Union Budget 2023-24 : Government Proposes to Cut Customs Duty on Goods to 13% from 21%


   VIEWS      By SCMCube   February 06, 2022

According to Union Finance Minister Nirmala Sitharaman's speech in Lok Sabha on February 1, 2023. There were minor changes in the basic customs duties, cesses and surcharges on some items including Toys, Bicycles, Automobiles and Naphtha.

Important Highlights of the Union Budget – 2023

  • The government also proposed to reduce customs duty on the import of certain inputs for mobile phone manufacturing. Customs duty on parts of open cells of TV panels cut to 2.5%.
  • Basic custom duty on acyclic & cyclic hydrocarbons rationalized to 2.5%.
  • The Union Budget proposed an increase in the basic customs duty on compounded rubber from 10% to 25% or ₹30 per kg, whichever was lower, at par with natural rubber, other than latex.
  • To address the current account deficit (CAD) and surging imports of the yellow metal, the Centre increased the import levy on gold from 10.75 per cent to 15 per cent in July of this year. 12.5 per cent is the standard customs charge on gold.
  • For bicycles, the new rate is 35% as against existing 30%; for toys and parts of toys, other than parts of electronic toys, it will be 70% (60%). BCD on naphtha has been increased from 1% to 2.5%.
  • Customs duty on electric vehicles in completely built units (CBUs), other than with cost, insurance and freight (CIF) value of more than $40,000 has been raised to 70%, from 60%.

Explanatory Memorandum to Notification Nos. 02 to 12-Customs

Notification No. 02/2023-Customs

Seeks to further amend notification No. 50/2017-Customs, dated the 30th June, 2017, so as to revise/provide exemption(s) on the specified goods.

Notification No. 03/2023-Customs

Seeks to further amend notification No. 11/2021-Customs dated 1st February, 2021, so as to levy/exempt Agriculture & Infrastructure Development Cess (AIDC) on certain items.

Notification No. 04/2023-Customs

Seeks to further amend notification No. 11/2018-Customs, dated 2nd February, 2018, revise/provide Social Welfare Surcharge (SWS) exemption(s) on specified goods.

Notification No. 05/2023-Customs

Seeks to rescind notification Nos. 13/2021-Customs and 34/2022-Customs, related to Social Welfare Surcharge (SWS).

Notification No. 06/2023-Customs

Seeks to further amend notification Nos. 25/1999-Customs, 25/2002-Customs and 57/2017-Customs related to certain items.

Notification No. 07/2023-Customs

Seeks to further amend notification No. 230/86-Customs related to Project Import Regulations.

Notification No. 08/2023-Customs

Seeks to further amend notification No. 22/2022-Customs regarding India-UAE Comprehensive Economic Partnership Agreement.

Notification No. 09/2023-Customs

Seeks to further amend notification No. 57/2000-Customs which exempts gold, silver and platinum imported under specified schemes.

Notification No. 10/2023-Customs

Seeks to further amend notification No. 146/94-Customs, dated the 13th July, 1994 to extend the validity of said notification up to the 31st March, 2028.

Notification No. 11/2023-Customs

Seeks to amend the notification Nos. 90/2009- Customs, dated the 7th September, 2009, 33/2017-Customs, dated the 30th June, 2017, and 41/2017-Customs, dated the 30th June, 2017 to extend the validity of said notifications up to the 31st March, 2028.

Notification No. 12/2023-Customs

Seeks to amend 32 notifications in order to provide a specific end date for these notifications.

Notification No. 05/2023 -Central Excise

Seeks to exempt Compressed Natural Gas (CNG) from so much of the duty of excise leviable on amount of GST paid on Biogas or Compressed Biogas which is blended with CNG

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