iv. empiricalfindings asthe study wasconductedduring 1998 .... empirical... · iv....

IV. Empirical Findings

As the study was conducted during 1998-99, the empirical findings

are based on the information then available. Accordingly these relate to

the rate structure prevalent in the year 1998-99. Presentation of empirical

findings is preceeded by a brief discussion of the data utilised in the study.

The limitations of the study, owing to the data set utilised, are indicated in

the relevant sections in this chapter.

The data

Effective rates of BCD, SD, UED, ST and OCT were compiled for

different commodities at the 6-digit harmonised system of commodities,

for the year 1998-99. This took into account general exemptions and other

concessions allowed under different taxes. Effective rates of CD and UED

were compiled for more than 3000 commodities from Customs Tariff with

Manual (1998-99), and Central Excise Tariff with Manual (1998-99),

published by Business Database Publishing Company. ST rates for the

same set of commodities for Maharashtra have been compiled from

Bombay Sales Tax Act, 1959: As amended upto May 1, 1998, edited by

M.L. Anand and published by MTJ Publications. OCT rates varied across

the 22 municipalities/corporations in Maharashtra that levy OCT, but the

OCT rates were compiled only for four Municipal Corporations, namely,

Greater Mumbai Corporation, Kolhapur Corporation, Malegaon

Municipality, and Mira Bhayandar Municipality.

The calculation of ERP was possible only at an aggregated level of

60 broad commodity groups. The latest year for which matrices of input-

output coefficients were available, was 1989-90. These matrices were

obtained from the Planning Commission. These were based on 60 broad

groups of commodities/industries. The commodity x commodity matrix

(A) of input-output coefficients was not readily available. The available

matrices were the basic matrices relating to the commodity flows. These

were 'absorption' (B) and 'make" (D) matrices of dimensions commodity

x industry and industry x commodity, respectively. Corresponding to a

matrix of commodity flows, the matrix of input-output coefficients was

obtained by dividing the elements in the jth column of a flow matrix, i.e.,

inputs used for production of jth commodity, by the value of gross output

of the jth commodity. The commodity x commodity matrix of input-output

Empirical Findings 29

coefficients was obtained by multiplying the absorption matrix of input-

output coefficients by the make matrix of input-output coefficients as

follows:

A = B.D (4.1)

The coefficients ay' were given at producer prices and were inclusive of

customs duties. These were adjusted to obtain the required coefficients ay at

world prices (c.i.f. prices) by the following formula:

= a. (4.2)

For using (4.2), the required rates of customs duties for the year 1989-90

were taken from Aggarwal (1998b). The ERP for the year 1998-99 were

obtained by using these input-output coefficients at world prices along with

effective rates of duties/taxes for the year 1998-99.

In order to match the six-digit level commodities with the 60 broad

groups for which input-output matrices are available, we obtained

information on the composition of each broad group, from the Input-

Output Transactions Table 1983-84; a publication of the Central

Statistical Organisation (CSO). There was some variation in the

commodity classification utilised for customs and excise tariffs. Therefore,

customs and excise commodity codes were separately matched with the 60

commodity groups.

Calculation of the customs and excise duty rates for a broad group

required data on value of imports and production on each of the items in

the group. The value of imports and some proxy for output were used as

weights to construct the weighted average customs and excise duty rates

for the group. Import values were taken from foreign trade statistics for

1996-97, the latest available. Value of Clearances (VoC) was taken as a

proxy for output, and the latest data on VoC relating to 1994-95 were

obtained from the Directorate of Statistics and Intelligence, Central Excise

and Customs, Government of India. The commodity classification

followed international convention of "Harmonised Commodity

30 Discriminatory Tax Treatment

Description" and "Coding System" (HSN) with certain contractions and

modifications at the six-digit level of disaggregation.

Effective Rate of Protection (ERP)

The effective rates of different duties/taxes for the sixty groups of

commodities were obtained in two steps. First, duty rates were identified for

each of the commodities at six-digit level classification (more than 3000

commodities), as each of the sixty broad groups of commodities comprised

many of the six-digit level commodities. Second, duty rate for a broad group

of commodities was obtained by taking a weighted21 average of the rates

applicable to the commodities within the group. For customs duties

(comprising BCD and SD), CVD and SAD, weighted average rates were

obtained by using import values for the year 1996-97 as weights. For UED,

weighted average rates were obtained by using VoCs as weights. For this

purpose, the VoCs of the goods cleared for purposes other than for export,

for the year 1994-95, was utilised."

