Budget 2024-25: Changes under Customs & Excise

b) Graphite, Silicon Quartz and Silicon Dioxide BCD have been reduced to 2.5%

b) BCD on Live SPF Vannamei shrimp (Litopenaeus vannamei) broodstock and Black tiger shrimp (Penaeus monodon) broodstock has been reduced to 5%

c) BCD on Artemia and Artemia cysts has been reduced to Nil.

d) BCD on the following ingredients/inputs for use in the manufacture of Prawn and Shrimps feed or fish feed is being reduced subject to IGCR condition.

e) BCD has been reduced to 5% on Insect Meal for use in R&D for aquatic feed manufacturing.

f) BCD has been reduced to 5% on Single Cell Protein from Natural Gas for use in R&D for aquatic feed manufacturing.

g) BCD has been reduced SPF Polychaete worms 30% to 5%.

h) BCD has been reduced to Nil on pre-dust breaded powder for use in processing of sea- food.

b) The tariff rate of CTH 3920 and 3921 has been increased to 15%. Consequently, from 24.7.2024 , PVC Flex Films/Flex Banners will attract 25% by virtue of declaration under Provisional Collection of Taxes Act 2023. However, Notification No. 50/2017-Customs dated June 30, 2017 has been amended to maintain the existing rate of 10% on items other than PVC Flex Films/Flex Banners.

a) Trastuzumab Deruxtecan

b) Osimertinib

c) Durvalumab

b) BCD has been reduced from 30% to 10% on Real Down Filling material from duck or goose for use in the manufacture of textile or leather garments for export.

c) Exemption has been extended to Wet white leather, Crust and finished leather for manufacture of textile or leather garments, leather /synthetic footwear or other leather products for export.

d) Exemption has been extended to certain additional accessories and embellishments for the manufacture of textile or leather garments, leather/synthetic footwear or other leather products for export.

b) BCD on PCBA of cellular mobile phone has been reduced from 20% to 15%.

c) BCD on charger/adapter of cellular mobile phone has been reduced from 20% to 15%.

d) BCD on Oxygen Free Copper (OFC) Strip has been reduced from 5% to Nil for use in manufacture of resistors subject to IGCR condition.

e) Exemption entries providing concessional BCD rate to mechanics and die-cut parts of chapters 39 and 73 has been expanded to include chapter 40, 70 and 76.

f) Exemption entry covering input items/raw material for use in manufacture of connectors has been expanded to add more input items/raw material.

g) BCD rate on PCBA of specified telecom equipment has been increased from 10% to 15%.

b) As a consequential change, the BCD has been reduced from 7.5% to 5% on:

a. Platinum and Palladium used in the manufacture of noble metal solutions, noble metal compounds and catalytic convertors

b. Bushings made of platinum and rhodium alloy when imported in exchange of worn out or damaged bushings exported out of India

b) BCD reduced on Blister Copper from 5% to Nil.

c) Exemption on Ferrous Scrap has been continued upto March 31, 2026.

d) The concessional BCD rate of 2.5% on Copper scrap has been continued.

e) The exemption on specified raw material for the manufacture of CRGO steel has been continued upto March 31, 2026. Further, the exemption has also been extended to such specified raw materials for the manufacture of CRGO Steel falling under tariff item 7226 11 00.

b) Certain specified goods have been added in the exemption entry (S.No 404 of Notification No. 50/2017-Customs dated June 30, 2017) for use in petroleum exploration operations

b) BCD rate on Lab chemicals classified under HS 9802 00 00 has been increased from 10% to 150

c) The tariff rate on areca nuts and prepared/ preserved areca nuts is being enhanced to 150% w.e.f October 1, 2024. However, there is no change in the effective BCD rate which continues at 30%.

(i) the tariff item is not eligible for preferential tariff treatment;

(ii) complete description of goods is not contained in the certificate of origin;

(iii) any alteration in the certificate of origin is not authenticated by the Issuing Authority;

(iv) the certificate of origin is produced after the period of its expiry,

and in all such cases, the certificate of origin shall be marked as ‘‘INAPPLICABLE’’.

