Customs –Non Tariff
BUDGET ANALYSIS 2016-17
NEW NOTIFICATION ISSUED UNDER CUSTOMS
BAGGAGE RULES ( Notification 30/2016-Cus-N.T. dated 29.02.2016 and 31/2016 –Cus N.T. dated 01.03.2016)
 New baggage Rules 2016 replaced old Rules
 Passengers arriving from countries other than Nepal Bhutan or Myanmar will be allowed clearances
without payment of duty for used personal effects excluding Jewellery, travel souvenirs other than
followings upto Rs.50,000/- per persons and Rs.15,000/- per infants for used personal effects.






Fire arms.
Cartridges of fire arms exceeding 50.
Cigarettes exceeding 100 sticks or cigars exceeding 25 or tobacco exceeding 125 gms.
Alcoholic liquor or wines in excess of two litres.
Gold or silver in any form other than ornaments.
Flat Panel (Liquid Crystal Display/Light-Emitting Diode/ Plasma) television.
 Passengers arriving from Nepal, Bhutan and Myanmar will be allowed clearances without payment of duty
for used personal effects excluding Jewellery, travel souvenirs other than followings upto Rs.15,000/- per
persons and used personal effects for infants.
 Fire arms.
 Cartridges of fire arms exceeding 50.
BUDGET ANALYSIS 2016-17




Cigarettes exceeding 100 sticks or cigars exceeding 25 or tobacco exceeding 125 gms.
Alcoholic liquor or wines in excess of two litres.
Gold or silver in any form other than ornaments.
Flat Panel (Liquid Crystal Display/Light-Emitting Diode/ Plasma) television.
 Passenger residing abroad more than 1 year will be allowed to duty free clearances upto 20 gm with value
cap of Rs. 50,000/- for male passenger and 40gm for with value cap of Rs. 1 lakh for lady passenger.
 Person residing abroad and transferring the residence permanently are allowed to carry articles duty free
as allowed in the schedule.

Declaration is required to be filed by the passenger who come to India and have anything to declare or
carrying dutiable or prohibited goods
 Customs duty free allowance is as follows:
Eligible passenger
Origin country
Duty free allowance
Passengers of Indian origin and
foreigners residing in India, excluding
infants
Tourists of foreign origin,
excluding infants
Other than Nepal, Bhutan,
Myanmar
Rs 50, 000/-
Rs 15,000/-
BUDGET ANALYSIS 2016-17
Passengers of Indian origin and foreigners
residing in India, excluding infants
Tourists of foreign origin, excluding infants
Nepal, Bhutan, Myanmar
By air Rs. 15,000/By land - Nil
Indian
passenger who
has been
residing
abroad for
over one year
All passengers
Anywhere
Gold jewellery:
Gentleman – 20 gms with a value cap of Rs.
50,000/Lady – 40 gms with a value cap of Rs. 1,00,000/-
Anywhere
Alcohol liquor or wine: 2 litres
All passengers
Anywhere
Cigarettes: 200 numbers or Cigars upto 50 or
Tobacco 250 grams
Passenger of 18 years and above
Anywhere
One laptop computer (note book computer)”.
Anywhere Gold
jewellery:
Gentleman
Customs (Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2016
(IGCRD) Notification No. 32/2016 - Customs (N. T.) dated 1st March, 2016
 Earlier Rules are totally replaced. New Rules will be effective from 01st April 2016
BUDGET ANALYSIS 2016-17
 This Rule will be applicable when importer being manufacturer intends to avail exemption on goods as
notified under section 25(1) of the Customs Act, 1962 for the manufacture of excisable commodity
 Only information is required to be furnished to Deputy Commissioner of central Excise giving details of
name and address of the manufacturer, excisable goods which are produced in the factory and having
registration under Rule 9 of the Central Excise Rule 2002 with the description and nature of the imported
goods to be used in the said manufactured product and port of impotation.
 Manufacturer needs to furnish yearly estimated quantity and value of to be imported goods alongwith
exemption notification number
 Manufacturer needs to furnish the continuity bond with surety or security with AC/DC of central Excise.
Deputy Commissioner of central Excise will forward the copy of information so received to Deputy
Commissioner of Customs
 Manufacturer have to filed the information on receipt of goods in the factory within two days
 Manufacturer maintain the records w.r.t. quantity and value of goods imported, goods consumed, goods
re-exported and stock and produce the same whenever require by AC/DC of central excise and also submits
quarterly return on or before 10th day of following quarter
 Re-export or clearance of unutilized or defective goods will be allowed to be re-exported within 3 months
from the date of export subject of value should not be lowered than of import. It is required to be cleared
for home consumption or violation of the provisions of the Rules, differential duty alongwith interest will
be paid.
BUDGET ANALYSIS 2016-17
BUDGET ANALYSIS 2016-17
Notification No. 33/2016 - Customs (N. T.) dated 1st March, 2016 (Effective from 01st April 2016)
 Rate of interest is notified as 15% p.a.
BUDGET ANALYSIS 2016-17
INDIRECT TAX DISPUTE RESOLUTION SCHEME, 2016
 It will be applicable for all the disputes pending before Commissioner (Appeals) as on 01.03.2016 and will
be valid upto 31.12.2016.
 Applicable for dispute related to Central Excise, Customs and Service Tax matters.
 Assistant Commissioner / Deputy Commissioner will be designated authority under the scheme as notified.
 Declaration needs to be filed by the declarant (Appellant) opting for such scheme in the prescribed format.
 Declarant (Appellant) will have to discharge duty liability along with interest and 25% penalty within 15
days after declaration is filed and acknowledged.
 Submit the proof of payment within 7 days from the date of payment.
 Designated authority will pass an order of discharging the dues
 Provision of this scheme is not applicable if,
(a) the impugned order is in respect of search and seizure proceeding; or
(b) prosecution for any offence punishable under the Act has been instituted before the 1st day of
June, 2016; or
(c) the impugned order is in respect of narcotic drugs or other prohibited goods; or
BUDGET ANALYSIS 2016-17
(d) impugned order is in respect of any offence punishable under the Indian Penal Code, the Narcotic
Drugs and Psychotropic Substances Act, 1985 or the Prevention of Corruption Act, 1988; or
(e) any detention order has been passed under the Conservation of Foreign Exchange and Prevention
of Smuggling Act, 1974.
 After getting the discharge order, Appeals before Commissioner (Appeals) will be stand disposed and
immunity from other proceedings will be granted.
 No re-opening of discharge order is permitted.
 No refund also will be granted after the payment by the declarant.
 Such declaration & discharge order will not be considered merit and will not have any binding effect.
 Central Govt will make necessary rules in this regard.
BUDGET ANALYSIS 2016-17
CUSTOMS TARIFF ACT 1975
CUSTOMS TARIFF ACT 1975
BUDGET ANALYSIS 2016-17
CUSTOMS TARIFF ACT 1975
Sec No. / R
No.
Amendment
Effective Date
8C
From the date of
Ascent of
President of India
Provision
Power of
Govt to
transitional
products
safe guard
imports
people of
of China
Central
impose
specific
duty on
from
republic
Existing Provision
Power of Central Govt to impose
transitional products specific safe
guard duty on imports from people
of republic of China
Amendment in Existing / New
Provision
Deleted
Analysis
Since this provision was
redundant,
is
being
omitted
AMENDMENT IN THE FIRST SCHEDULE TO THE CUSTOMS TARIFF ACT, 1975
Sr. No.
Amendment
A
Amendments not affecting rates of duty (effective from 01.01.2017)
1
Editorial changes in the Harmonized System of Nomenclature (HSN) in certain chapters are being incorporated in the First
Schedules, to be effective from 01.01.2017
2
To:
1) Amend supplementary notes (e) and (f) Chapter 27 so as to change the reference:
a) from IS:1460:2000 to IS:1460:2005 for high speed diesel (HSD) and
b) from IS:1460 to IS: 15770:2008 for light diesel oil (LDO);
2) Substitute Tariff line 5901 39 10 with description “Warp pile fabrics, uncut” in place of tariff line 5801 37 11 [with
description Warp pile fabrics „epingle‟ uncut velvet] and 5801 37 19 [with description Warp pile fabrics „epingle‟ uncut
other];
3) Prescribe separate tariff lines for laboratory created or laboratory grown or manmade or cultured or synthetic
diamonds;
4) Delete Tariff line 8525 50 50, relating to Wireless microphone.
B.
Amendments affecting rates of duty (with effect from 1st March 2016)
3
Articles of rubber
Natural latex rubber made balloons falling under specified headings
BUDGET ANALYSIS 2016-17
From
To
10%
20%
CUSTOMS TARIFF ACT 1975
4
5
6
7
8
Metals
Primary aluminium
Zinc alloys
Jewellery
Imitation jewellery
Renewable Energy
Industrial solar water heater
Capital goods and parts thereof
Increase in the tariff rate of BCD for 211 specified tariff lines in Chapters
84, 85 and 90. Out of which:
a) On 96 specified tariff lines, the effective rate is being increased from
7.5% to 10%.
b) On remaining 115 tariff lines the effective rate will remain unchanged
at 7.5%.