The duty rates used in the exercise take into account general

exemptions and duty reductions effected through notifications. However, it

had not been feasible to take the end-use exemptions or concessions into

account. Thus, the estimated ERPs based on these rates may provide to

some extent, over- or under-estimates of the tax advantage or disadvantage

suffered by domestic producers.

The input-output coefficients utilised in the computation of ERP

relate to the year 1989-90, implying that these computations are based on the

prices and technology built into these coefficients. This fails to take into

account subsequent changes, if any, in technology and relative prices.

Wherever weights were not available, a simple average of the rates was taken. This

was done particularly due to absence of weights for some of the six-digit level

commodities.

It is important to note that the rates of customs duties for a broad group of

commodities were obtained by using shares of imports of different commodities

within the group. With imports varying inversely with duty rates, higher rates of CD

get assigned lower weights, and vice-versa. Calculation of weighted UED and other

domestic tax rates would have suffered from similar limitations. However, the

weighted average with all its limitations, is preferred to the simple average that

altogether ignores composition of commodities within a group.

Empirical Findings J'

Unfortunately, it is not feasible to infer the impact of these changes on the

ERP. This study needs to be repeated as and when input-output matrices for

a later date become available.

The effective rates of duties and ERP for sixty groups of

commodities, with different tax regimes, are given in Table IV. 1 (columns 3

to 15). For ease of exposition, in the discussion below, the sixty broad

groups have been classified under three categories: (i) 14 unmanufactured

products; (ii) 39 manufactured products; and (iii) 7 (generally non-tradable)

services. For some manufactured products, value of inputs exceeded unity

implying negative value addition at world prices. For such products,

interpretation of ERP differs from that for products with positive value

addition at world prices. Therefore, manufactured products are further

divided into two categories: (a) 34 with positive value addition at world

prices; and (b) 5 (accounting for 26.3 per cent of the total value of imports)

with negative value addition at world prices. Within each of these

categories, the products are arranged in an ascending order of overall ERP,

excepting the manufactured products with negative value addition at world

prices that are arranged in a descending order of ERP.

From Table IV. 1 (column 10), it may be noted that, in terms of total

value of imports, unmanufactured products accounted for only 3.4 per cent,

with manufactured products accounting for the other 96.6 per cent.

Therefore, in the discussion below, we make a few vital observations

relating to unmanufactured products, and then focus mainly on manufactured

products. Towards the end, a few remarks on services are also given.

Unmanufactured products

Unmanufactured products consist of agricultural goods. As many as

seven out of the fourteen broad categories of unmanufactured products

attracted a zero rate of customs duty. Even SAD was nil on such products.

But, the inputs used in the production of such commodities did not

necessarily enjoy the benefits of a low duty regime. Even while quantitative

restrictions (QR) on such products have shielded domestic producers from

foreign competition, the scrutiny of the ERP on such products seems

extremely important because with the phasing out of QRs, domestic

producers will become increasingly open to foreign competition.


Among the fourteen unmanufactured products (items 1-14, Table

IV. 1), six, namely, raw cotton, paddy, wheat, cereals other than paddy and

wheat, and tea and coffee plantations, were facing an inverted structure of

customs duties. For these products, ERP with reference to customs duties

was negative (items 1 -6, column 11), implying that the rate of customs duty

on such a product was lower as compared to the rates applicable to at least

some of its inputs. ERP became even more adverse when domestic trade

taxes were taken into account. When all taxes, including domestic trade

taxes, were taken into account, ERP worked out to be negative also for

forestry and logging (item 7, columns 13 to 15). The systems of UED and

CVD, and ST and SAD were found to make negative contribution to the

ERP of some of the unmanufactured products (items 1-8, columns 16 and

19). The situation worsened in the presence of octroi (columns 19 and 20).

The tax disadvantage to the producers of raw cotton and cereals,

because of the inverted structure of customs duty, was significant with ERP

at -13.57 per cent and -4.33 per cent, respectively. This suggests that

withdrawal of QRs may have a serious impact on domestic producers of

these products unless the inverted customs duty structure is corrected. Some

rough calculations suggest that ceteris peribus, the inverted duty structure

could be rectified by increasing the customs duty on raw cotton by 8.14

percentage points and on cereals by about 3.31 percentage points. When

domestic trade taxes were also taken into account, the ERP for raw cotton

and cereals worked out to -23.72 per cent and -5.57 per cent, respectively.

This negative protection could be nullified by increasing the customs duty on

raw cotton by about 14.23 percentage points and on cereals by about 4.26

percentage points. Alternatively, it could be nullified by correcting for the

inverted structure of customs duty along with rationalisation of domestic

trade taxes to achieve level playing field between imports and domestic

produce.

