Provisions and Amendments Relating to “Basic Customs Duty (BCD)” under Finance (No.2) Bill, 2024.

Budget & Finance 2024

Note:

(a)           “Basic Customs Duty (BCD)” means the customs duty levied under the Customs Act, 1962.

(b)          “Agriculture Infrastructure and Development Cess (AIDC)” means a duty of customs that is levied under Section 124 of the Finance Act, 2021.

(c)           “Road and Infrastructure Cess (RIC)” means an additional duty of customs that is levied under Section 111 of the Finance Act, 2018.

(d)          “Health Cess” means a duty of customs that is levied under Section 141 of the Finance Act, 2020.

(e)          “Social Welfare Surcharge (SWS)” means a duty of customs that is levied under Section 110 of the Finance Act, 2018.

(f)           Clause Nos. in square brackets [ ] indicate the relevant clause of the Finance (No. 2) Bill, 2024.

(g)           Amendments carried out through the Finance (No. 2) Bill, 2024, will come into effect on the date of its enactment, unless otherwise specified.

Table of Contents

1. Amendments to The Customs Act, 1962

S. No. Amendment Clause of the Finance (No. 2)

Bill, 2024
  These changes will come into effect from the date of enactment of the Finance (No. 2) Bill, 2024  
1. Section 28 DA is being amended to enable the acceptance of different types of proof of origin provided in trade agreements in order to align the said section with new trade agreements, which provide for self-certification. [100]
2. A proviso to sub-section (1) of Section 65 is being inserted to empower the Central Government to specify certain manufacturing and other operations in relation to a class of goods that shall not be permitted in a warehouse. [101]
3. Section 143AA of the Customs Act is being amended by substituting the expression “a class of importers or exporters” with “a class of importers or exporters or any other persons” for the purpose of facilitating trade. [102]
4. Clause (m) of subsection (2) of section 157 of the Customs Act is being amended by substituting the expression “a class of importers or exporters” with “a class of importers or exporters or any other persons” [103]

2. Amendments to the Customs Tariff Act, 1975.

S. No. Amendment to section Clause of the Finance (No. 2) Bill, 2024
1. Section 6 of the Customs Tariff Act, 1975 which provided for levy of protective duties in certain cases by the Central Government on the recommendations of the Tariff Commission is being omitted, as the Tariff Commission has been wound up by resolution dated 1st June 2022 by the Government of India. This change will come into effect from the date of enactment of the Finance (No. 2) Bill, 2024 [106]

3. Amendments to the First Schedule to The Customs Tariff Act, 1975.

A. Increase in Tariff rate (to be effective from 24.07.2024) * [Clause [107(a)] of the Finance (No. 2) Bill, 2024] read with Third Schedule.

*Will come into effect immediately through a declaration under the Provisional Collection of Taxes Act,2023

 Rate of Duty

 

S. No. Heading, sub- heading, tariff item Commodity From To
    Plastics    
1. 3920, 3921 Poly vinyl chloride (PVC) flex films (also known as PVC flex banners or PVC flex sheets)

{The currently applicable BCD on all other goods falling under heading 3920 and 3921 shall be maintained by suitable amendment in the relevant notification(s)}

 10% 25%
    Consumer goods    
2. 6601 10 00 Garden umbrellas 20% 20% or Rs. 60 per piece, whichever is higher
    Chemicals    
3. 9802 00 00 Laboratory chemicals

(Heading 9802 covers all chemicals, organic or inorganic, whether or not chemically defined, imported in packings not exceeding 500 gms or 500 millilitres and which can be identified with reference to the purity, markings or other features to show them to be meant for use solely as laboratory chemicals)

 10% 150%

 

B. Tariff rate changes (without change in effective rate of duty) to be effective from 01.10.2024 [Clause [107(b)] of the Finance (No. 2) Bill, 2024]

Note: The currently applicable rate of Basic Customs Duty on these commodities shall be maintained by suitable amendment in the relevant notification(s).

 Rate of Duty
S. No. Heading, sub- heading tariff item Commodity From To
1. 2008 19 20 Other roasted nuts and seeds, including such arecanuts 30% 150%
2. 2008 19 30 Other nuts, otherwise prepared or preserved, including such arecanuts 30% 150%

 

C Amendment in tariff entries Clause of the Finance

(No. 2) Bill, 2024
1. The First Schedule to the Customs Tariff Act,

1975 is also being amended to modify the tariff entries with effect from 1st October, 2024.

 [107(b)]