BUDGET ANALYSIS 2016-17
5%
5%
7.5%
7.5%
10%
15%
7.5%
10%
7.5%
10%
7.5%
10%
7.5%
7.5%
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
85
Existing Description of
goods / Existing
Provision
Packaged Software or
Canned Software
New Description of goods
(if applicable) / Existing
Provision
Information Technology
Software
Existing
Duty
Rate
12%
New
Duty
Rate
Nil
Effective
Date
Notification
No. and Date
01/03/16
12/2016
Dt. 01/03/16
12/2016
Dt. 01/03/16
12/2016
Dt. 01/03/16
08013100
Cashew nuts in shell
Cashew nuts in shell
Nil
5%
01/03/16
22072000
Ethyl Alcohol & other
spirits denatured, of any
strength.
Denatured Ethyl Alcohol
(Ethanol) for use in
manufacture of excisable
goods.
5%
2.5%
01/03/16
25051011,
25051012,
25051019
2701 11 00
2701 12 00
2701 19
Crude
or
Sulphur
Silica Sands
5%
2.5%
01/03/16
12/2016
Dt. 01/03/16
All goods (Anthracite,
Bituminous & Other
Coals)
All
goods
(Anthracite,
Bituminous & Other Coals)
2.5%
2%
01/03/16
12/2016
Dt. 01/03/16
2701, 2702,
2703
Coal, Briquettes, ovoids&
similar
solid
fuels,
Lignites, Peat
Coke & Semi-Coke of
Coal, of Lignite/Peat,
Coal, Briquettes, ovoids&
similar solid fuels, Lignites,
Peat
Coke & Semi-Coke of Coal,
of
Lignite/Peat,
2.5%
10%
10%
10%
2.5%
01/03/16
12/2016
Dt. 01/03/16
5%
01/03/16
12/2016
Dt. 01/03/16
2704, 2705
and 2706
unrefined
BUDGET ANALYSIS 2016-17
Remark
CVD on imported media with recorded
Information Technology Software is exempted
on so much value as is equivalent to the value
of the Information Technology Software
recorded on the said media which is leviable to
Service tax under Finance Act, 1994. (Right to
use the goods). Earlier CVD was exempted
only on the value of Packaged & Canned
Software on which Service Tax was charged.
Declaration in Annexure-I to be provided.
BCD exemption on Cashew Nuts in Shell
withdrawn.
New Serial No. 96A added for reduction of BCD
from 5% to 2.5% on Ethanol for use in
manufacture of excisable goods and
proceduresfor actual user condition under
Customs (Import of Goods at Concessional
Rate of Duty for Manufacture of Excisable
Goods) Rules, 1996 to be followed (Condition
No. 5).
BCD is reduced from 5% to 2.5%
Only on Anthracite, Bituminous & Other Coals,
BCD is reduced from 2.5% to 2%. BCD on
Coking Coal & Steam Coal will remain @ 2.5%
(New Serial No. 121B to Notn No 12/2012 Cus
inserted).
BCD from 10% to 2.5% is rationalized to 2.5%
(New Serial No. 121C to Notn No 12/2012 Cus
inserted).
BCD is rationalized from 10% to 5% (New Serial
No. 121D to Notn No 12/2012 Cus inserted).
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
Coal/Water/Producer
Gas other than Petro
Gas, Tar distilled from
Coal / lignite / peat.
Oils & Other Products of
the distillation of high
temperature of coal tar.
Pitch & pitch coke
obtained from coal tar.
New Description of goods
(if applicable) / Existing
Provision
Coal/Water/Producer Gas
other than Petro Gas, Tar
distilled from Coal / lignite
/ peat.
Oils & Other Products of
the distillation of high
temperature of coal tar.
Pitch & pitch coke obtained
from coal tar.
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
10%
2.5%
01/03/16
12/2016
Dt. 01/03/16
5%
5%
01/03/16
12/2016
Dt. 01/03/16
28
Phosphoric acid, for the
manufacture of fertilizers
Phosphoric acid, for the
manufacture of fertilizers
5%
5%
01/03/16
12/2016
Dt. 01/03/16
28
Anhydrous ammonia, for
the manufacture of
goods
falling
under
Chapter 31, for use as
fertilizers
Anhydrous ammonia, for
the manufacture of goods
falling under Chapter 31,
for use as fertilizers
Nil
Nil
01/03/16
12/2016
Dt. 01/03/16
28
Aluminum oxide for use
in
manufacture
of
washcoat
Aluminum oxide for use in
manufacture of washcoat
7.5%
5%
01/03/16
12/2016
Dt. 01/03/16
2707
2708
BUDGET ANALYSIS 2016-17
Remark
BCD from 10% to 2.5% is rationalized to 2.5%
(New Serial No. 121E to Notn No 12/2012 Cus
inserted).
BCD from 2.5% to 5% is rationalized to 5%
(New Serial No. 121F to Notn No 12/2012 Cus
inserted). Old Serial No. 122 (2.5%), 122A (2%),
123 (2.5%), 124 (2.5%), 124A (2.5%), 125 (5%),
126 (2.5%), 126A (5%), 126B (2.5%) and 126C
(5%) are being omitted& hence for some of the
products BCD is increased from 2.5% to 5% in
view of rationalization of BCD.
Procedures for actual user condition under
Customs (Import of Goods at Concessional
Rate of Duty for Manufacture of Excisable
Goods) Rules, 1996 to be followed (Condition
No. 5) for Serial No. 151 of Notf No. 12/2012
Cus.
Procedures for actual user condition under
Customs (Import of Goods at Concessional
Rate of Duty for Manufacture of Excisable
Goods) Rules, 1996 to be followed (Condition
No. 5) for Serial No. 152 of Notf No. 12/2012
Cus.
Procedures for actual user condition under
Customs (Import of Goods at Concessional
Rate of Duty for Manufacture of Excisable
Goods) Rules, 1996 to be followed (Condition
No. 5) for Serial No. 152 of Notf No. 12/2012
Cus.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
2844
Existing Description of
goods / Existing
Provision
Medical
use
fission
Molybdenum-99
(Mo99), if imported by Board
of Radiation and Isotope
Technology (BRIT) for use
in the manufacture of
radio pharmaceuticals
New Description of goods
(if applicable) / Existing
Provision
Medical
use
fission
Molybdenum-99 (Mo-99),
if imported by Board of
Radiation and Isotope
Technology (BRIT) for use
in the manufacture of radio
pharmaceuticals
Existing
Duty
Rate
7.5%
New
Duty
Rate
Nil
Effective
Date
Notification
No. and Date
01/03/16
12/2016
Dt. 01/03/16
New Serial No. 163A to Notfn. No. 12/2012 Cus
inserted for exemption BCD from 7.5%.
Procedures for actual user condition under
Customs (Import of Goods at Concessional
Rate of Duty for Manufacture of Excisable
Goods) Rules, 1996 to be followed (Condition
No. 5).
2901, 2902
(except
2902 43 00,
2902 50 00)
All goods i.e. Acyclic
Hydrocarbons & Cyclic
Hydrocarbons except pXylene & Styrene.
All goods i.e. Acyclic
Hydrocarbons & Cyclic
Hydrocarbons except pXylene & Styrene.
5% / Nil
/ 2%
2.5%
01/03/16
12/2016
Dt. 01/03/16
38249032,
85051190
Ferrite
Powder
and The following goods for use
Electro & Permanent in the manufacture of
Magnets.
Brushless Direct Current
(BLDC) motors, namely:(i) Magnet Resin (Strontium
Ferrite compound/before
formed,
before
magnetization);
(ii) Neodymium Magnet
(before Magnetization)
Capacitor
grades Capacitor
grades
polypropylene granules polypropylene granules or
or
resins
for
the resins for the manufacture
manufacture of capacitor of capacitor grade plastic
7.5%
2.5%
01/03/16
12/2016
Dt. 01/03/16
BCD rationalized from 5% to 2.5% by inserting
Sr. No. 172A. Sr. No. serial numbers 173A,
173B, 173C, 173D, 173E and 176 and the
entries relating thereto shall be omitted. BCD
under Sr. No. 174 (Para-Xylene Nil and Sr. No.
175 Styrene 2% will remain unchanged. In
view of this, under Sr. No. 173, Chapter
Heading No. 2903 (except 2903 11 10, 2903 12
00, 2903 13 00, 2903 22 00) or 2904 is
substituted since Chapter Heading 2901 &
2902 is now included under new Sr. No. 172A.
New Sr. No. 230B to Notfn. No. 12/2012 Cus
added reducing BCD from 7.5% to 2.5% with
Actual User Condition & Procedure under
Customs (IGCRof Duty for Manufacture of
Excisable Goods) Rules, 1996 to be followed.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
3902
BUDGET ANALYSIS 2016-17
Remark
New Sr. No. 238A to Notfn. No. 12/2012 Cus
added exemption BCD from 7.5% with Actual
User Condition & Procedure under Customs
(IGCR of Duty for Manufacture of Excisable
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
39069090
40169590,
40169990,
95030090,
95051000,
95059090
44012100,
44012200
47
Existing Description of
goods / Existing
Provision
grade plastic film
Super absorbent polymer
(SAP) imported for use in
the manufacture of adult
diapers
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
7.5%
5%
01/03/16
12/2016
Dt. 01/03/16
All goods, other than
natural rubber latex
made balloons
New Description of goods
(if applicable) / Existing
Provision
film
Super absorbent polymer
(SAP) imported for use in
the manufacture of the
following, namely :(i) adult diapers;
(ii) all goods falling under
chapter heading 9619
(Sanitary
Towels
&
tampons, napkins & napkin
liners for babies), other
than adult diapers
All goods, other than
natural rubber latex made
balloons
10%
20%
01/03/16
12/2016
Dt. 01/03/16
Wood in chips or
particles, imported for
use in manufacture of
the following, namely:i. paper and paperboard;
ii. newsprint.
