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EXPLANATORY NOTES-CUSTOMS
Chapter Wise
The surcharge of customs on imported goods levied under section
90 of the Finance Act, 2000 has been abolished with effect from 1st March, 2001
and notification No. 26/ 2001-Customs has been issued exempting all imported
goods from the levy of surcharge. Consequently, there will be no surcharge of
customs on any imported goods with effect from 1st March, 2001.
Chapter 1 to 6
There are no changes proposed in these chapters.
Chapter 7
7.1 Basic Customs Duty on pulses has been increased to 5%. However,
exemption shall be available from levy of SAD (refer S. No. 10 of notification
No. 17 /2001-
Customs, and S. No. 3 of notification No. 19 /2001-Customs, both dated 1st
March, 2001).
Chapter 8
8.1 The tariff rate on coconuts and dessicated coconuts falling under
sub-heading Nos. 0801.11 and 0801.19 has been increased to 70%. This will also
be the effective rate from 1.3.2001. The preferential rate for each of these
sub-headings shall be 60%. (refer Bill entries).
Chapter 9
9.1 The tariff rate on coffee falling under heading No. 09.01 has
been increased to 70%. This will also be the effective rate from 1.3.2001. The
preferential rate shall be 70% less 13 paise per kg. (refer Bill entries).
9.2 The tariff rate on tea falling under heading No. 09.02 has been increased to
70%. This will also be the effective rate from 1.3.2001 .The preferential rate
shall be 70% less 26 paise per kg. (refer Bill entries).
Chapter 10 and 11
There are no changes proposed in these Chapters. 1
Chapter 12
12.1 The tariff rate on copra falling under heading No. 12.03 has
been increased to 70%. This will also be the effective rate from 1.3.2001. The
preferential rate shall be 60%. (refer Bill entries).
Chapter 13 and 14
13.1 There are no changes proposed in these Chapters.
Chapter 15
15.1 The basic customs duty on edible grade crude edible oils imported for
the manufacture of vanaspati or for refining has been increased from 35% to 75%.
Crude soyabean oil, however, will attract basic duty at 45% now, as against 35%
prior to 1.3.2001, .by Tariff. These oils will continue to be exempt from SAD.
(refer S. No. 31 of notification No. 17/ 2001-Customs, and S. No. 4 of
notification No. 19/ 2001-Customs, both dated 1st March, 2001).
15.2 The basic customs duty on edible grade refined edible oils,
in loose or bulk form, has been increased from 45% to 85%. However, duty on
refined soyabean oil continues at 45%. Refined rapeseed, colza or mustard oil
would now be chargeable to basic duty of 75%. All refined edible oils would
continue to attract SAD of 4%. (refer S. No. 30 of notification No. 17/
2001-Customs, dated 1st March, 2001).
15.3 Crude palm oil & fractions thereof imported for the manufacture of
vanaspati shall now be levied to a customs duty of 55% instead of 25%. Further,
this concession shall be restricted only to sick vanaspati units. The concession
I subject to certification by the Department of Sugar and Edible Oils. (refer S.
No. 32 of notification No. 17/ 2001-Customs, and S. No. 4 of notification No.
19/ 2001-Customs, both dated 1st March, 2001).
15.4 Crude palm oil for other than manufacture of vanaspati shall be levied a
basic customs duty of 75% instead of 55%. SAD exemption would be retained.
(refer S. No. 34 of notification No. 17/ 2001-Customs, and S. No. 5 of
notification No. 19/ 2001-Customs, both dated 1st March, 2001).
15.5 Refined palm oil (including RBD Palmolein) will attract a basic customs
of 85%. SAD would be levied over and above this duty. (refer S. No. 30 of
notification No. 17/ 2001-Customs, dated 1st March, 2001).
Chapter 16 to 24
No change
Chapter 25
25.1 The basic customs duty on clinker and cement has been reduced to
25%( S. No. 57 & 58 of notification No. 17/ 2001-Customs, refers.)
25.2 The basic customs duty on DBM, fused magnesia and sea water magnesia , when
imported by a manufacturer of refractory products has been reduced to 15%.( S.
No. 56 of notification No. 17/ 2001 refers).
Chapter 27
27.1 The basic customs duty on SKO imported for the PDS has been
increased to 5%.( S. No. 67 of notification No. 17/ 2001-Customs, refers).
27.2 LNG has been exempted from CVD( S. No. 71 of notification No. 17/ 2001
refers).