read with Fourth Schedule

4. Amendments to Other Proposals Involving Changes in Basic Customs Duty Rates in Notifications

A.   Changes in Basic Customs Duty (to be effective from 24.07.2024)

S. No. Chapter, Heading, sub- heading, tariff item Commodity From To
I.   Agricultural Products    
1. 1207 99 90 Shea nuts 30% 15%
II.   Aquafarming & Marine Exports    
1. 0306 36 Live SPF Vannamei shrimp (Litopenaeus   vannamei) broodstock 10% 5%
2. 0306 36 Live Black tiger shrimp (Penaeus monodon) broodstock 10% 5%
3. 0306 36 60 Artemia 5% Nil
4. 0511 91 40 Artemia cysts 5% Nil
5. 0308 90 00 SPF Polychaete worms 30% 5%
6. 1504 20 Fish lipid oil for use in manufacture of aquatic feed 15% Nil
7. 1504 20 Crude fish oil for use in manufacture of aquatic feed 30% Nil
8. 1518 Algal Oil for use in manufacture of aquatic feed 15% Nil
9. 2102 20 00 Algal Prime (flour) for use in manufacture of aquatic feed 15% Nil
10. 2309 90 90 Mineral and Vitamin Premixes for use in manufacture of aquatic feed 5% Nil
11. 2301 10 90 Insect meal for use in Research & Development purposes in aquatic feed manufacturing 15% 5%
12. 2309 90 90 Single Cell Protein from Natural Gas for use in Research & Development purposes in aquatic feed manufacturing 15% 5%
13. 2301 20 Krill Meal for use in manufacture of aquatic feed 5% Nil
14. 1901 Pre-dust breaded powder for use in processing of sea-food 30% Nil
15. 2309 90 31 Prawn and shrimps feed 15% 5%
16. 2309 90 39 Fish feed 15% 5%
III.   Critical Minerals    
1. 2504 Natural Graphite 5% 2.5%
2. 2505 Natural sands of all kinds, whether or not coloured, other than metal bearing sands of chapter 26 of The Customs tariff Act, 1975 5% Nil
3. 2506 Quartz (other than natural sands); quartzite, whether or not roughly 5% 2.5%
    trimmed or merely cut, by sawing or otherwise, into blocks or slabs of a rectangular (including square) shape    
4. 2530 90 91 Strontium sulphate (natural ore) 5% Nil
5. 2603 00 00 Copper ores and concentrates 2.5% Nil
6. 2605 00 00 Cobalt ores and concentrates 2.5% Nil
7. 2609 00 00 Tin ores and Concentrates 2.5% Nil
8. 2611 00 00 Tungsten Ores and Concentrates 2.5% Nil
9. 2613 Molybdenum ores and concentrates 2.5% Nil
10. 2615 10 00 Zirconium ores and concentrates 2.5% Nil
11. 2615 90 Hafnium Ores and concentrates 2.5% Nil
12. 2615 90 10 Vanadium ores and concentrates 2.5% Nil
13. 2615 90 20 Niobium or tantalum ores and concentrates 2.5% Nil
14. 2617 Antimony Ores and Concentrates 2.5% Nil
15. 2804 50 20 Tellurium 5% Nil
16. 2804 61 00 Silicon, containing by weight not less than 99.99% of silicon 5% Nil
17. 2804 69 00 Other silicon 5% Nil
18. 2804 90 00 Selenium 5% Nil
19. 2805 30 00 Alkali or alkaline earth metals,Rare-earth metals, scandium and yttrium, whether or not intermixed or inter alloyed 5% Nil
20. 2811 22 00 Silicon dioxide 7.5% 2.5%
21. 2815 20 00 Potassium hydroxide 7.5% Nil
22. 2816 40 00 Oxides, hydroxides and peroxides, of strontium or barium 7.5% Nil
23. 2822 00 10 Cobalt oxides 7.5% Nil
24. 2822 00 20 Cobalt hydroxides 7.5% Nil
25. 2822 00 30 Commercial cobalt oxides 7.5% Nil
26. 2825 20 00 Lithium oxide and hydroxide 7.5% Nil
27. 2825 30 Vanadium oxides and hydroxides 2.5%/7.5% Nil
28. 2825 60 10 Germanium oxides 7.5% Nil
29. 2825 70 Molybdenum oxides and hydroxides 7.5% Nil
30. 2825 80 00 Antimony oxides 7.5% Nil
31. 2825 90 20 Cadmium oxides 7.5% Nil
32. 2827 35 00 Chlorides of Nickel 7.5% Nil
33. 2827 39 30 Strontium chloride 7.5% Nil
34. 2833 24 00 Sulphates of Nickel 7.5% Nil
35. 2834 21 00 Nitrates of potassium 7.5% Nil
36. 2836 91 00 Lithium carbonates 7.5% Nil
37. 2836 92 00 Strontium carbonates 7.5% Nil
38. 2841 90 00 Salts of oxometallic or peroxometallic acids of Beryllium and Rhenium 7.5% Nil
39. 2846 Compounds, inorganic or organic of rare earth metals 7.5% Nil
40. 2918 15 30 Bismuth citrate 7.5% Nil
41. 3801 Artificial Graphite, colloidal or semi-colloidal graphite, preparations based on graphite or other carbon in form of pastes, blocks,  plates  or  other  semi-manufactures 7.5% 2.5%
42. 8001 Unwrought Tin 5% Nil
43. 8101 94 00 Unwrought tungsten, including bars and rods obtained simply by sintering 5% Nil
44. 8102 94 00 Unwrought molybdenum, including bars and rods obtained simply by sintering 5% Nil
45. 8103 20 Unwrought tantalum, including bars and rods obtained simply by sintering, powders 5% Nil
46. 8105 20 20 Cobalt, unwrought 5% Nil
47. 8106 10 10 Bismuth, unwrought 2.5% Nil
48. 8109 21 00 Unwrought zirconium,powders, Containing less than 1 part hafnium to 500 parts zirconium by weight 10% Nil
49. 8110 10 00 Unwrought antimony, powders 2.5% Nil
50. 8112 12 00 Beryllium unwrought,powders 5% Nil
51. 8112 31 Hafnium  unwrought, waste  and scrap,powders 10% Nil
52. 8112 41 10 Rhenium unwrought 10% Nil
53. 8112 69 10 Cadmium unwrought, powders 5% Nil
54. 8112 69 20 Cadmium, wrought 5% Nil
55. 8112 92 00 Unwrought; waste and scrap; powder of, –