Pulp of wood or of other
fibrous
cellulosic
material (excluding rayon
grade wood pulp) when
used
for
the
manufacture of the
following, namely:(i) newsprint;
(ii)
paper
and
paperboard;
Wood in chips or particles,
imported for use in
manufacture
of
the
following, namely:i. paper and paperboard;
ii. newsprint.
Pulp of wood or of other
fibrous cellulosic material
(excluding rayon grade
wood pulp) when used for
the manufacture of the
following, namely :(i) newsprint;
(ii) paper and paperboard;
(iii) adult diapers;
(iv) all goods falling under
5%
Nil
01/03/16
12/2016
Dt. 01/03/16
01/03/16
12/2016
Dt. 01/03/16
Nil
Nil
BUDGET ANALYSIS 2016-17
Remark
Goods) Rules, 1996 to be followed.
Sr. No. 242of Notfn. No. 12/2012 Cusrevised to
include all goods under chapter heading 9619
(Sanitary Towels & tampons, napkins & napkin
liners for babies) with Actual User Condition &
Procedure under Customs (IGCR of Duty for
Manufacture of Excisable Goods) Rules, 1996
to be followed.
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 20% & reduced to 10%
by inserting Sr. No. 254A toNotfn. No. 12/2012
Cusfor all goods except for Natural Rubber
Latex made Balloons.
Sr. No. 259A of Notfn. No. 12/2012
Cusinserted for granting exemption from BCD
with Actual User Condition & Procedure under
Customs (IGCR of Duty for Manufacture of
Excisable Goods) Rules, 1996 to be followed.
Sr. No. 260 of Notfn. No. 12/2012 Cusis revised
to reduced BCD from 10% to 2.5% on Pulp of
wood or of other fibrous cellulosic material for
manufacture of goods under Chapter Heading
9619 (Sanitary Towels & tampons, napkins &
napkin liners for babies) with Actual User
Condition & Procedure under Customs (IGCR of
Duty for Manufacture of Excisable Goods)
Rules, 1996 to be followed.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
(iii) adult diapers;
New Description of goods
(if applicable) / Existing
Provision
chapter heading 9619,
other than adult diapers.
Existing
Duty
Rate
Nil
New
Duty
Rate
Nil
Nil
Nil
Braille Paper
2%
10%
Nil
Effective
Date
Notification
No. and Date
2.5%
Nil
01/03/16
10%
01/03/16
12/2016
Dt. 01/03/16
12/2016
Dt. 01/03/16
48239011
Braille Paper
4911
Plans, drawings
designs
and
Plans, drawings and designs
50,52, 54,
55 or any
other
chapter
Cotton and Elastane
blended printed fabrics,
Cotton and metallic yarn
dyed blended fabrics,
Cotton and spandex and
metallic blended fabrics,
Cotton and Elastane
printed fabric
Cotton and silk lining
fabric,
100%
linen
chambray woven/dyed
fabric, 100% ramie dyed
/blended printed yarn
dyed fabric, Nylon and
spandex lining fabrics,
100% polyester velvet
dyed fabric, Cotton /
Nylon / Embroidery
crochet lace lining fabric
Nylon
66
filament,
Polyester yarn-Anti Static
Filament, Aramid Flame
Retardant Fibre, Para-
Cotton
and
Elastane
blended printed fabrics,
Cotton and metallic yarn
dyed
blended
fabrics,
Cotton and spandex and
metallic blended fabrics,
Cotton and Elastane printed
fabric
Cotton and silk lining fabric,
100%
linen
chambray
woven/dyed fabric, 100%
ramie
dyed
/blended
printed yarn dyed fabric,
Nylon and spandex lining
fabrics, 100% polyester
velvet dyed fabric, Cotton /
Nylon / Embroidery crochet
lace lining fabric
10%
Nil
01/03/16
12/2016
Dt. 01/03/16
Nylon
66
filament,
Polyester yarn-Anti Static
Filament, Aramid Flame
Retardant Fibre, Para-
5%
2.5%
01/03/16
12/2016
Dt. 01/03/16
54021990,
54025200,
55031100,
55031900,
BUDGET ANALYSIS 2016-17
Remark
Added in list 32.
Sr. No. 275 of Notfn. No. 12/2012 Cus is
withdrawn thereby withdrawing exemption of
BCD.
Sr. No. 284A of Notification No. 12/2012Customs inserted exempting Basic Customs
Duty 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 new conditions under 28A. 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.
New Sr. No. 290A is inserted to Notification
No. 12/2012 Cus for reduction in BCD from 5%
to 2.5%.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
55033000,
55041000
New Description of goods
(if applicable) / Existing
Provision
aramid Fibre, Nylon Staple
Fibre, Nylon Anti Static
Staple
fibre,
Modacrylicfibre,
Flame
Retardant Viscose Rayon
Fibre
Solar tempered glass or
solar
tempered
(antireflective coated) glass for
use in manufacture of solar
cells/panels/modules
Existing
Duty
Rate
Preform of Silica for the
manufacture
of
telecommunication grade
optical fibres or optical
fibre cables.
Gold dore bar, having gold
content not exceeding 95%
7113
Existing Description of
goods / Existing
Provision
aramid Fibre, Nylon
Staple Fibre, Nylon Anti
Static
Staple
fibre,
Modacrylicfibre, Flame
Retardant Viscose Rayon
Fibre
Solar tempered glass or
solar tempered (antireflective coated) glass
for use in manufacture of
solar
cells/panels/modules
Preform of Silica for the
manufacture
of
telecommunication
grade optical fibres or
optical fibre cables.
Gold dore bar, having
gold
content
not
exceeding 95%
Silver dore bar having
silver
content
not
exceeding 95%
Imitation Jewellery
74040022
Brass scrap
Brass scrap
7608
or
76090000
All Goods
Products)
790120
Zinc Alloys
70
70 or 90
71
71
(Aluminum
New
Duty
Rate
Effective
Date
Notification
No. and Date
Nil
5%
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 305A is inserted to Notification
No. 12/2012 Cus for increase in BCD from Nil
to 5%.
Nil
10%
01/03/16
12/2016
Dt. 01/03/16
Sr. No. 306 of Not. No. 12/2012 Cus omitted
thereby withdrawing the exemption of BCD.
8%
8.75
%
01/03/16
12/2016
Dt. 01/03/16
CVD is increased from 8% to 8.75% (Sr. No. 318
of Not. No. 12/2012 Cus).
7%
7.75
%
01/03/16
12/2016
Dt. 01/03/16
CVD is increased from 7% to 7.75% (Sr. No. 320
of Not. No. 12/2012 Cus).
10%
15%
01/03/16
5%
2.5%
01/03/16
12/2016
Dt. 01/03/16
12/2016
Dt. 01/03/16
All Goods
7.5%
10%
01/03/16
12/2016
Dt. 01/03/16
Zinc Alloys
5%
7.5%
01/03/16
12/2016
Silver dore bar having silver
content not exceeding 95%
BUDGET ANALYSIS 2016-17
Remark
New Sr. No. 335C is inserted to Not. No.
12/2012 Cus for reducing the BCD from 5% to
2.5%
Sr. No. 339 of Notification No. 12/2012 Cus
omitted and hence BCD is increased from 7.5%
to 10%.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
New Description of goods
(if applicable) / Existing
Provision
Existing
Duty
Rate
84 or any
other
Chapter.
Goods specified in List 13
required in connection
with
petroleum
operations undertaken
under
petroleum
exploration licenses or
mining leases, as the
case may be, issued or
renewed after the 1st of
April, 1999 and granted
by the Government of
India or any State
Government to the Oil
and
Natural
Gas
Corporation or Oil India
Limited on nomination
basis
Goods specified in List 34
required in connection
with:
(a) petroleum operations
undertaken
under
petroleum exploration
licenses or mining leases,
granted
by
the
Government of India or
any State Government to
the Oil and Natural Gas
Corporation or Oil India
Limited on nomination
basis,
(b) petroleum operations
Goods specified in List 13
required in connection with
petroleum
operations
undertaken
under
petroleum
exploration
licenses or mining leases, as
the case may be, issued or
renewed after the 1st of
April, 1999 and granted by
the Government of India or
any State Government to
the Oil and Natural Gas
Corporation or Oil India
Limited on nomination
basis
Goods specified in List 34
required in connection
with:
(a) petroleum operations
undertaken
under
petroleum
exploration
licenses or mining leases,
granted by the Government
of India or any State
Government to the Oil and
Natural Gas Corporation or
Oil India Limited on
nomination basis,
(b) petroleum operations
undertaken under specified
84 or any
other
Chapter
New
Duty
Rate
Effective
Date
Notification
No. and Date
Nil
Nil
01/03/16
Dt. 01/03/16
12/2016
Dt. 01/03/16
Nil
Nil
01/03/16
12/2016
Dt. 01/03/16
BUDGET ANALYSIS 2016-17
Remark
Sr. No. 339 of Notification No. 12/2012 Cus
omitted to merge it with new Serial No. 357A
and in view of this, the exemption of BCD &
CVD will still continue. New Condition No. 40A
is inserted to Notification No. 12/2012 Cus.
New Serial No. 357A is inserted to Notn. No.