Chapter 28
28.1 The basic customs duty on di-sodium carbonate( Soda ash) is
being reduced from 35% to 20%.( S. No. 84 of notification No. 17/ 2001 refers).
Chapter 29
29.1 The basic customs duty on DMT, PTA, MEG and Caprolactum is being
reduced from 25% to 20%. (S. No. 85 of notification No. 17/ 2001 refers).
Chapter 30
30.1 Full exemption from all duties of customs on Enoxaparin, (both
bulk drugs and formulation) is being withdrawn and a concessional rate of 15%
BCD + 16% CVD + 4% SAD is being imposed.( List 2 and S. Nos. 79 to 81 of
notification No. 17/ 2001 refer).
Chapter 32
32.1 Wattle extract is being exempt from CVD (S. No. 107 of notification No.
17/ 2001 refers).
Chapter 39
39.1 (1) The basic customs duty on Polyester chips for manufacture of
yarns of polyester and PSF is being reduced from 35% to 25%, subject to end-use
condition.
(2) The basic customs duty on Nylon chips for manufacture of Nylon filament yarn
is being reduced from 35% to 25%, subject to end-use condition.
Chapters 40 to 47
No change
Chapter 48
48.1 Effective basic duty on grape guard paper used for packing
grapes is raised to 5%. This will, however, be exempt from special additional
duty. S. No. 140 of
notification No. 17/ 2001-Cus dated 1.3.2001 and S. No. 23 of notification No.
19/ 2001-Cus dated 1.3.2001 refers.)
Chapter 49
49.1 The basic customs duty in respect of plans, drawings and other
goods of sub-heading No. 4906.00 is increased to 25 per cent., effective basic
customs duty
however continues at nil. ( bill entry and S. No. 148 of notification No. 17/
2001-Cus dated 1.3.2001 refers.)
Chapters 50 to 63
50.1 Effective rate of basic customs duty on silk waste is being
reduced from 35% to 15%. Effective rate of duty on cotton waste (heading No.
52.02) is being reduced from 25% to 15% (relevant bill entry refers). Effective
rate of duty on flax fibre (heading No. 53.01) is being reduced from 25% to 15%
(S. No. 153 of notification No. 17/ 2001-Customs, refers).
50.2 Tariff rate in respect of several categories of woven fabrics, falling
under various sub-headings of Chapters 51, 52, 54 and 58, and articles of
apparel and clothing accessories, falling under Chapters 61 and 62, and blankets
(other than electric blankets), is being changed so as to incorporate the
effective rates of basic customs duty as notified under notification No. 130/
2000-Customs, dated 16- 10-2000. However, there is no change in the effective
rates of basic customs duty in respect of the above goods (notification No. 18/
2001-Customs refers). Upholstery fabrics and fabrics other than upholstery
fabrics continue to attract different rates of basic customs duty as before
(notification No. 23/ 2001-Customs has been issued in supersession of
notification No. 130/ 2000-Customs, dated 16-10-2000).
50.3 Basic customs duty on raw wool imported by Apex/ State Handloom
Cooperative Society, Khadi and Village Industries Commission and by State Khadi
and Village Industries Board is being raised from Nil to 5% (S. No. 151 of
notification No. 17/ 2001-Customs refers). However, they continue to be exempted
from the special additional duty of customs (SAD). (notification No. 19/
2001-Customs refers).
Chapters 64 to 69
No change
Chapter 70
70.1 Tariff and effective rate of customs duty in respect of slivers,
yarns etc. of glass fibres (sub-heading No. 7019.11) is being reduced from 35%
to 20% (relevant bill entry and notification No. 18/ 2001-Customs, dated
1-3-2001 refers). Tariff and effective rate of customs duty in respect of woven
fabrics of glass of width not exceeding 30 cm (sub-heading No. 7019.51) is being
reduced from 35% to 25% (relevant bill entry and notification No. 18/
2001-Customs refers).
70.2 Effective basic customs duty on capillary tubes and rods of glass
(sub-heading No. 70.02), for the manufacture of thermometers, is being reduced
to 25% adv., subject to the importer following the procedure set out in
Customs (Import of Goods at Concessional Rate of Duty for Manufacture of
Excisable Goods) Rules, 1996( S. No. 160 of notification No. 17/ 2001-Customs
refers). No other changes are being made in respect of goods falling in these
Chapters.
