ANNOUNCEMENT 29 Feb 2016

In February 2016, the government of India announced a change in import duties.

NUMBER OF INTERVENTIONS

3

  • 2 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Summary of all amendments -
http://www.cbec.gov.in/resources//htdocs-cbec/ub1617/do-ltr-jstru1-revised.pdf
Budget Highlights
http://indiabudget.nic.in/ub2016-17/bh/bh1.pdf

No. 12/2016 - Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs11-2016.pdf

No. 13/2016 - Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs13-2016.pdf

No. 14/2016
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs14-2016.pdf

No. 15/2016-Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs15-2016.pdf

No. 16 /2016-Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs16-2016.pdf

No. 17/2016-Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs17-2016.pdf

No. 18 /2016-Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs18-2016.pdf

No. 19/2016-Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs19-2016.pdf

No. 20/2016-Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs20-2016.pdf

No. 21/2016-Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs21-2016.pdf

No.22/2016 -Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs22-2016.pdf

No.23/2016 -Customs
http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2016/cs-tarr2016/cs23-2016.pdf


India introduces new equalization levy on online advertising revenue - PWC
https://www.pwc.com/us/en/tax-services/publications/insights/assets/pwc-india-introduces-new-equalization-levy-on-online-advertising-revenue.pdf



Inception date: 01 Mar 2016 | Removal date: 01 Mar 2017
Still in force

Import tariff

On 29 February 2016, India's Finance Minister presented the 2016-17 Union Budget. Implications for trade and commerce from the measures within this budget are summarised below.
 

  • Provision will be made for deferment of payment of customs duties for importers and exporters with a proven track record
  • Customs Single Window project will be implemented in major ports and airports
  • Increase in duty free baggage allowance for international passengers
  • 100% deduction of profits for 3 out of 5 years for startups setup between April 2016 and March 2019
  • FDI policy reforms to be introduced in the sectors of Insurance, Pernsion, Asset Reconstruction companies, and Stock Exchanges
  • 100% FDI to be allowed in marketing of food products produced and manufactured in India
  • Procedure to avail import duty exemption on ship repair units is simplified
  • Export duty on iron ore lumps (below 58% Fe content) reduced from 30% to Nil and on Iron ore fines (below 58% Fe content) reduced from 10% to Nil,
  • Export duty on chromium ores and concentrates is being reduced from 30% to Nil
  • Export duty on bauxite, not calcined and calcined is reduced from 20% to 15%
  • Reduced duty imports of phosphoric acid and anhydrous ammonia for the manufacture of fertilizers will be subject to the Actual User condition i.e. exemption only available if the importer is the user.

The Import duties have been increased on the following items:
(BCD - Basic Customs Duty, SAD - Special Additional Duty, CVD - Counterveiling duty)

  • BCD on cashew nuts from Nil to 5%
  • BCD on natural latex rubber made balloons from 10% to 20%
  • Import duty exemption on Plans, drawings and designs is withdrawn and will now have a 10% BCD
  • Duty exemption is withdrawn on solar tempered glass for manufacture of solar cells/modules/panels and will now have a 5% BCD
  • BCD exemption is withdrawn on pre-form silica used in manufacture of telecommunication grade optical fibres or cables and will not have a 10% BCD
  • Counterveiling duty on Gold dore bar is being increased from 8% to 8.75%, and on silver from 7% to 7.75%
  • BCD on primary aluminum products under HS 7601 to 7607 is increased form 5% to 7% , and on other aluminum products under HS 7608 and 7609 from 7.5% to 10%
  • BCD on zinc alloys is increased from 5% to 7.5%
  • BCD on 96 tariff lines under Chapters 84, 85 and 90 has been increased from 7.5% to 10%
  • CVD exemption of certain machinery used for construction of roads is withdrawn, and will now be applicable at 12.5%
  • BCD on industrial solar water heater under HS 8419 is increased from 7.5% to 10%
  • SAD exemption withdrawn on populated printed circuit boards for manufacture of personal computers and will now have a 4% SAD (14A of 12/2012) and for the manufacture of mobile phone or tablet computer will be charged at 2% SAD
  • BCD, CVD and SAD exemptions are withdrawn on chargers, adapters, battery and wired headsets/speakers used in manufacture of mobile handsets including cellular. At the same time, parts for the manufacture of the above i.e. chargers, adapters, battery and wired headsets/speakers will be exempt from BCD, Excise duty (and therefore CVD) and the SAD
  • BCD exemption is withdrawn on certain telecommunication equipments
  • BCD exemption on E-readers is withdrawn and it will now be subject to 7.5% BCD
  • Import duty exemptions provided to the central and state government on certain defense equipments have been withdrawn