12/2012 Cus for exemption of BCD & CVD
cover all exemptions on Petroleum Operations
undertaken under Specified Contracts, under
New Exploration Licensing Policy, Marginal
Field Policy, Coal Bed Methane Operations
undertaken under Specified Contracts under
Coal Bed Methane Policy under one Serial
Entry and in view of this Serial numbers 358,
359, 359A and 360 and the entries relating
thereto are omitted.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
84 or any
other
Chapter
28182090
84, 85 or 90
Existing Description of
goods / Existing
Provision
undertaken
under
specified contracts
(c) petroleum operations
undertaken
under
specified contracts under
the New Exploration
Licensing Policy
(d) petroleum operations
undertaken
under
specified contracts under
the Marginal Field Policy
(MFP)
(e) coal bed methane
operations undertaken
under specified contracts
under the Coal Bed
Methane Policy
Goods specified in List 16
required for construction
of roads
Aluminium Oxide for use
in the manufacture of
washcoat for catalytic
converters
(i) Goods specified in List
17 required for basic
telephone
service,
cellular mobile telephone
service, internet service
or closed users’s group
64 KBPS domestic data
network
via
INSAT
satellite system service
New Description of goods
(if applicable) / Existing
Provision
contracts
(c) petroleum operations
undertaken under specified
contracts under the New
Exploration Licensing Policy
(d) petroleum operations
undertaken under specified
contracts
under
the
Marginal Field Policy (MFP)
(e) coal bed methane
operations
undertaken
under specified contracts
under the Coal Bed
Methane Policy
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
Goods specified in List 16
required for construction of
roads
Aluminium Oxide for use in
the
manufacture
of
washcoat for catalytic
converters
(i) Goods specified in List 17
required
for
basic
telephone service, cellular
mobile telephone service,
internet service or closed
users’s group 64 KBPS
domestic data network via
INSAT satellite system
service
Nil
12.5
01/03/16
12/2016
Dt. 01/03/16
CVD exemption is withdrawn.
7.5%
5%
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 371D is inserted in Not. No.
12/2012 Cus reducing BCD from 7.5% to 5%.
7.5%
to
10%
01/03/16
12/2016
Dt. 01/03/16
Exemption from BCD on the following goods
withdrawn:(a) Soft switches and Voice over Internet
Protocol (VoIP) equipment namely VoIP
phones, media gateways, gateway controllers
and session border controllers;
(b) Optical Transport equipment; combination
of one or more of Packet Optical Transport
Product/Switch(POTP/POTS), Optical Transport
Nil
BUDGET ANALYSIS 2016-17
Remark
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
84, 85 or 90
Existing Description of
goods / Existing
Provision
(ii)
Parts,
for
manufacture of the
goods at (i)
Machinery,
electrical
New Description of goods
(if applicable) / Existing
Provision
(ii) Parts, for manufacture
of the goods at (i)
“Notwithstanding anything
contained in List17, the
exemption shall not apply
to the following goods
falling under 8517, namely:(a) Soft switches and Voice
over Internet Protocol
(VoIP) equipment namely
VoIP
phones,
media
gateways,
gateway
controllers and session
border controllers;
(b)
Optical
Transport
equipment; combination of
one or more of Packet
Optical
Transport
Product/Switch(POTP/POTS
),
Optical
Transport
Network(OTN)
products,
and IP Radios;
(c) Carrier Ethernet Switch,
Packet Transport Node
(PTN)
products,
Multiprotocol
Label
Switching-Transport Profile
(MPLS-TP) products;
(d) Multiple Input /
Multiple Output (MIMO)
and Long Term Evolution
(LTE) Products.;
Machinery,
electrical
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
Remark
Network(OTN) products, and IP Radios;
(c) Carrier Ethernet Switch, Packet Transport
Node (PTN) products, Multiprotocol Label
Switching-Transport
Profile
(MPLS-TP)
products;
(d) Multiple Input / Multiple Output (MIMO)
and Long Term Evolution (LTE) Products.‖;
7.5%
Nil
01/03/16
12/2016
BUDGET ANALYSIS 2016-17
New Sr. No. 272A to Notfn. No. 12/2012 Cus
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
84, 85 or 90
8536 20 90
8419 19 20
85 or any
other
Chapter
Existing Description of
goods / Existing
Provision
equipment,
other
instruments and their
parts [except populated
Printed Circuit Boards]
for use in fabrication of
semiconductor
wafer
and Liquid Crystal Display
(LCD)
Machinery,
electrical
equipment,
other
instruments and their
parts [except populated
Printed Circuit Boards]
for use in assembly,
testing, marking and
packaging
of
semiconductor chips
Over Load Protector
(OLP)
and
positive
thermal coefficient for
use in the manufacture
of
refrigerator
compressor falling under
tariff item 8414 30 00
Water heaters, other
than industrial solar
water heaters
The following goods,
namely:(1) Mono or Bi polar
Membrane electrolysers
and
parts
thereof
including
secondary
New Description of goods
(if applicable) / Existing
Provision
equipment,
other
instruments and their parts
[except populated Printed
Circuit Boards] for use in
fabrication
of
semiconductor wafer and
Liquid Crystal Display (LCD)
Existing
Duty
Rate
New
Duty
Rate
Machinery,
electrical
equipment,
other
instruments and their parts
[except populated Printed
Circuit Boards] for use in
assembly, testing, marking
and
packaging
of
semiconductor chips
7.5%
Nil
Over Load Protector (OLP)
and
positive
thermal
coefficient for use in the
manufacture of refrigerator
compressor falling under
tariff item 8414 30 00 and
8536 49 00
Water heaters, other than
industrial
solar
water
heaters
The
following
goods,
namely:(1) Mono or Bi polar
Membrane
electrolysers
and parts thereof including
secondary
brine
7.5%
5%
Effective
Date
Notification
No. and Date
Remark
Dt. 01/03/16
added exempting BCD from 7.5% with Actual
User Condition & Procedure under Customs
(IGCR of Duty for Manufacture of Excisable
Goods) Rules, 1996 to be followed.
01/03/16
12/2016
Dt. 01/03/16
BCD is exempted from 7.5% by inserting New
Sr. No. 372B to Notification No. 12/2012 Cus.
with Actual User Condition under Customs
(IGCR of Duty for Manufacture of Excisable
Goods) Rules, 1996 to be followed.
01/03/16
12/2016
Dt. 01/03/16
BCD is reduced to 5% from 7.5%
7.5%
10%
01/03/16
12/2016
Dt. 01/03/16
BCD increased from 7.5% to 10% for Industrial
Solar Water Heaters.
2.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
BCD is exempted from 2.5%.
BUDGET ANALYSIS 2016-17
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
brine
purification
components,
jumper
switches,
filtering
elements for hydrogen
filters and any other
machinery, required for,
(i) modernization by
using membrane cell
technology,
of
an
existing caustic soda unit
or caustic potash unit, or
(ii) capacity expansion of
an existing caustic soda
unit or caustic potash
unit using membrane cell
technology or
(iii) setting up of a new
caustic unit soda or
caustic potash unit using
membrane
cell
technology;
(2) Membrane and parts
thereof for replacement
of worn out membranes
in an industrial plant
based on membrane cell
technology.
(3) Parts, other than
those mentioned at (2)
above, required
for
caustic soda unit or
New Description of goods
(if applicable) / Existing
Provision
purification components,
jumper switches, filtering
elements for hydrogen
filters and any other
machinery, required for, (i) modernization by using
membrane cell technology,
of an existing caustic soda
unit or caustic potash unit,
or
(ii) capacity expansion of
an existing caustic soda unit
or caustic potash unit using
membrane cell technology
or
(iii) setting up of a new
caustic unit soda or caustic
potash
unit
using
membrane cell technology;
(2) Membrane and parts
thereof for replacement of
worn out membranes in an
industrial plant based on
membrane cell technology.
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
(3) Parts, other than those
mentioned at (2) above,
required for caustic soda
unit or caustic potash unit
using
membrane
cell
technology
BUDGET ANALYSIS 2016-17
Remark
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
84 or 90
8501
(except
8501 64 70,
8501 64 80),
8502
(except
8502 11 00,
8502 20 10,
8502 40 00)
85030010,
85030021 or
85030029
85041010,
85041020 or
85041090
Existing Description of
goods / Existing
Provision
caustic potash unit using
membrane
cell
technology
Disposable
sterilized
dialyzer
and
micro
barrier of artificial kidney
All goods – Electric
Motors & Generators
except of an output
exceeding 137500 kVA
but
Not
exceeding
312500 and of an output
exceeding 312500 kVA.
All goods – Electric
Generating Sets and
Rotary Converters except
of an output exceeding
75 kVA, of an output
exceeding 75kVA but Not
exceeding 375 kVA and
electric rotary converters
Parts
of
generators
(AC/DC), Parts of DC
Motors and Other Parts
suitable for use solely or
principally
with
the
machines of Heading
85.01 or 85.02.
Electric Transformers &
Static Converters of
conventional Type, for
compact
florescent
lamps and for Liquid
New Description of goods
(if applicable) / Existing
Provision
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
Disposable
sterilized
dialyzer and micro barrier
of artificial kidney
All goods – Electric Motors
& Generators except of an
output exceeding 137500
kVA but Not exceeding
312500 and of an output
exceeding 312500 kVA.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
All goods – Electric
Generating Sets and Rotary
Converters except of an
output exceeding 75 kVA,
of an output exceeding
75kVA but Not exceeding
375 kVA and electric rotary
converters
Parts
of
generators
(AC/DC), Parts of DC
Motors and Other Parts
suitable for use solely or
principally
with
the
machines of Heading 85.01
or 85.02.
