Introduction: The Ministry of Finance, through its Department of Revenue and the Central Board of Indirect Taxes & Customs (CBIC), has issued a pivotal notification dated 15th February 2024, marking significant amendments to the Customs Tariff values. Notification No. 12/2024-Custom (N.T.) addresses adjustments in tariff values for a wide array of commodities ranging from crude palm oil to areca nuts and precious metals like gold and silver. These amendments reflect the government’s ongoing adjustments to international trade policies and their alignment with the current market dynamics.
Detailed Analysis: The notification supersedes the previously established tariff values outlined in Notification No. 36/2001-Customs (N.T.), indicating a responsive measure to global market trends and domestic economic considerations. The adjustments in tariff values are comprehensive, covering essential agricultural commodities, industrial inputs, and precious metals, which are crucial to various sectors of the economy.
Agricultural Commodities: The revised tariff values for agricultural commodities such as crude palm oil, RBD palm oil, crude soybean oil, and areca nuts suggest a nuanced approach to balancing domestic agricultural interests with market prices. These changes can have a direct impact on the cost of raw materials for the food industry and affect the price stability of essential commodities in the domestic market.
Industrial Inputs: The adjustment in tariff values for brass scrap reflects an acknowledgment of the recycling industry’s importance and its role in providing raw materials to the manufacturing sector. By updating these values, the government demonstrates its intent to support sustainable practices and ensure a steady supply chain for industries reliant on recycled materials.
Precious Metals: The amendments related to gold and silver, including bars, coins, and other forms, are particularly noteworthy. By setting specific tariff values for gold and silver in various forms, the notification aims to streamline the taxation process, discourage smuggling, and ensure transparency in the trade of precious metals. These measures are likely to influence the jewellery industry, investment trends, and the broader economic landscape concerning imports and exports of precious metals.
Implications and Strategic Considerations: These amendments are not just administrative adjustments; they are strategic moves aimed at influencing the domestic market, enhancing fiscal stability, and promoting sustainable economic policies. The government’s ability to quickly adapt tariff values in response to global economic conditions showcases a proactive approach to economic management. However, it also underscores the need for businesses and stakeholders to stay abreast of changes in customs duties and tariffs, as these can significantly impact pricing, sourcing decisions, and overall competitiveness in the market.
Conclusion: The Notification No. 12/2024-Custom (N.T.) by the Ministry of Finance is a testament to the government’s commitment to adapting its fiscal and trade policies to meet the challenges and opportunities of the global market. By carefully adjusting the tariff values of essential commodities and precious metals, the government seeks to protect domestic interests while fostering an environment conducive to sustainable economic growth and stability. Stakeholders across sectors must understand these changes’ implications, as they will play a crucial role in shaping India’s economic trajectory in the coming years.
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MINISTRY OF FINANCE
(Department of Revenue)
(CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS)
New Delhi
Notification No. 12/2024-Custom (N.T.) | Dated: 15th February, 2024
S.O. 720(E).— In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient to do so, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3rd August, 2001, namely:-
In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely: –
“TABLE-1
|
Sl. No. |
Chapter/ heading/ sub-heading /tariff item | Description of goods |
Tariff value (US $Per Metric Tonne) |
| (1) | (2) | (3) | (4) |
| 1 | 1511 10 00 | Crude Palm Oil | 890 |
| 2 | 1511 90 10 | RBD Palm Oil | 901 |
| 3 | 1511 90 90 | Others – Palm Oil | 896 |
| 4 | 1511 10 00 | Crude Palmolein | 907 |
| 5 | 1511 90 20 | RBD Palmolein | 910 |
| 6 | 1511 90 90 | Others – Palmolein | 909 |
| 7 | 1507 10 00 | Crude Soya bean Oil | 903 |
| 8 | 7404 00 22 | Brass Scrap (all grades) | 4859 |
TABLE-2
|
Sl. No. |
Chapter/ heading/ sub- heading/tariff item | Description of goods | Tariff value (US $) |
| (1) | (2) | (3) | (4) |
| 1. | 71 or 98 | Gold, in any form, in respect of which the benefit of entries at serial number 356 of the Notification No. 50/2017-Customs dated 30.06.2017 is availed | 639 per 10 grams |
| 2. | 71 or 98 | Silver, in any form, in respect of which the benefit of entries at serial number 357 of the Notification No. 50/2017-Customs dated 30.06.2017 is availed | 716 per kilogram |
| 3. | 71 | (i) Silver, in any form, other than medallions and silver coins having silver content not below 99.9% or semi-manufactured forms of silver falling under subheading 7106 92;
(ii) Medallions and silver coins having silver content not below 99.9% or semi-manufactured forms of silver falling under sub-heading 7106 92, other than imports of such goods through post, courier or baggage. Explanation. – For the purposes of this entry, silver in any form shall not include foreign currency coins, jewellery made of silver or articles made of silver. |
716 per kilogram |
| 4. | 71 | (i) Gold bars, other than tola bars, bearing manufacturer’s or refiner’s engraved serial number and weight expressed in metric units;
(ii) Gold coins having gold content not below 99.5% and gold findings, other than imports of such goods through post, courier or baggage. Explanation. – For the purposes of this entry, “gold findings” means a small component such as hook, clasp, clamp, pin, catch, screw back used to hold the whole or a part of a piece of Jewellery in place. |
639 per 10 grams |
TABLE-3
| Sl. No. | Chapter/ heading/ sub-heading /tariff item | Description of goods | Tariff value
(US $ Per Metric Ton) |
| (1) | (2) | (3) | (4) |
| 1 | 080280 | Areca nuts | 6259” |
2. This notification shall come into force with effect from the 16th day of February, 2024.
[F. No. 467/01/2024-Cus.V]
KOMILA PUNIA, Dy. Secy.
Note: – The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001–Customs (N.T.), dated the 3rd August, 2001, vide number S. O. 748 (E), dated the 3rd August, 2001 and was last amended vide Notification No. 09/2024-Customs (N.T.), dated the 31st January, 2024 e-published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S.O. 396 (E), dated 31st January, 2024.