The Import duties have been decreased on the following items

  • BCD on Denatured Ethyl Alcohol (ethanol) is reduced from 5% to 2.5% for manufacture of excisable goods
  • BCD on import of Medical Use Fission Mpolbdenum-99 by the Board of Radiation and Isotope Technology for the manufacture of radio pharmaceuticals will be reduced from 7.5% to Nil
  • SAD on orthoxylene for manufacture of phthalic anhydride is reduced from 4% to 2%
  • Media with recorded Information Technology Software will be exempt from any CVD, earlier applicable at 12%
  • BCD on Polypropylene granules/resins for the manufacture of capacitor grade plastic films is reduced from 7.5% to Nil, subject to Actual User Condition
  • BCD on Super Absorbent Polymer for the manufacture of towels, napkins etc. is reduced from 7.5% to 5%
  • Customs duty on refrigerated containers reduced from 10% to 5%
  • BCD on Silica Sand reduced from 5% to 2.5%
  • BCD on aluminum oxide for manufacture of Wash Coat will be reduced from 7.5% to 5%
  • BCD on wood in chips or particles for manufacture of paper, paperboard and news print is reduced from 5% to Nil, , subject to Actual User Condition
  • BCD on Pulp of wood for manufacture of towels, napkins etc. is reduced from 5% to 2.5%, , subject to Actual User Condition
  • BCD on Braille paper reduced from 10% to Nil
  • BCD exemption (10%) provided on import of specific fabrics for the manufacture of textile garments for exports, of value equivalent to 1% of FOB values of exports in the preceding financial year
  • BCD on certain fibers and filaments/yarns is being reduced from 5% to 2.5%
  • BCD on imitation jewelry is being reduced from 10% to 5%
  • BCD on brass scrap under is reduced from 5% to 2.5%
  • BCD exemption is provided on certain raw materials and specific capital goods for the manufacture of Micro fuses, Sub-miniature fuses, resettable fuses and thermal fuses
  • BCD and SAD exemption is provided on machinery, electrical equipments and other instruments (except printed circuit boards) used for fabrication of semiconductor wafer and Liquid Crystal Displays, and for assembly, testing, marking, and packaging of semiconductor chips (ATMP)
  • All import duty is exempt on parts, components, accessories and sub-parts used in manufacture of Routers, broadband modems, set-top boxes to access the TV/Internet, digital video recorders, network video recorder, CCTV/IP camera, and lithium ion battery.
  • BCD exemption provided on Magnetic-heads, Ceramic/Magnetic cartridges and styles, Antennas, EHT cables, Level meters/level indicators/tuning indicators/peak level meters/battery meter/VC meters/Tape counters, tone arms and electron guns
  • BCD exemption provided on LCDs and Light Emitting Diodes or Organic LEDs is being restricted to use for manufacture of TVs only
  • BCD exemption is provided on Neodymium Magnet and Manget Resin for manufacture of BLDC motors, subject to the Actual User Condition 
  • BCD exemption is being provided on magnetron of capacity above 1KW and not exceeding 1.5KW for the manufacture of domestic microwave ovens
  • BCD and SAD exemption is provided on Foreign Satellite data on storage media under imported by the National Remote Sensing Centre
  • BCD on electrolysers, membranes and parts required by a caustic soda/potash unit based on membrane cell technology is reduced from 2.5% to Nil
  • BCD on golf cars under HS 8703 is being reduced from 10% to 5%
  • Import duty exemptions on goods used in manufacture of electrically operated and hybrid vehicles is extended indefinitely
  • BCD exemption is provided on tools and tool kits for maintenance, repair and overhauling of aircraft. Further the procedure to avail the exemption is simplified and the restriction to use duty free parts within one year is removed
  • Foreign aircraft can now stay in India for maintenance repair and overhaul for up to 6 months, increased from up to 60 days earlier
  • Reduced BCD at the rate of 5% is being provided to certain cold chain units
  • The duty free allowance for bonafide gifts is being increased from INR 10,000 to INR 20,000
  • Disposable sterilized dialyzer and micro barrier of artificial kidney is being exempted from all import duties
  • Import duty exemption on certain goods imported for petroleum exploration is extended to exploration and mining licenses issued or renewed before 1 April 1999
  • BCD on certain coal/coal-based products under HS codes 2701, 2702, 2703, and 2707 will be rationalized from 2.5%-10% to 2.5% , on HS codes 2704, 2705, 2706, and 2708 will be rationalized from 10% to 5%.
  • BCD on acyclic hydrocarbons and cyclic hydrocarbons under HS 2901 and 2902 will be rationalized from 5% at 2.5%