Electric Transformers &
Static
Converters
of
conventional Type, for
compact florescent lamps
and for Liquid Dielectric
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
BUDGET ANALYSIS 2016-17
Remark
Sr. No. 418A is inserted to Notification No.
12/2012 Cus granting exemption of BCD, CVD
is exempted from Excise Notification.
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
8537
8544
(except
8544 42 91,
8544 42 92,
8544 42 93,
8544 42 99,
85 44 70 10
or 8544 70
90)
8546
8547
9028 90 10,
Existing Description of
goods / Existing
Provision
Dielectric Transformers.
All Goods - Boards,
Panels, Consoles, desks,
cabinets and other bases
equipped with two or
more
apparatus
of
heading 85.35 or 85.36
for electric control or the
distribution of electricity
Insulated wires, cable
and other insulated
electric
conductors
except paper insulated,
plastic insulated, rubber
insulated of a kind used
in a telecommunication
and lead alloy sheathed
cables
for
lighting
purposes.
All goods - Electrical
insulators
of
any
material.
New Description of goods
(if applicable) / Existing
Provision
Transformers.
All Goods - Boards, Panels,
Consoles, desks, cabinets
and other bases equipped
with
two
or
more
apparatus of heading 85.35
or 85.36 for electric control
or the distribution of
electricity
Insulated wires, cable and
other insulated electric
conductors except paper
insulated, plastic insulated,
rubber insulated of a kind
used
in
a
telecommunication
and
lead alloy sheathed cables
for lighting purposes.
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
All goods - Electrical
insulators of any material.
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
All
goods
including
Insulating fittings for
electrical
machines,
appliances or equipment
being fittings wholly of
insulating material apart
from
any
minor
components of metal…
Parts
of
Electricity
All
goods
including
Insulating
fittings
for
electrical
machines,
appliances or equipment
being fittings wholly of
insulating material apart
from
any
minor
components of metal…
Parts of Electricity Meters,
10%
7.5%
01/03/16
12/2016
Dt. 01/03/16
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
As per Clause 138 (i) of the Finance Bill 2016
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
10%
7.5%
01/03/16
12/2016
BUDGET ANALYSIS 2016-17
Remark
As per Clause 138 (i) of the Finance Bill 2016
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
9030 31 00,
9030 90 10,
9032 89 10,
9032 89 90
8523
Any Chapter
Existing Description of
goods / Existing
Provision
Meters,
Multimeterswithout
a
recording device, Parts of
meters
&
counters,
Electronic
Automatic
Regulators
&
Parts
thereof.
Foreign Satellite data on
storage media imported
by National Remote
Sensing Centre (NRSC),
Hyderabad
The following goods,
namely:(i) parts, components
and accessories for the
manufacture of mobile
handsets;
(ii) sub-parts for the
manufacture of items
mentioned at (i) above;
(iii) parts or components
for the manufacture of
battery chargers, PC
connectivity
cables,
Memory
cards
and
hands-free headphones
of mobile
handsets; and
(iv) Sub-parts for the
manufacture of items
mentioned at (iii) above.
Explanation. - For the
New Description of goods
(if applicable) / Existing
Provision
Multimeters without a
recording device, Parts of
meters
&
counters,
Electronic
Automatic
Regulators & Parts thereof.
Existing
Duty
Rate
Foreign Satellite data on
storage media imported by
National Remote Sensing
Centre (NRSC), Hyderabad
10%
The
following
goods, Nil
namely:(i) parts, components and
accessories
excluding
charger or adapter, battery,
wired
Headsets
and
speakers
for
the
manufacture of mobile
handsets;
(ii) sub-parts for the
manufacture
of
items
mentioned at (i) above;
(iii) parts or components
for the manufacture of PC
connectivity
cables,
Memory cards and handsfree headphones of mobile
handsets; and
(iv) Sub-parts for the
manufacture
of
items
mentioned at (iii) above.
New
Duty
Rate
Effective
Date
Notification
No. and Date
Remark
Dt. 01/03/16
the BCD is increased to 10% & reduced to 7.5%
by inserting Sr. No. 422A to 422I to Notfn. No.
12/2012 Cus, which is the earlier effective BCD
rate.
Nil
01/03/16
12/2016
Dt. 01/03/16
BCD, CVD & SAD are exempted vide new Sr.
No. 428B in Notification No. 12/2012 Cus.
10%
01/03/16
12/2016
Dt. 01/03/16
Exemption of BCD & CVD is withdrawn on
charger or adapter, battery, wired Headsets
and speakers for the manufacture of mobile
handsets as well as parts required for
manufacture of battery chargers.
BUDGET ANALYSIS 2016-17
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
85 or any
other
Chapter
85 or any
other
Chapter
85 or any
other
Chapter
85 or any
other
Existing Description of
New Description of goods
goods / Existing
(if applicable) / Existing
Provision
Provision
purposes of this entry, Explanation. - For the
mobile handsets include purposes of this entry,
cellular phones.
mobile handsets include
cellular phones.
(a) Inputs or parts for use (a) Inputs or parts for use in
in
manufacture
of manufacture of charger or
charger or adapter of adapter of mobile handsets
mobile
handsets including cellular phones;
including cellular phones; (b) Inputs or sub-parts for
(b) Inputs or sub-parts use in manufacture of parts
for use in manufacture of mentioned at (a) above.
parts mentioned at (a)
above.
(a) Inputs or parts for use (a) Inputs or parts for use in
in
manufacture
of manufacture of battery of
battery
of
mobile mobile handsets including
handsets
including cellular phones;
cellular phones;
(b) Inputs or sub-parts for
(b) Inputs or sub-parts use in manufacture of parts
for use in manufacture of mentioned at (a) above.
parts mentioned at (a)
above.
(a) Inputs or parts for use (a) Inputs or parts for use in
in manufacture of wired manufacture
of
wired
headsets
of
mobile headsets
of
mobile
handsets
including handsets including cellular
cellular phones;
phones;
(b) Inputs or sub-parts (b) Inputs or sub-parts for
for use in manufacture of use in manufacture of parts
parts mentioned at (a) mentioned at (a) above.
above.
(a) Inputs or parts for use (a) Inputs or parts for use in
in
manufacture
of manufacture of speakers of
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431A inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition. Boot for Make-in-India Initiative.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431B inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431C inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431D inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
BUDGET ANALYSIS 2016-17
Remark
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Chapter
85 or any
other
Chapter
85 or any
other
Chapter
85 or any
other
Chapter
Existing Description of
goods / Existing
Provision
speakers
of
mobile
handsets
including
cellular phones;
(b) Inputs or sub-parts
for use in manufacture of
parts mentioned at (a)
above.
(a) Parts, components
and accessories for use in
manufacture
of
broadband
modem
falling under tariff item
8517 62 30;
(b) Sub-parts for use in
manufacture of items
mentioned at (a) above.
(a) Parts, components
and accessories for use in
manufacture of routers
falling under tariff item
8517 69 30;
(b) Sub-parts for use in
manufacture of items
mentioned at (a) above.
(a) Parts, components
and accessories for use in
manufacture of set top
boxes for gaining access
to internet falling under
tariff item 8517 69 60;
(b) Sub-parts for use in
manufacture of items
mentioned at (a) above.
New Description of goods
(if applicable) / Existing
Provision
mobile handsets including
cellular phones;
(b) Inputs or sub-parts for
use in manufacture of parts
mentioned at (a) above.
Existing
Duty
Rate
New
Duty
Rate
(a) Parts, components and
accessories for use in
manufacture of broadband
modem falling under tariff
item 8517 62 30;
(b) Sub-parts for use in
manufacture
of
items
mentioned at (a) above.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431E inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
(a) Parts, components and
accessories for use in
manufacture of routers
falling under tariff item
8517 69 30;
(b) Sub-parts for use in
manufacture
of
items
mentioned at (a) above.
(a) Parts, components and
accessories for use in
manufacture of set top
boxes for gaining access to
internet falling under tariff
item 8517 69 60; (b) Subparts
for
use
in
manufacture
of
items
mentioned at (a) above.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431F inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431G inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
Effective
Date
Notification
No. and Date
Remark
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
BUDGET ANALYSIS 2016-17
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
85 or any
other
Chapter
85 or any
other
Chapter
85 or any
other
Chapter
85 or any
other
Chapter
Existing Description of
goods / Existing
Provision
(a) Parts, components
and
accessories
for
manufacture of Digital
Video Recorder (DVR)/
Network Video Recorder
(NVR) falling under 85 21
90 90;
(b) Sub-parts for use in
manufacture of items
mentioned at (a) above.
(a) Parts, components
and accessories for use in
manufacture
of
reception apparatus for
television
but
not
designed to incorporate
a video display falling
under tariff item 8528 71
00;
(b) sub-parts for use in
manufacture of items
mentioned at (a) above.
(a) Parts, components
and accessories for use in
manufacture of CCTV
Camera
/IP
camera
falling under 8525 80 20;
(b) sub-parts for use in
manufacture of items
mentioned at (a) above.
(a) Parts, components
and accessories for use in
manufacture of lithium-
New Description of goods
(if applicable) / Existing
Provision
(a) Parts, components and
accessories
for
manufacture of Digital
Video Recorder (DVR)/
Network Video Recorder
(NVR) falling under 85 21
90 90;
(b) Sub-parts for use in
manufacture
of
items
mentioned at (a) above.
(a) Parts, components and
accessories for use in
manufacture of reception
apparatus for television but
not designed to incorporate
a video display falling under
tariff item 8528 71 00;
(b) sub-parts for use in
manufacture
of
items
mentioned at (a) above.
