Background:
Earlier, the CBIC had issued various notifications in order to exempt certain goods from customs duty, 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. 57/2021-Customs dated December 29, 2021 has issued certain amendments in the below mentioned notifications exempt certain goods from customs duty, to align the same with HS-2022, in a following manner:
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Sl. No. |
Notification No. |
Amendments |
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1. |
Notification No. 25/1998- Customs, dated June 2, 1998 (exempting specified goods of Chapters 70, 84, 85 or 90 from customs duty) |
(i) substituted “8514 10 00 or 8486” with “8514 19 00 or 8486” in serial no. 45; (ii) substituted “8514 30 or 8486” with “8514 90 00 or 8486 in serial no. 47” (iii) substituted “8514 30 or 8486″ with “8514 31 00 or 8514 32 00 or 8514 39 00 or 8486” in serial no. 48; (iv) substituted the figures “8514 10 to 8514 30”, with “8514 11 to 8514 39” in serial no. 49. |
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2. |
Notification No. 25/1999- Customs, dated February 28, 1999 (levying Nil or 5% customs duty on specified goods when imported into India for use in the manufacture of the finished goods) |
(i) against serial number 226, in the entry in column (2), for the figure “7419 99 90”, the figure “7419 80 90” shall be substituted in serial no.226; (ii) against serial number 233, in the entry in column (2), for the figure “6815 10”, the figure “6815 19 00” shall be substituted in serial no. 233. |
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3. |
Notification No. 25/2002- Customs, dated March 1, 2002 (exempting customs duty on capital goods used by the IT/ Electronics industry) |
(i) substituted the figure “8514 30 90” with “8514 39 00” in serial no.69; (ii) substituted the figure “8514 30 90”, with “8514 39 00” in serial no.72; (iii) substituted the figure “8525 80 90”, with “8525 89 00” in serial no. 76 |
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4. |
Notification No. 24/2005- Customs, dated March 1, 2005 (exempting customs duty specified goods to Chapter 38, 84, 85 and 90 and all goods for the manufacture) |
(i) substituted “8517 70 10″ with “8517 79 10” in serial no. 13S; (ii) In SI. No. 14, substituted “8519 50 00″ & “All goods” with “8519 81 00” and “Telephone Answering Machines” respectively; (iii) substituted 8543 90 or 8548 90“ with “8543 90 or 8548 00 00” in serial no. 27; (iv) In SI. No. 29, substituted “9013 80 10” and “All goods” with “8524 or 90138000” and “Liquid crystal devices” respectively; (v) In SI. No. 30, substituted the figures “013 90 10” and “All goods” with “8529 or 90139000” and Parts of liquid crystal devices” respectively; (vi) substituted “9027 80” with “9027 81 or 9027 89” in serial no. 35; (vii) In SI. No. 39, substituted “(Import of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 1996.” with “(Import of Goods at Concessional Rate of Duty) Rules, 2017” |
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5. |
Notification No. 25/2005 – Customs, dated March 1, 2005 (exempting customs duty on specified goods of Chapter 84, 85 and 90 and all goods for the manufacture) |
(i) substituted “8525 80 20″ with “8525 89 00” in serial no.13;
(ii) substituted 8531 80 00″ with “8524” in serial no.17 |
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6. |
Notification No. 57/2017- Customs, dated June 30, 2017 (exempting customs duty on certain electronic goods) |
(i) substituted “8517 12” with “8517 14 00” in serial no. 4; (ii) substituted “8517 70 90″ with “8517 71 00 or 8517 79 90” in serial no. 5; (iii) substituted “8517 70 90, 8525 80 20, 8525 80 90, 8529 90 90” with “8517 79 90, 8525 89 00, 8529 90 90” in serial no. 5A (iv) substituted “8517 70 90” with “8517 79 90” in serial no. 5B (v) Omitted SI. No. 21 and the entries thereto; (vi) substituted “8517 70 10” with “8517 79 10” in serial no. 22 |
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7. |
Notification No. 19/2019- Customs, dated July 6, 2019 (exempting customs duty on specified defense equipment and their parts imported in India by the Ministry of Defence) |
In the said notification, in the Table, – (i) substituted “84, 85, 8802 30 00 or 90” with “84, 85, 8802 30 00, 8806 or 90” in serial no.12 (ii) substituted “84, 85, 8802 40 00 or 90” with “84, 85, 8802 40 00, 8806 or 90” in serial no. 13 (iii) In SI. No. 14, substituted “8803” and Parts of goods of heading 8801 or 8802 with “8807” and “Parts of goods of heading 8801 or 8802 or 8806”. |
The Notification can be accessed at: https://www.cbic.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2021/cs-tarr2021/cs57-2021.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
