India: Tariff changes for Imports by India in the Union Budget 2012

Description

Indian Government's Union Budget 2012 announced the following changes in the tariff measures HS Chapter-wise:
Chapter 5
5.1 Basic customs duty on artemia classified under tariff item 0511 99 11 is being reduced from 30% to 5%.
 
Chapter 21 21.1 Basic customs duty on Soya protein Concentrate classified under 2106 10 00 is being reduced from 30% to 10%.
 
Chapter 26
26.1. Basic customs duty is being increased on gold ores and concentrates for use in the manufacture of gold from 1% to 2%.
26.2 The description of goods classified in tariff item 2601 11 10 to 2601 11 90 is being revised
26.3 Export duty on “chromium ores and concentrates, all sorts” is being enhanced from Rs. 3000 per tonne to 30% ad valorem
26.4 Basic Customs duty on nickel ore & concentrate classified under tariff item 2604 00 00 is being fully exempted.
 
Chapter 27
27.1 Steam Coal classified under CTH 2701 19 20 is being fully exempted from basic customs duty alongwith 1% CVD. This dispensation would be valid upto 31 March, 2014. 27.2 Basic customs duty Liquefied Natural Gas (LNG) and Natural Gas (NG) (2711), is being fully exempted when imported for generation of electrical energy by a power generating company.
 
Chapter 28
28.1 Basic customs duty on nickel oxide & hydroxide classified under 2825 40 00 is being reduced from 7. 5% to Nil‟.
28.2 Basic customs duty on Ammonium Metavanadate, classified under heading 2841, is being reduced from 7.5% to 2.5%.
28.3 Basic customs duty on Iodine classified under 2801 20 00 is being reduced to 2.5 %. 28.4 Basic customs duty on Titanium dioxide classified under CTH 2823 00 10 is being reduced from 10% to 7.5%.
28.5 Basic customs duty on Boric Acid classified under CTH 2810 00 20 is being enhanced from 5% to 7.5%.
28.6 Basic customs duty on Sintered natural uranium dioxide/ Sintered uranium dioxide pellets (U-235) classified under CTH 2844 20 00 for use in the production of nuclear power is being reduced from 7.5% to Nil.
 
Chapter 30
30.1 The Concessional rate of 5% of basic customs duty is being extended to six life saving drugs/vaccines and their bulk drugs used in the manufacture of said drugs.
30.2 Basic Customs duty on probiotics classified under 3002 90 30 is being reduced from 10% to 5%
 
Chapter 31
31.1 Basic customs duty on specified water soluble and liquid fertilizers is being reduced from 7.5% to 5% and from 5% to 2.5%.
 
Chapter 32
32.1 Triband Phosphor classified under CTH 3206 50 00 is being fully exempted from basic customs duty
32.2 Basic customs duty on Organic / Inorganic Coating material for manufacture of electrical steel (CTH 3209) is being reduced from 10% to 5% on actual user basis.
Chapter 35
35.1 Basic customs duty on Isolated soya protein classified under 3504 00 91 is being reduced from 15% to 10%.
Chapter 39
39.1 Basic customs duty on Super Absorbent Polymer (SAP) classified under 3906 90 90 imported for use in the manufacture of Adult Diapers is being reduced from 7.5% to 5% alongwith Nil SAD on actual user basis
 
Chapter 40
40.1 Basic customs duty and additional customs on pneumatic tyres (new or retreaded) for aircraft is being fully exempted subject to conditions.
 
Chapter 44
44.1 Wood in rough falling under heading 4403 has been exempted from Special CVD.
Chapter 47
47.1. Basic Customs duty on waste paper, falling in heading 4707, is being fully exempted from basic customs duty.
 
Chapter 51
51.1 Basic customs duty on Wool Waste (CTH 5103) is being reduced from 10% to 5%.
51.2 Basic customs duty on Wool Tops (CTH 5105) is being reduced from 15% to 5%.
Chapter 54
54.1 Basic Customs duty on Aramid thread/ Yarn/ fabric for manufacture of Bullet proof helmets for Defence and Police personnel is being reduced from 10% to Nil with Nil CVD and Nil SAD.
 
Chapter 56
56.1 Basic customs duty on Hydrophilic Non –Woven, Hydrophobic Non –Woven ( CTH 56031100) imported for use in the manufacture of Adult Diapers is being reduced from 10% to 5%, With 5% CVD and Nil SAD on actual user basis.
 
