Union Budget
2021 was presented in Parliament on Monday, February 1st, 2021. Presenting
the first ever digital Union Budget, Union Minister of Finance and
Corporate Affairs Smt. Nirmala Sitharaman stated that India’s fight against
COVID-19 continues into 2021 and that this moment in history, when the
political, economic, and strategic relations in the post-COVID world are changing,
is the dawn of a new era – one in which India is well-poised to truly be the
land of promise and hope.
6 pillars of the Union Budget 2021-22:
The Budget
proposals for this financial year rest on following six pillars:
ü Health and Wellbeing
ü Physical & Financial Capital
and Infrastructure
ü Inclusive Development for Aspirational
India
ü Reinvigorating Human Capital
ü Innovation and R&D
ü Minimum Government and Maximum
Governance
This
document summarises the changes made/ proposed under the Customs and Excise – Section
wise in comparative manner for easy digest.
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CUSTOMS
Unless otherwise stated, all changes in rate of Customs duty take effect
from the midnight of 1st February/ 2nd February 2021. A declaration has been
made under the Provisional Collection of Taxes Act, 1931 in respect of clauses
95(i) [Amendment of First Schedule to the Customs Tariff Act, 1975], 115
[Agriculture Infrastructure and Development Cess on imported goods and 116
[Agriculture Infrastructure and Development Cess on excisable goods] of the
Finance Bill, 2021 so that changes proposed therein takes effect from the
midnight of 1st February/2nd February 2021. The remaining
legislative changes would come into effect only upon the enactment of the
Finance Bill, 2021.
Proposed Amendments in the Customs Act, 1962
Synopsis: Certain significant
changes have been made in the Customs Act, 1962 (“the Customs Act”).
Mostly, these are for enhanced trade facilitation. A definite period of two
year, extendable by one year is being prescribed for completion of
investigation. Also, it is being prescribed that conditional exemption shall be
having validity of two years unless specifically provided otherwise or varied
or rescinded earlier (the notification would end on 31st March
falling immediately after two years of issue of exemption).
IGCR Rules have
been amended to allow job work on imported goods and also to allow disposal of
goods at payment of duty on depreciated value. A few changes are made for
improving compliance.
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Current provisions |
Proposed provisions |
Effect of changes made |
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Section – 2 (Definitions) |
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……… |
New clause inserted after
clause (7A): ‘(7B) “common portal”
means the Common Customs Electronic Portal referred to in section 154C;’. |
In Section 2, a new clause (7B) is being inserted
defining “common portal” (Common Customs Electronic Portal) |
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Section - 5 (Powers of officers of customs) |
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“5(3) Notwithstanding anything contained in this section, a
Commissioner (Appeals) shall not exercise the powers and discharge the duties
conferred or imposed on an officer of customs other than those specified in
Chapter XV and section 108” |
“5(3) Notwithstanding anything contained in this section, a
Commissioner (Appeals) shall not exercise the powers and discharge the duties
conferred or imposed on an officer of customs other than those specified in Chapter XV, section 108 and sub-section (1D) of section
110” |
Sub-section (3) to Section 5 of the Customs Act is being amended to empower
Commissioner (Appeals) to carry out functions specified under newly inserted
sub-section (1D) of Section 110 [Seizure of goods, documents and things],
apart from Chapter XV [Appeals and Revision] and Section 108 [Power to summon
persons to give evidence and produce documents] contained earlier. |
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Section - 25 (Power to grant exemption from
duty) |
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……… |
New
sub-section inserted after sub-section (4): “(4A) Where any
exemption is granted subject to any condition under sub-section (1), such
exemption shall, unless otherwise specified or varied or rescinded, be valid
upto 31st day of March falling immediately after two years from
the date of such grant or variation: Provided that in respect
of any such exemption in force as on the date on which the Finance Bill, 2021
receives the assent of the President, the said period of two years shall be
reckoned from the 1st day February, 2021.” |
Section 25 of the Customs Act is being amended to prescribe that all
conditional exemptions, unless otherwise specified or varied or
rescinded, given under the Customs Act shall come to an end
