Customs - Government Increases Tariff Rate of Customs Duty for Jewellery to 15%
GOVERNMENT has increased the Tariff rate of duty for import of jewellery and parts thereof, of precious metal or of metal clad with precious metal and articles of goldsmiths' or silversmiths' wares and parts thereof, of precious metal or of metal clad with precious metal, falling under headings 7113 and 7114 respectively of the First Schedule to the Customs Tariff Act , from 10 percent to 15 percent, by a notification issued yesterday. This Notification amends the Customs Tariff.
Can the Government increase the rate of duty by a Notification? Tariff is an Act passed by Parliament and only Parliament has the power to amend it. But the Government has emergency powers as provided for under Section 8A of the Customs Tariff Act.
Emergency power of Central Government to increase import duties:
8A (1) Where in respect of any article included in the First Schedule, the Central Government is satisfied that the import duty leviable thereon under Section 12 of the Customs Act, 1962 should be increased and that circumstances exist which render it necessary to take immediate action , it may, by notification in the Official Gazette, direct an amendment of that Schedule to be made so as to provide for an increase in the import duty leviable on such article to such extent as it thinks necessary:
It is under this provision that Government has amended the Tariff to increase the import duty and the notification declares that circumstances exist which render it necessary to take immediate action.
Notification No. , Dated: September 17, 2013