(i) Gallium

(ii) Germanium

(iii) Indium

(iv) Niobium

(v) Vanadium

 5% Nil
IV.   Steel Sector    
1. 7202 60 00 Ferro Nickel 2.5% Nil
2. 7204 Ferrous Scrap Nil (till 30.09.2024) Nil (till 31.03.2026)
3. 7225 Certain specified raw materials for manufacture of CRGO steel Nil (till 30.09.2024) Nil (till 31.03.2026)
V.   Copper    
1. 7402 00 10 Blister Copper 5% Nil
VI.   Chemicals and Plastics    
1. 3102 30 00 Ammonium Nitrate, whether or not in aqueous solution 7.5% 10%
2. 3920 (other

than 3920

99 99) or

3921

 All goods other than Poly vinyl chloride (PVC) flex films/flex banner 25%

(with effect from 24.07.2024)

 10%
3. 3920 99 99 All goods other than Poly vinyl chloride (PVC) flex films/flex banner 25%

(with effect from 24.07.2024)

 15%
VII.   Textile and Leather Sector    
1. 2929 10 90 Methylene Diphenyl Di-isocyanate (MDI) for use in the manufacture of Spandex Yarn 7.5% 5% Subject to IGCR conditio ns
2. 41 Wet white, Crust and finished 10% Nil
    leather for manufacture of textile or leather garments, leather /synthetic footwear or other leather products, for export   Items under Sl. No. 257B and 257C of Notificat ion 50/2017 – Customs, dated 30.06.2017
3. 38,48 or any other Chapter Certain additional accessories and embellishments for manufacture of textile or leather garments, leather/synthetic footwear or other leather products, for export As applicable Nil Items under Sl. No. 257B and 257C of Notificati on 50/2017 – Customs, dated 30.06.2017
4. 0505 10 Real Down Filling Material from Duck or Goose for use in the manufacture of textile or leather garments for export 30% 10%
VIII.   Cancer Drugs    
1. 30 (i) Trastuzumab Deruxtecan,

(ii) Osimertinib,

(iii) Durvalumab

 10% Nil
IX.   Precious Metals    
1. 7108 Gold bar 15% 6%
2. 7108 Gold dore 14.35% 5.35%
3. 7106 Silver bar 15% 6%
4. 7106 Silver dore 14.35% 5.35%
5. 7110 Platinum, Palladium, Osmium, Ruthenium, Iridium 15.4% 6.4%
6. 7118 Coins of precious metals 15% 6%
7. 7113 Gold/Silver findings 15% 6%
8. 71 Platinum and Palladium used in the manufacture of noble metal solutions, noble metal compounds and catalytic convertors 7.5% 5%
9. 84 Bushings made of platinum and rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India 7.5% 5%
X.   Medical Equipment    
1. 39 All types of polyethylene for use in manufacture of orthopaedic implants falling under sub-heading 9021 10 As applicable Nil
2. 39, 72, 81 Special grade stainless steel, Titanium alloys, Cobalt-chrome alloys, and All types of polyethylene for use in manufacture of other artificial parts of the body falling under sub-heading 9021 31 or 9021 39 As applicable Nil
3. 9022 30 00 X-ray tubes for use in manufacture of X-ray machines for medical, surgical, dental or veterinary use 15% 5% (till 31st March 2025) 7.5% (w.e.f 1st April, 2025 to 31st March, 2026) 10% (w.e.f 1st April, 2026)
4. 9022 90 90 Flat panel detectors (including scintillators) for use inmanufacture of X-ray machines for medical, surgical, dental or veterinary use 15% 5% (till 31st March 2025) 7.5% (w.e.f 1st April, 2025 to 31st March, 2026) 10% (w.e.f 1st April, 2026)
XI.   IT and Electronics Sector    
1. 8517 13 00,

8517 14 00

 Cellular mobile phone 20% 15%
2. 8504 40 Charger/Adapter of cellular mobile phone 20% 15%
3. 8517 79 10 Printed Circuit Board Assembly (PCBA) of cellular mobile phone 20% 15%
4. 28, 29, 38 Specified parts for use in manufacture of connectors 5%/7.5% Nil
5. 74 Oxygen Free Copper for use in manufacture of Resistors 5% Nil
6. 40 Specified die-cut parts for use in manufacture of cellular mobile phones As applicable Nil
7. 40, 70, 76 Specified mechanics for use in manufacture of cellular mobile phones As applicable Nil
8. 8517 79 10 Printed Circuit Board Assembly (PCBA) of specified telecom equipment 10% 15%
XII.   Renewable Energy Sector    
1. 84, 85, or any other chapter Specified capital goods for use in manufacture of solar cells or solar modules, and parts for manufacture of such capital goods 7.5% Nil
2. 7007 Solar glass for manufacture of solar cells or solar modules Nil 10%

(w.e.f. 1.10.20

24)
3. 74 Tinned copper interconnect for manufacture of solar cells or solar modules Nil 5%(w.e.f 1.10.20

24)
XIII.   Shipping    
1. Any Chapter Components and consumables for use in manufacture of specified vessels As applicable Nil
2. Any Chapter Technical documentation and spare parts for construction of warships As applicable Nil
XIV.   Capital goods    
1. Any Chapter Goods under S. No. 404 of Notification No. 50/2017 Customs, used for petroleum exploration operations As applicable Nil