on 31st March falling immediately two years after the date
of such grant or variation. Further, all existing conditional exemptions in force as on
the date on which the Finance Bill, 2021 receives the assent of the President
(unless having a prescribed end date), shall come to an end on 31st
March 2023 (if not specifically extended/ rescinded earlier) on
review. |
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Section 28BB – Time limit for completion of
certain actions. |
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……… |
New
Section inserted after Section 28BA: “28BB. (1) Any
inquiry or investigation under this Act, culminating in the issuance of a notice under sub-section
(1) or sub-section (4) of section 28 shall be completed by issuing such
notice, within a period of two years from the date of initiation of audit,
search, seizure or summons, as the case may be: Provided that the Principal Commissioner of Customs or the Commissioner of Customs may, on sufficient cause
being shown and for reasons to be recorded in writing, extend the said period
to a further period of one year. (2) For computing the period under sub-section (1), the
period during which stay was granted by an order of a court or tribunal, or
the period for seeking information from an overseas authority through a legal
process, shall be excluded. Explanation.––For the removal of doubts, it is hereby
declared that nothing contained in this section shall apply to any such
proceeding initiated before the date on which the Finance Bill, 2021 receives
the assent of the President.”. |
A new Section
28BB is being introduced prescribing a two-year time limit, further
extendable by one year by the Commissioner, for completion of any
proceedings under the
Customs Act
which would culminate in issuance of a notice under Section 28 ibid [i.e. recovery of duties not levied or
short-levied or erroneously refunded]. |
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Section 46 - Entry of goods on importation |
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(3) The importer shall present the bill of entry under sub-section
(1) before the end of the next day following the day (excluding holidays)
on which the aircraft or vessel or vehicle carrying the goods arrives at a
customs station at which such goods are to be cleared for home consumption or
warehousing: Provided that a bill of entry may be presented at any time not
exceeding thirty days prior to the expected arrival of the aircraft or vessel
or vehicle by which the goods have been shipped for importation into India: Provided further that where the bill of entry is not
presented within the time so specified and the proper officer is satisfied
that there was no sufficient cause for such delay, the importer shall pay
such charges for late presentation of the bill of entry as may be prescribed. |
(3) The importer shall present the bill of entry under sub-section
(1) before the end of the day (including holidays)
preceding the day on which the aircraft or vessel or vehicle carrying
the goods arrives at a customs station at which such goods are to be cleared
for home consumption or warehousing: Provided that the Board may, in such cases
as it may deem fit, prescribe different time limits for presentation
of the bill of entry, which shall not be later than the end of the day of
such arrival: Provided further that a bill of entry may be presented at
any time not exceeding thirty days prior to the expected arrival of the
aircraft or vessel or vehicle by which the goods have been shipped for
importation into India: Provided also that where the bill of entry is not presented
within the time so specified and the proper officer is satisfied that there
was no sufficient cause for such delay, the importer shall pay such charges
for late presentation of the bill of entry as may be prescribed. |
Sub section (3) of Section 46 is being amended so as to: a)
mandate filing of bill of entry before the end of the day
preceding the day (including holidays) of arrival of goods. b)
A new proviso is being introduced therein, to enable the Board to notify
the time-period for presenting bill of entry in certain cases as it may
deem fit. |
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Section – 110 (Seizure of goods, documents and
things) |
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…….. |
New
sub-section inserted after sub-section (1C): “(1D) Where the goods seized under
sub-section (1) is gold in any form as notified under sub-section (1A), then,
the proper officer shall, instead of making an application under sub-section
(1B) to the Magistrate, make such application to the Commissioner (Appeals)
having jurisdiction, who shall, as soon as may be, allow the application and thereafter,
the proper officer shall dispose of such goods in such manner as the Central
Government may determine.”. |