Chapter 71
71.1 The effective rate of duty for gold including ornaments (but
excluding ornaments studded with stones or pearls) imported by eligible
passengers is being reduced to Rs. 250/-per ten grams. Effective customs duty on
gold imported under Special Import Licence is also being reduced to Rs. 250/-per
ten grams. Further, gold imported by MMTC, HHEC, STC etc. will also henceforth
attract basic customs duty of Rs. 250/-per ten grams (notification No. 20
/2001-Customs refers).
71.2 Basic customs duty on cut and polished coloured gemstones, falling under
Chapter 71, is being reduced from 35% to 15% (S. No. 167 of notification No. 17/
2001-Customs refers).
71.3 Basic customs duty on raw pearls including raw cultured pearls; rubies,
emeralds and sapphires (unset and uncut); rough diamonds and rough semi-precious
stones is being raised from Nil to 5% (S. Nos. 163, 165 and 166 of notification
No. 17/ 2000-Customs, dated 1-3-2001 refer). However, these goods will continue
to be exempted from the special additional duty of customs (notification No. 19/
2001-Customs refers). There are no other changes in respect of goods falling in
this
Chapter.
Chapter 72
72.1 Concessional import duty of 5% for melting scrap is extended to
all units irrespective of the technology adopted for melting. (S. No. 181 of
notification No. 17/ 2001-Cus dated 1.3.2001 refers).
72.2 Concessional import duty of 25% for hot rolled coils of stainless steel and
of iron and non-alloy steel is restricted to other than seconds and defectives
only. Seconds and defectives of HR coils will, therefore, attract basic customs
duty of 35%. The Commissioners may take special note of this change for
effective implementation and appropriate monitoring. (S. Nos. 173 and 186 of
notification No. 17/ 2001-Cus dated 1.3.2001 refer).
Chapter 73
No change
Chapter 74
74.1 Concession in respect of toll smelting of copper reverts and
copper anode slime extended to basic customs duty, additional duty of customs
and special additional duty. (notifications No. 24 and 25/ 2001-Cus dated
1.3.2001 refer).
Chapter 75 to 83
No change
Chapters 84 & 85 (other than Electronics / IT )
84.1 The Basic customs duty on goods of Chapter 84 and 85 (other than
Electronics / IT ), in general, has been retained at the existing levels.
Following changes have been made :-i) 159 specified textile machinery and parts
thereof which hitherto attracted 15% basic duty would now attract duty at 5%.(
S. No. 245 and 246 of notification No. 17/ 2001-Cus. dated 1.3.2001 refers).
ii) Parts of outboard motors which were hitherto exempt from the basic customs
duty would now attract duty at 5%. However, they have been exempted from Special
Additional Duty. (S. No. 207 of notification No. 17/ 2001-Cus. dated 1.3.2001
refers).
iii) LPG Conversion Kits and parts thereof now attracts duty @5% (basic)+ 16%
(CVD) as applicable to CNG or Propane conversion kits. (S. No. 216 of
notification No. 17/ 2001-Cus. dated 1.3.2001 refers).
iv) Concessional rate of 5% basic customs duty has been extended to the
specified parts of Wind Operated Electricity Generators for maintenance also.
(S. No. 209 of notification No. 17/ 2001-Cus. dated 1.3.2001 refers).
v) 105 specified machinery and tools imported by three specified Gem and
Jewellery training institutes would now attract a concessional rate of basic
customs duty of 15%.( S. No. 205 of notification No. 17/ 2001-Cus. dated
1.3.2001 refers).
84.2 The concessional rate of 5% (BCD) + 16% (CVD) duty applicable to
specified equipment and parts thereof for basic telephone, cellular, radio
paging, V-SAT, PMRTS and Internet Service will continue upto 31.3.2002. Band
restriction has been removed for V-SAT services for availability of the same
concessional rate of duty. (S. No. 241 of notification No. 17/ 2001-Cus. dated
1.3.2001 refers).
Chapters 84 & 85 (IT/ Electronics sectors)
84. 1 The basic customs duty on word processing machines (8469.11)
and Printed circuit assemblies of word processing machines (8473.10) is being
reduced from 20% to 15%. (relevant bill entry and S. No. 230 of notification No.
17/ 2001 refers). The basic customs duty on calculating and other machines of
heading
No. 84.70 and their parts (8473.21, 8473.29) is being reduced from 20% to 15%.
