Section 9 is being amended so as to insert sub-section (1A) to provide for anti-circumvention measure in respect of countervailing duty. (Clause 85).

Section 9C is being amended so as to provide that appeal against an order of determination or review regarding the existence, degree and effect of increased volume of imports of any article requiring imposition of safeguard duty, shall lie with Customs Excise and Service Tax Appellate Tribunal. (Clause 86).

Budget 2019: 13 Amendments in Customs Act, 1962

Extract of Clause 85 & 86 of Finance Bill 2019

85. Amendment of Section 9

In section 9 of the Customs Tariff Act, 1975 (hereinafter referred to as the Customs Tariff Act), section 9. after sub-section (1), the following sub-section shall be inserted, namely:––

“(1A) Where the Central Government, on such inquiry as it considers necessary, is of the opinion that circumvention of countervailing duty imposed under sub-section (1) has taken place, either by altering the description or name or composition of the article on which such duty has been imposed or by import of such article in an unassembled or disassembled form or by changing the country of its origin or export or in any other manner, whereby the countervailing duty so imposed is rendered ineffective, it may extend the countervailing duty to such other article also.”.

86. Amendment of section 9C.

In section 9C of the Customs Tariff Act, for sub-section (1), the following sub-section shall be substituted, namely:––

“(1) An appeal against the order of determination or review thereof shall lie to the Customs, Excise and Service Tax Appellate Tribunal constituted under section 129 of the Customs Act, 1962 (hereinafter referred to as the Appellate Tribunal), in respect of the existence, degree and effect of—

(i) any subsidy or dumping in relation to import of any article; or

(ii) import of any article into India in such increased quantities and under such condition so as to cause or threatening to cause serious injury to domestic industry requiring imposition of safeguard duty in relation to import of that article.”.

Note on Clause 85 & 86 of Finance Bill 2019

Clause 85 of the Bill seeks to insert sub-section (1A) under section 9 of the Customs Tariff Act, so as to provide anti-circumvention provision in case of Countervailing duty.

Clause 86 of the Bill seeks to amend sub-section (1) of section 9C of the Customs Tariff Act, so as to provide for filing of appeal before the Customs, Excise and Service Tax Appellate Tribunal against the findings of the designated authority regarding determination of safeguard duty.

Budget 2019 :Amendment in First Schedule to Customs Tariff Act, 1975

AMENDMENTS
A. Tariff rate changes for Basic Customs Duty [to be effective from 06.07.2019]*

[Clause [87(a)] of the Finance (No. 2) Bill, 2019]

Rate of Duty
S.
No
Heading,
sub-heading
tariff item
Commodity From To
Construction Materials
1 3918 Floor covering of plastics, Wall or ceiling coverings of plastics 10% 15%
2 6905, 6907 Ceramic roofing tiles and ceramic flags and pavings, hearth or wall tiles 10% 15%
3 8302 Base metal fittings, mountings and similar articles suitable for furniture, doors, staircases, windows, blinds, hinge for auto mobiles 10% 15%
Precious Metals
4 7106 Silver (including silver plated with gold or platinum) unwrought or in semi- manufactured forms, or in powdered form 10% 12.5%
5 7107 00 00 Base metals clad with silver, not further worked than semi-manufactured 10% 12.5%
6 7108 Gold (including gold plated with platinum) unwrought or in semi-manufactured forms, or in powder form 10% 12.5%
7 7109 00 00 Base metals or silver, clad with gold, not further worked than semi- manufactured 10% 12.5%
8 7110 Platinum, unwrought or in semi-manufactured form, or in powder form 10% 12.5%
9 7111 00 00 Base metals, silver or gold, clad with platinum, not further worked than semi- manufactured 10% 12.5%
10 7112 Waste and scrap of precious metals or of metal clad with precious metals; other waste and scrap containing precious metal compounds, of a kind used principally for the recovery of precious metal 10% 12.5%
Automobile parts
11 6813 Friction material and articles thereof (for example, sheets, rolls, strips, segments, discs, washers, pads), not mounted, for brakes, for clutches or the like, with a basis of asbestos, of other mineral substances or of cellulose, whether or not combined with textile or other materials. 10% 15%
12 7009 Glass mirrors, whether or not framed, including rear-view mirrors 10% 15%
13 8301 20 00 Locks of a kind used in motor vehicles 10% 15%
14 8421 23 00 Oil or petrol filters for internal combustion engines 7.5% 10%
15 8421 31 00 Intake air-filters for internal combustion engines 7.5% 10%
16 8421 39 20, 8421 39 90 Air purifiers or cleaners and other filtering or purifying machinery and apparatus for gases 7.5% 10%
17 8512 10 00, 8512 20 10, 8512 20 20 Lighting or visual signaling equipment of a kind used in bicycles or motor vehicles 10% 15%
18 8512 20 90, 8512 30 90 Other visual or sound signalling equipment for bicycles or motor vehicles 7.5% 15%
19 8512 30 10 Horns for vehicles 10% 15%
20 8512 90 00 Parts of visual or sound signalling equipment for bicycles or motor vehicles 7.5% 10%
 21 8512 40 00, 8539 10 00, 8539 21 20, 8539 29 40 Windscreen wipers, defrosters and demisters, Sealed beam lamp units and other lamps for automobiles 10% 15%
22 8706 Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705. 10% 15%
23 8707 Bodies (including cabs), for the motor vehicles of headings 8701 to 8705 10% 15%
Electronics and Electrical equipments
24 8415 90 00 Indoor and outdoor unit of split –system air conditioner 10% 20%
25 8518 21 00, 8518 22 00 Loudspeaker 10% 15%
26 8521 90 90 Digital Video Recorder (DVR) and Network Video Recorder (NVR) 15% 20%
27 8525 80 CCTV camera and IP camera 15% 20%
28 9001 10 00 Optical Fibres, optical fibre bundles and cables 10% 15%
Miscellaneous changes in Tariff Schedule
29 9804 Chapter Note 7 to be inserted in Chapter 98 so as to exclude printed books imported for personal use from the purview of heading 9804. This heading covers all dutiable articles imported for personal use and attracts 28% IGST. This amendment would exclude printed books from this heading and they would be subject to the applicable merit rate.
B. Amendments not affecting rates of duty [Clause 87(b) of the Finance (No. 2) Bill, 2019]
30 First Schedule to the Customs Tariff Act, 1975 is amended to:

(i) Create specific tariff lines for specific products, presently classified as others;

(ii)Rectify the errors to align it with HSN.

These changes would come into effect from a date to be notified by the Central Government in the official gazette.

* Will come into effect immediately owing to a declaration under the Provisional Collection of Taxes Act, 1931.

Extract of Clause 87(a) of Finance Bill 2019

87. Amendment of First Schedule.

In the Customs Tariff Act, the First Schedule shall––

(a) be amended in the manner specified in the Fourth Schedule;

(b) be also amended in the manner specified in the Fifth Schedule, with effect from such date as the Central Government may, by notification in the Offical Gazette, appoint.

Note on Clause 87(a) of Finance Bill 2019

Clause 87 of the Bill seeks to amend the First Schedule to the Customs Tariff Act,-

(a) in the manner specified in the Fourth Schedule with a view to revise the tariff rates in respect of certain tariff items and to amend Chapter Note of Chapter 98 so as to exclude printing books from the purview of heading 9804;

(b) in the manner specified in the Fifth Schedule with a view to rectify errors and harmonise certain entries with Harmonised System of Nomenclature and also to create new tariff lines from certain entries, with effect from such date as the Central Government may, by notification in the Official Gazette, appoint.

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