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Informist, Tuesday, Jul 23, 2024

 

MUMBAI/NEW DELHI – The Centre today announced changes in basic customs duty and cess in the Union Budget for 2024-25 (Apr-Mar). Customs duty is levied on imports and helps the government raise revenue. The Union Budget has estimated customs revenue for 2024-25 at 2.38 trln rupees, compared with the provisional actual revenue of 2.33 trln rupees for 2023-24.

 

"I propose to undertake a comprehensive review of the rate structure over the next six months to rationalise and simplify it for ease of trade, removal of duty inversion, and reduction of disputes," Finance Minister Nirmala Sitharaman said.

 

To give relief to cancer patients, the minister proposed to fully exempt three more medicines--trastuzumab deruxtecan, osimertinib, and durvalumab--from duty. Duty has also been reduced on medical equipment like X-ray tubes & flat panel detectors used in medical X-ray machines in synchronisation with the phased manufacturing programme for domestic capacity addition, she added.

 

To give a fillip to the processing and refining of critical minerals, the government proposed to fully exempt 25 critical minerals from customs duty and to reduce duty on two more. The government also cut duty on precious metals, other metals, leather, and textiles.

 

In the interest of consumers, the government proposed to cut duty on mobile phones, mobile phone chargers, and printed circuit boards used in mobile phones to 15% from 20%, Sitharaman said. "With a three-fold increase in domestic production and almost hundred-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured," she said.

 

The Centre revises customs duty rates based on broader economic policies, trade relations, and global market dynamics. Cess is levied on base tax with a specific purpose.

 

The following are the changes proposed in agriculture infrastructure and development cess:

 

Items	New (In %)	Old (In %)
Gold bar	1.0	5.0
Gold dore	0.35	4.35
Silver bar	1.0	5.0
Silver dore	0.35	4.35
Platinum, Palladium, Osmium, Ruthenium, Iridium	1.4	5.4
Coins of precious metals	1.0	5.0
Gold/Silver findings	1.0	5.0

 

Following are the changes proposed in customs duty:

 

Items	New (%)	Old (%)
Shea nuts	15%	30%
Live SPF Vannamei shrimp broodstock	5%	10%
Live Black tiger shrimp broodstock	5%	10%
Artemia	Nil	5%
Artemia cysts	Nil	5%
SPF Polychaete worms	5%	30%
Fish lipid oil for making acquatic feed	Nil	15%
Crude fish oil for making acquatic feed	Nil	30%
Algal oil for making acquatic feed	Nil	15%
Algal Prime (flour) for making acquatic feed	Nil	15%
Mineral,Vitamin Premixes for making acquatic feed	Nil	5%
Insect meal for R&D in making acquatic feed	5%	15%
Protein from Natural Gas for R&D in acquatic feed	5%	15%
Krill Meal for making acquatic feed	Nil	5%
Pre-dust breaded powder for processing sea-food	Nil	30%
Prawn and shrimps feed	5%	15%
Fish feed	5%	15%
Natural Graphite	2.50%	5%
Natural sands	Nil	5%
Quartz (other than natural sands)	2.50%	5%
Quartzite (trimmed or cut)	2.50%	5%
Strontium sulphate (natural ore)	Nil	5%
Copper ores and concentrates	Nil	2.50%
Cobalt ores and concentrates	Nil	2.50%
Tin ores and Concentrates	Nil	2.50%
Tungsten Ores and Concentrates	Nil	2.50%
Molybdenum ores and concentrates	Nil	2.50%
Zirconium ores and concentrates	Nil	2.50%
Hafnium Ores and concentrates	Nil	2.50%
Vanadium ores and concentrates	Nil	2.50%
Niobium or tantalum ores and concentrates	Nil	2.50%
Antimony Ores and Concentrates	Nil	2.50%
Tellurium	Nil	5%
Silicon, containing not less than 99.99% of silicon	Nil	5%
Other silicon	Nil	5%
Selenium	Nil	5%
Alkali or alkaline earth metals	Nil	5%
Rare-earth metals, scandium and yttrium	Nil	5%
Silicon dioxide	2.50%	7.50%
Potassium hydroxide	Nil	7.50%
Oxides, hydroxides and peroxides, of strontium or barium	Nil	7.50%
Cobalt oxides	Nil	7.50%
Cobalt hydroxides	Nil	7.50%
Commercial cobalt oxides	Nil	7.50%
Lithium oxide and hydroxide	Nil	7.50%
Vanadium oxides and hydroxides	Nil	2.5%/7.5%
Germanium oxides	Nil	7.50%
Molybdenum oxides and hydroxides	Nil	7.50%
Antimony oxides	Nil	7.50%
Cadmium oxides	Nil	7.50%
Chlorides of nickel	Nil	7.50%
Strontium chloride	Nil	7.50%
Sulphates of nickel	Nil	7.50%
Nitrates of potassium	Nil	7.50%
Lithium carbonates	Nil	7.50%
Strontium carbonates	Nil	7.50%
Salts of acids of beryllium, rhenium	Nil	7.50%
Compounds of rare earth metals	Nil	7.50%
Bismuth citrate	Nil	7.50%
Artificial graphite, colloidal, semi-colloidal graphite	2.50%	7.50%
Preparations based on graphite	2.50%	7.50%
Unwrought Tin	Nil	5%
Unwrought tungsten	Nil	5%
Unwrought molybdenum	Nil	5%
Unwrought tantalum	Nil	5%
Cobalt, unwrought	Nil	5%
Bismuth, unwrought	Nil	2.50%
Unwrought zirconium	Nil	10%
Unwrought antimony, powders	Nil	2.50%
Beryllium unwrought, powders	Nil	5%
Hafnium unwrought, waste, scrap, powders	Nil	10%
Rhenium unwrought	Nil	10%
Cadmium unwrought, powders	Nil	5%
Cadmium, wrought	Nil	5%
Gallium unwrought; waste and scrap, powder	Nil	5%
Germanium unwrought; waste and scrap, powder	Nil	5%
Indium unwrought; waste and scrap, powder	Nil	5%
Niobium unwrought; waste and scrap, powder	Nil	5%
Vanadium unwrought; waste and scrap, powder	Nil	5%

