IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 01 Mar 2015 | Removal date: 29 Feb 2016

FDI: Entry and ownership rule

 On 28 February 2015, the Indian Finance Minister presented the Budget for year 2015-16. The trade and investment implications of the budget are listed below.

  • Foreign investments will be allowed in Alternative Investment Funds
  • A project development company will be set up for setting up manufacturing hubs in Cambodia, Myanmar, Laos and Vietnam
  • Visa on arrival will be extended to 150 additional countries
  • Service-tax exemption will be provided on transport of export goods from factory to land customs stations
  • Exemption from Counter-Veiling Duty of 5% on artificial heart imports is provided
  • The import duty on certain input products was reduced to counter the problem of duty inversion
    • Metal parts for manufacture of electrical insulators reduced from 7.5% to 5%
    • Water Blocking Tape, Ethylene-propylene-non-conjucated diene rubber (EPDM) and
    • Mica glass tape for manufacture of insulated wires and cables, is reduced from 10% to 7.5%
    • Reduced from 5% to Nil on Magnetrons up to 1 KW for manufacture of domestic microwave ovens
    • C-Block Compressors, Crank Shafts, Over Load Protector and Positive thermal-coefficient for manufacture of Refrigerator compressors reduced from 7.5% to 5% 
    • Ceroa zorconia compounds, cerium compounds and zeolite for manufacture of washcoat reduced from 7.5% to 5
    • Duty on anthraquinone for manufacture of hydrogen peroxide reduced from 7.5% to 2.5% 
    • Duty on sulphuric acid for manufacture of fertilizers is reduced from 7.5% to 5%
    • Import of certain video cameras, with specific resolution and storage requirements, and parts thereof is exempt from duty. The duty earlier was 10% for the cameras and 5% for the parts
  • The basic customs duty have been reduced on the following items -
    • Ethylene Dichloride (EDC), Vinyl Chloride Monomer and Styrene Monomer from 2.5% to 2% (2903 and 2902 
    • Isoprene and Liquefied butanes from 5% to 2.5% (2901) 
    • Butyl acrylate from 7.5% to 5% (
    • Ulexite or from 2.5% to Nil 
    • Antimony metal, antimony waste and scrap from 5% to 2.5%(8110 Notification 10/2015
    • Specific inputs for manufacture of CNC lathe machines and machining centers from 7.5% to 2.5% 
    • Specific inputs for manufacture of flexible medical video endoscopes from 5% to 2.5% 
    • On High Density Polyethylene HDPE for manfacuture of optical fibre cables from 7.5% to Nil
    • Black Light Unit Module for manufacture of LCD/LED TV panels from 10% to Nil
    • Concessional basic import duty of 5% on Active Energy Contorllers for manufacture o
    • Renewable Power System inverter
    • Organic LED TV panels from 10% to Nil
    • Certain raw materials for manufacturing pacemakers are being fully exempted from Counter Veiling Duty and Special Additional Duty
    • Evacuated Tubes with 3 layers of solar selective coating for manufacturing solar water heater are exempted from basic duty
    • Parts and components for manufacturing tablet computers and their sub-parts are fully exempted from basic duty, counter veiling and the special additional duty
    • For metallurgical coke, it is increased from 2.5% to 5%
    • The rate of duty on of iron or steel and articles thereof were increased from 10% to 15%, although the effective rate on their imports as remain unchanged
    • The rate of duty on commercial vehicles was increased from 10% to 40%, while the effective rate increased from 10% to 20%
  • The Special Additional Duty was reduced on the following products
    • All goods (except populated PCBs) for the manufacture of Information Technology productsare exempt from Special Additional Duty, which was 4% before 
    • Naphtha, ethylene dichloride (EDC), vinyl chloride monomer (VCN) and styrene monomer (SM) for manufacture of excisable goods from 4% to 2% 
    • Metal scrap of iron & steel, copper, brass and aluminum has been reduced from 4% to 2% 
    • Inputs for manufacture of LED drivers and MCPCB for LED lights, fixtures and LED lamps reduced from 4% to Nil 
  • The export duty on upgraded ilmenite is reduced from 5% to 2.5%
  • Exemption from basic import customs duty, reduced counter vailing duty and exemption from SAD were available to electrically operated and hybrid vehicles have been extended from 31 March 2015 to 31 March 2016.
  • Exemption from import duty on parts and compoenents of cash dispensers and automatic bank note dispensers

AFFECTED COUNTRIES

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