As many as 350 customs duty exemptions have been withdrawn in the Budget 2022-23 to boost domestic manufacturing. A comprehensive review of customs duty exemption on capital goods and project imports undertaken and more than 40 customs exemptions to be gradually phased out, the Central Board of Indirect Taxes and Customs (CBIC) tweeted.
In total, 350 customs exemptions are being withdrawn, the CBIC said.
The Budget tabled in Parliament on February 1 had rationalised customs duty rate on a host of goods.
Duty on capital goods and project imports was rationalised by phasing out concessional rates and applying a moderate tariff of 7.5 per cent.
However, exemptions for advanced machineries that are not manufactured within the country will continue.
For the electronics sector, customs duty rates are being standardised on wearable devices, hearable devices and electronic smart meters.
Besides, there has been a reduction in duty concessions on parts of the transformer of mobile phone chargers and the camera lens of the mobile camera module.
Also, the basic customs duty on hearable and wrist wearable devices and their inputs/ parts/ sub-parts will be increased in a phased manner.
In the gems and jewellery sector, customs duty on cut and polished diamonds and gemstones has been reduced from 7.5 per cent to 5 per cent.
Simply sawn diamond will attract nil customs duty imported under Kimberley Process Certification Scheme (KPCS).
Basic customs duty rate of 20 per cent or Rs 400/kg, whichever is higher, will be applied on imitation jewellery. (PTI)