Chapter 71
71.1 Basic customs duty is being increased on gold dore bars having gold content not exceeding 95%, imported for refining and manufacturing serially numbered gold bars in India from 1% to 2%.
71.2 Basic customs duty is being increased on Gold bars, other than tola bars, bearing manufacturer's or refiner's engraved serial number and weight expressed in metric units, and gold coins having gold content not below 99.5% from 2% to 4%.
71.3 Basic customs duty is being increased on Gold in any form other than above, including tola bars and ornaments, but excluding ornaments studded with stones or pearls from 5% to 10%.
71.4 Basic customs duty is being increased on Platinum from 2% to 4%.
71.5 Basic customs duty of 2% is being prescribed for Cut and polished coloured gemstones.
 
Chapter 72
72.1 Basic Customs duty on flat-rolled products of non-alloy steel whether or not clad, plated or coated falling in headings 7208, 7209, 7210, 7211, and 7212 is being increased from 5% to 7.5%.
72.2 Prime quality cold rolled sheets of grain oriented (CRGO) Silicon electrical steel falling under tariff item 7225 11 00 or 7226 11 00 has been exempted from Special CVD.
 
Chapter 73
73.1 Basic Customs duty on pipes and tubes for use in manufacture of boilers falling in chapter 73 of the customs tariff, has been reduced from 10% to 7.5%.
 
Chapter 74
74.1 The description of goods falling in tariff item nos. 7404 00 12 and 7404 00 22 of the customs tariff has been aligned with revised ISRI code.
74.2 Brass Scrap falling under tariff item 7404 00 29 has been exempted from Special CVD.
 
Chapter 84
84.1 Basic customs duty on Marine seawater pumps with fibre impellers and Automatic fish/prawn feeder is being reduced from 10% to 5%.
84.2 Basic customs duty is being reduced from 7.5% to 2.5% on specified Agriculture Machinery viz. Sugarcane planter, Root or tuber crop harvesting machines and Rotary tiller/ weeder. Parts and components required for manufacture of these items would also attract BCD@ 2.5%.
84.3 The Concessional import duty regime of 5% basic Customs Duty + Nil CVD +SAD presently applicable to food grains and sugar under project imports scheme is being extended to goods required for installation of mechanized handling systems and pallet racking systems in mandis and warehouses for horticulture produce.
84.4 Full exemption from basic customs duty exemption is being provided to shuttle less looms, parts/components of shuttle less looms by actual users for manufacture, specified silk machinery viz. Automatic reeling silk reeling and processing machinery and their accessories including cocoon assorting machines, cocoon peeling machines, vacuum permeation machine, cocoon cooking machine, reeled silk humidifier, bale press and raw silk testing equipments. The existing concessional duty rate extended to specified textile machinery is being restricted only to new textile machinery.
84.5 A concessional rate of 5% BCD is being extended to raw materials, intermediates required for the manufacture of parts of blades for rotors of wind operated generators.
84.6 An unconditional full exemption from Basic Customs Duty and additional duty of customs (CVD) is being provided to tunnel boring machines and parts and components thereof for use in the assembly of Tunnel boring machines. In addition the full exemption from basic customs duty and CVD is being extended to Tunnel Excavation & Lining Equipments consisting of Drilling Jumbos, Loaders, Tunnel excavators, Shotcrete Machines and 3 Stage Crushers for use in highway development projects
84.7 The benefit of existing exemption from Customs duty on Road Construction equipment is being extended to projects awarded by Metropolitan Development Authority also.
84.8 Basic customs duty on Power weeding machine for coffee plantations, Coffee grinder, Coffee processing machine, sprayers, Coffee packaging machine, Coffee bagging machine and mechanical harvester for coffee plantation is being reduced from 7.5% to 5%.
84.9 Basic customs duty on Coffee vending machine and brewing machines other than of a kind used for domestic purpose is being reduced from 10% to 5%. A concessional rate of BCD of 2.5% is also being provided to parts required for the manufacture of such machines.
 
