Changes in Custom Duty rates - Budget 2008

CA. Amit Daga (Finance Controller CA. CS. CFA. CIFRS. M.COM. ) (9017 Points)

25 March 2008

Changes in Custom Duty rates - Budget 2008

1. Reduction in customs duty rate (effective from 1 March 2008)

In pursuit of correction of inverted duty structure and provide fillip to selected industries/ , customs duty has been reduced on selected commodities by change in tariff rate/ by issue of exemption notifications. These changes are effective from 1 March 2008.

Detailed list of items and the duty rates .

Sr. No.	Name of item	Changes in duty rates
1	Un worked corals	BCD from 10% to 5%
2	Rough Cubic Zirconia	BCD from 5% to 0%
3	Feed Additives or premixes	BCD from 30% to 20%
4	Unrefined sulphur	BCD from 5% to 2%
5	Phosphoric Acid	BCD from 7.5% to 5%
6	Specified items used for manufacture of Elisa Kit	BCD reduced to 5%
7	Specified life saving drugs	BCD from 5% to 0%
8	Chlorobutyl rubber and bromobutyl rubber	BCD from 10% to 5%
9	Polyester tyre cord fabric	BCD from 10% to 5%
9	Polyester Filament Yarn	NCCD reduced to 0%
10	Melting scrap of iron and steel	BCD from 5% to 0%
11	Aluminium scrap	BCD from 5% to 0%
12	Specified machinery required for manufacture and export of sport goods	BCD from 7.5% to 5%
13	Specified raw materials for manufacture of sport goods and export subject to limit of 3% of FOB value of exports of previous year	BCD 10% to 0%
15	Simulators of Helicopters	BCD from 10% to Nil

2. Increase in customs duty rates (effective from 1 March 2008)

To protect domestic industry, restrict import of selected commodities and augment revenue collections, customs duty has been increased on various items / exemptions have been withdrawn/ amended. These changes are effective from 1 March 2008. Detailed list of items and increase rates .

Sr. No.	Name of item	Changes in duty rates
1	Cigars, cheroots	BCD from 30% to 60%
2	Naptha used for manufacture of polymers	Exemption withdrawn. Applicable duty payable
3	Electrical energy	BCD from Nil to Rs. 2000 per kWH. Exemption provided. Hence effective rate is 0%.
4	Mobile phones	NCCD from 0% to 1%
5	Power generation projects (other than mega power projects), transmission, sub transmission and distribution projects and specified goods for High Voltage transmission projects	ADC from 0% to 4%
6	Wireless data modem cards with PCMCIA/USB/PCI port	ADC from 0% to 4%