AIDC Rate Amendment for Propane & Butane | Notification 45/2023-Customs

The Government of India’s Ministry of Finance, Department of Revenue, has issued Notification No. 45/2023-Customs on 1st July 2023, seeking to amend Notification No. 11/2021-Customs dated 1st February 2021. The purpose of this amendment is to prescribe the AIDC (Agriculture Infrastructure and Development Cess) rate for Liquified Propane and Liquified Butane. The amendment is made in the public interest, and it introduces specific exemptions for certain entities related to household domestic consumers and Non-Domestic Exempted Category (NDEC) customers.

The notification introduces a new entry in the TABLE after Sl. No. 10 of No. 11/2021-Customs, dated the 1st February, 2021 Under Sl. No. 10AA, Liquified Propane and Liquified Butane, classified under tariff items 2711 12 00 and 2711 13 00 respectively, will have an AIDC rate of 15%.

The notification also includes two provisos after the TABLE. The first proviso excludes the application of Sl. No. 10AA to imports of Liquified Propane and Butane mixture by Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited, or Bharat Petroleum Corporation Limited for supply to household domestic consumers or Non-Domestic Exempted Category (NDEC) customers. The second proviso similarly excludes the application of Sl. No. 10B to imports of Liquified Petroleum Gas by the mentioned entities for supply to household domestic consumers or NDEC customers.

Conclusion: Notification No. 45/2023-Customs issued by the Ministry of Finance, Government of India, amends the AIDC rate for Liquified Propane and Liquified Butane. The new AIDC rate of 15% under Sl. No. 10AA will be applicable to imports of these products.

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
(Department of Revenue)
New Delhi

Notification No. 45/2023-Customs | Dated 1^st July, 2023

G.S.R. 475(E). – In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with section 124 of the Finance Act, 2021 (13 of 2021), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 11/2021-Customs, dated the 1st February, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3,Sub-section (i), vide number G.S.R. 69(E), dated the 1^st February, 2021, namely :-

In the said notification,

(i) in the TABLE, after Sl. No. 10, and the entries relating thereto, the following Sl. No. and entries shall be inserted, namely: –

(ii) After the TABLE the following provisos shall be inserted,-

“Provided that nothing contained in S.No 10AA shall apply to imports of Liquified Propane and Liquified Butane mixture , Liquified Propane and Liquified Butane by the Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited or Bharat Petroleum Corporation Limited for supply to household domestic consumers or to Non-Domestic Exempted Category (NDEC) customers;

Provided further that nothing contained in Sl. No 10 B shall apply to imports of Liquified Petroleum Gas by the Indian Oil Corporation Limited, Hindustan Petroleum Corporation Limited or Bharat Petroleum Corporation Limited for supply to household domestic consumers or to Non-Domestic Exempted Category (NDEC) customers;”

[F. No. 349/01/2023-TRU]

(Amreeta Titus)
Deputy Secretary to the Government of India

Note: – The principal notification No. 11/2021-Customs, dated the 1^stFebruary, 2021 was published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 69(E), dated the 1^st February, 2021 and last amended vide notification No. 42/2023-Customs, dated the 30^th June, 2023 published in the Gazette of India, Extraordinary, Part II, section 3, sub-section (i), vide number G.S.R. 471 (E), dated the 30^th June, 2023.