The producers of pulses, rubber, sugarcane, and jute appeared to be

well protected. For none of these products, ERP was less than 12 per cent

and for sugarcane, jute, and some other crops, it exceeded 50 per cent (items

9-14, column 15).

Empirical Findings -^

Manufactured Products

The puzzle of negative value added products

From Table IV. 1 (items 49-53, column 9), it may be noted that there

were five products - chemicals and cinematographic films, lubricating

preparations, and other petroleum products, other food items not specified

elsewhere, coal tar products, and articles of silk or synthetic fibre - with

value of inputs more than Re. 1 for producing Re. 1 of output at world

prices. Value addition for these products was negative at world prices.

With negative value added at world prices, the value of ERP needs

careful interpretation. It may be recalled thus

vi'- vi

Ei =

VI

where vi = value added in the process of production of a unit of jth

commodity in the absence of taxes and trade restrictions, and

vi' = value added in the process of production of a unit of jth

commodity in the presence of taxes.

As shown in Figure IV. 1, V > v depicts the positive degree of

protection and v' < v the negative degree of protection irrespective of

positive or negative value of v. From Figure IV. 1, it may be noted that for v

< 0, a negative value of ERP indicates positive protection while a positive

value indicates negative protection. In fact, it is easy to note that, ERP < -1

(i.e.. less than -100 per cent, say -125 per cent in percentage terms) indicates

that the value addition changes from negative to positive because of the tax

regime. Further, -1 < ERP < 0 suggests that, though value added under the

tax regime is negative, it is greater than the value added without taxes, i.e., V

> v. For v > 0, clearly a positive value of ERP suggests a positive degree of

protection and a negative value indicates a negative degree of protection.

With a regime of customs duties alone, the ERP for all the above

mentioned five broad groups (items 49-53. column 11) was negative, but for

four groups - chemicals and cinematographic films, lubricating preparations

and other petroleum products, coal tar products, and articles of silk or


synthetic fibre - it was more than minus 100 per cent. Thus, while customs

duty provided positive protection for all the five groups and value added was

higher with than without such duties, only in the case of "other food items

not specified elsewhere" the value added was positive, with customs duties.

However, it is important to note that "lubricating preparations and other

petroleum products" had been under the administered pricing mechanism,

there had been restrictions on their imports as well as marketing, and a

routine calculation or interpretation of ERP may not be appropriate.

Nevertheless, with the announced move from an administered to a market-

detennined pricing mechanism, the issue of ERP requires a careful scrutiny.

Figure IV.1

Interpretation of ERP when value added is negative

v<0, v'>0and ERP<-1

PP

v<\'<0 and

v'<v<0

and ERP >0

NP

'> v>0and ERPH

PP ^y v >v>0

"and -1 <ERP<0

NP

v>O,v'<0andERP<-l

NP

Notes: PP = Positive protection, NP = Negative protection

It may be noted that for three of these products - chemicals and

cinematographic films, lubricating preparations and other petroleum

products, and other food items not specified elsewhere - the negative values

of ERP with a regime of customs duties alone changed to positive values

when domestic trade taxes were also taken into account, implying a net

negative degree of protection because of a discriminatory higher burden of

domestic trade taxes on domestic products, vis-a-vis, foreign products,

dominating the protection provided through customs duties (items 49-51.

column 15). Thus, the domestic producers of these commodities suffered a

Empirical Findings -*-*

net tax disadvantage due to discriminatory domestic trade taxes. The systems

of UED and CVD, and ST and SAD appeared to make a substantial

contribution to the tax disadvantages of the domestic producers (items 49-51,

columns 15 and 19). The tax disadvantage was found to be higher in the

presence of octroi (items 49-51, column 20). The tax disadvantage in the

case of food items and chemicals was found to be substantial, which is a

source of concern, particularly because the import of these products

accounted for more than 12 per cent of the total value of imports.

Negative value added either without or with taxes is a strong result.

It is difficult - though not impossible - to reconcile with their continuing

production in the country. While the negative value added in these sectors

may be explained in terms of a long legacy of QRs on imports and

inefficiencies in domestic production structure, the puzzle may also retlect

the high degree of aggregation of products in each of these groups and the

consequent imprecision in quantification of the average rates of duties and

input-output coefficients. The results, accordingly, should be interpreted

with caution.