(relevant bill entries refer) The basic customs duty on Automatic teller
machines (ATMs) (8472.90) is being reduced from 20% to 15%. The basic customs
duty on printed circuit assemblies of ATMs is also being reduced from 20% to
15%. (S. No. 234 of notification No. 17/ 2001-Customs refers). The concessional
rate of 15% adv. has also been extended to Cash Dispensing mechanism and Deposit
Modules for ATMs( 8473.40)( S. No. 234 of notification No. 17/ 2001-Customs
refer). There is no change in the duty rates in respect of automatic data
processing machines (computers) and other machines falling under heading No.
84.71. Parts of machines of heading No. 84.71, ( including ink cartridges with
print head assembly and spray
ink nozzle but excluding PPCBs) (8473.30) continue to attract 5% basic customs
duty.( (S. No. 233 of notification No. 17 /2001 refers). However, the exemption
is not available in the case of an assembly (popularly known as barebones) which
includes any one or all of the following items, namely: -( i) PPCBs (ii)
motherboards (with or without CPU)
(iii) Power supply unit 85.1 The basic customs duty on Static converters used in
automatic data processing machines and units thereof, and also used in
telecommunication apparatus (8504.40), inductors for power supplies for
automatic data processing machines (8504.50) and their specified parts( 8504.90)
is being reduced from 20% to 15%.( S. Nos. 271,272 and 273 of notification No.
17/ 2001-Customs refer).
85.2 The basic customs duty on telephone sets, cordless phones, videophones, fax
machines , teleprinters, telephonic or telegraphic switching apparatus, other
apparatus for carrier current line systems or for digital line systems and other
apparatus( 8517.11,8517.19,8517.21,8517.22,8517.30,8517.50 and 8517.80) is being
reduced from 25% to 15% (relevant bill entries refer). The basic customs duty on
specified loudspeakers for telecommunication use (other than cone type)(
8518.29)
is being reduced from 20% to 15%. (S. .No. 277 of notification No. 17/
2001-Customs refers). The basic customs duty on telephone answering machines
(8520.20) is being reduced from 20% to 15%. (relevant bill entry refers.)
85.3 The basic customs duty on specified unrecorded media like magnetic tapes of
specific widths and magnetic discs (8523.11, 8523.12, 8523.13 and 8523.20) and
other unrecorded media for sound recording or similar recording( 8523.90) is
being reduced from 20% to 15%.( relevant bill entries refer).
85.4 The basic customs duty on specified discs for laser reading systems, for
reproducing phenomena other than sound or image (8524.31), magnetic tapes
(8524.40) and other recorded media (8524.91), for reproducing phenomena other
than sound or image is being reduced from 25% to 15%.( relevant bill entries
refer). 85.5 The basic customs duty on transmission apparatus (other than
apparatus for radio-broadcasting or television)( 8525.10) and transmission
apparatus incorporating reception apparatus( 8525.20) is being reduced from 25%
to 15%. The basic customs duty on Digital still image video cameras (8525.40) is
being reduced from 20% to 15%.( S. Nos. 286 and 288 of notification No. 17/ 2001
and relevant bill entries refer).
85.6 The basic customs duty on Flat panel displays of a kind used in
automatic data processing machines and telecommunication apparatus (8531.80) and
parts of indicator panels incorporating Liquid Crystal Devices or Light Emitting
Diodes( 8531.90) is being reduced from 20% to 15%.( S. Nos. 293 and 294 of
notification No. 17/ 2001 –Customs refer). The basic customs duty on Power
Capacitors (8532.10) is being reduced from 35% to 15% and the basic customs duty
on Aluminium electrolytic fixed capacitors, (8532.22), ceramic dielectric,
single layer fixed capacitors( 8532.23), Fixed capacitors containing a
dielectric of paper or plastics( 8532.25), Other types of fixed capacitors(
8532.29) and variable or adjustable( pre-set) capacitors( 8532.30) is being
reduced from 20% to 15%. (relevant bill entries refer). 85.7 The basic customs
duty on specified Electronic/ Electromechanical Switches (8536.50), Plugs and
Sockets for co-axial cables and printed circuits (8536.69), Connection and
contact elements for wires and cables (8536.90), specified parts of goods of
heading 85.36( 8538.90), Proximity cards and tags( 8543.81), Electrical machines
with translation or dictionary functions( 8543.89), specified parts of goods of
heading No. 85.43 and specified Electric conductors used for telecommunication
applications( 8544.41 or 8544.49 and 8544.51) is being reduced from 20% to 15%.