(i) the tariff item is not eligible for preferential tariff treatment;

(ii) complete description of goods is not contained in the certificate proof of origin;

(iii) any alteration in the certificate proof of origin is not authenticated by the Issuing Authority;

(iv) the certificate proof of origin is produced after the period of its expiry,

and in all such cases, the certificate of origin shall be marked as ‘INAPPLICABLE’’.

(a) “certificate of origin” means a certificate issued in accordance with a trade agreement certifying that the goods fulfil the country of origin criteria and other requirements specified in the said agreement;

“(a) “proof of origin” means a certificate or declaration issued in accordance with a trade agreement certifying or declaring, as the case may be, that the goods fulfil the country of origin criteria and other requirements specified in the said agreement;”

(c) “Issuing Authority” means any authority designated for the purposes of issuing certificate of origin under a trade agreement;

“(c) “Issuing Authority” means an authority or person designated for the purposes of issuing proof of origin under a trade agreement;”

Provided that the Central Government may, if satisfied that it is necessary in the public interest so to do, by notification in the Official Gazette, specify the manufacturing processes and other operations in relation to a class of goods that shall not be permitted in a warehouse.”

(a) maintain transparency in the import and export documentation; or

(b) expedite clearance or release of goods entered for import or export; or

(c) reduce the transaction cost of clearance of importing or exporting goods; or

(d) maintain balance between customs control and facilitation of legitimate trade

(a) maintain transparency in the import and export documentation; or

(b) expedite clearance or release of goods entered for import or export; or

(c) reduce the transaction cost of clearance of importing or exporting goods; or

(d) maintain balance between customs control and facilitation of legitimate trade”

(m) the measures and separate procedure or documentation for a class of importers or exporters or categories of goods or on the basis of the modes of transport of goods

(m) the measures and separate procedure or documentation for a class of importers or exporters or any other persons or categories of goods or on the basis of the modes of transport of goods”

(a) Importer produces to the Deputy Commissioner or the Assistant Commissioner of Customs, as the case may be, a valid Tariff Rate Quota (TRQ) authorization for the Financial Year 2022-23 allotted by Directorate General of Foreign Trade;

(b) The TRQ is allotted to the importer by the Directorate General of Foreign Trade, in accordance with the relevant procedure as specified in the Hand Book of Procedures, 2015-20 or 2023 as applicable;

(c) The TRQ authorization shall contain the name and address of the importer, IEC code, Customs notification No., sub-heading or tariff item as applicable, quantity and validity period of certificate;

(d) The TRQ authorization shall be issued electronically by the Directorate General of Foreign Trade and transmitted to ICES system;

(e) Imports made against the TRQ shall be allowed only upon debiting electronically in the ICES system.

“(a) Importer produces to the Deputy Commissioner or the Assistant Commissioner of Customs, as the case may be, a valid Tariff Rate Quota (TRQ) authorisation for the Financial Year 2022-23 allotted by Directorate General of Foreign Trade;

(b) The duty and cess benefit under the afore-said valid TRQ authorisation shall be restricted only to the extent of unutilised quota which is not used to claim such benefit under notification No. 30/2022-Customs, dated the 24th May, 2022, or under this notification from 11th May, 2023 and up to 30th June, 2023 (both days inclusive);

(c) Bill of lading for concerned import consignment is issued on or before 31st March, 2023;

(d) The TRQ is allotted to the importer by the Directorate General of Foreign Trade, in accordance with the relevant procedure as specified in the Hand Book of Procedures, 2015-20 or 2023, as applicable; and

 (e) The TRQ authorisation shall contain the name and address of the importer, IEC code, Customs notification No., sub-heading or tariff item as applicable, quantity and validity period of certificate.”.