Section
110 of the Customs Act is being amended so as to revise the procedure
for pre-trial disposal of seized gold, in any form as notified. Commissioner
(Appeals) having jurisdiction, to certify the correctness of inventory of the
seized goods and carry out other procedures as prescribed, before the
disposal of the gold in a manner as may be determined by the Central
Government. Other consequential amendments to give effect to this provision
are also being carried out. |
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Section - 113 (Confiscation of goods attempted
to be improperly exported, etc) |
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……… |
New
clause inserted after clause (j): “(ja) any goods entered for exportation under claim of remission or refund of any duty or tax or levy to make a wrongful
claim in contravention of the provisions of this Act or any other law for the
time being in force;” |
New clause (ja) is being added to Section 113 to
provide for the confiscation of any goods entered for exportation under
claim of remission or refund of any duty or tax or levy, so as to
make a wrongful claim in contravention of the provisions of the Customs Act
or any other law for the time being in force. |
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Section – 114AC (Penalty for Fraudulent utilisation
of input tax credit for claiming refund) |
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………… |
New
Section inserted after Section 114AB: “114AC. Where any
person has obtained any invoice by fraud, collusion, willful misstatement or
suppression of facts to utilise input tax credit on the basis of such invoice
for discharging any duty or tax on goods that are entered for exportation
under claim of refund of such duty or tax, such person shall be liable for
penalty not exceeding five times the refund claimed. Explanation.––For the purposes of this
section, the expression “input tax credit” shall have
the same meaning as assigned to it in clause (63) of section 2 of the Central
Goods and Services Tax Act, 2017.” |
A new Section 114AC is being inserted in the Customs Act to prescribe
penalty in specific case where any person has obtained any invoice
by fraud, collusion, wilful misstatement or suppression of facts to utilize
Input Tax Credit on the basis of such invoice for discharging any duty or
tax on goods that are entered for exportation under claim of refund of any
duty or tax. |
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Section – 139 (Presumption as to documents in
certain cases) |
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“Explanation. - For the purposes of
this section, "document" includes inventories, photographs and
lists certified by a Magistrate under sub-section (1C) of section 110” |
“Explanation. - For the purposes of
this section, "document" includes inventories, photographs and
lists certified by a Magistrate under sub-section (1C), or
Commissioner (Appeals) under sub-section (1D), of section 110.” |
Explanation to Section 139 of the Customs Act is being amended so as
to include inventories, photographs and lists certified by the
Commissioner (Appeals) under the new sub-section (1D) to the documents
within the meaning of that section to give evidentiary value to
such documents. |
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Section – 149 (Amendment of documents) |
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“Save as otherwise provided in sections
30 and 41, the proper officer may, in his discretion, authorise any document,
after it has been presented in the custom house to be amended in such form
and manner, within such time, subject to such restrictions and conditions, as
may be prescribed: Provided that no amendment of a bill of
entry or a shipping bill or bill of export shall be so authorised to be
amended after the imported goods have been cleared for home consumption or
deposited in a warehouse, or the export goods have been exported, except on
the basis of documentary evidence which was in existence at the time the
goods were cleared, deposited or exported, as the case may be.” |
“Save as otherwise provided in sections
30 and 41, the proper officer may, in his discretion, authorise any document,
after it has been presented in the custom house to be amended in such form
and manner, within such time, subject to such restrictions and conditions, as
may be prescribed: Provided that no amendment of a bill of
entry or a shipping bill or bill of export shall be so authorised to be
amended after the imported goods have been cleared for home consumption or
deposited in a warehouse, or the export goods have been exported, except on
the basis of documentary evidence which was in existence at the time the
goods were cleared, deposited or exported, as the case may be. Provided further that such authorisation or