(S. Nos. 297,298,
299,300,302,304,306,307 and 308 of notification No. 17/ 2001-Customs and
relevant bill entry refer).
85.8 The concessional rates of duty for specified raw materials for the
electronics industry is being continued and there is no change in the duty rate
structure (refer notification No. 25/ 99-Customs). However, there are minor
technical changes by way of amendments in some of the existing entries in List A
of the said notification (S. No. notification No. 20/ 2001-Customs refers).
Chapter 86
86.1 No change has been made in this Chapter.
Chapter 87
87.1 Tariff rate of basic customs duty on all goods covered by
heading Nos. 87.03 and 87.11 (motor cars and other motor vehicles; motor cycles
and side
cars, etc.) is being raised from 35% to 105%. However, the effective rate of
basic customs duty on new motor vehicles (including those presented unassembled
or dis-assembled)
of heading Nos. 87.03 and 87.11 is being prescribed at 35%. In other words, the
tariff rate will apply in respect of second hand (used) vehicles. (relevant
bill entries and S. Nos. 314 and 315 of Notification No. 17/ 2001-Customs refer)
Chapter 88
88.1 Exemption from basic customs duty on aeroplanes, helicopters,
simulators of aeroplanes and gliders is being withdrawn and they will now be
charged to basic customs duty of 3%. These goods will be exempt from special
additional duty of customs (S. No. 316 of Notification No. 17/ 2001-Customs and
S. No. 36 of Notification No. 18/ 2001-Customs respectively, refers)
Chapter 89
89.1 Exemption from basic customs duty on all goods covered under
heading Nos. 89.01, 89.02, 89.04, 8905.10 and 8905.90 is being withdrawn and
they will now be charged to basic customs duty of 5%. These goods will be exempt
from special additional duty of customs (S. No. 322 of Notification No. 17/
2001-Customs and S.No. 37 of Notification No. 18/ 2001-Customs respectively,
refers) 89.2 Exemption from basic customs duty and additional duties of customs
for goods of heading No. 89.06 continues. (S. No. 323 of Notification No. 17/
2001- Customs)
Chapter 90 (Medical Equipment)
90.1 There is no change in the customs duty rate structure for
medical equipments. The basic customs duty exemption in respect of life saving/
sight saving medical equipment and other specified medical equipment and their
parts/ spares accessories is being continued (S. Nos. 348,349,351 and 352 of
notification No. 17/ 2001-Customs refer). The concessional basic customs duty of
15% on specified medical equipments and their parts/ spares and accessories is
being
continued (S. No. 254 of notification No. 17/ 2001-Customs refers). The existing
exemption in respect of specified medical equipments is also being extended to
include other goods which are specified in the Lists appended to the
notification (S. Nos. 254,348,351 and 352 of notification No. 17/ 2001-Customs
refer). However, the basic customs duty on Linear accelerator with beam energy
15 MeV and above and Hospital Equipment( equipment, apparatus and appliances,
including spare parts
and accessories thereof, but excluding consumable items) for use in specified
hospitals, is being raised from Nil to 5% ad-valorem; however, these will be
exempt from Special Additional duty of Customs. (S. Nos. 346 and 347 of
notification No. 17/ 2001 and S. Nos. 38 and 41 of notification No. 19/ 2001
refer).
90.2 The scope of customs duty exemption available to specified medical
equipments (S. Nos. 351 and 352 of notification No. 17/ 2001-Customs refer), is
being restricted to their specific use in ophthalmic and ENT applications
respectively. It is clarified that if the specified equipments are used in
multiple applications in addition to their use in Ophthlamic and ENT
applications respectively, the benefit of the exemption to such equipment is not
to be denied.
90.3 In addition to this there are certain technical changes in the
description of certain medical equipments. (Item no. 46 in List 29 of
notification No. 17/ 2001-Customs, Item No. 126 in List 21( C) of notification
No. 17/ 2001-Customs and Item No. 8 in List 29 of notification No. 17/
2001-Customs refer). The corrections are technical in nature. Concessions for
the past should not be denied merely because corrections have been made now.
Chapter 90 (Other items)
90.4 Digital cameras have been included in the list of exempted items
for import by accredited press cameraman (S. No. 336 of Notification No. 17/
2001-Customs refers).
