TMI BlogChanges in the Rate of the Custom duties and other measures and Legislative Proposals have been proposed through the Finance Bill, 2010X X X X Extracts X X X X X X X X Extracts X X X X ..... NT), all dated 27th February, 2010. Changes in rates of duty (unless otherwise stated) take effect from the midnight of 26th February/27th February of 2010. The legislative changes, except through clauses 60, 62, 74, 85 and 86 declared under the Provisional Collection of Taxes Act, 1931, would come into effect only upon the enactment of the Finance Bill, 2010. 2. The important changes in respect of the customs duty are discussed below 12. Rate structure: 12.1 There is no change in the overall rate structure of basic customs duty. The peak rate of 10% and the lower rate slabs are being maintained. However, there are changes in respect of certain commodities/ goods which are discussed in subsequent paragraphs. 13. Petroleum: 13.1 The following changes have been made in the duty structure applicable to crude petroleum and refined petroleum products: (i) basic customs duty on crude petroleum is being increased from Nil to 5%. (ii) basic customs duty on Motor Spirit (petrol) and HSD (diesel) is being increased from 2.5% to 7.5%. (iii) basic customs duty on some other specified petroleum products is being increased from 5% to 10%. 14. Precious Metals: 14.1 T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vans/trucks * Bio-polymer/bio-plastics (HS Code 39139090) used for manufacture of biodegradable agro mulching films, nursery plantation flower pots * Tunnel Boring machine for hydro-electric power projects * Ground source heat pump (geo-thermal energy) (with full exemption from special CVD of 4%) * Specified capital goods and raw materials for the manufacture of electronic hardware. *o Specified parts namely, batteries including battery chargers, electric motors and AC or DC motor controllers imported for manufacture of all categories of electrical vehicles including cars, two wheelers and three wheelers (like Soleckshaw) with CVD of 4% and full exemption from special CVD till 31.03.2013. * Parts for the manufacture of battery chargers and hands-free headphones (accessories of mobile phones) along with full CVD and special CVD (time-bound) exemption * Specified components, raw materials and accessories for the manufacture of sports goods (Nil basic duty) * Security thread, security fibres, M-features for use in the manufacture of security paper by Security paper Mill, Hoshangabad. * Concessional basic customs duty of 5% to- * Specified agricultural machinery ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld content. This duty structure is subject to actual user condition. 15.6 The current limit of Rs. 1 lakh per annum for duty free import of samples in terms of notification no. 154/94-Customs dated 13.7.1994 is being enhanced to Rs. 3 lakh per annum. 16. Rationalisation Measures: 16.1 Medical Equipment 16.1.1 The rate structure applicable to medical, surgical, dental and veterinary equipment falling under heading nos. 90.18, 90.19, 90.20, 90.21 and 90.22 is being rationalized. At present, such equipments attract varying rates of customs duty and are spread over many lists. This multiplicity of rates is being done away with and now all medical equipments (with some exceptions) will attract 5% basic customs duty, 4% CVD/ excise duty and Nil special additional duty of customs [i.e. effective duty of 9.2%]. 16.1.2 Parts required for the manufacture and accessories of medical equipment will also attract 5% concessional basic customs duty with Nil special CVD. This concession is not confined to parts classifiable in Chapter 90 but to parts falling under any chapter of the tariff. 16.1.3 Concessional customs duty available to spares for the maintenance of medical equipment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions relating to Settlement Commission in Section 127 of the Customs Act, 1962 have also been amended on the lines of Central Excise discussed above to expand the scope of cases that may be taken up for settlement, to enable repeated applications for settlement except in specified cases and to empower the Commission to extend the period for disposal of cases by three months.(clauses 57-59 of the Finance Bill) 17.2 Section 3 of the Customs Tariff Act is being amended to provide that the value of the imported goods for the purpose of charging CVD in respect of goods chargeable to excise duty on the basis of Maximum Retail Sale Price under Medicinal and Toilet Preparations (Excise Duties) Act, 1955 shall be the retail sale price declared on such imported goods less the amount of abatement, if any. This change will come into effect on enactment of the Finance Bill. (clause 61 of the Finance Bill) 17.3 Consequent upon insertion of a new tariff item covering filter cigarettes of length not exceeding 60 mm and other changes in the schedule to the Central Excise Tariff Act, similar change is being carried out in heading 2402 with the new tariff item attracting customs duty of 30% ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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