amendment may also be done electronically through the customs automated
system on the basis of risk evaluation through appropriate selection criteria: Provided also that such amendments, as
may be specified by the Board, may be done by the importer or exporter on the
common portal.” |
Section 149 is being amended so as to: a)
introduce a second proviso which would allow amendments to be
done through the customs automated system on the basis of risk evaluation
through appropriate selection criteria. b)
introduce a third proviso so that certain amendments, as may
be specified by the Board, may be done by the importer or exporter on the
common portal. |
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Section – 153 (Service of order, decision, etc) |
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“(1) An order, decision, summons,
notice or any other communication under this Act or the rules made thereunder
may be served in any of the following modes, namely:-............. (c) by sending it to the e-mail address
as provided by the person to whom it is issued, or to the e-mail address
available in any official correspondence of such person;” |
“(1) An order, decision, summons,
notice or any other communication under this Act or the rules made thereunder
may be served in any of the following modes, namely:-.......... (c) by sending it to the e-mail address
as provided by the person to whom it is issued, or to the e-mail address
available in any official correspondence of such person; (ca) by making it available on the common
portal;” |
Section 153 is being amended so as to insert a new clause (ca) under
sub section (1) thereof so as to enable service of order, summons,
notice, etc. by making it available on the common portal. |
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Section – 154C (Common Customs Electronic Portal) |
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……… |
New
Section inserted after Section 154B: “154C. The Board may notify a common portal, to be called
the Common Customs Electronic Portal, for facilitating registration, filing
of bills of entry, shipping bills, other documents and forms prescribed under
this Act or under any other law for the time being in force or the rules or
regulations made thereunder, payment of duty and for such other purposes, as
the Board may, by notification, specify.”. |
Chapter XVII is being amended so as to insert a new Section 154C for
notification of a common portal for facilitating registration,
filing of bills of entry, shipping bills, any other document or form
prescribed under the Customs Act or under any other law for the
time being in force or the rules and regulations made thereunder, payment of
duty and for carrying out such other functions and for such purposes as may
be specified. |
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Proposed Amendments
in the Customs Tariff Act, 1975
Synopsis: Certain changes have also been made in the Customs Tariff Act, 1975 (“the Customs Tariff Act”) and Rules made thereunder in the provisions relating to trade remedial
measures (ADD/CVD and Safeguard Measures). Besides other changes, these changes
introduce the provisions for anti-absorption investigation in ADD/CVD, bringing
in uniformity in the provisions. Certain changes have also been made in the
corresponding Rules.
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Current provisions |
Proposed provisions |
Effect of the changes made |
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Section – 8B (Power of Central Government to
apply safeguard measures) |
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“(6) Notwithstanding anything
contained in the foregoing sub-sections, a notification issued under
sub-section (1) or any safeguard measures applied under sub-sections (2),
(3), (4) and (5), shall not apply to articles imported by a hundred per cent.
export-oriented undertaking or a unit in a special economic zone, unless- (i) it is specifically made
applicable in such notification or to such undertaking or unit; (ii) such article is either cleared
as such into the domestic tariff area or used in the manufacture of any goods
that are cleared into the domestic tariff area, in which case, safeguard
measures shall be applied on the portion of the article so cleared or used,
as was applicable when it was imported into India. Explanation.––For the purposes of this section,
the expressions “hundred per cent. export-oriented undertaking”, and “special
economic zone” shall have the same meaning as assigned to them in Explanation
2 to sub-section (1) of section 3 of the Central Excise Act, 1944. (1 of
1944.)” |
“(6) Notwithstanding anything
contained in the foregoing sub-sections, a notification issued under
sub-section (1) or any safeguard measures applied under sub-sections (2),
(3), (4) and (5), shall not apply to articles imported by a hundred per cent.