B.   Changes in Export Duty (To be effective from 24.7.2024)

B. Changes in Export Duty (To be effective from 24.7.2024)

Effective export duty on raw skins, hides & leather is being simplified and rationalized. The changes are as follows –

 Rate of Duty
S. No. Chapter or Heading Commodity From To
1. 4101 to 4103 Raw  Hides & skins, all sorts (other than buffalo) 40% 40%
2. 4101 Raw Hides & skins of buffalo 30% 30%
3. 4104 to 4106 Tanned or crust hides of skins, whether or not split, but not further prepared 40 20%
4. 4104 to 4106 E.I. tanned leather Nil Nil
5. 41 Finished leather as defined by DGFT finished leather norms Nil Nil
6. 4301 Raw fur skins 60%/10% 40%
7. 4302 Tanned or dressed furskin 60% 20%

5. Other Miscellaneous Amendments to Customs Act, 1962.

A. Validation of notifications

These changes will come into effect from date of enactment of the Finance (No. 2) Bill, 2024.

S. No. Amendment Clause of the Finance (No. 2) Bill, 2024
1. Notification No. 37/2023- Customs dated 10.5.23 is being validated for the period from 1st April, 2023 up to and inclusive of 10th May, 2023 to provide exemption from basic customs duty and AIDC on imports of crude soyabean oil and crude sunflower seed oil subject to availability of unutilized quota in TRQ authorization for FY 2022-23 allotted by DGFT and Bill of lading issued on or before 31st March, 2023. [105]
2. Based on the recommendation of the GST Council in its 53rd meeting, GST Compensation Cess is being exempted with effect from 1st July, 2017 on imports in SEZ by SEZ units or developers for authorized operations. [104]

B. Amendment of Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995

The Customs Tariff (Identification, Assessment and Collection of Countervailing Duty on Subsidized Articles and for Determination of Injury) Rules, 1995 have been amended to insert a provision for New Shipper Review. This will be effective from 24.7.2024.

C. Other notification changes

These changes will be effective from 24.7.2024

S. No. Notification No. Subject
1. 38/2024-Customs dated 23.07.2024 Currently, articles of foreign origin can be imported into India for repairs subject to their re-exportation within six months extendable to 1 year. The duration for export in the case of aircraft and vessels imported for maintenance, repair and overhauling has been increased from 6 months to 1 year, further extendable by 1 year.
2. 39/2024-Customs dated 23.07.2024 The time-period of duty-free re-import of goods (other than those under export promotion schemes) exported out from India under warranty has been increased from

3 years to 5 years, further extendable by 2 years.
3. 31/2024-Customs dated 23.07.2024 The India-UAE CEPA Tariff notification is being amended as consequential changes in duty rates on precious metals.

6. Review of Customs duty Exemptions

A. Review of conditional exemption rates of BCD prescribed in Notification no. 50/2017-Customs dated 30.6.2017:

(i)    The BCD exemption for the goods covered under following serial numbers of the notification are being extended upto 31st March, 2026 unless specified otherwise.

S. No. S N of 50/17-Cus Brief Description
1. 17 Specified Planting materials, namely, oilseeds, seeds of

vegetables, tubers, etc.
2. 80A Algal oil for manufacturing of aquatic feed
3. 90 Lactose for use in manufacture of homeopathic medicines
4. 104 Specified goods used in processing of sea-food
5. 133 Gold ores and concentrates
6. 139 Bunker Fuels namely: (i). IFO 180 CST; (ii). IFO 380 CST; (iii). VLSFO (CTH 27)
7. 150 Naphtha for manufacture of Fertilisers (scope of exemption is being reduced only to Naphtha)
8. 155 Liquefied petroleum gases (LPG) received from unit in SEZ and returned by the DTA unit to the SEZ unit
9. 164 Electrical energy supplied from SEZ unit to DTA
10. 165 Electrical energy supplied from SEZ to DTA
11. 172 Specified goods used in manufacture of silicon wafers or solar wafers, for manufacture of solar cell or module
12. 183 Medical use fission Molybdenum-99 (Mo-99) for use in manufacture of radio pharmaceuticals
13. 184 Pharmaceutical Reference Standard
14. 188 Goods for manufacture of ELISA Kits
15. 191 Maltol for manufacture of deferiprone
16. 204 Anthraquinone or 2-Ethyl Anthraquinone for use in manufacture of Hydrogen peroxide
17. 237 Specified material for manufacture of EVA (Ethylene Vinyl Acetate) sheets or backsheet, which are used in the manufacture of solar photovoltaic cells or modules (Scope of materials which can be imported is being increased)
18. 253 Specified Goods for manufacture of Brushless Direct Current (BLDC) motors
19. 257 Tags, labels, stickers, belts, buttons, hangers or printed bags, imported by bonafide exporters
20. 257A Specified goods used in manufacture of handicraft items for export when imported by bonafide exporter
21. 257B Specified goods used in manufacture of textile or leather garments for export when imported by bonafide exporter
22. 257C Specified goods used in manufacture of leather or synthetic footwear or other leather products for export when imported by bonafide exporter
23. 258 Security fibre, threads, Paper based Taggant, M-feature for use in manufacture of security paper by Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt Ltd, Mysore.
24. 259 Raw materials for manufacture of security fibre and security thread for supply to Security Paper Mill, Hoshangabad and Bank Note Paper Mill India Pvt. Ltd, Mysore for use in manufacture of security paper
25. 260 Goods for the manufacture of specified orthopedic implants (902110)
26. 261 Raw material for manufacture of Copper-T Contraceptive

(i) Alatheon

(ii) Copper Wire
27. 265 Capacitor grades polypropylene granules for manufacture of Capacitor grade plastic
28. 269 Super absorbent polymer for manufacture of adult diapers and specified goods
29. 271 Polytetrametylene ether glycol, (PT MEG) for use in manufacture of spandex yarn
30. 276 Ethylene- propylene- non-conjugated diene rubber (EPDM) for manufacture of insulated wire and cables
31. 279 New or retreated Pneumatic tyres of rubber for use in servicing, repair of maintenance of aircrafts used for operating scheduled air transport service or scheduled air cargo service etc
32. 280 New or retreated Pneumatic tyres of rubber for use in servicing, repair or maintenance of aircraft imported or procured by Aero Club of India/ for flying training purpose/ operating non-scheduled (passenger or charter) services/ AAI for flight calibration purpose
33. 290 Wood pulp for manufacture of newsprint, paper or paperboard
34. 292 Goods imported for manufacture of paper, paper boards, newsprint
35. 293A Newsprint and uncoated paper imported for printing of newsprint
36. 296A Lightweight coated paper imported by actual users for printing of magazines
37. 326 Hydrophilic /Hydrophobic Non- Woven, imported for use in the manufacture of Adult Diapers
38. 329 Pile fabrics for the manufacture of toys
39. 333 Moulds, tools and dies, for the manufacture of parts of electronic components or electronic equipment
40. 334 (i) Graphite Felt or Graphite pack for growing silicon ingots (ii) Thin Steel wire used in wire saw for slicing of silicon wafers
41. 345A Simply Sawn Diamonds
42. 364A Spent catalyst or ash containing precious metals
43. 368 Ferrous Scrap
44. 374 Magnesium Oxide (MgO) coated cold rolled steel coils for use in manufacture of cold rolled grain oriented (CRGO) steel
45. 375 Specified items for manufacture of cold rolled grain- oriented steel (CRGO) steel
46. 378 Metal parts for manufacture of electrical insulators falling under heading 8546
47. 379 Pipes and tubes for use in manufacture of boilers
48. 380 Forged steel rings for manufacture of special bearings for use in wind operated electricity generators
49. 381 Flat copper wire for use in the manufacture of photo voltaic ribbon  for  manufacture  of solar  photovoltaic cell  or modules
50. 392 Dies for drawing metal, where imported after repairs from abroad
51. 403 Parts and raw materials for offshore oil exploration
52. 404 Specified items including capital goods and raw materials for off shore oil exploration
53. 415 Parts for manufacture of catalytic convertors
54. 415A Platinum or Palladium for manufacture of Noble Metal Compounds & Noble Metal Solutions
55. 416 Ceria zirconia compounds for use in the manufacture of washcoat for catalytic converters
56. 417 Cerium compounds for use in the manufacture of washcoat for catalytic converters
57. 418 Zeolite for use in the manufacture of washcoat for catalytic converters
58. 422 Machinery, electrical equipment for use in semiconductor wafer and LCD
59. 423 Machinery, electrical equipment for use in marking and packaging of semiconductor chips
60. 426 Specified goods for the manufacture of semiconductor devices, memory card, IC, solar cell
61. 435 Capital goods for printing industry
62. 442 Bushings made of Platinum and Rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India
63. 446 Parts and components for manufacture of tunnel boring machines
64. 451 Evacuated tubes with three layers of solar selective coating for use in manufacture of solar water heater
65. 462 Ball screws for use in the manufacture of CNC Lathes
66. 463 Linear Motion Guides for use in the manufacture of CNC Lathes
67. 464 CNC Systems for use in the manufacture of CNC Lathes
68. 464A Goods for manufacture of plastic processing machineries
69. 467 Parts and components of cash dispenser or automatic bank note dispenser
70. 468 Parts for manufacture of Micro ATM, Fingerprint reader/scanner, Iris scanner, Miniaturised POS (Scope of exemption is being limited to import of raw materials only)
71. 471 All parts for use in the manufacture of LED lights
72. 472 All inputs for use in the manufacture of LED driver or MCPCB for LED lights
73. 476 Television equipment, cameras etc for taking films, imported by a foreign film unit or television team
74. 477 Filming equipment of foreign origin if imported into India after having been exported therefrom.
75. 480 Goods imported for being tested in specified test centers
76. 489B Goods for manufacturing of Microphones
77. 504 Parts  and  Components of Digital Still  Image  Video Cameras
78. 509 Parts, components and accessories for manufacture of Digital Video Recorder
79. 510 Parts, components and accessories for use in manufacture of reception apparatus for television
80. 511 Parts, components and accessories for manufacture of CCTV Camera
81. 512 Specified Parts, components and for use in manufacture of Lithium-ion battery and battery pack
82. 512A Inputs, parts or sub-parts for use in the manufacturing of Printed Circuit Board Assembly
83. 515A Open Cell for manufacture of TV Panel
84. 516 The following goods for use in the manufacture of Liquid Crystal Display (LCD) /LED TV Panel
85. 517 Magnetrons for manufacture of domestic microwave ovens
86. 519 Raw materials or parts for use in manufacture of e-Readers
87. 523A Parts, sub-parts,  inputs or raw  material  for use in manufacture of Lithium-ion cells
88. 527 Lithium-ion cell use in manufacture of battery or battery pack
89. 527A Lithium-Ion Cell for use in manufacture of battery or battery pack of cellular mobile
90. 527B Lithium-Ion Cell manufacture of battery or battery pack of EV
91. 534 Parts of gliders or simulators of aircrafts (excluding rubber tyres and tubes of gliders)
92. 535 Raw materials for manufacture of aircraft and parts of aircraft
93. 535A Parts of aircraft for manufacture of aircraft or for manufacture of parts of aircraft by PSU under Min of Defence
94. 536 Parts, testing equipment, tools and tool-kits for maintenance, repair, and overhauling of aircraft, components or parts of aircrafts
95. 537 All goods of Heading 8802 (except 88026000-spacecraft)
96. 538 Components or parts, including engines, of aircraft of heading 8802
97. 539 (a) Satellites and payloads; (b) Ground equipment brought for testing of (a)
98. 539A Scientific and technical instruments etc for launch vehicles and satellites
99. 540 Specified goods imported by scheduled air transporter
100. 542 Specified goods imported by Aero Club, Flying Training Institutes
101. 543 Specified goods imported by non-scheduled air transporter
102. 544 Parts (other than rubber tubes), of aircraft of heading 8802
103. 546 Parts (other than rubber tubes), of aircraft of heading 8802
104. 548 Barges or pontoons imported along with ships
105. 551 Cruise ships, Excursion ships
106. 553 Fishing vessels, Tugs and Pusher crafts, light vessels excluding vessels and floating structure imported for break up
107. 555 Vessels like warships, lifeboats excluding vessels and floating structure imported for break up
108. 567 Stainless steel tube and wire, for manufacture of Coronary stents /artificial valve
109. 569 Parts required for manufacture of Ostomy products
110. 570 Medical and surgical instruments, apparatus and appliances including spare parts and accessories thereof
111. 575 Specified Hospital Equipment for use in specified hospitals
112. 578A Raw materials, for the manufacture of Cochlear Implants
113. 580 X-Ray Baggage Inspection Systems and parts thereof
114. 581 Portable X-ray machine / system
115. 583 Parts and cases of braille watches, for the manufacture of Braille watches
116. 591 Parts of electronic toys
117. 593 Parts of video games for the manufacture of video games

Note: Description of entries is indicative. Notification may be referred to for complete description.

(ii) The BCD exemption for the goods covered under following serial numbers of the notification no 50/2017-Customs is being extended upto 31st March 2029.

S. No. S. No. of 50/2017- Cus Brief Description
1. 212A Medicines/drugs/vaccines  supplied  free by United Nations International Children`s Emergency  Fund (UNICEF), Red Cross etc
2. 213 Drugs and materials
3. 428 Specified goods imported by accredited press cameraman
4. 429 Specified goods, imported by accredited journalist
5. 549 Capital goods, raw materials and spares for repairs of ocean-going vessels
6. 550 Spare parts and consumables for repairs of ocean going vessels registered in India.
7. 577 Lifesaving medical equipment for personal use
8. 607 Life Saving drugs like Keytruda etc
9. 607A Lifesaving drugs/medicines for personal use
10. 611 Archaeological artefacts for exhibition in a museum
11. 612 Specified raw material for sports goods

Note: Description of entries is indicative. Notification may be referred to for complete description.

B. Review of exemptions prescribed by other notifications:

(a) The BCD exemption for the goods covered under the following notifications are being extended upto 31st March, 2026.

S. No. Notification No. Brief Description
1. 30/2017-Customs dated 30 June 2017 Exemption to motion picture, music, gaming software for use in gaming console printed or recorded on media
2. 05/2017-Customs dated 2 February 2017 Exemption to machinery, components for setting up fuel cell based on waste to energy
3. 113/2003-Customs dated 22 July 2003 Exemption to castor oil cake and castor de-oiled cake manufactured from indigenous castor oil seeds on indigenous plant and machinery by unit in SEZ and brought to DTA
4. 81/2005-Customs dated 8 September

2005

 Exemption to machinery/components for initial setting up of non-conventional power generation plants
5. 26/2011-Customs dated 1 March 2011 Exemption to work of art, antiques in museum or art gallery
6. 248/1976-Customs dated 2 August 1976 Exemption to precious stones imported by posts on `approval or return` basis
7. 24/2001-Customs dated 1st March 2001 Exemption to copper cathodes, wire bars and wire rods produced out of copper reverts
8. 25/2001-Customs dated 1st March 2001 Exemption on gold and silver produced out of copper anode slime which were exported out of India for toll smelting and processing
9. 32/1997-Customs dated 1st April 1997 Exemption to goods imported for execution of an export order for jobbing

Note: Description of entries is indicative. Notification may be referred to for complete description.

(b) The BCD exemption for the goods covered under the following notifications are being extended upto 31st March, 2029.