Existing
Duty
Rate
7.5%
New
Duty
Rate
Nil
Effective
Date
Notification
No. and Date
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431H inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431I inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
(a) Parts, components and
accessories for use in
manufacture
of
CCTV
Camera /IP camera falling
under 8525 80 20;
(b) sub-parts for use in
manufacture
of
items
mentioned at (a) above.
(a) Parts, components and
accessories for use in
manufacture of lithium-ion
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431J inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
amended accordingly with Actual User
condition.
7.5%
Nil
01/03/16
12/2016
Dt. 01/03/16
New Sr. No. 431K inserted in Not. No. 12/2012
Cus for granting exemption from BCD, CVD &
SAD and suitable Excise & SAD notification are
BUDGET ANALYSIS 2016-17
Remark
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
New Description of goods
(if applicable) / Existing
Provision
batteries
[other
than
batteries
of
mobile
handsets including cellular
phones] falling under tariff
item 8507 60 00;
(b) Sub-parts for use in
manufacture
of
items
mentioned at (a) above.
Existing
Duty
Rate
Nil
Nil
01/03/16
12/2016
Dt. 01/03/16
Magnetron of up to 1KW
used
for
the
manufacture of domestic
microwave ovens
E-Readers
LCD (Liquid Crystal Display),
LED (Light Emitting Diode)
or OLED (Organic LED)
panels for manufacture of
Television
Magnetron of up to 1.5KW
used for the manufacture
of domestic microwave
ovens
E-Readers
Nil
Nil
01/03/16
12/2016
Dt. 01/03/16
Nil
7.5%
01/03/16
Any Chapter
Raw materials or parts
for use in manufacture of
e-Readers
Raw materials or parts for
use in manufacture of eReaders
7.5%
5%
01/03/16
12/2016
Dt. 01/03/16
12/2016
Dt. 01/03/16
8609 00 00
Refrigerated containers
Refrigerated containers
10%
5%
01/03/16
12/2016
Dt. 01/03/16
Any Chapter
The following goods for
use in the manufacture
of
goods
specified
against S. No. 274 in the
Table to the notification
The following goods for use
in the manufacture of
goods specified against S.
No. 274 in the Table to the
notification
of
the
6%
01/03/16
12/2016
Dt. 01/03/16
8529
8540 71 00
8543
Existing Description of
goods / Existing
Provision
ion batteries [other than
batteries
of
mobile
handsets
including
cellular phones] falling
under tariff item 8507 60
00;
(b) Sub-parts for use in
manufacture of items
mentioned at (a) above.
LCD
(Liquid
crystal
display),
LED
(Light
Emitting Diode) or OLED
(Organic LED) TV panels,
New
Duty
Rate
Effective
Date
Notification
No. and Date
Remark
amended accordingly
condition.
6%
BUDGET ANALYSIS 2016-17
with
Actual
User
Basic Customs Duty exemption on LCD (Liquid
Crystal Display), LED (Light Emitting Diode) or
OLED (Organic LED) panels is being restricted
to imports for manufacture of TVs, subjected
to actual user condition.
Nil Basic Custom Duty is being extended to
magnetron of capacity above 1KW but not
exceeding 1.5 KW used for the manufacture of
domestic microwave ovens.
Exemption of BCD is withdrawn and it will
attract now 7.5% BCD.
New Sr. No. 433C inserted in Notification No.
12/2012 Cus reducing the BCD to 5% from
7.5% to boost the Make-in-India initiative for
manufacture of E-Readers (Hence BCD
exemption of E-reader is withdrawn).
New Sr. No. 435A inserted in Notification No.
12/2012 Cus wherein BCD is reduced to 5%
from 10%.
CVD is withdrawn from Notification No.
12/2012 Cus, however, Central Excise Duty
under S. No. 296 and 297 of the Notification
No. 12/2012-Central Excise dated 17.03.2012
remains at 6% and in effective the CVD
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Any Chapter
Existing Description of
goods / Existing
Provision
of the Government of
India in the Ministry of
Finance ( Department of
Revenue), No. 12/2012Central Excise, dated
17th
march,
2012,
namely:(i) Battery pack;
(ii) Battery Charger;
(iii) AC or DC Motor;
(iv) AC or DC Motor
Controller
The following goods for
use in the manufacture
of
goods
specified
against S. No. 278 in the
Table to the notification
of the Government of
India in the Ministry of
Finance ( Department of
Revenue), No. 12/2012Central Excise, dated
17th
march,
2012,
namely:(i) Battery pack;
(ii) Battery Charger;
(iii) AC or DC Motor;
(iv) AC or DC Motor
Controller;
(v) Engine for HV (
Atkinson cycle);
(vi) Transaxle for HV (
split power device);
New Description of goods
(if applicable) / Existing
Provision
Government of India in the
Ministry of Finance (
Department of Revenue),
No.
12/2012Central
Excise, dated 17th march,
2012, namely:(i) Battery pack;
(ii) Battery Charger;
(iii) AC or DC Motor;
(iv) AC or DC Motor
Controller
Existing
Duty
Rate
The following goods for use
in the manufacture of
goods specified against S.
No. 278 in the Table to the
notification
of
the
Government of India in the
Ministry of Finance (
Department of Revenue),
No.
12/2012Central
Excise, dated 17th march,
2012, namely:(i) Battery pack;
(ii) Battery Charger;
(iii) AC or DC Motor;
(iv) AC or DC Motor
Controller;
(v) Engine for xEV (hybrid
electric vehicle);
(vi) Transaxle for HV ( split
power device);
(vii) Power Control unit (
Nil
New
Duty
Rate
Effective
Date
Notification
No. and Date
Remark
continues to be 6%.
Nil
01/03/16
12/2016
Dt. 01/03/16
BUDGET ANALYSIS 2016-17
Description of Sr. No. 440 (v) is changed from
Engine for HV (Atkinson Cycle) to “Engine for
xEV (Hybrid Electric Vehicle), which will now
cover all the Engine for xEV.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
(vii) Power Control unit (
inverter,
AC/DC
converter, condenser);
(viii) Control ECU for HV,
Generator;
(ix) Brake system for
recovering;
(x) Energy Monitor;
(xi) Electric Compressor
Golf cars
New Description of goods
(if applicable) / Existing
Provision
inverter, AC/DC converter,
condenser);
(viii) Control ECU for HV,
Generator;
(ix) Brake system for
recovering;
(x) Energy Monitor;
(xi) Electric Compressor
88 or any
other
Chapter
Parts
and
testing
equipment,
for
maintenance repair, and
overhauling of aircraft
and parts thereof
Parts, testing equipment,
tools and tool-kits for
maintenance, repair, and
overhauling of aircraft and
parts thereof falling under
heading 8802 by the units
engaged in such activities.
8802
(except
8802 60 00)
Other Aircrafts, except
Spacecrafts and SubOrgibital&
Spacecraft
Launch Vehicles
Other Aircrafts, except
Spacecrafts
and
SubOrgibital&
Spacecraft
Launch Vehicles
8703
Golf cars
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
60%
01/03/16
Nil
Nil
01/03/16
12/2016
Dt. 01/03/16
12/2016
Dt. 01/03/16
Nil
Nil
01/03/16
10%
12/2016
Dt. 01/03/16
BUDGET ANALYSIS 2016-17
Remark
Sr. No. 441 of Not. No. 12/2012 Cus is omitted
and BCD is increased from 10% to 60%.
Sr. No. 448 of Not. No. 12/2012 Cus revised to
include Tool Kits for maintenance & repairs
also for exemption from Basic Customs duty
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 being simplified. Moreover, the
restriction of one year for utilization of duty
free parts [as also the testing equipment, tools
and tool kits] for maintenance, repair and
overhaul of aircraft is being done away with.
Exemption granted from BCD to Spacecrafts
and Sub-Orgibital& Spacecraft Launch Vehicles
withdrawn. 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
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
89 or any
other
Chapter
Existing Description of
goods / Existing
Provision
Capital goods and spares
thereof, raw materials,
parts, material handling
equipment
and
consumables, for repairs
of ocean-going vessels by
a ship repair unit
New Description of goods
(if applicable) / Existing
Provision
Capital goods and spares
thereof, raw materials,
parts, material handling
equipment
and
consumables, for repairs of
ocean-going vessels by a
ship repair unit.
Explanation. – For the
purpose of this entry,
―Ocean going vessels‖
includes(a) liners; cargo-vessel of
various kinds including
refrigerator vessels for the
transport of meat, fruit or
the like, vessels specified
for the transport of
particular goods (grain,
coal, ores or the like);
tankers (petrol, wine or the
like); yachts and other
sailing vessels; cable ships;
ice-breakers;
floating
factories of all kinds (for
processing
whales,
preserving fish or the like)
whale catchers; trawlers
and other fishing vessels;
life
boats,
scientific
research vessels; weather
ships; vessels for the
Existing
Duty
Rate
Nil
New
Duty
Rate
Nil
Effective
Date
01/03/16
Notification
No. and Date
12/2016
Dt. 01/03/16
BUDGET ANALYSIS 2016-17
Remark
India, but not during the stay period for
maintenance, repair or overhaul, servicing.
Sr. No. 459 is revised to put explanation
defining the ocean-going vessels.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
All Chapter
All Chapter
2601 11 21
2601 11 22
2601 11 41
2601 11 42
2610
Existing Description of
goods / Existing
Provision
The value of such bona
fide gifts imported by
post or as air-freight
does not exceed rupees
ten thousand (Noti. No
28/2008
Cus
dated
01/03/2008)
Exemption on goods
required for construction
of or fitment to ships of
Indian Navy Coast Guard
and construction of
aircrafts
or
fitment
therein for defense use.