Refunds will be issued for the entire amount of duty and cess collected that would not have been levied if the notification ibid had been in effect as specified. The person can claim refund in accordance with the provisions of sub-section (2) of Section 27 of the Customs Act.

To claim such a refund, the applicant must submit a request to the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs, as applicable, by March 31, 2025.

(2) Every duty imposed on any goods under sub-section (1) shall, for the purposes of this Act, be deemed to have been specified in the First Schedule as the duty leviable in respect of such goods.

(3) Where a notification has been issued under sub-section (1), the Central Government shall, unless the notification is in the meantime rescinded, have a Bill introduced in Parliament, as soon as may be, but in any case during the next session of Parliament following the date of the issue of the notification to give effect to the proposals in regard to the continuance of a protective duty of customs on the goods to which the notification relates, and the notification shall cease to have effect when such Bill becomes law, whether with or without modifications, but without prejudice to the validity of anything previously done thereunder :

Provided that if the notification under sub-section (1) is issued when Parliament is in session, such a Bill shall be introduced in Parliament during that session :

Provided further that where for any reason a Bill as aforesaid does not become law within six months from the date of its introduction in Parliament, the notification shall cease to have effect on the expiration of the said period of six months, but without prejudice to the validity of anything previously done thereunder.

(2) Every duty imposed on any goods under sub-section (1) shall, for the purposes of this Act, be deemed to have been specified in the First Schedule as the duty leviable in respect of such goods.

(3) Where a notification has been issued under sub-section (1), the Central Government shall, unless the notification is in the meantime rescinded, have a Bill introduced in Parliament, as soon as may be, but in any case during the next session of Parliament following the date of the issue of the notification to give effect to the proposals in regard to the continuance of a protective duty of customs on the goods to which the notification relates, and the notification shall cease to have effect when such Bill becomes law, whether with or without modifications, but without prejudice to the validity of anything previously done thereunder :

Provided that if the notification under sub-section (1) is issued when Parliament is in session, such a Bill shall be introduced in Parliament during that session :

Provided further that where for any reason a Bill as aforesaid does not become law within six months from the date of its introduction in Parliament, the notification shall cease to have effect on the expiration of the said period of six months, but without prejudice to the validity of anything previously done thereunder.”

(a) increase the rates on certain tariff items. (refer to Annexure A for change in Custom duty rate)

(b) create new tariff lines in respect of defence products, technical textiles, sustainable blended aviation fuel, products used in Indian semiconductor machines, e-bicycles, natural menthol, printer cartridge etc. These changes shall come into effect from October 1, 2024.

Condition No. 43

If,-

(b) in case the certificate regarding mega power project status issued as above is provisional, the chief executive officer of the project furnishes a security in the form of a Fixed Deposit Receipt or Bank Guarantee from any scheduled bank for  a term of one hundred and twenty-six months in the name of the President of India for an amount equal to the duty of excise payable but for this exemption, to the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, having jurisdiction and if the project developer fails to furnish the final mega power status certificate with in a period of one hundred and twenty months from the date of clearance of excisable goods, the said security shall be appropriated towards duty of excise payable on such clearances but for this exemption;

(c) an officer not below the rank of Chief Engineer in the Central Electricity Authority certifies that the said goods are required for the setting up of the said mega power project under the Government of India initiative, indicating the quantity, description and specification thereof;

(d) the Chief Executive Officer of the project furnishes an undertaking to the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that-

(i) the said goods will be used only in the said project and not for any other use; and

(ii) in the event of non- compliance of sub-clause (i), the project developer will pay the duty which would have been leviable at the time of clearance of goods, but for this exemption.