export-oriented undertaking or a unit in a special economic zone, unless- (i) it is specifically made
applicable in such notification or to such undertaking or unit or; (ii) such article is either cleared
as such into the domestic tariff area or used in the manufacture of any goods
that are cleared into the domestic tariff area, in which case, safeguard
measures shall be applied on the portion of the article so cleared or used,
as was applicable when it was imported into India. Explanation.––For the purposes of
this sub-section,– (a) the
expression “hundred per cent. Export oriented undertaking” shall have the
same meaning as assigned to it in clause (i) of Explanation 2 to sub section
(1) of section 3 of the Central Excise Act, 1944; (b)
the expression “special economic zone” shall have the same
meaning as assigned to it in clause (za) of section 2 of the Special Economic
Zones Act, 2005.” |
Section 8B of the Customs Tariff Act is being amended to incorporate
certain technical changes and include the meaning of SEZ. |
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Section – 9 (Countervailing duty on subsidized
articles) |
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(1A) Where the Central Government, on
such inquiry as it considers necessary, is of the opinion that circumvention
of countervailing duty imposed under sub-section (1) has taken place, either
by altering the description or name or composition of the article on which
such duty has been imposed or by import of such article in an unassembled or
disassembled form or by changing the country of its origin or export or in
any other manner, whereby the countervailing duty so imposed is rendered
ineffective, it may extend the countervailing duty to such other article
also. (2) The Central Government may......... …….. (6) The countervailing duty imposed
under this section shall, unless revoked earlier, cease to have effect on the
expiry of five years from the date of such imposition : Provided that if the Central
Government, in a review, is of the opinion that the cessation of such duty is
likely to lead to continuation or recurrence of subsidization and injury, it
may, from time to time, extend the period of such imposition for a further
period of five years and such further period shall commence from the date of
order of such extension : Provided further that where a review
initiated before the expiry of the aforesaid period of five years has not
come to a conclusion before such expiry, the countervailing duty may continue
to remain in force pending the outcome of such a review for a further period
not exceeding one year. |
(1A) Where the Central Government,
on such inquiry as it considers necessary, is of the opinion that
circumvention of countervailing duty imposed under sub-section (1) has taken
place, either by altering the description or name or composition of the article
on which such duty has been imposed or by import of such article in an
unassembled or disassembled form or by changing the country of its origin or
export or in any other manner, whereby the countervailing duty so imposed is
rendered ineffective, it may extend the countervailing duty to such other
article also from such date, not earlier than the date of initiation
of the inquiry, as the Central Government may, by notification in the
Official Gazette, specify. (1B) Where the Central Government, on such inquiry as it considers
necessary, is of the opinion that absorption of countervailing duty imposed
under sub-section (1) has taken place whereby the countervailing duty so
imposed is rendered ineffective, it may modify such duty to counter the
effect of such absorption, from such date, not earlier than the date of initiation
of the inquiry, as the Central Government may, by notification in the
Official Gazette, specify. Explanation.––For the purposes of this sub-section, “absorption
of countervailing duty” is said to have taken place,– a)
if there is a decrease in the export price of an article
without any commensurate change in the resale price in India of such article
imported from the exporting country or territory; or b)
under such other circumstances as may be provided by
rules. (2) The Central Government may......... ‘(2A) Notwithstanding anything contained in sub-sections
(1) and (2), a notification issued under sub-section (1) or any countervailing
duty imposed under sub-section (2) shall not apply to article imported by a
hundred per cent. export-oriented undertaking or a unit in a special economic
zone, unless, — (i) it is specifically made applicable in such
notification or to such undertaking or unit; or (ii) such article is either cleared as such into the
domestic tariff area or used in the manufacture of any goods that are cleared
into the domestic tariff area, in which case, countervailing duty shall be
imposed on that portion of the article so cleared or used, as was applicable
when it was imported into India. Explanation.––For the purposes of this sub-section,–– a)
the expression “hundred per cent. export-oriented undertaking”
