Lok Sabha Question No. 177 (STARRED), answered on 2022-12-19
Subject: Changes in Import Duty and other Duty Exemptions
Ministry: FINANCE
Asked by: Pallab Lochan Das

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE

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## LOK SABHA

## STARRED QUESTION NO. *177

## TO BE ANSWERED ON MONDAY, DECEMBER 19, 2022/AGRAHAYANA 28, 1944 (SAKA)

## CHANGES IN IMPORT DUTY AND OTHER DUTY EXEMPTIONS

## *177.  SHRI PALLAB LOCHAN DAS:

Will the Minister of Finance be pleased to state:

- (a) whether to promote Vocal for Local and Make in India, the import duty on certain sectors/ products have been increased by the Government and if so, the details thereof;
- (b)  whether  the  Government  has  removed  several  duty  exemptions  on  import  of  various sectors like power, fertilizer, textiles, leather, footwear and food processing for Ease of Doing Business; and
- (c) if so, the details thereof?

## ANSWER

## MINISTER OF FINANCE SHRIMATI NIRMALA SITHARAMAN

(a) to (c): A statement is placed on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO THE LOK SABHA STARRED QUESTION NO.177 RAISED BY SHRI PALLAB LOCHAN DAS FOR 19 th DECEMBER, 2022 ON CHANGES IN IMPORT DUTY AND OTHER DUTY EXEMPTIONS

(a): The  Customs  duty  rate  structure  has  been  guided  by  a  conscious  policy  of  the government to incentivize domestic value addition under Make in India and Atma Nirbhar Bharat  initiative,  which  inter-alia  envisages  imposition  of  lower  duty  on  raw  materials compared  to  intermediates  and  finished  products  with  a  view  to  provide  reasonable  tariff support to goods being manufactured in India. In accordance with this policy, MFN Rates of Basic Customs Duty have been increased in the past one year on goods such as Umbrellas and sun umbrellas, wearable and hearable devices and their parts, photo voltaic cells, parts of X-ray  machines  for  medical,  surgical,  dental  or  veterinary  use,  electricity  meters  for alternating current along with its parts and accessories and parts of electronic toys used in the manufacture of electronic toys. The details are at Annexure .

(b to c)  :    A  comprehensive  review  of  customs  duty  exemptions  has  been  undertaken  in consultation with line Ministries and stakeholders in which about 350 exemptions have been withdrawn  to  boost  domestic  manufacturing.  For  ease  of  doing  business,  unconditional exemptions which were provided through various notifications have been moved to the First schedule  of  the  Customs  Tariff  Act,  1975.  Accordingly,  the  effective  rates  of  duty  will operate through the Tariff/Schedule.

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## Annexure

|   S.No. | Product Description                                                               | BCD Rate Old   | BCD Rate New   |
|---------|-----------------------------------------------------------------------------------|----------------|----------------|
|       1 | Umbrellas and sun umbrellas                                                       | 10%            | 20%            |
|       2 | Wearable and Hearable devices and their parts                                     | 15%            | 20%            |
|       3 | Solar cells                                                                       | Nil            | 25%            |
|       4 | Solar modules                                                                     | Nil            | 40%            |
|       5 | specified parts of X-ray machines for medical, surgical, dental or veterinary use | 5%             | 10%            |
|       6 | electricity meters for alternating current                                        | 15%            | 25%            |
|       7 | parts and accessories for electricity meters                                      | 10%            | 20%            |
|       8 | parts of electronic toys used in the manufacture of electronic toys               | 15%            | 25%            |

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