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THE CUSTOMS TARIFF ACT 1975 (Notification)
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Body

EXTRACT OF THE FINANCE (NO. 2) BILL, 2024

AS INTRODUCED IN LOK SABHA

ON 23RD JULY, 2024

Bill No. 55 of 2024

A

BILL

to give effect to the financial proposals of the Central Government for the financial year 2024-2025.

BE it enacted by Parliament in the Seventy-fifth Year of the Republic of India as follows:

CHAPTER I

PRELIMINARY

1. Short title and commencement.

(1) This Act may be called the Finance (No. 2) Act, 2024.

(2) Save as otherwise provided in this Act,-

(a) sections 2 to 87 shall be deemed to have come into force on the 1st day of April, 2024;

(b) sections 110 to 153 shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint.

CHAPTER V

INDIRECT TAXES

Customs

100. Amendment of section 28DA.

In the Customs Act, 1962 (52 of 1962.) (hereinafter referred to as the Customs Act), in section 28 DA,-

(a) in sub-section (2) and clauses (ii), (iii) and (iv) of subsection (10), for the word "certificate", the word "proof" shall be substituted;

(b) in Chapter V-AA, in the Explanation,-

(i) for clause (a), the following clause shall be substituted, namely:-

'(a) "proof of origin" means a certificate or declaration issued in accordance with a trade agreement certifying or declaring, as the case may be, that the goods fulfil the country of origin criteria and other requirements specified in the said agreement;';

(ii) for clause (c), the following clause shall be substituted, namely:-

'(c) "Issuing Authority" means an authority or person designated for the purposes of issuing proof of origin under a trade agreement;'.

101. Amendment of section 65.

In section 65 of the Customs Act, in sub-section (1), the following proviso shall be inserted, namely:-

"Provided that the Central Government may, if satisfied that it is necessary in the public interest so to do, by notification in the Official Gazette, specify the manufacturing processes and other operations in relation to a class of goods that shall not be permitted in a warehouse.".

102. Amendment of section 143AA.

In the Customs Act, in section 143AA, after the words "importers or exporters", the words "or any other persons," shall be inserted.

103. Amendment of section 157.

In the Customs Act, in section 157, in sub-section (2), in clause (m), after the words "importers or exporters", the words "or any other persons," shall be inserted.

104. Retrospective effect to notification issued under sub-section (1) of section 25 of Customs Act, read with subsection (12) of section 3 of Customs Tariff Act.

The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 394 (E), dated the 12th July, 2024 issued by the Central Government, in exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 read with sub- 52 of 1962. section (12) of section 3 of the Customs Tariff Act, 1975, shall 51 of 1975. be deemed to have, and always to have, for all purposes, come into force on and from the 1st day of July, 2017.

105. Retrospective amendment of notification issued under sub-section (1) of section 25 of Customs Act read with section 124 of Finance Act.

(1) Subject to the provisions of sub-section (2), the notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R.356(E), dated the 10th May, 2023, issued by the Central Government, on being satisfied that it is necessary in the public interest so to do, under sub-section (1) of section 25 of the Customs Act read with section 124 of the Finance Act, 2021 (hereinafter referred to as the Finance Act), shall be deemed to have, and always to have, for all purposes, come into force with effect from the 1st day of April, 2023, and remain in force during the period from the 1st day of April, 2023 and ending with the 30th day of June, 2023 (both days inclusive).

(2) The notification of the Government of India in the Ministry of Finance (Department of Revenue) number G.S.R. 356(E), dated the 10th May, 2023, issued by the Central Government, on being satisfied that it is necessary in the public interest so to do, under sub-section (1) of section 25 of the Customs Act read with section 124 of the Finance Act shall stand amended in the manner specified in column (2) of the Second Schedule and shall be deemed to have been amended retrospectively on and from and upto the corresponding date specified in column (3) of that Schedule against the notification number to be amended as specified in column (1) of that Schedule.

(3) For the purposes of sub-section (2), the Central Government shall have and shall be deemed to have the power to amend the notification referred to in the said sub-section with retrospective effect as if the Central Government had the power to amend the said notification under sub-section (1) of section 25 of the Customs Act read with section 124 of the Finance Act at all material times.

