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TMI BlogD.O. Letter from JS(TRU-I)X X X X Extracts X X X X X X X X Extracts X X X X ..... ke effect from the midnight of 5th July/6th July, 2019. The remaining legislative changes would come into effect only upon the enactment of the Finance (No.2) Bill, 2019. 3. Important changes in respect of Customs and Central Excise duties rates are contained in the Annexures appended to this letter: a) Annex A contains,- (i) details of Chapter wise changes in Basic Customs Duty; (ii) amendments in provisions relating to Countervailing duty and safeguard duty in the Customs Tariff Act, 1975; b) Annex B contains details of Chapter wise changes relating to Central Excise Duty; and c) Annex C contains the details of retrospective amendments made in certain notifications through Finance Bill (Customs and GST) 4. Nominal excise duty, as mentioned in Annexure 'B', is being imposed on tobacco products and crude petroleum. These products attract levy of NCCD which in certain cases is being contested on the ground of basic duty being nil. Also, a nominal BCD is being imposed on crude petroleum, which attracts NCCD on imports. 5. Besides, the rate changes, other significant changes made through the Finance Bill are as follows: (i) Clauses 69 to 84 of the Finance (No. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... isions of this scheme, called as the "Sabka Vishwas Legacy Dispute Resolution Scheme, 2019" will be effective from a date to be notified later. Details regarding the manner in which the scheme will operate will be contained in the rules and instructions which will be issued later. 6. This letter only summarizes the key highlights of the budgetary changes. It should not be used in any quasi-judicial or judicial proceedings. The relevant legal texts contained in the Finance Bill and notifications alone have legal force. While every possible effort has been made to make errors free Budget documents, however, given the scale of changes, possibility of inadvertent errors cannot be completely ruled out. I shall be grateful if the provisions of the Finance Bill and notifications are studied carefully and feedback on issues that may need clarification is provided urgently. 7. I may request that all possible efforts be made to guide the taxpayers by holding interactive sessions/ seminars for their benefit. In case of any doubt or difficulty, I would request you to kindly bring at the earliest it to my notice or to the notice of Sh. Reyaz Ahmad, Director (TRU) (Tel. No. 011-23092 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide notification No. 25/2019-Customs, dated 6th July, 2019. Chapter 9-14: No Change Chapter 15 (1) The end use-based exemption on goods, having free fatty acid (FFA) 20% or more, is being withdrawn. Entries at I(A), I(B) and I(C) in S. No. 57 along with S. No. 67 of notification No. 50/2017-Customs dated 30th June, 2017 are being amended vide notification No. 25/2019-Customs, dated 6th July, 2019. Chapter 16-22: No Change Chapter 23 (1) vide entry at S. No. 119 in notification No. 50/2017- Customs, dated 30th June, 2017, concessional BCD at the rate of 5% has been prescribed on prawn feed, shrimp larvae feed and fish feed in pellet form. Certain interpretational issues have arisen as regards this entry. The entry has been rephrased to make the intention explicitly clear that concessional rate applies to prawn feed and shrimp larvae feed in all forms and fish feed in pellet form. Chapter 24: No Change Chapter 25 (1) BCD on Marble Slabs falling under tariff item 2515 12 20 is being increased to tariff rate of 40% by omitting S. No. 125 of notification No. 50/2017- Customs, dated 30th June, 2017 vide notification No.25/2019-Customs, dated 6th July, 2019 refers. Chapter 26 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anium dioxide and sintered uranium dioxide pellets (U235), for use in generation of nuclear power were attracting Nil rate of BCD. Chapter 29 (1) Basic Custom Duty on Ethylene dichloride (EDC)], falling under tariff item 2903 15 00 is being reduced from 2% to Nil by amending S. No. 198 of notification No.50/2017-Customs, dated 30th June, 2017, vide notification No.25/2019-Customs, dated 6th July, 2019. (2) Basic Custom Duty on Methyloxirane (Propylene Oxide), falling under tariff item 2910 20 00 is being reduced from 7.5% to 5% by amending notification No.50/2017-Customs, dated 30th June, 2017, vide notification No.25/2019-Customs, dated 6th July, 2019 [new S. No. 202A refers] (3) The end use-based exemption on goods falling under sub-heading 2915 70 is being withdrawn by omitting S. No.252 of notification No. 50/2017-Customs dated 30th June, 2017 vide notification No. 25/2019 dated 6th July, 2019. Chapter 30-37: No Change Chapter 38 (1) The end use-based exemption on goods falling under tariff items 3823 1 1 00, 3823 12 00, 3823 13 00, 3823 19 00 is being withdrawn by omitting S. No. 252 of notification