Iron ore lumps (below
58% Fe content)
Iron ore fines (below
58% Fe content)
Chromium ores and
concentrates, all sorts
New Description of goods
(if applicable) / Existing
Provision
transportation or mooring
of
buoys;
pilot-boats;
hopper barges for the
disposal
of
dredged
material or the like;
(b) war ships of all kinds
including submarines;
(c) tugs, dredgers, firefloats and salvage ships;
and
(d) oil rigs, drilling ships and
jack-up rigs.
in the proviso, for the
words
“rupees
ten
thousand”, the words
“rupees twenty thousand”
shall be substituted
Existing
Duty
Rate
New
Duty
Rate
Nil
Nil
Effective
Date
Notification
No. and Date
Remark
st
13/2016 Cus
01/03/2016
Increase in the limit of the bona fide gifts
imported by post or as air fright.
1 March
2016
st
Withdrawal of exemption
of specified duties on the
goods in the Sr. No 9, 9A,
10, 10A and in paragraph 2,
in item (ix).
Nil
10%
1 April
2016
14/2016 Cus
01/03/2016
Exemption from BCD is withdrawn.
Iron ore lumps (below 58%
Fe content)
Iron ore fines (below 58%
Fe content)
Chromium
ores
and
concentrates, all sorts
30%
Nil
01/03/16
10%
Nil
01/03/16
30%
Nil
01/03/16
15/2016
Dt. 01/03/16
15/2016
Dt. 01/03/16
15/2016
Dt. 01/03/16
Export Duty on Iron Ore Lumps <58% Fe is
exempted to increase the exports.
Export Duty on Iron Ore Fines <10% Fe is
exempted to increase the exports.
Export Duty on all sorts of Chromium Ores &
Concentrates is exempted to increase the
exports.
BUDGET ANALYSIS 2016-17
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
2606 00 10
2606 00 20
Existing Description of
goods / Existing
Provision
Bauxite (natural), not
calcined & calcined
New Description of goods
(if applicable) / Existing
Provision
Bauxite
(natural),
not
calcined & calcined
Existing
Duty
Rate
20%
New
Duty
Rate
15%
Any Chapter
All goods which are
exempt from the whole
of the duty of customs
leviable thereon or in
case of which “Free” or
“Nil” rates of duty of
customs are specified in
column (4) under the
First Schedule to the
Customs Tariff Act, 1975
(51 of 1975) and which
are also exempt from the
whole of additional duty
of
customs
leviable
thereon under subsection (1) of section 3 of
the said Act, or on which
no amount of the said
additional duties of
customs is payable for
any reason
Nil
4%
(on
popul
ate
Print
ed
Circui
t
Boar
ds)
01
March
2016
st
16/2016
Customs
st
dated
1
April 2016
Any Chapter
Inputs or components for
use in the manufacture
of personal computers
(laptop
or
desktop)
including
tablet
computers falling under
All goods, brackets and
letters “except populated
Printed Circuit Boards
(PCBs) of mobile phones
and tablet computer”
which are exempt from the
whole of the duty of
customs leviable thereon
or in case of which “Free”
or “Nil” rates of duty of
customs are specified in
column (4) under the First
Schedule to the Customs
Tariff Act, 1975 (51 of
1975) and which are also
exempt from the whole of
additional duty of customs
leviable thereon under subsection (1) of section 3 of
the said Act, or on which
no amount of the said
additional
duties
of
customs is payable for any
reason
Entry No. 14A has been
omitted.
Nil
4%
01
March
2016
st
16/2016
Customs
st
dated
1
April 2016
Effective
Date
Notification
No. and Date
01/03/16
15/2016
Dt. 01/03/16
BUDGET ANALYSIS 2016-17
Remark
Export Duty on both calcined & non-calcined
Bauxite (Natural) is reduced from 20% to 15%
to increase the exports.
Exemption on SAD has been withdrawn on
populated Printed Circuit Boards (PCBs) for
manufacture mobile phones and tablet
computer.
SAD Exemption withdrawn on Inputs or
components for use in the manufacture of
personal computers (laptop or desktop)
including tablet computers falling under
heading
8471;
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Any Chapter
Existing Description of
goods / Existing
Provision
heading
8471;
New Description of goods
(if applicable) / Existing
Provision
Provided
that
the
exemption under this
notification shall be
subject to condition No.
5 annexed to the
notification No. 12/2012Customs, dated the 17th
March, 2012
All
goods
[except Entry 14D is omitted.
populated Printed Circuit
Boards (PCBs)] required
for
use
in
the
manufacture of the
following, namely,(i). All goods specified
against S.Nos.1 to 68 of
the TABLE to the
notification
of
the
Government of India in
the Ministry of Finance
(Department
of
Revenue), No. 25/1998Customs, dated the 2nd
June, 1998 vide number
G.S.R.290(E), dated the
2nd June, 1998;
(ii). All goods specified
against S.Nos. 1 to 38 of
the
Table
to
the
notification
of
the
Government of India in
Existing
Duty
Rate
New
Duty
Rate
Nil
4%
Effective
Date
Notification
No. and Date
st
16/2016
Customs
st
dated
1
March 2016
1 March
2016
BUDGET ANALYSIS 2016-17
Remark
SAD exemption is withdrawn.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
the Ministry of Finance
(Department
of
Revenue), No. 24/2005Customs dated the 1st
March,
2005
vide
number
G.S.R.122(E),
dated the 1st March,
2005;
(iii). All goods specified
against S.Nos. 1 to 32 of
the
Table
to
the
notification
of
the
Government of India in
the Ministry of Finance
(Department
of
Revenue), No. 25/2005Customs dated the 1st
March,
2005
vide
number
G.S.R.123(E)
dated 1st March, 2005:
Nil
Provided
that
the
exemptions under this
S.No. shall be subject to
Condition No. 5 annexed
to the notification of the
Government of India in
the Ministry of Finance
(Department
of
Revenue), No. 12/2012Customs, dated the 17th
March,
2012
vide
number
G.S.R.185(E)
New Description of goods
(if applicable) / Existing
Provision
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
BUDGET ANALYSIS 2016-17
Remark
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
29024100
Existing Description of
goods / Existing
Provision
dated the 17th March,
2012.
New Entry
84, 85 or 90
New Entry
84, 85 or 90
New Entry
New Description of goods
(if applicable) / Existing
Provision
o-xylene
for
use
in
manufacture of phthalic
anhydride:
Provided
that the importer shall
follow the procedure set
out in the Customs (Import
of Goods at Concessional
Rate
of
Duty
for
Manufacture of Excisable
Goods) Rules, 1996
Machinery,
electrical
equipments,
other
instruments and their parts
[except populated Printed
Circuit Boards] for use in
fabrication
of
semiconductor wafer and
Liquid Crystal Display (LCD)
Provided that the importer
shall follow the procedure
set out in the Customs
(Import of Goods at
Concessional Rate of Duty
for
Manufacture
of
Excisable Goods) Rules,
1996
Machinery,
electrical
equipments,
other
instruments and their parts
[except populated Printed
Circuit Boards] for use in
Existing
Duty
Rate
New
Duty
Rate
4%
2%
1 March
2016
4%
Nil
1
April
2016
4%
Nil
1
April
2016
Effective
Date
Notification
No. and Date
st
16/2016
Customs
st
dated
1
March 2016
SAD on o-xylene when used in manufacture of
phthalic anhydride is reduced to 2% provided
procedure set out in the Customs (Import of
Goods at Concessional Rate of Duty for
Manufacture of Excisable Goods) Rules, 1996.
st
16/2016
st
Customs 1
April 2016
SAD is being exempted on machinery electrical
equipments, other instruments and their parts
[except populated Printed Circuit Boards] for
use in fabrication of semiconductor wafer and
Liquid Crystal Display (LCD) inserted by Sr. No.
st
82A vide Notification No. 16/2016 Customs 1
April 2016.
st
16/2016
st
Customs 1
April 2016
SAD is being exempted on Machinery,
electrical equipments, other instruments and
their parts [except populated Printed Circuit
Boards] for use in assembly, testing, marking
and packaging of semiconductor chips inserted
BUDGET ANALYSIS 2016-17
Remark
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
847330
851770
74
or
Existing Description of
goods / Existing
Provision
New Entry
Resistors.
Capacitors,
Deflection Components,
Thermistors, Varistors
New Description of goods
(if applicable) / Existing
Provision
assembly, testing, marking
and
packaging
of
semiconductor
chips
Provided that the importer
shall follow the procedure
set out in the Customs
(Import of Goods at
Concessional Rate of Duty
for
Manufacture
of
Excisable Goods) Rules,
1996
Populated Printed Circuit
Boards (PCBs) for use in
manufacture of tablet
computers and mobile
handsets including cellular
phones,
Provided that
the importer shall follow
the procedure set out in
the Customs (Import of
Goods at Concessional Rate
of Duty for Manufacture of
Excisable Goods) Rules,
1996
Resistors.
Capacitors,
Deflection
Components,
Thermistors,
Varistors,
“sub-miniature
fuses,
micro fuses, resettable
fuses and thermal fuses”
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
Notification
No. and Date
Remark
by Sr. No. 82B vide Notification No. 16/2016
st
Customs 1 April 2016.
