On 28 February 2011, the Indian government announced its budget for the fiscal year of 2011-2012. Among other initiatives, the budget withholds a number of changes to the Indian customs code as well as general export promotional measures.
Changes to import duties:
- Existing applied duties of 2, 2.5 and 3 percent are now merged into a single applied duty of 2.5 percent. Among the affected products are all ores and concentrates from HS chapter 26, pneumatic and retreaded tyres.
- Import duty reduction from 5 to 2.5 percent for mineral gypsum, carbon black feed stock, petroleum coke, Acrylonitrile, wood pulp, wate paper, ferro nickel, and various equipment used in agriculture.
- Import duty reduction to 5 percent for raw silk (not thrown).
- Import duty reduction from 10 to 7.5 percent for nylon yarn & fibres, caprolactum, sodium polyacrylate and other plastics.
- Import duty reduction from 25 to 10 percent for Lactose.
- Import duty reduction from 30 to 10 percent for live SPF L Vannamei, pistachios, bamboo, cranberry products
- Import duty reduction from 100 to 30 percent for sun-dried srk seedless raisin
- Import duty exemption for bran oil cake, asphal work commodities, curde palm stearin (used for soap manufacturing), cotton waste, stainless steel scrap, tunnel boring equipment, cash dispensers, mobile handset components
- Import duty exemption for books has been reduced to certain HS 10 digit tariff lines.
- Import duty imposition of 2.5 percent on aircrafts for non-scheduled operations,
Changes to export duties
- Export duty impostion of 10 percent on bran oil cake, and fin fish.
- Export duty increase to 20 percent for fines and lumps.
- Export duty exemption for iron ore pellets.
- Export pormotional activities for the leather, textile and garments industry shall be continued and expanded. The prime promotional tool are import tariff exemptions for intermediates and tools used in these industries.
The changes came into effect on 1 March 2011 by notifications 13 to 27/2011-Customs.