(4) Refund shall be made of the whole of duty and cess, which has been collected, but which would not have been so collected, had the notification referred to in sub-section (1) been in force in the manner and to the extent specified in sub-sections (1) and (2), in accordance with the provisions of sub-section (2) of section 27 of the Customs Act:

Provided that the person claiming the refund of such duty and cess makes an application in this behalf to the jurisdictional Assistant Commissioner of Customs or Deputy Commissioner of Customs, as the case may be, on or before the 31st day of March, 2025.

Customs Tariff

106. Omission of section 6.

In the Customs Tariff Act, 1975 (hereinafter referred to 51 of 1975. as the Customs Tariff Act), section 6 shall be omitted.

107. Amendment of First Schedule.

In the Customs Tariff Act, the First Schedule shall,-

(a) be amended in the manner specified in the Third Schedule;

(b) be also amended in the manner specified in the Fourth Schedule, with effect from the 1st day of October, 2024.

THE SECOND SCHEDULE

(See section 105)

Notification number to be amended Amendment Period of effect of amendment
(1) (2) (3)
G.S.R. number 356(E), dated 10th May, 2023 [37/2023-Customs, dated 10th May, 2023]. In the said notification, in the Annexure, for the conditions, the following conditions shall be substituted, namely:-

Conditions

"(a) Importer produces to the Deputy Commissioner or the Assistant Commissioner of Customs, as the case may be, a valid Tariff Rate Quota (TRQ) authorisation for the Financial Year 2022-23 allotted by Directorate General of Foreign Trade;

(b) The duty and cess benefit under the afore-said valid TRQ authorisation shall be restricted only to the extent of unutilised quota which is not used to claim such benefit under notification No. 30/2022-Customs, dated the 24th May, 2022, or under this notification from 11th May, 2023 and up to 30th June, 2023 (both days inclusive);

(c) Bill of lading for concerned import consignment is issued on or before 31st March, 2023;

(d) The TRQ is allotted to the importer by the Directorate General of Foreign Trade, in accordance with the relevant procedure as specified in the Hand Book of Procedures, 2015-20 or 2023, as applicable; and

(e) The TRQ authorisation shall contain the name and address of the importer, IEC code, Customs notification No., sub-heading or tariff item as applicable, quantity and validity period of certificate.".

1st day of April, 2023 to 10th day of May, 2023 (both days inclusive).

THE THIRD SCHEDULE

[See section 107(a)]

In the First Schedule to the Customs Tariff Act,-

(i) in Chapter 39, for the entry in column (4) occurring against all the tariff items of headings 3920 and 3921, the entry "25%" shall be substituted;

(ii) in Chapter 66, for the entry in column (4) occurring against the tariff item 6601 10 00, the entry "20% or Rs. 60 per piece, whichever is higher" shall be substituted;

(iii) in Chapter 98, for the entry in column (4) occurring against tariff item 9802 00 00, the entry "150%" shall be substituted.

THE FOURTH SCHEDULE

[See section 107(b)]

In the Customs Tariff Act, in the First Schedule,-

Tariff Item Description of goods Unit Rate of duty
      Standard Preferential
(1) (2) (3) (4) (5)

(1) in Chapter 19, in heading 1905,

(i) for sub-heading 1905 32, tariff item 1905 32 11 and tariff item 1905 32 19 and the entries relating thereto, the following shall be substituted, namely:-

"1905 32 -- Waffles and wafers :      
1905 32 11 --- Coated with chocolate or containing chocolate kg. 30% -";

(ii) in sub-heading 1905 90, after tariff item 1905 90 40 and the entries relating thereto, the following shall be inserted, namely:-

  "--- Communion wafers :      
1905 90 51 ---- Coated with chocolate or containing chocolate kg. 30% -
1905 90 59 ---- Other kg. 30% -";

(2) in Chapter 20, for the entry in column (4) occurring against tariff items 2008 19 20 and 2008 19 30, the entry "150%" shall be substituted;

(3) in Chapter 27,-

(i) in Supplementary Note, after sub-note (k), the following sub-note shall be inserted, namely:-

'(l) for the purposes of tariff item 2710 19 33, the term "Blended Aviation turbine fuel" means any Aviation turbine fuel containing by weight 70% or more of Petroleum Oils or Oils obtained from Bituminous Minerals, blended with Synthesized Hydrocarbons conforming to Indian Standards Specification of Bureau of Indian Standards IS 17081:2019.';

