IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 04 May 2010 | Removal date: open ended
Still in force

Import tariff

The Union Budget 2010-11 was passed in the Parliament on 4 May, 2010. It announced a host of tariff measures for commodities and services. The budget also announced certain credit incentives for trade. Below is the list of tariff and non-tariff measures that is part of the Union budget.
 

  1. Granting of project import status with a concessional import duty of 5 per cent for the setting up of mechanized handling systems and pallet racking systems in 'mandis' or warehouses for food grains and sugar as well as full exemption from service tax for the installation and commissioning of such equipment.
  2. Granting of project import status at a concessional customs duty of 5 per cent with full exemption from service tax to the initial setting up and expansion of Cold storage, cold room including farm pre-coolers for preservation or storage of agriculture and related sectors produce; and processing units for such produce.
  3. Full exemption from customs duty to refrigeration units required for the manufacture of refrigerated vans or trucks.
  4. Concessional customs duty of 5 per cent to specified agricultural machinery not manufactured in. India.
  5. Concessional import duty was provided to specified machinery for use in the plantation sector in the year 2003. This exemption is to lapse in July 2010. As the modernization of this labour-intensive sector is yet to reach the expected level, this concessional duty is extended up to March 31, 2011 along with a CVD exemption.
  6. In pursuance of Government's resolve to implement the National Solar Mission, a concessional customs duty of 5 per cent is provided to machinery, instruments, equipment and appliances etc. required for the initial setting up of photovoltaic and solar thermal power generating units. These items will also be exempted from Central Excise duty. Similarly, ground source heat pumps used to tap geo-thermal energy would be exempt from basic customs duty and special additional duty.
  7. To encourage the use of bio-degradable materials, the import of compostable polymer is exempted from basic customs duty.
  8. Full exemption from import duty is available to specified machinery for road construction projects on the condition that the machinery shall not be sold or disposed of for a minimum period of five years. The resale of such machinery is also allowed on payment of import duty at depreciated value.
  9. Specified inputs for orthopaedic implants are exempted from import duty as the duty was higher than that on the finished products.
  10. As the film industry has been experiencing difficulties in importing digital masters of films for duplication or distribution loaded on electronic medium vis-ŕ-vis those imported on cinematographic film, owing to a differential customs duty structure, the budget rationalizes this problem by charging customs duty only on the value of the carrier medium. The same dispensation would apply to music and gaming software imported for duplication.
  11. Cable transmission of infotainment is undergoing a transformation with the adoption of digital technology and the multi-service operators need to invest in "Digital Head End" equipment. To enable this, the budget proposes to provide project import status at a concessional customs duty of 5 per cent with full exemption from special additional duty to the initial setting up of such projects.
  12. Gems and jewellery is a traditional item in the export basket. Therefore, the basic customs duty on rhodium - a precious metal used for polishing jewellery, is reduced from 10 per cent to 2 percent.
  13. In order to encourage domestic refining capacity for gold, the budget reduced the basic customs duty on gold ore and concentrates from 2 per cent ad valorem to a specific duty of Rs.140 per 10 grams of gold content with full exemption from special additional duty. Further, the excise duty on refined gold made from such ore or concentrate is being reduced from 8 per cent to a specific duty of Rs.280 per 10 grams.
  14. Full exemption from import duty is available to specified inputs or raw materials required for the manufacture of sports goods which are assuming importance as an export item.
  15. In order to incentivise the domestic production of microwave ovens, the budget reduced the basic customs duty on one of its key components, namely magnetrons from 10 per cent to 5 per cent.
  16. Earlier, there was a value limit of Rs.1 lakh per annum on duty-free import of commercial samples as personal baggage. The budget enhanced this limit to Rs.3 lakh per annum.
  17. The industry had represented that the exemption from special additional duty of 4 per cent based on refunds leads to substantial blockage of funds. To ease this difficulty, the budget provided an outright exemption from special additional duty to goods imported in a pre-packaged form for retail sale. This would also cover mobile phones, watches and ready-made garments even when they are not imported in pre-packaged form.
  18. Reduction in basic customs duty on long pepper from 70 per cent to 30 per cent.
  19. Reduction in basic customs duty on asafoetida from 30 per cent to 20 per cent.
  20. Export of services, especially in the area of Information Technology and Business Process Outsourcing, generates substantial employment and brings in foreign exchange. The budget proposed to ease the process of refund of accumulated credit to exporters of services by making necessary changes in the definition of export of services and procedures.
  21. Government has provided interest subvention of 2 per cent on pre-shipment export credit up to March 31, 2010 for exports in certain sectors. The budget extends the interest subvention of 2 per cent for one more year for exports covering handicrafts, carpets, handlooms and small and medium enterprises.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