 

The following are the changes proposed in customs duty on precious metals, other metals, chemicals, drugs, and others: 

 

Items	New (%)	Old (%)
Ferro Nickel	NIL	2.5
Blister Copper	Nil	5
Ammonium Nitrate, in aqueous solution or not	10	7.5
All goods other than poly vinyl chloride (PVC) flex film/flex banner	10	25
All goods other than poly vinyl chloride (PVC) flex film/flex banner	15	25
Methylene Diphenyl Di-isocyanate (MDI) for use in the manufacture of Spandex yarn	5	7.5
Wet white, crust, and finished leather for manufacture of textile or leather garments, leather /synthetic footwear, or other leather products, for export	Nil	10
Accessories of textile or leather garments, leather, /synthetic footwear or other leather products, for export	Nil	As applicable
Real Down Filling Material from Duck or Goose for use in the manufacture of textile or leather garments for export	10	30
Trastuzumab deruxtecan	Nil	10
Osimertinib	Nil	10
Durvalumab	Nil	10
Gold bar	6	15
Gold dore	5.35	14.35
Silver bar	6	15
Silver dore	5.35	14.35
Platinum, Palladium, Osmium, Ruthenium, Iridium	6.4	15.4
Coins of precious metals	6	15
Gold/Silver findings	6	15
Platinum and Palladium used in manufacture of noble metal solutions, noble metal compounds, and catalytic convertors	5	7.5
Bushings made of platinum and rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India	5	7.5
Polyethylene for use in manufacture of orthopaedic implants	Nil	As applicable
Special grade stainless steel, Titanium alloys, Cobalt-chrome alloys	Nil	As applicable
Polyethylene for use in manufacture of other artificial parts of the body	Nil	As applicable
X-ray tubes for use in the manufacture of X-ray machines for medical, surgical, dental or veterinary use	5 (till Mar 31 2025)    7.5(from Apr 1, 2025 to Mar 31, 2026)   10 (from April 2026)	15
Flat panel detectors used in X-ray machines	5 (till Mar 31, 2025) 7.5 (from Apr 1, 2025 to Mar 31, 2026)   10 (from April 2026)	15
Cellular mobile phone	15	20
Adapter of cellular mobile phone	15	20
Printed Circuit Board Assembly of cellular mobile phone	15	20
Specified parts for use in manufacture of connectors	Nil	5/7.5
Oxygen Free Copper for use in manufacture of Resistors	Nil	5
Specified die-cut parts for use in manufacture of cellular mobile phones	Nil	As applicable
Specified mechanics for use in manufacture of cellular mobile phones	Nil	As applicable
Printed Circuit Board Assembly of specified telecom equipment	15	10
Capital goods for use in manufacture of solar cells or solar modules	Nil	7.5
Solar glass for the manufacture of solar cells	10	Nil
Tinned copper interconnect for manufacture of solar cells	5	Nil
Components and consumables for use in manufacture of specified vessels	Nil	As applicable
Technical documentation and spare parts for construction of warships	Nil	As applicable
Tanned or crust hides	20	40
Raw fur skins	40	60/10
Tanned or dressed fur skin	20	60

 

End

 

Reported by Rajesh Gajra and Afra Abubacker

Edited by Rajeev Pai

 

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