(ii) after tariff item 2710 19 32 and the entries relating thereto, the following shall be inserted, namely:-

"2710 19 33 ---- Blended Aviation turbine fuel kg. 5% -";

(4) in Chapter 29, -

(i) after sub-heading note 2, the following Supplementary Note shall be inserted, namely:-

'Supplementary Note :

For the purposes of tariff item 2906 11 10, the term "Natural Menthol" means an organic compound (C10H20O) which is obtained from the distillation of the Japanese type oil of mint or menthol mint known as Mentha arvensis but does not include those made synthetically through any chemical routes.';

(ii) for tariff item 2906 11 00 and the entries relating thereto, the following shall be substituted, namely:-

"2906 11 -- Menthol:      
2906 11 10 --- Natural Menthol kg. 7.5% -
2906 11 90 --- Other kg. 7.5% -";

(iii) tariff item 2922 29 33 and the entries relating thereto shall be omitted;

(iv) after tariff item 2924 29 70 and the entries relating thereto, the following shall be inserted, namely:-

"2924 29 80 --- Paracetamol kg. 7.5% -";

(5) in Chapter 38,-

(i) for the entry in column (2) occurring against tariff item 3818 00 10, the following shall be substituted, namely:-

  "--- Undiffused silicon wafers";      

(ii) after tariff item 3818 00 10 and the entries relating thereto, the following shall be inserted, namely:-

"3818 00 20 --- Silicon carbide epitaxial thin film on substrate kg. Free -
3818 00 30 --- Gallium nitride epitaxial thin film on substrate kg. Free -";

(6) in Chapter 39, -

(i) after tariff item 3920 10 92 and the entries relating thereto, the following shall be inserted, namely:-

"3920 10 93 ---- Armour for ballistic protection Kg. 25% -";

(ii) after tariff item 3921 90 26 and the entries relating thereto, the following shall be inserted, namely:-

"3921 90 27 ---- Architectural membrane Kg. 25% -";

(7) in Chapter 57,-

(i) after Note 2, the following Supplementary Note shall be inserted, namely:-

'Supplementary Note :

For the purposes of tariff items 5703 29 22, 5703 39 31, 5703 39 32, 5703 39 33 and 5703 39 39, the term "Special Finishes" means process of making the product with any one or more of the following properties such as fire resistant, fire retardant, chemical resistant, anti-static, dust resistant, anti-stain, anti-microbial, anti-odor, UV stabilized, heat resistant, etc.';

(ii) in heading 5703, -

(a) for tariff item 5703 29 20 and the entries relating thereto, the following shall be substituted, namely:-

  "--- 100% polyamide tufted velour, cut pile or loop pile carpet mats :      
5703 29 21 ---- With jute, rubber latex or PU foam backing m2 20% or Rs.70 per sq. metre, whichever is higher -
5703 29 22 ---- With ethylene vinyl acetate or vinyl acetate ethylene or latex coating and/or extruded polyvinyl chloride or thermoplastic polyolefin, with special finishes m2 20% or Rs.70 per sq. metre, whichever is higher -
5703 29 29 ---- Other m2 20% or Rs.70 per sq. metre, whichever is higher -";

(b) after tariff item 5703 39 20 and the entries relating thereto, the following shall be inserted, namely:-

  "--- Tufted velour, cut pile or loop pile carpet mats with ethylene vinyl acetate or vinyl acetate ethylene or latex coating and/or extruded polyvinyl chloride or thermoplastic polyolefin, with special finishes:      
5703 39 31 ---- Of 100% polypropylene m2 20% or Rs. 55 per sq. metre, whichever is higher -
5703 39 32 ---- Of 100% polyester m2 20% or Rs. 55 per sq. metre, whichever is higher -
5703 39 33 ---- Of 100% polyethylene m2 20% or Rs. 55 per sq. metre, whichever is higher -
5703 39 39 ---- Other m2 20% or Rs.55 per sq. metre, whichever is higher -";

(8) in Chapter 63, after tariff item 6307 90 91 and the entries relating thereto, the following shall be inserted, namely:-

"6307 90 92 ---- Armour for ballistic protection u 10% -";