90.5 The period for availing the exemption and for use/ retention of such goods
by an accredited press cameraman or accredited journalist has been reduced from
five years to two years. (S. Nos. 336 and 337 and condition Nos. 73 and 74,
respectively refer)
90.6 Effective rate of basic customs duty on cinematographic cameras and
projectors, whether or not incorporating sound recording or reproducing
apparatus
(heading 90.07) apparatus and equipment for photographic (including
cinematographic) laboratories and negatoscopes and their parts and accessories
(sub-heading Nos. 9010.10, 9010.50 and 9010.90) has also been reduced from 25%
to 15%. (S. No. 345 of Notification No. 17/ 2001-Customs refers)
Chapter 91
91.1 Certain changes in the description (dimensional specifications)
of horological raw materials used in manufacture of wrist watches have been
made. (S. No. 176 and item Nos. 6, 12, 21, 22 and 47 of list 4 of Notification
No. 17/ 2001-Customs refer)
Chapter 92 to 93
No change has been made in these Chapters.
Chapter 94
94.1 The effective rate of basic customs duty on lamps and lighting
fittings imported for use in sports or games stadia, by the Sports Authority of
India or by a National or State level Sports Federation/ Association recognised
by the Central Government or a State Government or a Union territory has been
reduced to 15%.
(S. No. 358 of Notification No. 17/ 2001-Customs refers)
Chapter 95
No change has been in this Chapter.
Chapter 96
96.1 The effective rate of basic customs duty on parts of pens such
as refills for ball point pens, pen nibs and nib points and other parts of pens
of all kinds, including pen-holders (sub-heading Nos. 9608.60, 9608.91 and
9608.99) have been reduced to 15% (S. No. 364 of Notification No. 17/
2001-Customs refers)
Chapter 98
98.1 Baggage has been exempted from SAD. The total effective duty on
baggage has been fixed at 60% adv. and in the case of specified articles under
Transfer of Residence Rules, the same has been kept at 35%. (Notification Nos.
19/ 2001 –Customs, 20/ 2001-Customs and 26/ 2001-Customs refer) Miscellaneous
1. Courier Imports and Exports (Clearance) Regulations, 1998 has been
amended so as to enhance the value limit for commercial samples for export from
Rs. 10000/-to Rs. 50000/-. [Notification No. 9/ 2001-Customs (N. T.) refers].
2. The rate of interest on warehoused goods under section 61 (2) of the Customs
Act, 1962 has been prescribed at a flat rate of 24% per annum. This is effective
from 16.3.2001. the trade and importers may be suitably apprised of this change
as the graded rate of interest stands abolished from 16.3.2001.[ Notification
No. 10/ 2001-Customs (N. T.) refers]
AMENDMENTS IN SECTION 3 OF THE CUSTOMS TARIFF ACT:
Section 3 of the Customs Tariff Act is proposed to be amended vide
clause 110 of the Finance Bill, 2001. A proviso is being incorporated in the
sub-section (1) so that in the case of alcoholic liquor for human consumption,
the Central Government would have the powers to specify the rate of additional
duty on these goods by notification. This would enable the charging of
additional duty on these goods at a uniform rate even though the rates of State
excise may be different.
Another important amendment made in section 3 relates to the valuation (for
the purposes of additional duty) of packaged commodities imported into India. In
the case of such goods the value would be computed on the basis of their maximum
retail price in India. The provision is applicable to goods: (a) where it is the
requirement either of the Standards of Weights and Measures Act or any other law
to declare the retail sale price on the package (before clearance for home
consumption); and (b) like goods manufactured in India are notified under
section 4A of the Central Excise Act.
In such cases, the value of the goods would be the maximum retail price
(declared on the package) minus the abatement notified for like domestic goods
under section 4A. Both these provisions have been declared under the Provisional
Collection of Taxes Act and shall come into force on the 1 st of March, 2001.
AMENDMENTS IN SECTIONS 8B AND 9A OF THE CUSTOMS TARIFF
ACT:
Clause 112 of the Finance Bill, 2001 amends section 8B of the Customs Tariff Act. The proviso to be added to sub-section (1) would empower the Central Government to exempt (either partially or fully) specified quantity of any goods imported from any country or territory from safeguard duty. It has also been proposed to amend this section so that any notification imposing safeguard duty, whether provisional or final, would not apply to goods imported by a 100% export-oriented undertaking, a unit in a free trade zone or special economic zone, unless it specifically states so. A similar amendment has been made in section 9A with regard to anti-dumping duty.
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