Customs concessions – what is left in the budget?
The annual budget of the Union Finance Minister is losing all its glean. With rates of taxes almost settled and all exemptions in place there is hardly any surprise that the FM can provide in a budget. In a few years, budget will simply be a balance sheet of the country and can be presented sometime by April 15th.
Barely five weeks to the budget, the government has come with exemption from Customs duty for a large number of products. The details are
1. Portland cement fully exempted
2. Chemical elements to attract 5% duty
3. Duty on certain ferrous products/seconds reduced from 7.5% to 5%.
4. Project imports to attract 7.5% instead of 10%
5. Goods imported for use in the manufacture of refractory products – reduced to 5% from 7.5% and 10%.
6. Refractory bricks/ceramic goods – duty reduced to 5% from 7.5%
7. Copper and article – 5% from 7.5%
8. Copper tubes and pipes and fittings to attract 7.5% instead of 12.5%.
9. Zinc and articles duty reduced to 5% from 7.5%
10. zinc tubes, pipes and fittings to get 7.5% from the present tariff rate of 12.5%
11. Other base metals like tungsten – now at 5%
12. Calcined alumina – 5%
13. Aluminium and articles – 5%
14. Aluminium tubes, pipes and fittings – 7.5%
15. Tin and articles – 5%
16. Certain machinery items and electric equipment – 7.5%
17. Certain photographic and medical equipment – 7.5%
18. Carbon Black – duty reduced from 10% to 5%.
The Project imports exemption was subject to a condition that
If the importer, at the time of importation, where the goods are imported for,–
(i) initial setting up of a unit, furnishes an undertaking to the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the value of the investment to be made, in fixed assets in plant and machinery (excluding land and building) in the said unit, within a period of two years from the date of first import under this exemption, shall not be less than rupees five crore and in the event of failure to comply with this condition, he shall pay an amount equal to the difference between the duty leviable on the said imported goods but for the exemption under this notification and that already paid at the time of importation;
(ii) substantial expansion of an existing unit, proves to the satisfaction of the Deputy Commissioner of Customs or Assistant Commissioner of Customs, as the case may be, that the value of the investment made, in fixed assets in plant and machinery (excluding land and building) in the said unit, is more than rupees five crore at the time of first import under this exemption.
Now this condition is deleted.
NOTIFICATION NO. Dated : January 22, 2007