4%
Nil
st
2%
01
March
2016
Nil
1 March
2016
st
16/2016
st
Customs 1
March 2016
SAD is reduced to 2% on Populated Printed
Circuit Boards (PCBs) for use in manufacture of
tablet computers and mobile handsets
including cellular phones provided that the
importer shall follow the procedure set out in
the Customs (Import of Goods at Concessional
Rate of Duty for Manufacture of Excisable
Goods) Rules, 1996
17/2016
st
Customs 1
March 2016
Basic Customs Duty exempted on import of Tin
coated/solder plated copper wire when used
also in manufacture of “sub-miniature fuses,
micro fuses, resettable fuses and thermal
fuses”. Earlier Basic Customs Duty was
exempted when Tin coated/solder plated
copper wire when used in manufacture of
Resistors. Capacitors, Deflection Components,
Thermistors, Varistors.
BUDGET ANALYSIS 2016-17
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
69,70,71,74,
85
Existing Description of
goods / Existing
Provision
Glass cartridges fuses/
ceramic tube fuses/ [OLD
PPTC resettable fuses
New Description of goods
(if applicable) / Existing
Provision
Glass cartridges fuses/
ceramic tube fuses/ [OLD
PPTC resettable fuses,
blade fuses 1 to 40 Amps,
the words “sub-miniature
fuses,
micro
fuses,
resettable
fuses
and
thermal fuses”.
Existing
Duty
Rate
Nil
New
Duty
Rate
Nil
69, 82, 84,
85 or 90
Glass
and
ceramic
cartridge fuses, blade
fuses, automotive fuses
and surface mount
Glass and ceramic cartridge
fuses,
blade
fuses,
automotive fuses, surface
mount fuses, subminiature
fuses,
micro
fuses,
resettable
fuses
and
thermal fuses
Nil
Nil
Effective
Date
Notification
No. and Date
st
17/2016
Customs
st
dated
1
March 2016
st
18/2016
Customs
st
dated
1
March 2016
1 March
2016
1 March
2016
BUDGET ANALYSIS 2016-17
Remark
Basic Customs Duty exempted on import of
Silver Copper Alloy wires; Glass tubes of sizes
between 2 mm to 6mm outside diameter, in
cut lengths upto40mm; Brass Fuse Caps;
Polymeric Positive Temperature Coefficient
Chips; Ceramic Tubes; Blade Fuse Body when
used also in manufacture of “blade fuses 1 to
40 Amps, the words “sub-miniature fuses,
micro fuses, resettable fuses and thermal
fuses”. Earlier Basic Customs Duty was
exempted when of Silver Copper Alloy wires;
Glass tubes of sizes between 2 mm to 6mm
outside diameter, in cut lengths upto40mm;
Brass Fuse Caps; Polymeric Positive
Temperature Coefficient Chips; Ceramic Tubes;
Blade Fuse Body when used in manufacture of
Glass cartridges fuses/ ceramic tube fuses/
[OLD PPTC resettable fuses.
Basic Customs Duty exempted on import of
Capital Goods i.eFuse cap soldering / Tinning
machine with or without marking facility, fuse
assembly machine, sorting machine, electronic
load–testing equipment, fuse element
punching machine with or without skiving
facility, fuse element winding machine, auto
testing/inspection equipment with or without
packing facility, ultrasonic welding machine,
marking machine for fuses, ultrasonic cleaning
equipment fuses when used in manufacture of
Glass and ceramic cartridge fuses, blade fuses,
automotive fuses, surface mount fuses,
subminiature fuses, micro fuses, resettable
fuses and thermal fuses.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
All Chapter
All goods for the
manufacture of goods
covered by S. Nos. 1 to
38 above in Notification
No
24/2005
dated
01/03/2005.
98.01
Cold storage, cold room
(including farm level precooling) or industrial
projects
for
preservation, storage or
processing
of
agricultural,
apiary,
horticultural,
dairy,
poultry, aquatic and
marine produce and
meat
New Description of goods
(if applicable) / Existing
Provision
All Goods, except charger
or adapter, battery, wired
headsets and speakers of
mobile handsets including
cellular phones and solar
tempered glass or solar
tempered (anti-reflective
coated) glass
Cold storage, cold room
(including for farm level
pre-cooling), cold chain
including pre-cooling unit,
packhouses, sorting and
grading lines and ripening
chambers or industrial
projects for preservation,
storage or processing of
agricultural,
apiary,
horticultural, dairy, poultry,
Existing
Duty
Rate
New
Duty
Rate
Effective
Date
st
Notification
No. and Date
Nil
10%
1 March
2016
19/2016 Cus
dated
01/03/2016
7.5%
5%
01/03/20
16
20/2016 Cus.
BUDGET ANALYSIS 2016-17
Remark
Earlier Basic Customs Duty was exempted on
import of capital goods i.eFuse cap soldering /
Tinning machine with or without marking
facility, fuse assembly machine, sorting
machine, electronic load–testing equipment,
fuse element punching machine with or
without skiving facility, fuse element winding
machine, auto testing/inspection equipment
with or without packing facility, ultrasonic
welding machine, marking machine for fuses,
ultrasonic cleaning equipment fuses when
used in manufacture of Glass and ceramic
cartridge fuses, blade fuses, automotive fuses
and surface mount.
BCD Exemption is withdrawn on charger or
adapter, battery, wired headsets and speakers
of mobile handsets including cellular phones
and solar tempered glass or solar tempered
(anti-reflective coated) glass.
Sr. No. 3H of the Notification No.230/1986 Cus
dated 03/04/1986 is being amended to the
extent the Concessional Rate of BCD @ 5%
under Project Imports to pre-cooling unit,
packhouses, sorting and grading lines and
ripening chambers of Cold Storage & Cold
Room as per the Project Imports (Amendment)
Regulations, 2016.
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
98.01
Existing Description of
goods / Existing
Provision
Cold storage, cold room
(including farm level precooling) or industrial
projects
for
preservation, storage or
processing
of
agricultural,
apiary,
horticultural,
dairy,
poultry, aquatic and
marine produce and
meat
N. A.
New Description of goods
(if applicable) / Existing
Provision
aquatic
and
marine
produce and meat
Cold storage, cold room
(including for farm level
pre-cooling), cold chain
including pre-cooling unit,
packhouses, sorting and
grading lines and ripening
chambers or industrial
projects for preservation,
storage or processing of
agricultural,
apiary,
horticultural, dairy, poultry,
aquatic
and
marine
produce and meat.
Second
proviso
to
Condition No. (ii) of the
Notification No. 81/2005
Cus is inserted as follows:“Provided further that this
condition shall not apply to
the power generation
projects
based
on
municipal and urban waste,
if the importer proves to
the satisfaction of the
Deputy Commissioner of
Customs or the Assistant
Commissioner of Customs,
as the case may be, that
there is a valid agreement
between the importer and
urban local body for
Existing
Duty
Rate
New
Duty
Rate
7.5%
7.5%
Effective
Date
Notification
No. and Date
5%
01/03/20
16
21/2016 Cus.
Sr. No. 41 of the Notification No. 42/96 Cus.
dated 23/07/1996 as amended is being further
amended to the extent the Concessional Rate
of BCD @ 5% under Project Imports to precooling unit, packhouses, sorting and grading
lines and ripening chambers of Cold Storage &
Cold Room as per the Project Imports
(Amendment) Regulations, 2016..
Nil
01/03/20
16
22/2016 Cus.
Henceforth, BCD exemption is available on any
power generation projects based on municipal
and urban waste set-up either by Municipal
Corporation or any private entity.
BUDGET ANALYSIS 2016-17
Remark
CUSTOMS TARIFF CHANGES
Chapter/
Tariff
Heading
Existing Description of
goods / Existing
Provision
Notification No. 72/94Customs
dated
01.03.1994
granting
exemption of BCD on
parts of aircrafts when
imported into India
under the Standard
Exchange Scheme has
been rescinded.
Any Chapter
Imports
made
Government of India /
State Government
New Description of goods
(if applicable) / Existing
Provision
processing of municipal
solid waste for not less
than ten years from the
date of commissioning of
project;”
Notification No. 23/16Customs dated 01/03/2016
granting exemption of BCD
on parts of aircrafts when
imported into India under
the Standard Exchange
Scheme
has
been
rescinded.
Imports made Government
of
India
/
State
Government
Existing
Duty
Rate
New
Duty
Rate
Nil
Nil
01/03/20
16
23/2016
Cus.
–
Nil
Appli
cable
Rate
of
dutie
s
01/04/20
16
14/2016
Cus
–
Effective
Date
Notification
No. and Date
BUDGET ANALYSIS 2016-17
Remark
Rescinding the Old Notification No. 72/94 Cus
with the following changes therein:
1) Standard Exchange Agreement now need
not be registered with DGCA.
2) Instead of Exporter, now Importer needs
to registered with DGCA.
3) Standard Exchange Cost charged by the
exporter or importer is final.
4) Earlier, there was restriction in claiming
duty drawback only on exports, however,
now duty drawback on goods imported
(which are subsequently being exported)
cannot be claimed.
5) New Condition No. (vi) (b) inserted to
restrict import of only used parts which
are to be repaired and overhauled under
the Standard Exchange Agreement, which
means new parts are not allowed to be
imported without BCD.
Exemption provided to Government of India
and State Government under Sr No 9, 9A, 10 &
10A of Notification 39/1996 omitted and
hence duty will be required to be paid.
---------------------------- x ----------------------------
BUDGET ANALYSIS 2016-17