No. 50/2017-Customs dated 30th June, 2017, vide notification No. 25/201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 295 of notification No.50/2017-Customs, dated 30th June, 2017, vide notification No. 25/2019-Customs, dated 6th July, 2019. Consequently, Uncoated paper used in printing of newspaper will now attract 10% BCD [tariff rate]. (3) Exemption from BCD on Lightweight coated paper used in printing of magazines falling under heading 4810 is being withdrawn by omitting S. No. 297 of notification No.50/2017-Customs, dated 30th June, 2017, vide notification No. 25/2019-Customs, dated 6th July, 2019. Consequently, Lightweight coated paper used in printing of magazines will now attract 10% BCD [tariff rate]. Chapter 49 (1) BCD is being increased from Nil to 5% on Printed books (including covers for printed books) and printed manuals, in bound form or in loose-leaf form with binder, executed on paper or any other material including transparencies falling under tariff items 4910 10 10, 4901 91 00 or 4901 99 00. S. No. 302 of notification No.50/2017-Customs, dated 30th June, 2017, is being amended vide notification No. 25/2019-Customs, dated 6th July, 2019 Chapter 50: No Change Chapter 51 (1) BCD on wool fibre under heading 5101 is being reduced from 5% to 2.5% by amending S. No. 306 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods 7009 increased from 10% to 15% by increasing the tariff rate. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect.] (2) Specified raw materials for use in the manufacture of Preform of Silica is being exempted from BCD by amending notification No. 50/2017-Customs, dated 30th June, 2017, vide notification No. 25/2019-cus, dated 6th July, 2019. [New S.No.341A refer] Chapter 71 (1) Tariff rate on all goods falling under heading 7106 is being increased from 10% to 12.5%. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. Consequently, BCD on Silver, in any form, medallions and silver coins having silver content not below 99.9% or semi manufactured forms of silver falling under sub-heading 7106 92 is being increased from 10% to 12.5%. Accordingly, S. No. 359 of notification No.50/2017-Customs, dated 30th June, 2017, is being omitted, vide notification No. 25/2019-Customs, dated 6th July, 2019. (2) BCD on Silver dore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5%. Accordingly, S. No. 363 of notification No.50/2017-Customs, dated 30th June, 2017, is being omitted, vide notification No.__ /2019-Customs, dated 6th July, 2019. However, there is no change in BCD on rhodium which attracts 2.5%. (9) BCD on all goods falling under tariff item 7111 00 00 is being increased from 10% to 12.5% by increasing the tariff rate. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. (10) BCD on all goods falling under heading 7112 is being increased from 10% to 12.5% by increasing the tariff rate. Clause 87 (a) of the Finance Bill, 2018 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect. Chapter 72 (1) BCD on all goods falling under heading 7218 is being increased from 5% to 7.5% by amending notification No.50/2017-Customs, dated 30th June, 2017, vide notification No.25/2019-Customs, dated 6th July, 2019. [ amendment in S. No. 366 and New S. No 373A refers] (2) BCD on all goods 7224 increased from 5% to 7.5% by amending notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 31, this increase will come into force with immediate effect]. Chapter 84 and 85 (1) BCD on indoor and outdoor units of split-system air conditioner falling under tariff item 8415 90 00, is being increased from 10% to 20% by increasing the tariff rate. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. However, the existing BCD rate on other items of tariff item 8415 90 00 shall continue. Notification No. 50/2017-Customs, dated 30th June, 2017, as amended vide notification No. 25/2019-Customs, dated 6th July, 2019. [New S.No.449A refer] (2) BCD on oil or petrol filters and intake air filters, for internal combustion engines, falling under heading 8421 23 00 and 8421 31 00 respectively, is being increased from 7.5% to 10% by increasing the tariff rate of all goods falling under this heading [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. (3) BCD on catalytic convertors falling under tariff items 8421 39 20 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing under tariff item 8512 20 90 and 8512 30 90 is being increased from 7.5% to 15% by increasing the tariff rate [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. (9) BCD on all goods, falling under tariff item 8512 90 00 is being increased from 7.5% to 10% by increasing the tariff rate [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. (10) BCD on loudspeakers falling under tariff items 8518 21 00 and 8518 22 00, is being increased from 10% to 15% by increasing the tariff rate. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. (11) Parts of line telephone handsets falling under tariff line 8518 30 00 is part of ITA agreement. Parts of line telephone handsets falling under tariff line 8518 30 00, is being explicitly exempt from BCD by amending notification No. 25/2005-Customs, d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /2017-Customs, dated 30th June, 2017 as amended vide notification No 24/2019-Customs dated 6th July, 2019 refers. Chapter 86: No Change Chapter 87 (1) BCD on CBU (completely built unit) imports of motor vehicles, falling under heading 8702 or 8704 is being increased from 25% to 30% by amending S. No. 524 of notification No. 50/2017-Customs dated 30th June, 2017, vide notification No. 25/2019-Customs, dated 6th July, 2019. (2) BCD on all goods, falling under heading 8706 is increased from 10% to 15% by increasing the tariff rate of all goods falling under this heading. [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. (3) BCD on all goods, falling under heading 8707 is increased from 10% to 15% by increasing the tariff rate of all goods falling under this heading [Clause 87 (a) of the Finance Bill, 2019 refers. By virtue of declaration under the Provisional Collection of Taxes Act, 1931, this increase will come into force with immediate effect]. Chapter 88-89: No Change Chapter 90: (1) BCD on Optical fibres, optical fibres bundles and cables ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ended so as to provide option to pay BCD at the rate of 7.5% at transaction value on goods imported without payment of customs duty for petroleum or coal bed methane operations, where disposal is made in unserviceable and mutilated condition. Condition No. 48 of notification No. 50/2017- Customs, dated 30th June, 2017 as amended vide notification No.25/2019-Customs, dated 6th July, 2019 refers. (4) Foam/ EVA foam [falling under heading 39] and Pine wood [falling under heading 4407] are being included in the list of items which are allowed duty free import upto 3% of FOB value of sports goods exported in the preceding financial year, subject to the condition that the manufacturer of sports goods is registered with the "Sports Goods Exports Promotion Council". [existing entry at S. No. 612 of notification No. 50/2017-Customs dated 30th June, 2017, amended vide notification No. 25/2019-Customs, dated 6th July, 2019 refers]. II. Amendment in provision relating to Countervailing duty and safeguard duty under Customs Tariff Act, 1975 (1) Anti-Circumvention provision for Countervailing Duty is being provided by inserting subsection IA in section 9 of the Customs Tariff Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 21 Other than paper rolled biris, manufactured without the aid of machine Nil 5 paisa per thousand 11 2403 19 29 Other Nil 10 paisa per thousand 12 2403 19 90 Other Nil 0.5% 13 2403 91 oo "Homogenised" or "reconstituted" tobacco Nil 0.5% 14 2403 99 10 Chewing tobacco Nil 0.5% 15 2403 99 20 Preparations containing chewing tobacco Nil 0.5% 16 2403 99 30 Jarda scented tobacco Nil 0.5% 17 2403 99 40 Snuff Nil 0.5% 18 2403 99 50 Preparations containing snuff Nil 0.5% 19 2403 99 60 Tobacco extracts and essence Nil 0.5% 20 2403 99 90 Other Nil 0.5% Chapter 27 (1) Tariff rate of excise duty on crude petroleum falling under tariff item 2709 20 00 is being increased from Nil to Re.1 per litre. Clause 90 of the Finance Bill, 2019 refers. However, Crude petroleum oil produced in the specified oil fields under production sharing contracts or in the exploration blocks offered under the New exploration licensing policy (NELP) through international competitive bidding is exempted [notification No.6/2019-Central Excise dated 6th July, 2019 refers]. By virtue of declaration under the Provisional Collection of Taxes Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icable with effect from 06.07.2019 (Rs. per litre) BED SAED RIC Total BED SAED RIC Total Petrol (unbranded) 2.98 7 8 17.98 2.98 8 9 19.98 Petrol (branded) 4.16 7 8 19.16 4.16 8 9 21.16 Diesel (unbranded) 4.83 1 8 13.83 4.83 2 9 15.83 Diesel (branded) 7.19 1 8 16.19 7.19 2 9 18.19 ANNEXURE-C MISCELLANEOUS CHANGES I. RETROSPECTIVE AMENDMENTS OF RATE NOTIFICATIONS (CUSTOMS) (1) Retrospective amendments in customs notification Nos. 46/2011 -Customs, dated 01.06.2011, 53/2011-customs, dated 01.07.2011, 12/2012-Customs, dated 17.03.2012 and 50/2017-Customs, dated 30.06.2017, in order to insert correct classification of Stearic Acid as per WCO, for the period as mentioned in the table below: S. No. Notification Period for retrospective change (a) 46/2011-Customs, dated 01.06.2011 31.03.2017 to 14.09.2017 (b) 53/2011 -Customs, dated 01.07.2011 31.03.2017 to 14.09.2017 (c) 12/2012-Customs dated 17.03.2012 31.03.2017 to 30.06.2017 (d) 50/2017-Customs dated 30.06.2017 01.07.2017 to 14.09.2017 (2) Retrospective amendment in Notification No.29/2016- Customs (ADD) dated 05.07.2016, for the period from 08.0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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