Condition No. 43

If,-

(b) in case the certificate regarding mega power project status issued as above is provisional, the chief executive officer of the project furnishes a security in the form of a Fixed Deposit Receipt or Bank Guarantee  from any scheduled bank for a term of one hundred and twenty-six months one hundred and sixty two months in the name of the President of India for an amount equal to the duty of excise payable but for this exemption, to the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, having jurisdiction and if the project developer fails to furnish the final mega power status certificate  with in a period of one hundred and twenty months one hundred and fifty-six months from the date of clearance of excisable goods, the said security shall be appropriated towards duty of excise payable on such clearances but for this exemption;

(c) an officer not below the rank of Chief Engineer in the Central Electricity Authority certifies that the said goods are required for the setting up of the said mega power project under the Government of India initiative, indicating the quantity, description and specification thereof;

(d) the Chief Executive Officer of the project furnishes an undertaking to the Deputy Commissioner of Central Excise or Assistant Commissioner of Central Excise, as the case may be, having jurisdiction, to the effect that-

(i) the said goods will be used only in the said project and not for any other use; and

(ii) in the event of non- compliance of sub-clause (i), the project developer will pay the duty which would have been leviable at the time of clearance of goods, but for this exemption.

Notification No 12/2012-Central Exice dated March 17, 2012 is being amended to extend the time period for submission of the final Mega Power Project certificate from 120 months to 156 months.

Now, the Clean Environment Cess, levied and collected as a duty of excise, is exempted on excisable goods lying in stock as on June 30, 2017 subject to payment of appropriate GST Compensation Cess on supply of such goods on or after 1st July, 2017.

“(c) the appropriate goods and services tax compensation cess, wherever applicable, shall be payable on such goods, if cleared on or after the 1st July, 2017 as leviable on such goods under the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017).”

*Will come into effect immediately through a declaration under the Provisional Collection of Taxes Act,2023

No.

Plastics

{The currently applicable BCD on all other goods falling under heading 3920 and 3921 shall be maintained by suitable amendment in the relevant notification(s)}

Consumer goods

Rs.       60

per piece, whichever       is

higher

Chemicals

(Heading 9802 covers all chemicals, organic or inorganic, whether or not chemically defined, imported in packings not exceeding 500 gms or 500 milliliters and which can be identified with reference to the purity, markings or other features to show them to be meant for use solely as laboratory chemicals)

Note: The currently applicable rate of Basic Customs Duty on these commodities shall be maintained by suitable amendment in the relevant notification(s).

No.

(No. 2) Bill, 2024

concentrates

hydroxides

Manufactures

(i) Gallium

(ii) Germanium

(iii) Indium

(iv) Niobium

(v) Vanadium

026)

(with effect from 24.07.2024)

(with effect from 24.07.2024)

Subject to IGCR conditions

Items under Sl. No. 257B and 257C of Notification No. 50/2017-Customs dated June 30, 2017

(ii) Osimertinib,

(iii) Durvalumab

7.5% (w.e.f 1^st April, 2025 to 31st March, 2026)

10% (w.e.f 1^st April, 2026)

scintillators) for use in manufacture of X-ray machines for medical, surgical, dental or veterinary use

7.5% (w.e.f 1st April, 2025 to 31st March, 2026)

10% (w.e.f 1st April, 2026)

(w.e.f. 1.10.20 24)

Effective export duty on raw skins, hides & leather is being simplified and rationalized. The changes are as follows –

No.

No.

(vi) Gallium

(vii) Germanium

(viii) Indium

(ix) Niobium

(x) Vanadium

(with effect from 24.07.2024)

(with effect from 24.07.2024)

Subject to IGCR conditions

Items under Sl. No. 257B and 257C of Notification No. 50/2017-Customs dated June 30, 2017

(v) Osimertinib,

(vi) Durvalumab

Ruthenium, Iridium

and catalytic convertors

7.5% (w.e.f 1st April, 2025 to 31st March, 2026)

10%

(w.e.f 1st April,

2026)

7.5% (w.e.f 1st April, 2025 to 31st March, 2026)

10% (w.e.f 1st April, 2026)

8517 14 00

(PCBA) of cellular mobile phone

(w.e.f. 1.10.20

24)

24)

Effective export duty on raw skins, hides & leather is being simplified and rationalized. The changes are as follows –

No.