shall have the same meaning as assigned to it in clause (i) of Explanation 2
to sub-section (1) of section 3 of the Central Excise Act, 1944; b)
the expression “special economic zone” shall have the same
meaning as assigned to it in clause (za) of section 2 of the Special Economic
Zones Act, 2005.’; (6) The countervailing duty imposed
under this section shall, unless revoked earlier, cease to have effect on the
expiry of five years from the date of such imposition : Provided that if the Central
Government, in a review, is of the opinion that the cessation of such duty is
likely to lead to continuation or recurrence of subsidization and injury, it
may, from time to time, extend the period of such imposition for a further
period upto five years and such
further period shall commence from the date of order of such extension : Provided further that where a
review initiated before the expiry of the aforesaid period of five years has
not come to a conclusion before such expiry, the countervailing duty may
continue to remain in force pending the outcome of such a review for a
further period not exceeding one year. Provided also that if the said duty is revoked temporarily,
the period of such revocation shall not exceed one year at a time. |
Section 9 and 9A of the Customs Tariff Act and respective Rules are
being amended to make following
amendments in the provision relating to ADD, CVD, safeguard measures: ·
imposition of
duty from the date of initiation of anti-circumvention investigation; ·
anti-absorption
provisions to counter situation where, by
reduction of export prices or otherwise, the ADD/CVD levied is sought to be
absorbed, diluting the intended impact of such ADD/CVD. ·
imposition of
these duties on review for period upto 5 years at a time; ·
uniform
provisions for imposition ADD/CVD on account of inputs (attracting ADD or
CVD) used by EOUs and SEZs for manufacture of goods that are cleared to
Domestic Tariff Area; ·
whenever any
particular ADD or CVD is temporarily revoked, such temporary revocation
shall not exceed one year at a time. ·
final findings
are to be issued in ADD/CVD, in investigation in review proceedings, by the
designated authority, at least three months prior to expiry of the ADD under
review (with effect from the 1st Jul, 2021); ·
provisional
assessment in anti-circumvention investigation
and make some other technical changes in ADD/CVD Rules; ·
manner of
application of safeguard measure,
including tariff-rate quota in the Safeguard Duty (name changed to Safeguard
Measures) Rules. |
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Section – 9A (Anti-dumping duty on dumped
articles) |
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(1A) Where the Central Government, on
such inquiry as it may consider necessary, is of the opinion that
circumvention of anti-dumping duty imposed under sub-section (1) has taken
place, either by altering the description or name or composition of the article
subject to such anti-dumping duty or by import of such article in an
unassembled or disassembled form or by changing the country of it origin or
export or in any other manner, whereby the anti-dumping duty so imposed is
rendered ineffective, it may extend the anti-dumping duty to such article or
an article originating in or exported from such country, as the case may be. ………… (2A) Notwithstanding anything
contained in sub-section (1) and sub-section (2), a notification issued under
sub-section (1) or any anti-dumping duty imposed under sub-section (2), shall
not apply to articles imported by a hundred per cent, export-oriented undertaking
unless,- (i) specifically made applicable in such
notifications or such impositions, as the case may be; or (ii) the article imported is either
cleared as such into the domestic tariff area or used in the manufacture of
any goods that are cleared into the domestic tariff area, and in such cases anti-dumping duty
shall be levied on that portion of the article so cleared or so used as was
leviable when it was imported into India Explanation.-For the purposes of this
sub-section, the expression "hundred per cent export-oriented
undertaking" shall have the meaning assigned to it in Explanation 2 to
sub-section (1) of section 3 of the Central Excise Act, 1944; (1 of 1944)] ………………. (5) The anti-dumping duty imposed
under this section shall, unless revoked earlier, cease to have effect on the
expiry of five years from the date of such imposition : Provided that if the Central
Government, in a review, is of the opinion that the cessation of such duty is
likely to lead to continuation or recurrence of dumping and injury, it may,
from time to time, extend the period of such imposition for a further period
of five years and such further period shall commence from the date of order
of such extension : Provided further that where a review
initiated before the expiry of the aforesaid period of five years has not
come to a conclusion before such expiry, the anti-dumping duty may continue
to remain in force pending the outcome of such a review for a further period
not exceeding one year. |
(1A) Where the Central Government,
on such inquiry as it may consider necessary, is of the opinion that
circumvention of anti-dumping duty imposed under sub-section (1) has taken
place, either by altering the description or name or composition of the
article subject to such anti-dumping duty or by import of such article in an
unassembled or disassembled form or by changing the country of it origin or
export or in any other manner, whereby the anti-dumping duty so imposed is
rendered ineffective, it may extend the anti-dumping duty to such article or
an article originating in or exported from such country, as the case may be from such date, not earlier
than the date of initiation of the inquiry, as the Central Government may, by
notification in the Official Gazette, specify. (1B) Where the Central Government, on such inquiry as it may
consider necessary, is of the opinion that absorption of anti-dumping duty
imposed under sub-section (1) has taken place whereby the anti-dumping duty
so imposed is rendered ineffective, it may modify such duty to counter the
effect of such absorption, from such date, not earlier than the date of initiation
of the inquiry, as the Central Government may, by notification in the
Official Gazette, specify. Explanation.––For the purposes of this sub-section, “absorption of anti-dumping duty” is said to have taken place,–– (a)
if there is a decrease in the export price of an article without
any commensurate change in the cost of production of such article or export
price of such article to countries other than India or resale price in India
of such article imported from the exporting country or territory; or (b)
under such other circumstances as may be provided by
rules.’; ……………… (2A) Notwithstanding anything contained in sub-section (1)
and sub-section (2), a notification issued under subsection (1) or any
anti-dumping duty imposed under subsection (2) shall not apply to articles
imported by a hundred per cent. export-oriented undertaking or a unit in a
special economic zone, unless,— (i)
it is specifically made applicable in such notification or
to such undertaking or unit; or (ii)
such article is either cleared as such into the domestic
tariff area or used in the manufacture of any goods that are cleared into the
domestic tariff area, in which case, antidumping duty shall be imposed on
that portion of the article so cleared or used, as was applicable when it was
imported into India. Explanation.––For the purposes of this section,–– (a)
the expression “hundred per cent. export-oriented undertaking”
shall have the same meaning as assigned to it in clause (i) of Explanation 2
to sub-section (1) of section 3 of the Central Excise Act, 1944; (b)
the expression “special economic zone” shall have the same
meaning as assigned to it in clause (za) of section 2 of the Special Economic
Zones Act, 2005.’; ……………….. (5) The anti-dumping duty imposed
under this section shall, unless revoked earlier, cease to have effect on the
expiry of five years from the date of such imposition : Provided that if the Central
Government, in a review, is of the opinion that the cessation of such duty is
likely to lead to continuation or recurrence of dumping and injury, it may,
from time to time, extend the period of such imposition for a further period upto five years and
such further period shall commence from the date of order of such extension : Provided further that where a
review initiated before the expiry of the aforesaid period of five years has
not come to a conclusion before such expiry, the anti-dumping duty may
continue to remain in force pending the outcome of such a review for a
further period not exceeding one year. Provided also that if the said duty is revoked temporarily,
the period of such revocation shall not exceed one year at a time. |
Kindly read as above |
Amendments in First
Schedule of the Customs Tariff Act, 1975
|
AMENDMENTS
IN FIRST SCHEDULE OF THE CUSTOMS TARIFF ACT, 1975 |
|
In the
Customs Tariff Act 1975, the First Schedule shall–– (a)
be
amended in the manner specified in the Second Schedule; and (b)
with
effect from the 1st April, 2021, be also amended in the manner
specified in the Third Schedule; and (c)
with
effect from the 1st January, 2022, be also amended in the manner
specified in the Fourth Schedule. |
Amendments in the
Customs Rules
Customs (Import of
Goods at Concessional Rate of Duty) Rules, 2017 [“IGCR Rules”]
are being amended to provide the following facilities:
·
to allow job-work of the materials (except
gold and jewellery and other precious metals) imported under concessional rate
of duty
·
to allow 100% out-sourcing for manufacture
of goods on job-work
·
to allow imported capital goods that have been
used for the specified purpose to be cleared on payment of differential
duty, along with interest, on the depreciated value. The depreciation norms
would be the same as applied to EOUs, as per Foreign Trade Policy.
Gist of
Various Customs Notifications
Following are the gist of the
notifications which makes amendment in Customs Tariff and Non-Tariff, with
effect from midnight of Feb 01/Feb 02, 2021.