Chapter 85:
85.1 Full exemption from basic customs duty, additional duty of customs presently available on parts, components and accessories of mobile handsets including cellular phones is being extended to parts, components and sub-parts of parts and components required for manufacture of Memory Cards for mobile phones.
85.2 Full exemption from Special Additional Duty of customs on parts, components and accessories of mobile handsets including cell phones valid up to 31.3.13 is being been extended to parts, sub-parts and components of Memory Cards for mobile handsets including cellular phones. The validity of this exemption is being extended upto 31.3.2013.
85.3 The exemption from basic customs duty on poly laminated aluminium tape and poly laminated steel tape is being withdrawn.
85.4 The customs duty exemption provided for specified raw materials for use in electronics/IT industry is being withdrawn.
85.5 Excise duty is being reduced to 6% on LED lamps & LEDs required for manufacture of such lamps and SAD is being fully exempted on LEDs used for manufacture of LED Lamps.
85.6 Full exemption from Basic Customs Duty is being extended to LCD and LED TV panels for 20 inches and above.
85.7 Basic customs duty of 10% is being imposed on Digital Cameras which are capable of recording video with minimum resolution of 800 x 600 pixels, at minimum 23 frames per second, for at least 30 minutes in a single sequence using the maximum storage (including expanded) capacity. Basic Customs Duty on parts and components of such cameras is being reduced to 5% subject to actual user condition.
85.8 Basic customs, additional customs duty and special additional duty of customs (SAD) on Lithium ion automotive battery for manufacture of Li ion battery packs for supply to hybrid/electric vehicle manufacture is being reduced from 10% to Nil, 10% to 6% and 4% to Nil respectively.
 
Chapter 86
86.1 Basic customs duty on Track Machines and parts classified under CTH 86 is being reduced from 10% to 7.5% 86.2 Basic customs duty on Train Protection and Warning System is being reduced from 10% to 7.5%.
 
Chapter 87
87.1 Basic customs duty on CBUs of motor vehicles (cars) falling under CTH 8703 with FOB value more than US $ 40000 and with engine capacity more than 3000cc for petrol-run vehicles and more than 2500 cc for diesel-run vehicles is being increased from 60% to 75%.
87.2 Basic customs, additional customs duty and special additional duty of customs (SAD) on specific parts of hybrid vehicles is being reduced from 10% to Nil, 10% to 6% and 4% to Nil respectively.
87.3 Basic customs duty on Bicycles in fully built condition as well as in form of CKD/SKD kits is being increased from 10% to 30%.
87.4 Basic customs duty on Bicycles parts and components is being increased from 10% to 20%.
 
Chapter 88
88.1 Basic customs and additional customs duty on imports of Parts and testing equipment, by a third party Maintenance Repair, and Overhauling facility for aircraft falling under heading 8802 is being fully exempted.
88.2 The period of stay for duty free import of aircraft not registered or intended to be registered in India for a flight to or across India, is being reduced from six months to 15 days or as extended by the competent Authority not exceeding 60 days.
Chapter 89
89.1 Unconditional exemption form CVD is being extended on import of foreign going vessels for a period from 01.03.2011 to 17.03.2012.
89.2 Additional Customs duty (CVD) on Foreign going vessels imported into India are being fully exempted subject to payment of duty at the time of its conversion for coastal run.
89.3 Dredgers are being fully exempted from Special Additional customs duty.
89.4 Additional Customs duty (CVD) on dredgers imported into India is being rationalised for import of dredgers on lease and contractual basis and on short term basis.
 
Chapter 90
90.1 Basic Customs Duty is being reduced to 2.5% along with 6%CVD and Nil SAD on specified raw materials viz. Polypropylene, Stainless Steel Strip and Stainless Steel capillary tube for manufacture of syringe, needle, catheters, and cannulae on actual user basis.
90.2 Full exemption from basic customs duty, CVD and SAD is being provided to specified raw materials viz. stainless steel tube and wire, cobalt chromium tube, Hayness Alloy-25 and polypropylene mesh required for manufacture of Coronary stents/ coronary stent system and artificial heart valve on actual user basis.
90.3 Basic Customs Duty is being reduced to 2.5% with 6% CVD and Nil SAD on parts of Blood Pressure Monitors and Blood glucose monitoring systems (Gluco- meters) on actual user basis.
90.4 BCD is being reduced to 2.5% ad valorem on survey(DGPS) instruments, 3D modeling software for ore body simulation cum mine planning and exploration (geophysics and geochemistry) equipment.
 
CHAPTER 98 (Project Imports)
98.1 Project import status is being granted for Green Houses set up for protected cultivation of Horticulture and Floriculture produce
98.2 Basic Customs Duty (BCD) is being reduced to Nil for initial setting up as well as substantial expansion of all fertilizer projects for a period of 3 years i.e. up to of 31.3.2015.
98.3 Basic Customs Duty (BCD) is being reduced to 2.5% for the capital goods/ equipments required for setting up or substantial expansion of iron ore pellet plants & iron ore beneficiation plants.
98.4 Full Basic Customs Duty (BCD) exemption is being extended to Coal Mining Projects.

Source:

http://indiabudget.nic.in/ub2012-13/cen/cusexplanatory.pdf

Government Response: