BUDGET 2016- Change in Customs Duty

BUDGET 2016- Change in Customs Duty

1. Basic Custom duty on cashew nuts in shell classifiable under CTH 0801 31 00  increased from Nil to 5%.
2. Basic Customs duty on denatured ethyl alcohol (ethanol) classifiable under CTH 2207 20 00 reduced from 5% to 2.5% for manufacture of excisable goods, subject to actual user condition.
3. Basic Customs duty on Silica Sand classifiable under CTH 2505 10 11, 2505 10 12 and 2505 10 19 reduced from 5% to 2.5%.
4. Export duty on Iron ore lumps (below 58% Fe content) classifiable under CTH 2601 11 21 and 2601 11 22  reduced from 30% to Nil and Iron ore fines (below 58% Fe content) classifiable under CTH 2601 11 41 and 2601 11 42  reduced from 10% to Nil.
5. Export duty on chromium ores and concentrates, all sorts classifiable under CTH 2610  reduced from 30% to Nil.
6. Export duty on bauxite (natural), not calcined classifiable under CTH 2606 00 10 and bauxite (natural) calcined classifiable under CTH 2606 00 20 is being reduced from 20% to 15%.
7. Basic Customs Duty on all goods falling under CTH 2701, 2702 and 2703  rationalized at 2.5% BCD.
8. Basic Customs Duty on all goods falling under 2704, 2705 and 2706  rationalized at 5% BCD.
9. Basic Customs Duty on all goods falling under CTH 2707  rationalized at 2.5% BCD.
10. Basic Customs Duty on all goods falling under CTH 2708  rationalized at 5% BCD.
11. Actual user condition  prescribed on concessional imports of phosphoric acid for the manufacture of fertilizers classifiable under chapter 28 of the Custom Tariff Act 1975.
12. Actual user condition prescribed on concessional imports of anhydrous ammonia for the manufacture of goods falling under Chapter 31 for use as fertilizers.
13. Basic Customs duty on aluminium oxide classifiable under CTH 2818 20 90 for use in the manufacture of Wash Coat classifiable under CTH 3824 90 90, for catalytic converters  reduced from 7.5% to 5% subject to actual user condition.
14. Basic customs duty on import of Medical Use Fission Molybdenum-99 by Board of Radiation and Isotope Technology (BRIT) for manufacture of radio pharmaceuticals  reduced from 7.5% to Nil.
15. Basic Customs duty on all acyclic hydrocarbons and all cyclic hydrocarbons falling under 2901 and 2902 [except para-xylene (2902 43 00) which attracts Nil BCD and styrene (2902 50 00) which attracts 2% BCD  rationalized at 2.5%.
16. Special Additional Duty (SAD) on orthoxylene falling under 2902 41 00 for use in manufacture of phthalic anhydride  reduced from 4% to 2%, subject to actual user condition.
17. Basic Customs duty on Polypropylene granules / resins falling under 3902 for the manufacture of capacitor grade plastic films  reduced from 7.5% to Nil, subject to actual user condition.
18. Basic Customs duty on Super Absorbent Polymer (SAP) falling under 3906 90 90 for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.]  reduced from 7.5% to 5%, subject to actual user condition.
19. Basic Customs duty on Natural latex rubber made balloons falling under 4016 95 90, 4016 99 90 increased from 10% to 20%. Basic Customs duty of 10%  retained for all goods other than natural rubber latex made balloons falling under tariff lines 4016 95 90, 4016 99 90.
20. Basic Customs duty on wood in chips or particles for manufacture of paper, paperboard and news print  reduced from 5% to Nil subject to actual user condition. Since, there is no excise/CV duty on wood in chips or particles, this will also result in exemption from SAD on such wood chips/particles.
21. Basic Customs duty on Pulp of wood falling under 4701-4706 for manufacture of goods falling under heading 9619 [sanitary towels, tampons, napkins, diapers etc.] reduced from 5% to 2.5% subject to actual user condition.
22. Basic Customs duty on Braille paper falling under 4823 90 11  reduced from 10% to Nil.
23. Exemption from Basic Customs duty on plans, drawings and designs is being withdrawn. Such goods will now attract 10% classifiable under chapter 49 of the Custom Tariff Act 1975.
24. Basic Customs Duty  exempted on import of specified fabrics, of value equivalent to 1% of FOB value of exports in the preceding financial year, for manufacture of textile garments for exports, subject to the specified conditions. The entitlement for the month of March 2016 shall be one twelfth of one per cent. of the FOB value of exports in the financial year 2014-15.
25. Basic Customs Duty on specified fibres, filaments/yarns  reduced from 5% to 2.5%.
26. Exemption from Basic Customs Duty withdrawn on solar tempered glass/solar tempered (anti-reflective coated) glass for use in manufacture solar cells/modules/panels. Such solar tempered glass/solar tempered (anti-reflective coated) glass for use in manufacture solar cells/modules/panels will now attract 5% BCD, subject to actual user condition.
27. Basic customs duty exemption  withdrawn on preform of silica [Chapter 70] for use in manufacture of telecommunication grade optical firbre/cables. It will now attract 10% BCD.
28. Basic Customs duty on imitation jewellery falling under 7113  increased from 10% to 15%.
29. Concessional CVD on Gold dore bar  increased from 8% to 8.75%.
30. Concessional CVD on Silver dore bar  increased from 7% to 7.75%.
31. Basic Customs Duty on brass scrap falling under 7402 00 22  reduced from 5% to 2.5%.
32. Basic Customs duty on primary aluminium products falling under 7601, 7603, 7604, 7605, 7606 and 7607  increased from 5% to 7.5%.
33. Basic Customs duty on other aluminium products falling under 7608 and 7609 00 00  increased from 7.5% to 10%.
34. Basic Customs duty on zinc alloys falling under 7901 20  increased from 5% to 7.5%.
35. Tariff rate of BCD  increased from 7.5% to 10% on 206 specified tariff lines falling in Chapters 84 and 85.
36. However, the effective rate for the remaining 110 tariff lines will continue to be 7.5%.
37. CVD exemption on specified machinery required for construction of roads  withdrawn.
38. Basic Customs duty on industrial solar water heater falling under 8419 19 20 is being increased from 7.5% to 10%. Further, Basic Customs duty of 7.5%  retained on other water heaters with other than solar heating source falling under 8419 19 20.
39. Basic Customs Duty and Special Additional Duty (SAD) are  exempted on machinery, electrical equipments, other instruments and their parts [except populated Printed Circuit Boards] falling under chapter 84, 85, 90 for fabrication of semiconductor wafer and Liquid Crystal Display (LCD), subject to actual user condition.
40. Basic Customs Duty and Special Additional Duty (SAD) exempted on machinery, electrical equipments, other instruments and their parts [except populated PCBs] falling under chapter 84, 85, 90 for assembly, testing, marking and packaging of semiconductor chips (ATMP), subject to actual user condition.
41.  SAD exemption on charger/Adapter, Battery and Wired Headsets/Speakers for use in manufacture of mobile handsets including cellular phone  withdrawn.
42.  Basic Customs Duty and Excise Duty [and thus CVD]  exempted on inputs and parts for manufacture of charger/adapter, battery and wired headsets/speakers of mobile handsets including cellular phone and inputs and sub-parts for use in manufacture of parts of charger/adapter, battery and wired headsets/speaker.
43. Basic Customs duty on refrigerated containers falling under 8609 00 00  reduced from 10% to 5%.
44. Basic Customs duty on golf cars falling under 8703  increased from 10% to 60%.
45. Basic Customs duty on tools and tool kits for maintenance, repair, and overhauling of aircraft exempted. Further, the procedure for availment of the customs duties exemption under S.No.448 of notification No.12/2012-Customs, dated 17.03.2012 is simplified.
46. The existing condition of stay of foreign aircraft, for maintenance repair and overhaul, upto 60 days is being relaxed, so as to provide for stay up to 6 months of the foreign aircraft for maintenance, repair or overhaul, which can be further extended by DGCA‟s as deemed fit. Such aircrafts are also being allowed to carry passengers in the flights at the beginning and end of the stay period in India, but not during the stay period for maintenance, repair or overhaul, servicing.
47. The procedure for availment of exemption from Basic Customs Duty, CVD and SAD by ship repair units simplified and Such imports will now be subject to actual used condition.
48. Tariff rate of BCD  increased from 7.5% to 10% on 5 specified tariff lines falling in Chapter 90.
49. Basic Customs duty on natural latex rubber made balloons falling under 9503 00 90, 9505 10 00 & 9505 90 90  increased from 10% to 20%.
50. Concessional 5% BCD extended to cold chain including pre-cooling unit, pack houses, sorting and grading lines and ripening chambers‟ classifiable  under chapter 98 of the Custom Tariff Act 1975.
51. Disposable sterilized dialyzer and micro barrier [Chapter 84 or 90] of artificial kidney  exempted from BCD, excise / CVD, and SAD. CVD exemption will flow from excise exemption.