nil

Note: “Basic Excise Duty” means the excise duty set forth in the First Schedule to the Central Excise Tariff Act, 1985.