016 Stimulant, spice & aromatic crops
0904 Pepper of the genus Piper; dried or crushed or ground fruits of the genus Capsicum or of the genus Pimenta.
090411 Neither crushed nor ground
032 Non-wood forest products
1301 Lac; natural gums, resins, gumresins and oleoresins (for example, balsams).
130120 Gum Arabic
130190 Other
282 Wearing apparel, except fur apparel
6103 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.
610310 Suits
6105 Men's or boys' shirts, knitted or crocheted.
610510 Of cotton
6109 Tshirts, singlets and other vests, knitted or crocheted.
610910 Of cotton
610990 Of other textile materials
6114 Other garments, knitted or crocheted.
611490 Of other textile materials
6115 Panty hose, tights, stockings, socks and other hosiery, including graduated compression hosiery (for example, stockings for varicose veins) and footwear without applied soles, knitted or crocheted.
611599 Of other textile materials
6203 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear).
620311 Of wool or fine animal hair
620342 Of cotton
6204 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear).
620462 Of cotton
6205 Men's or boys' shirts.
620520 Of cotton
6212 Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted.
621210 Brassieres
6217 Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 62.12.
621790 Parts
413 Basic precious metals & metals clad with precious metals
7106 Silver (including silver plated with gold or platinum), unwrought or in semimanufactured forms, or in powder form.
710610 Powder
710691 Unwrought
710692 Semimanufactured
7110 Platinum, unwrought or in semimanufactured forms, or in powder form.
711011 Unwrought or in powder form
711019 Other
711021 Unwrought or in powder form
711029 Other
435 Lifting & handling equipment & parts
8431 Parts suitable for use solely or principally with the machinery of headings 84.25 to 84.30.
843110 Of machinery of heading 84.25
843120 Of machinery of heading 84.27
843131 Of lifts, skip hoists or escalators
843139 Other
843141 Buckets, shovels, grabs and grips
439 Other general-purpose machinery & parts
8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15.
841850 Other furniture (chests, cabinets, display counters, showcases and the like) for storage and display, incorporating refrigerating or freezing equipment
841861 Heat pumps other than air conditioning machines of heading 84.15
841869 Other
841899 Other
441 Agricultural or forestry machinery & parts
8432 Agricultural, horticultural or forestry machinery for soil preparation or cultivation; lawn or sportsground rollers.
843230 Seeders, planters and transplanters
843280 Other machinery
843290 Parts
8433 Harvesting or threshing machinery, including straw or fodder balers; grass or hay mowers; machines for cleaning, sorting or grading eggs, fruit or other agricultural produce, other than machinery of heading 84.37.
843311 Powered, with the cutting device rotating in a horizontal plane
843351 Combine harvesterthreshers
843360 Machines for cleaning, sorting or grading eggs, fruit or other agricultural produce
843390 Parts
8434 Milking machines and dairy machinery.
843420 Dairy machinery
8435 Presses, crushers and similar machinery used in the manufacture of wine, cider, fruit juices or similar beverages.
843590 Parts
444 Machinery for mining, quarrying & construction; parts
8429 Selfpropelled bulldozers, angledozers, graders, levellers, scrapers, mechanical shovels, excavators, shovel loaders, tamping machines and road rollers.
842911 Track laying
842919 Other
842920 Graders and levellers
842940 Tamping machines and road rollers
842951 Frontend shovel loaders
842952 Machinery with a 360? revolving superstructure
842959 Other
8430 Other moving, grading, levelling, scraping, excavating, tamping, compacting, extracting or boring machinery, for earth, minerals or ores; piledrivers and pileextractors; snowploughs and snow blowers.
843010 Piledrivers and pileextractors
843031 Selfpropelled
843039 Other
843041 Selfpropelled
843049 Other
843050 Other machinery, selfpropelled
843061 Tamping or compacting machinery
843069 Other
8431 Parts suitable for use solely or principally with the machinery of headings 84.25 to 84.30.
843142 Bulldozer or angledozer blades
843143 Parts for boring or sinking machinery of subheading 8430.41 or 8430.49
843149 Other
8474 Machinery for sorting, screening, separating, washing, crushing, grinding, mixing or kneading earth, stone, ores or other mineral substances, in solid (including powder or paste) form; machinery for agglomerating, shaping or moulding solid mineral fuels,
847410 Sorting, screening, separating or washing machines
847420 Crushing or grinding machines
847431 Concrete or mortar mixers
847432 Machines for mixing mineral substances with bitumen
847439 Other
847480 Other machinery
847490 Parts
448 Domestic appliances & parts
8418 Refrigerators, freezers and other refrigerating or freezing equipment, electric or other; heat pumps other than air conditioning machines of heading 84.15.
841810 Combined refrigeratorfreezers, fitted with separate external doors
841821 Compressiontype
841830 Freezers of the chest type, not exceeding 800 l capacity
841840 Freezers of the upright type, not exceeding 900 l capacity
471 Electronic valves & tubes; electronic components; parts
8540 Thermionic, cold cathode or photocathode valves and tubes (for example, vacuum or vapour or gas filled valves and tubes, mercury arc rectifying valves and tubes, cathoderay tubes, television camera tubes).
854011 Colour
854020 Television camera tubes; image converters and intensifiers; other photocathode tubes
854040 Data/graphic display tubes, monochrome; data/graphic display tubes, colour, with a phosphor dot screen pitch smaller than 0.4 mm
854079 Other
854089 Other
854091 Of cathoderay tubes
854099 Other
472 Television & radio transmitters; cameras; telephone sets
8525 Transmission apparatus for radiobroadcasting or television, whether or not incorporating reception apparatus or sound recording or reproducing apparatus; television cameras, digital cameras and video camera recorders.
852550 Transmission apparatus
852560 Transmission apparatus incorporating reception apparatus
852580 Television cameras, digital cameras and video camera recorders

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