Background:
Earlier, the CBIC issued Notification No. 53/2017- Customs dated June 30, 2017 (“the SAD Notification”), in order to levy additional customs duty, on sale or purchase or transportation of certain imported goods in India, under the Customs Tariff Act, 1975 (“Customs Tariff Act”).
Further, the new (seventh) edition of the Harmonized System (HS) nomenclature i.e., HS-2022, shall come into force from January 01, 2022. This edition has introduced significant changes to the Harmonized System with a total of 351 amendments at the six-digit level, covering a wide range of goods moving across borders.
As India is a party to the HS convention, necessary changes were brought in accordingly, under Customs through the below mentioned notification:
Notification:
The CBIC vide Notification No. 59/2021-Customs dated December 29, 2021 has issued amendments in the SAD Notification w.e.f. January 1, 2022 in order to align the same with HS-2022, in a following manner:
|
Sl. No. |
Old HS Code/Chapter | New HS Code/Chapter | Entry |
| 1. | 2709 00 00 | 2709 00 10 |
Petroleum Crude |
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2021/cs-tarr2021/cs59-2021.pdf
Our comments:
Similar changes have been adopted under GST provisions from January 01, 2022 so as to align the same with HS 2022. The list of notifications are as under:
Notification No. 18/2021- Central Tax (Rate) dated December 28, 2021
Notification No. 19/2021- Central Tax (Rate) dated December 28, 2021
Notification No. 20/2021- Central Tax (Rate) dated December 28, 2021
Similar notifications have been passed under Integrated Goods and Services Tax Act, 2017 and Union Territory Goods and Services Tax Act, 2017.
Notification No. 02/2021-Compensation Cess (Rate) dated December 28, 2021
The HSN Amendments chapter wise can be accessed at: https://a2z-bucket.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/12/HSN-Amendments-Chapterwise-from-Jan-1-2022.pdf
Correlation of Customs Tariff between 2021 and 2022 can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/deptt_offcr/Guidance%20Document%20on%20Correlation%20of%20Customs%20Tariff%20between%202021%20and%202022.pdf