 

AFFECTED PRODUCTS

 
080131 080132 220720 250510 250590 260111 260112 260600 261000 270111 270112 270119 270300 270400 270600 270730 270740 270750 270799 270810 270820 280429 280461 280470 280490 280910 280920 281410 281420 281810 281820 281830 290110 290121 290122 290123 290129 290211 290219 290230 290241 290242 290243 290250 290290 390210 390220 390230 390290 390610 390690 440122 470200 470311 470319 470321 470329 470500 470610 482320 482390 491110 491199 500720 500790 520819 520822 520831 520832 520841 520842 520843 520851 520852 520911 520921 520931 520932 520942 521031 521041 521142 521212 521213 540211 540219 540220 540231 540232 540233 540239 540244 540245 540246 540247 540249 540251 540252 540261 540269 540710 540720 540730 540742 540751 540752 540753 540754 540761 540769 540782 540822 540824 540832 550311 550319 550320 550330 550340 550390 550410 550490 551211 551219 551323 551511 551513 551519 551612 551613 551614 551622 551623 700711 700719 700721 700729 710610 710691 710692 710812 710813 740200 760110 760120 760310 760511 760519 760529 760711 760719 760720 760810 760820 760900 790111 790112 790120 810295 810296 810299 841810 841821 841829 841830 841840 841850 841861 841869 841899 841911 841919 841920 841932 841939 841940 841950 841960 841981 841989 841990 842119 842121 842122 842123 842129 842131 842139 842191 842199 843810 843820 843850 843860 843880 843890 847310 847321 847329 847330 847340 847350 850110 850120 850131 850132 850134 850140 850151 850152 850153 850164 850211 850212 850213 850239 850240 850300 850410 850421 850422 850423 850431 850432 850433 850434 850440 850450 850490 850710 850720 850730 850750 850760 850780 850790 851711 851712 851718 851761 851762 851769 851770 851810 851821 851822 851829 851830 851840 851850 851890 852321 852329 852341 852349 852351 852352 852359 852380 852910 852990 853610 853620 853630 853641 853649 853650 853661 853669 853670 853690 853710 853720 854310 854320 854330 854370 854390 854411 854419 854420 854430 854442 854449 854460 854470 854610 854620 854690 854710 854720 854790 860900 870310 870322 870323 870324 870331 870332 870333 870390 880330 880390 901811 901812 901813 901819 901831 901832 901839 901849 901850 901890 902820 902890 903010 903020 903031 903033 903039 903040 903084 903089 903090 903210 903220 903281 903289 903290 930400 930599 930621 930690
(+ 323 more)
Inception date: 01 Mar 2016 | Removal date: 01 Mar 2017
Still in force

Import tariff

On 29 February 2016, India's Finance Minister presented the 2016-17 Union Budget. Implications for trade and commerce from the measures within this budget are summarised below.
 

  • Provision will be made for deferment of payment of customs duties for importers and exporters with a proven track record
  • Customs Single Window project will be implemented in major ports and airports
  • Increase in duty free baggage allowance for international passengers
  • 100% deduction of profits for 3 out of 5 years for startups setup between April 2016 and March 2019
  • FDI policy reforms to be introduced in the sectors of Insurance, Pernsion, Asset Reconstruction companies, and Stock Exchanges
  • 100% FDI to be allowed in marketing of food products produced and manufactured in India
  • Procedure to avail import duty exemption on ship repair units is simplified
  • Export duty on iron ore lumps (below 58% Fe content) reduced from 30% to Nil and on Iron ore fines (below 58% Fe content) reduced from 10% to Nil,
  • Export duty on chromium ores and concentrates is being reduced from 30% to Nil
  • Export duty on bauxite, not calcined and calcined is reduced from 20% to 15%
  • Reduced duty imports of phosphoric acid and anhydrous ammonia for the manufacture of fertilizers will be subject to the Actual User condition i.e. exemption only available if the importer is the user.

The Import duties have been increased on the following items:
(BCD - Basic Customs Duty, SAD - Special Additional Duty, CVD - Counterveiling duty)

  • BCD on cashew nuts from Nil to 5%
  • BCD on natural latex rubber made balloons from 10% to 20%
  • Import duty exemption on Plans, drawings and designs is withdrawn and will now have a 10% BCD
  • Duty exemption is withdrawn on solar tempered glass for manufacture of solar cells/modules/panels and will now have a 5% BCD
  • BCD exemption is withdrawn on pre-form silica used in manufacture of telecommunication grade optical fibres or cables and will not have a 10% BCD
  • Counterveiling duty on Gold dore bar is being increased from 8% to 8.75%, and on silver from 7% to 7.75%
  • BCD on primary aluminum products under HS 7601 to 7607 is increased form 5% to 7% , and on other aluminum products under HS 7608 and 7609 from 7.5% to 10%
  • BCD on zinc alloys is increased from 5% to 7.5%
  • BCD on 96 tariff lines under Chapters 84, 85 and 90 has been increased from 7.5% to 10%
  • CVD exemption of certain machinery used for construction of roads is withdrawn, and will now be applicable at 12.5%
  • BCD on industrial solar water heater under HS 8419 is increased from 7.5% to 10%
  • SAD exemption withdrawn on populated printed circuit boards for manufacture of personal computers and will now have a 4% SAD (14A of 12/2012) and for the manufacture of mobile phone or tablet computer will be charged at 2% SAD
  • BCD, CVD and SAD exemptions are withdrawn on chargers, adapters, battery and wired headsets/speakers used in manufacture of mobile handsets including cellular. At the same time, parts for the manufacture of the above i.e. chargers, adapters, battery and wired headsets/speakers will be exempt from BCD, Excise duty (and therefore CVD) and the SAD
  • BCD exemption is withdrawn on certain telecommunication equipments
  • BCD exemption on E-readers is withdrawn and it will now be subject to 7.5% BCD
  • Import duty exemptions provided to the central and state government on certain defense equipments have been withdrawn

The Import duties have been decreased on the following items

  • BCD on Denatured Ethyl Alcohol (ethanol) is reduced from 5% to 2.5% for manufacture of excisable goods
  • BCD on import of Medical Use Fission Mpolbdenum-99 by the Board of Radiation and Isotope Technology for the manufacture of radio pharmaceuticals will be reduced from 7.5% to Nil
  • SAD on orthoxylene for manufacture of phthalic anhydride is reduced from 4% to 2%
  • Media with recorded Information Technology Software will be exempt from any CVD, earlier applicable at 12%
  • BCD on Polypropylene granules/resins for the manufacture of capacitor grade plastic films is reduced from 7.5% to Nil, subject to Actual User Condition
  • BCD on Super Absorbent Polymer for the manufacture of towels, napkins etc. is reduced from 7.5% to 5%
  • Customs duty on refrigerated containers reduced from 10% to 5%
  • BCD on Silica Sand reduced from 5% to 2.5%
  • BCD on aluminum oxide for manufacture of Wash Coat will be reduced from 7.5% to 5%
  • BCD on wood in chips or particles for manufacture of paper, paperboard and news print is reduced from 5% to Nil, , subject to Actual User Condition
  • BCD on Pulp of wood for manufacture of towels, napkins etc. is reduced from 5% to 2.5%, , subject to Actual User Condition
  • BCD on Braille paper reduced from 10% to Nil
  • BCD exemption (10%) provided on import of specific fabrics for the manufacture of textile garments for exports, of value equivalent to 1% of FOB values of exports in the preceding financial year
  • BCD on certain fibers and filaments/yarns is being reduced from 5% to 2.5%
  • BCD on imitation jewelry is being reduced from 10% to 5%
  • BCD on brass scrap under is reduced from 5% to 2.5%
  • BCD exemption is provided on certain raw materials and specific capital goods for the manufacture of Micro fuses, Sub-miniature fuses, resettable fuses and thermal fuses
  • BCD and SAD exemption is provided on machinery, electrical equipments and other instruments (except printed circuit boards) used for fabrication of semiconductor wafer and Liquid Crystal Displays, and for assembly, testing, marking, and packaging of semiconductor chips (ATMP)
  • All import duty is exempt on parts, components, accessories and sub-parts used in manufacture of Routers, broadband modems, set-top boxes to access the TV/Internet, digital video recorders, network video recorder, CCTV/IP camera, and lithium ion battery.
  • BCD exemption provided on Magnetic-heads, Ceramic/Magnetic cartridges and styles, Antennas, EHT cables, Level meters/level indicators/tuning indicators/peak level meters/battery meter/VC meters/Tape counters, tone arms and electron guns
  • BCD exemption provided on LCDs and Light Emitting Diodes or Organic LEDs is being restricted to use for manufacture of TVs only
  • BCD exemption is provided on Neodymium Magnet and Manget Resin for manufacture of BLDC motors, subject to the Actual User Condition 
  • BCD exemption is being provided on magnetron of capacity above 1KW and not exceeding 1.5KW for the manufacture of domestic microwave ovens
  • BCD and SAD exemption is provided on Foreign Satellite data on storage media under imported by the National Remote Sensing Centre
  • BCD on electrolysers, membranes and parts required by a caustic soda/potash unit based on membrane cell technology is reduced from 2.5% to Nil
  • BCD on golf cars under HS 8703 is being reduced from 10% to 5%
  • Import duty exemptions on goods used in manufacture of electrically operated and hybrid vehicles is extended indefinitely
  • BCD exemption is provided on tools and tool kits for maintenance, repair and overhauling of aircraft. Further the procedure to avail the exemption is simplified and the restriction to use duty free parts within one year is removed
  • Foreign aircraft can now stay in India for maintenance repair and overhaul for up to 6 months, increased from up to 60 days earlier
  • Reduced BCD at the rate of 5% is being provided to certain cold chain units
  • The duty free allowance for bonafide gifts is being increased from INR 10,000 to INR 20,000
  • Disposable sterilized dialyzer and micro barrier of artificial kidney is being exempted from all import duties
  • Import duty exemption on certain goods imported for petroleum exploration is extended to exploration and mining licenses issued or renewed before 1 April 1999
  • BCD on certain coal/coal-based products under HS codes 2701, 2702, 2703, and 2707 will be rationalized from 2.5%-10% to 2.5% , on HS codes 2704, 2705, 2706, and 2708 will be rationalized from 10% to 5%.
  • BCD on acyclic hydrocarbons and cyclic hydrocarbons under HS 2901 and 2902 will be rationalized from 5% at 2.5%