(9) in Chapter 65, after tariff item 6506 10 10 and the entries relating thereto, the following shall be inserted, namely:-

"6506 10 20 --- Headgear for ballistic protection u 10% -";

(10) in Chapter 69, for tariff item 6914 90 00 and the entries relating thereto, the following shall be substituted, namely:-

"6914 90 - Other :      
6914 90 10 --- Armour for ballistic protection kg. 10% -
6914 90 90 --- Other kg. 10% -";

(11) in Chapter 73, for tariff item 7308 10 00 and the entries relating thereto, the following shall be substituted, namely:-

"7308 10 - Bridges and bridge-sections :      
7308 10 10 --- Portable bridge u 15% -
7308 10 90 --- Other u 15% -";

(12) in Chapter 76, for tariff item 7610 90 20 and the entries relating thereto, the following shall be substituted, namely:-

  "--- Parts of structures, not elsewhere specified :      
7610 90 21 ---- Portable bridge kg. 10% -
7610 90 29 ---- Other kg. 10% -";

(13) in Chapter 84,-

(i) after tariff item 8412 29 10 and the entries relating thereto, the following shall be inserted, namely:-

"8412 29 20 --- Hydraulic systems for use in goods of chapter 89 u 7.5% -";

(ii) for tariff item 8430 69 00 and the entries relating thereto, the following shall be substituted, namely:-

"8430 69 -- Other :      
8430 69 10 --- Mine plough machinery u 7.5% -
8430 69 90 --- Other u 7.5% -";

(iii) in sub-heading 8443 99,-

(a) for the entry in column (2) occurring against tariff item 8443 99 51, the entry "---- Cartridges or toners, with print head assembly" shall be substituted;

(b) for the entry in column (2) occurring against tariff item 8443 99 52, the entry "---- Cartridges or toners, with print head assembly" shall be substituted;

(iv) after tariff item 8479 89 70 and the entries relating thereto, the following shall be inserted, namely:-

"8479 89 80 --- Machinery for use in goods of Chapter 88 or 89 u 7.5% -";

(14) in Chapter 85, for tariff item 8537 10 00 and the entries relating thereto, the following shall be substituted, namely:-

"8537 10 - For a voltage not exceeding 1,000 V :      
8537 10 10 --- For use in goods of Chapter 88 or 89 or 93 kg. 15% -
8537 10 90 --- Other kg. 15% -";

(15) in Chapter 87,-

(i) after sub-heading note 1, the following Supplementary Note shall be inserted, namely:- 'Supplementary Note: For the purposes of tariff item 8711 60 80, the term "E-bicycle or battery operated pedal assisted vehicle" means vehicle equipped with an auxiliary electric motor having a thirtyminute power less than 0.25 kW and maximum speed not exceeding 25 km/h and conforming to the provisions of the Motor Vehicles Act, 1988 (59 of 1988) and the rules made thereunder.';

(ii) for tariff item 8705 90 00 and the entries relating thereto, the following shall be substituted, namely:-

"8705 90 - Other :      
8705 90 10 --- Lorries (Trucks) fitted with bridging systems u 10% -
8705 90 90 --- Other u 10% -";

(iii) after tariff item 8711 60 30 and the entries relating thereto, the following shall be inserted, namely:-

"8711 60 80 --- E-bicycle or battery-operated pedal assisted vehicle u 100% -";

(16) in Chapter 88, for tariff item 8807 30 00 and the entries relating thereto, the following shall be substituted, namely:-

"8807 30 - Other parts of aeroplanes, helicopters or unmanned aircraft :      
8807 30 10 --- Of aeroplanes, helicopters kg. 2.5% -
8807 30 20 --- Of unmanned aircraft kg. 2.5% -";

(17) in Chapter 89, for tariff item 8906 90 00 and the entries relating thereto, the following shall be substituted, namely:-

"8906 90 - Other :      
8906 90 10

 --- Patrol or surveillance boat, air-cushion vehicle, remote-operated vehicle u 10% -
8906 90 90 --- Other u 10% -";

(18) in Chapter 93, for tariff item 9305 99 00 and the entries relating thereto, the following shall be substituted, namely:-

"9305 99 -- Other :      
9305 99 10 --- Of goods of heading 9304 kg. 10% -
9305 99 90 --- Other kg. 10% -";