S. No. Notification No. Brief Description
1. 16/1965-Customs dated 23 January 1965 Exemption to goods exported to foreign countries for display in show-rooms of Govt of India
2. 80/1970-Customs 29 August 1970 Goods supplied freely under warranty as replacement for defective ones in lieu of earlier imported goods.
3. 207/89-Customs dated 17 July 1989 Foodstuffs and provisions (excluding fruit products, tobacco, alcohol) by foreigners
4. 147/94-Customs dated 13 July 1994 Firearms and ammunition when imported for use by a renowned shooter
5. 148/94-Customs dated 13 July 1994 Specified gifts; goods gifted free under a bilateral agreement; goods imported by Indian Red cross Society,  goods  for  the  purposes  of  relief  and rehabilitation
6. 152/94-Customs dated 13 July 1994 Appliance/aids  for blind/handicapped imported by institution for blind  & deaf; and other specified teaching aids imported by Govt Universities
7. 153/94-Customs dated 13 July 1994 Articles for foreign origin imported for repair and return, theatrical equipment and costumes, mountaineering expedition equipment, photographic, filming recording etc
8. 134/94-Customs dated 22 June 1994 Specified capital goods, and other ancillary items imported for repairs
9. 39/96-Customs dated 23 July 1996 Specified imports relating to Defence, internal security forces and Air Force.
10. 50/96-Customs dated 23 July 1996 Specified equipment, instruments, raw materials, components, pilot plant and computer software when imported for publicly funded R & D projects
11. 51/96-Customs dated 23 July 1996 Scientific and technical instruments, apparatus, equipment, accessories etc when imported by publicly funded research institution
12. 25/1998-Customs dated 2 June 1998 Capital goods/machinery/ measuring instruments for manufacture of semiconductor wafers.
13. 23/2016-Customs dated 1 March 2016 Parts of aircraft when imported into India under the Standard Exchange Scheme
14. 32/2017-Customs dated 30 June 2017 Imports of artwork and antique books
15. 37/2017-Customs dated 30 June 2017 Imports in relation to defense and international security forces including medals, decorations, personal effects of Defense Personnel, bonafide gifts from foreign donors, stores and goods for trials, demonstration
16. 16/2017-Customs dated 20 April, 2017 Specified medicines from whole  of the duty of customs,  when  imported  for supply  under Specified Patient  Assistance Programme
17. 25/1999-Customs dated 28 February

1999

 Capital goods/machinery used by the IT/Electronics industry, subject to actual user condition.
18. 25/2002-Customs dated 1 March 2002 Specified raw materials, inputs and parts for use in manufacture of specified electronic items
19. 35/2017-Customs dated 30th June 2017 Aviation Turbine Fuel in the tanks of the aircrafts of an Indian Airline or of the Indian Air Force

Note: Description of entries is indicative. Notification may be referred to for complete description.

(c) The end dates prescribed are being removed in the following notifications:

S. No. Notification No. Brief Description
1. 49/2017-Customs dated 30 June 2017 Exemption to special Additional Duty on specified goods of fourth schedule to Central Excise Act
2. 52/2017-Customs dated 30 June 2017 Effective rate of Additional duty for goods under Chapter 27
3. 29/2017-Customs dated 30 June 2017 Exemption  to  specimen,  models,  wall  pictures  and diagrams for instructional purposes
4. 46/1974-Customs dated 25 May 1974 Pedagogic material for educational or vocational training courses

Note: Description of entries is indicative. Notification may be referred to for complete description.

7.  Customs Duty Exemptions / Concessions Being Allowed to Lapse

Certain BCD exemptions entries under S No. 50/2017-Customs dated 30.6.2017 and other notifications are being allowed to lapse with effect from 30.9.2024.

(a) The following entries of notification no. 50/2017-Customs dated 30.6.2017 are being allowed to lapse with effect from 30.9.2024:

S. No. S N of 50/2017- Customs Description
1. 478 Wireless apparatus, accessories and parts as specified in List 29 imported by a licensed amateur radio operator
2. 353 Foreign currency coins when imported into India by a Scheduled Bank
3. 387 Zinc metal recovered by toll smelting or toll processing from zinc concentrates exported from India for such processes
4. 441 Spinnerettes made inter alia of Gold, Platinum and Rhodium or any one or more of these metals, when imported in exchange of worn-out or damaged spinnerettes exported out of India
5. 238 Organic/inorganic Coating material for manufacture of electrical steel
6. 254 Catalyst for manufacture of cast components of Wind Operated Electricity Generator
7. 255 Resin for manufacture of cast components of Wind Operated Electricity Generator
8. 277A Calendared plastic sheet for manufacturing of Smart Card under chapter heading 8523
9. 339 Concessional rate on import of Toughened glass with low iron content and transmissivity of minimum 91% and above, for use in manufacture of solar thermal collectors or heaters
10. 421 Specified goods required for basic telephone service, cellular mobile telephone service, internet service or closed users’ group 64 KBPS domestic data network via INSAT satellite system service and parts, for manufacture of the goods
11. 479 Mono or Bi polar Membrane electrolysers and parts thereof including secondary brine purification components, jumper switches, filtering elements for hydrogen filters for caustic soda or potash units; Membrane and parts thereof or other parts for caustic soda or potash units;
12. 475 Specified goods including scramblers, descramblers, encoders, decoders, jammers, network firewalls, network sniffers, scanners
    and monitoring systems, probes for data monitoring and SMS/MMS monitoring systems
13. 482 Newspaper page transmission and reception facsimile system or equipment; and Telephoto transmission and reception system or equipment
14. 495 Batteries for electrically operated vehicles, including two and three wheeled electric motor vehicles.
15. 497 Active Energy Controller (AEC) for use in manufacture of Renewable Power System (RPS) inverters
16. 579 Survey (DGPS) instruments, 3D modeling software for ore body simulation cum mine planning and exploration (geophysics and geochemistry) equipment required for surveying and prospecting of minerals
17. 419 Aluminium Oxide  for manufacture of  washcoat  of  catalytic converter
18. 420 Clay 2 powder for use in ceramic substrate for catalytic convertor
19. 340 Solar tempered glass or solar tempered (anti-reflective coated) glass for use in manufacture of solar cells/panels/modules
20. 565 Specified goods for use in the manufacture of Flexible Medical Video Endoscope [heading 9018]
21. 566 Specific input goods for manufacture of syringes, needles, catheters and cannulae
22. 568 Parts  and  components  for  manufacture  of  blood  pressure monitors and blood glucose monitoring system (Glucometers)

Note: Description of entries is indicative. Notification may be referred to for complete description.