|
Customs: Tariff
Notifications |
||
|
S. No. |
Notification No. |
Description |
|
1. |
Seeks to further amend Notification
No. 50/2017-Customs dated 30th June 2017 so as to prescribe effective
rate of Basic Customs Duty (BCD). |
|
|
2. |
Seeks to further amend Notification No. 57/2017-Customs, dated
the 30th June 2017 so as to prescribe effective BCD rate on IT/Electronics
items . |
|
|
3. |
Seeks to
further amend Notification No. 25/99-Customs dated 28th February
1999 so as to withdraw BCD exemption on the specified parts of
transformers. |
|
|
4. |
Seeks to
further amend Notification No. 24/2005-Customs dated 1st March
2005 so as to clarify the scope of exemption under entry at S. No. 13S of
the said notification. |
|
|
5. |
Seeks to further amend Notification No. 08/2020-Customs dated 2nd
February 2020 so as to exempt the medical devices imported by
international organizations and diplomatic missions, from the levy of Health
Cess. |
|
|
6. |
Seeks to
rescind Notification Nos. 1/2011-Customs, dated 6th January 2011,
34/2017-Customs dated 30th June 2017 and 75/2017-Customs dated 13th
September 2017 . |
|
|
7. |
Seeks to
further amend Notification No. 153/94-Customs dated 13th
July 1994 so as to include temporary imports of costumes and props for
film making, in the goods exempted by the said notification. |
|
|
8. |
Seeks to further amend Notification No. 42/1996-Customs dated 23rd
July, 1996 so as to make suitable amendments to the list of specified
projects under heading 9801 of the First Schedule to the Customs Tariff Act. |
|
|
9. |
Seeks to
amend Notification No. 230/86-Customs dated 3rd April, 1986 so as
to notify National High Speed Rail Corporation Ltd. as Sponsoring
Authority for High-Speed Rail projects. |
|
|
10. |
Seeks to
prescribe effective rate of Agriculture Infrastructure and Development
Cess for specified goods (discussed separately). |
|
|
11. |
Seeks to rescind
Notification No. 12/2018-Customs dated 02.02.2018 [exempt specified goods
from the of levy of Social Welfare Surcharge in excess of 3%]. |
|
|
12. |
Seeks to exempt
Social Welfare Surcharge leviable on Agriculture Infrastructure and
Development Cess on Gold and Silver. |
|
|
13. |
Seeks to exempt
Social Welfare Surcharge leviable on Crude or roughly trimmed or Blocks
Marble or travertine. |
|
|
14. |
Seeks to
further amend Notification No. 82/2017-Customs dated 27th
October, 2017 [prescribes effective rate of duty under chapters 50 to 63 on
textile products]. |
|
|
Customs: Non-Tariff
Notifications |
||
|
1. |
Seeks to
further amend Customs (Import of Goods at Concessional Rate of Duty) Rules,
2017 (discussed separately). |
|
|
2. |
Seeks to
further amend Customs Tariff (Identification, Assessment and Collection of
Countervailing Duty on Subsidized Articles and for Determination of Injury)
Rules, 1995 to introduce anti-circumvention provisions in these rules and
make certain other miscellaneous changes. |
|
|
3. |
Seeks to
further amend Customs Tariff (Identification, Assessment and Collection of
Countervailing Duty on Subsidised Articles and for Determination of Injury)
Rules, 1995 to enable provisional assessment in anti-circumvention investigation
and make certain other miscellaneous changes. |
|
|
4. |
Seeks to further amend Customs Tariff (Identification and
Assessment of Safeguard Duty) Rules, 1997 to provide for the manner of
application of safeguard measures including tariff-rate quota and make
certain other miscellaneous changes. |
|
|
Customs: Anti-Dumping Duty |
||
|
1. |
Seeks to amend Notification No. 54/2018 – Customs (ADD) dated 18th
October 2018 so as to temporarily revoke the operation of the said
notification for the period from 2nd February 2021 to 30th
September 2021. |
|
|
2. |
Seeks to amend Notification No. 38/2019 – Customs (ADD) dated 25th
September 2019 so as to temporarily revoke the operation of the said
notification for the period from 2nd February 2021 to 30th
September 2021. |
|
|
3. |
Seeks to amend Notification No. 16/2020 – Customs (ADD) dated 23rd
June 2020 so as to temporarily revoke the operation of the said
notification for the period from 2nd February 2021 to 30th
September 2021. |
|
|
Customs: Countervailing Duty |
|||
|
1.
|
Seeks to rescind Notification No. 02/2020 – Customs (CVD)
dated 9th October 2020. |
|
|
|
2.
|
Seeks to amend Notification No. 01/2017 – Customs (CVD) dated 7th
September 2017 so as to temporarily revoke the operation of the said
notification for the period from 2nd February 2021 to 30th
September, 2021. |
|
|
COMMENTS