Page 107 - DHC Budget Book 2021-22 Final
P. 107

   9.5
 Amendments in Customs Tariff Act, 1975
 9.5.1 Changes in First Schedule to Custom Tariff Act, 1975
— First Schedule to Customs Tariff Act, 1975 has been proposed to be amended with effect from 01-01-2022 to align with HSN 2022. These changes include changes in the Chapter Notes/ Section Notes and substitution/insertion of Tariff Heading/Tariff item.
Comments:
— The alignment of the Indian Customs Tariff Act with HSN 2022 is to ensure that the classification of goods is done based on the global principles of HSN classification.
9.5.2 Major changes in rates of Basic Custom Duty [effective from 02-02-2021]
    Sl. No.
1 2 3 4 5
7 8 9 10 11
12 13 14 15
16 17
Particulars
Naphtha
Pre budget
4%
Post budget
2.5%
Impact
                              Carbon Black
           5%
     7.5%
       Builder’s Ware of Plastics
           10%
     15%
        Nylon Chips, Nylon Fibre and Yarn
                   7.5%
               5%
     Tanned Leather, Crust Leather and Finished leather of all kinds
    -
 10%
       Raw Silk(not thrown), Silk Yarn
           10%
     15%
        Cotton
                   -
               5%
     Safety Glass
    10%
 15%
        Silver and Gold bars
                   12.5%
               7.5%
     Scrap of iron or steel including steel and alloy steel
    2.5%
 Nil (upto 31.03.2022)
        Tunnel Boring Machine
                   -
               7.5%
     Compressors of Refrigerators and Air Conditioners
    12.5%
 15%
        Solar Inverters
                   10%
               20%
     Printed Circuit Board Assembly, Camera Modules, Connectors and Wired headset, USB cables being specific part of cellular mobile phones
    Nil
 2.5% (effective from 01.04.2021)
       Specified Auto Parts (other than Bicycle Parts and components)
           10%
     15%
       Solar Lanterns or Solar Lamp
               5%
        15%
                                                                                           Comments:
— The CG has sought to clamp down on “non- essential” imports and create level playing field for the benefit of agriculture sector, MSME
and other domestic manufacturers and aims
at supporting India’s flagship “Make in India” program and the vision of Atmanirbhar Bharat. While this step will push up the prices of several items including Cellular Phone, Auto Parts,
the move is meant to help small businesses,
many of which have been complaining of being adversely impacted by cheap imports. Further, a majority of the reduction made under BCD rates do not have any impact as an equal rate of AIDC is levied, which is a step to enhance the share of CG. The change in rate shall allow Indian manufacturers to become a part of the global value chain and enhance the quality of goods to be exported.
 Content
Customs Indirect Tax 105
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