(b) The following notifications are being allowed to lapse with effect from 30.9.2024:

S. No. Notification No. Description
1. 97/99-Customs dated 21 July 1999 Exempts BCD and additional duty under Sections 3(1), 3(3) and 3(5) on  standard gold bars imported by a RBI authorised bank
2. 30/2004-Customs dated 28 January 2004 Provides full exemption from BCD to second-hand computers/accessories and peripherals received as donation by schools, charitable institutions.
3. 102/2007-Customs dated 14 September 2017 Provides exemption from Special Additional Duty (SAD) levied vide section 3(5) of CTA on to all goods imported for subsequent sale when IGST, CGST, SGST or UTGST paid by importer.
4. 45/2005-Customs dated 16 May 2005 Provides exemption from Special Additional Duty levied under Section 3(5) of CTA on goods cleared from SEZ to DTA.
5. 151/94-Customs dated 13 July 1994 Provides exemption to imports of duty-paid fuel and lubricating oil on aircrafts taken during the outward flight; goods imports by United Arab Airlines; aircraft engines, spares imported by Indian Airlines and Air India International.

Re-import entries will operate from re-import notification 45/2017-Cus
6. 26-Customs dated 19th February 1962 Provides exemption from import duty under the Sea Customs Act on catering cabin equipment, food and drink on  re-importation  by  aircrafts  of  the  Indian  Airlines Corporation from foreign flights

Note: Description of entries is indicative. Notification may be referred to for complete description.

8. Social Welfare Surcharge (SWS) – Amendment to Notification No. 11/2018 – Customs, Dated 02.02.2018 (W.E.F. 24.07.2024)

Following goods are being exempted from levy of Social Welfare Surcharge

S. No. Description
1. Natural Graphite
2. Natural sands
3. Quartz (other than natural sands); quartzite
4. Strontium sulphate (natural ore)
5. Copper ores and concentrates
6. Cobalt ores and concentrates
7. Tin ores and Concentrates
8. Tungsten Ores and Concentrates
9. Molybdenum ores and concentrates
10. Zirconium ores and concentrates
11. Hafnium Ores and concentrates
12. Vanadium ores and concentrates
13. Niobium or tantalum ores and concentrates
14. Antimony Ores and Concentrates
15. Tellurium
16. Silicon, containing by weight not less than 99.99% of silicon
17. Other silicon
18. Selenium
19. Alkali or alkaline earth metals, Rare-earth metals, scandium and yttrium, whether or not intermixed or inter alloyed
20. Silicon dioxide
21. Potassium hydroxide
22. Oxides, hydroxides and peroxides,

of strontium or barium
23. Cobalt oxides
24. Cobalt hydroxides
25. Commercial cobalt oxides
26. Lithium oxide and hydroxide
27. Vanadium oxides and hydroxides
28. Germanium oxides
29. Molybdenum oxides and hydroxides
30. Antimony Oxides
31. Cadmium oxide
32. Chlorides of Nickel
33. Strontium chloride
34. Sulphates of Nickel
35. Nitrates of potassium
36. Lithium carbonates
37. Strontium carbonate
38. Salts of oxometallic or peroxometallic acids of Beryllium and Rhenium
39. Compounds, inorganic or organic of rare earth metals
40. Bismuth citrate
41. Artificial Graphite, colloidal or semi-colloidal graphite, preparations based on graphite or other carbon in form of pastes, blocks, plates or other semi- manufactures
42. Unwrought Tin
43. Unwrought tungsten, including bars and rods obtained simply by sintering
44. Unwrought molybdenum, including bars and rods obtained simply by sintering
45. Unwrought tantalum, including bars and rods obtained simply by sintering, powders
46. Cobalt, unwrought
47. Bismuth, unwrought
48. Unwrought zirconium, powders, Containing less than 1 part hafnium to 500 parts zirconium by weight
49. Unwrought antimony, powders
50. Beryllium unwrought, powders
51. Hafnium unwrought, waste and scrap, powders
52. Rhenium unwrought
53. Cadmium unwrought, Powders
54. Cadmium, wrought
55. Unwrought; Waste and scrap; powders of :-

(i) Gallium

(ii) Germanium

(iii) Indium

(iv) Niobium

(v) Vanadium

9. Agriculture Infrastructure and Development Cess (AIDC) – Notification No. 11/2021 – Customs, dated 01.02.2021 is being amended to revise the AIDC rates on the following goods (w.e.f. 24.07.2024):

  AIDC rate changes (with changes to the effective rate of Customs Duty) Rate
S. No. Chapter, Heading, sub- heading, tariff item Commodity From To
1. 7108 Gold bar 5% 1%
2. 7108 Gold dore 4.35% 0.35%
3. 7106 Silver bar 5% 1%
4. 7106 Silver dore 4.35% 0.35%
5. 7110 Platinum, Palladium, Osmium, Ruthenium,

Iridium

 5.4% 1.4%
6. 7118 Coins of precious metals 5% 1%
7. 7113 Gold/Silver findings 5% 1%
See also  Amendments relating to Direct Taxes under Budget 2024-25 (Annexure to Part B)

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