Changes in the customs duty structure in respect of ships-for breaking up falling under heading No. 89.08 and the excise duty structure in respect of ship breaking scrap falling under heading Nos. 72.15 and 73.09 - Customs - F. No. 374/71/86-TRU

Changes in the customs duty structure in respect of ships-for breaking up falling under heading No. 89.08 and the excise duty structure in respect of ship breaking scrap falling under heading Nos. 72.15 and 73.09 F. No. 374/71/86-TRU Dated 31-3-1987 Government of India Ministry of Finance (Department of Revenue) New Delhi Subject: Changes in the customs duty structure in respect of ships-for breaking up falling under heading No. 89.08 and the excise duty structure in respect of ship breaking scrap falling under heading Nos. 72.15 and 73.09 —Regarding. In accordance with the customs Notification Nos. 142/87 to 143/87 and central excise Notification Nos. 101/87 to 103/87, all dated the 27th March, 1987 certain changes have been made in the customs duty structure relating to ships-for breaking and excise duty structure in respect of ship-breaking scrap. 2. The existing basic customs duty leviable on ships for breaking falling under heading No. 89.08 has been split up into basic customs duty of Rs. 1,035 per Light Displacement Tonnage (LDT) and additional duty of Rs. 365 per LDT. Notification No. 142/87-Cus., has been issued superseding the earlier notification No. 163/86-Cus., dated 1-3-1986. The auxiliary duty will be nil (vide notification No. 143/87-Cus.). 3. An excise duty of Rs. 365 per MT has been imposed on ship breaking scrap falling under heading Nos. 72.15 and 73.09 provided such scrap is made from ships-for breaking up, which have discharged a total customs duty consisting of Rs. 1,035 per LDT of basic customs duty and Rs. 365 per LDT of additional duty, Notification No. 102/87-C.E. has been issued superseding the earlier Notification No. 386/86-C.E., dated 20-8-1986. As a transitionery provision, ship breaking scrap has been completely exempted from excise duty if made from ships-for breaking up which have discharged basic customs duty of Rs. 1,400 per LDT. This is to ensure that ships-for breaking up which have already paid a basic customs duty of Rs. 1,400 per LDT do not, again, pay a further excise duty of Rs. 365 per MT at the scrap stage. Notification No. 103/87-C.E. has been issued for this purpose. Ship breaking scrap has also been specified as an input against S. No. 2 of Notification No. 208/83-C.E., dated 1-8-1983. Thus, various products like bars and rods made from such ship breaking scrap would now be exempt from excise duty. Notification 101/87-C.E. has been issued in this regard.