 

 
080131 080132 220720 250510 250590 260111 260112 260600 261000 270111 270112 270119 270300 270400 270600 270730 270740 270750 270799 270810 270820 280429 280461 280470 280490 280910 280920 281410 281420 281810 281820 281830 290110 290121 290122 290123 290129 290211 290219 290230 290241 290242 290243 290250 290290 390210 390220 390230 390290 390610 390690 440122 470200 470311 470319 470321 470329 470500 470610 482320 482390 491110 491199 500720 500790 520819 520822 520831 520832 520841 520842 520843 520851 520852 520911 520921 520931 520932 520942 521031 521041 521142 521212 521213 540211 540219 540220 540231 540232 540233 540239 540244 540245 540246 540247 540249 540251 540252 540261 540269 540710 540720 540730 540742 540751 540752 540753 540754 540761 540769 540782 540822 540824 540832 550311 550319 550320 550330 550340 550390 550410 550490 551211 551219 551323 551511 551513 551519 551612 551613 551614 551622 551623 700711 700719 700721 700729 710610 710691 710692 710812 710813 740200 760110 760120 760310 760511 760519 760529 760711 760719 760720 760810 760820 760900 790111 790112 790120 810295 810296 810299 841810 841821 841829 841830 841840 841850 841861 841869 841899 841911 841919 841920 841932 841939 841940 841950 841960 841981 841989 841990 842119 842121 842122 842123 842129 842131 842139 842191 842199 843810 843820 843850 843860 843880 843890 847310 847321 847329 847330 847340 847350 850110 850120 850131 850132 850134 850140 850151 850152 850153 850164 850211 850212 850213 850239 850240 850300 850410 850421 850422 850423 850431 850432 850433 850434 850440 850450 850490 850710 850720 850730 850750 850760 850780 850790 851711 851712 851718 851761 851762 851769 851770 851810 851821 851822 851829 851830 851840 851850 851890 852321 852329 852341 852349 852351 852352 852359 852380 852910 852990 853610 853620 853630 853641 853649 853650 853661 853669 853670 853690 853710 853720 854310 854320 854330 854370 854390 854411 854419 854420 854430 854442 854449 854460 854470 854610 854620 854690 854710 854720 854790 860900 870310 870322 870323 870324 870331 870332 870333 870390 880330 880390 901811 901812 901813 901819 901831 901832 901839 901849 901850 901890 902820 902890 903010 903020 903031 903033 903039 903040 903084 903089 903090 903210 903220 903281 903289 903290 930400 930599 930621 930690
(+ 323 more)
Inception date: 01 Jun 2016 | Removal date: open ended
Still in force

Import tariff

An "equalisation levy" of 6% has been proposed to be deducted from payments made, for specified services, to non-resident entities who do not have a Permanent Establishment (PE) in India. All Indian residents or non-residents with a PE must withhold the levy from the payments made to such entities without a PE.

The specified services include online advertisements, any facility or service of online advertisement, and any provision for digital advertising space.

The levy will not be applicable if the total consideration received/receivable for providing the service to an individual entity in India is less than INR 100,000 in the previous year. Further, it will not be applicable if the services paid for by the Indian entity are not for the purposes of carrying out a business or profession.

As per the Notification 37/2016 published by the Central Board of Direct Taxes on 27 May 2016, the levy will be applicable from 1 June 2016.

 
N/A