Positive value added products

Value added was positive for the other 34 broad groups of

manufactured products. Among these 34 products, customs duties provide a

positive degree of protection to all products excepting khandsari (items 15-

48, column 11, Table IV. 1). With customs duties alone, the ERP varied

from almost 10 per cent to 170 per cent for most of these products, while it

was as high as 263 per cent for synthetic fibres. 311 per cent for non-ferrous

basic metals, and 973 per cent for cement. However, when domestic trade

taxes were also taken into account. ERP was reduced for all but one of the 34

items and, in fact, turned negative for as many as 9 products (items 15-23,

column 15). The net negative protection varied from 1 per cent for

electronic equipment to as high as 58 per cent for wood, and wood products.

There was, however, wide variation in the net positive protection for rest of

the 25 manufactured products. It was between 8 per cent and 15 per cent for

6 products (items 24-29, column 15). between 15 per cent and 130 per cent

for 18 products (items 30-47, column 15) and was an astronomical 869 per

cent for cement that could be attributed to many factors including high duties

on imports of cement, very little protection for inputs, and very low value

addition at world prices (3 per cent). Whether an ERP of 15-130 per cent is

36 Discriminatory Tux Treatment

too high or too low. it can be a matter of debate. But. the negativity of ERP

for as man>' as 9 products suggested that, in spite of customs duties, vis-a-vis,

foreign producers, domestic producers of these nine products suffered from

net discrimination because of domestic trade taxes. The high share of these

nine products - wood and wood products, paper and paper products, non

electric machinery, communication equipment, tractors and other

agricultural machinery, leather and leather products, electronic equipment.

khandsari and other manufacturing - in total value of imports, at about 28

per cent, reinforced the suspicion of adverse discrimination.

The import of 6 manufactured products with positive but less than 15

per cent ERP - machine tools, rail equipment, iron ore. other metallic

minerals, and coal and lignite - accounted for a little more than 20 per cent

of the total value of imports. On the other hand, the import of 18 products

with ERP exceeding 15 per cent accounted for about 38 per cent of the total

value of imports. Imports of cement with ERP of 869 per cent, and of jute

and sugar with ERP of 111 per cent were negligible. There appeared to be a

strong negative correlation between ERP and imports.2'

Relative contribution of different domestic taxes to ERP

The systems of CVD and UED. and ST and SAD were found to

make a significant contribution to the tax disadvantage of the domestic

producers of manufactured products (columns 15 to 17. Table I V.I). The

system of CVD and UED was supposed to be neutral in terms of degree of

protection by counterbalancing each other. But, in fact, it was not. and

resulted in a negative degree of protection for as many as 26 products

(column 16). It's contribution to the ERP was found to be as high as minus

106 percentage points for non-ferrous basic metals (item 46). and between

minus 30 and minus 52 percentage points for five products - wood and wood

products, paper and paper products, tractors and other agricultural

machinery, leather and leather products, and motor vehicles (items 15 to 18

and 13). The other products suffering negative protection because of CVD

being less than UED. included communication equipment, rail equipment,

pesticides, hydrogenated oils, some transport equipment, non-metallic

""' The shares of non-ferrous basic metals, and synthetic fibres (polymers, and yarns, etc.)

- two groups with ERP of 120-130 per cent - in total value of imports, at 6.0 per cent

and 2.4 per cent, could be explained in terms of the non-availability of many non-ferrous

metals and of production facility of synthetic fibres, a relatively recent product.


mineral products, rubber products, cotton textiles and sugar. Only in the

case of 9 products - khandsari, other metallic minerals, machine tools, iron

ore, coal and lignite, crude petroleum and natural gas, pesticides, non-

metallic and minor minerals, and fertilisers - was the contribution of CVD

and UED marginal (less than 1 percentage point).24

The negative contribution of the system of ST and SAD to ERP was

also found to be substantial for many products (column 19). It resulted in a

negative degree of protection for as many as 30 products. Its contribution to

ERP was as high as minus 562 percentage points for cement, minus 109

percentage points for synthetic fiber and minus 112 percentage points for

non-electrical machinery (items 48, 47 and 20). It was between minus 50 and

minus 100 percentage points for 5 products (items 21, 31, 42, 43 and 46),

and between minus 30 and minus 50 percentage points for another set of 4

products (items 15, 16, 28 and 29). The negative contribution of this system

could be attributed mainly to taxation of inputs without full rebate.25 The

presence of octroi added to the tax disadvantage or lowered the tax

advantage of the domestic producers (columns 19 and 20). SAD was found

to provide a counter balance to ST for most of the manufactured products but

was found to follow an inverted duty structure for lubricating preparations

and other petroleum products, and some unmanufactured products, suffering

net negative protection and thereby added to the misery of domestic

producers of these products (items 1-6 and 50, columns 13 and 18).

Discriminatory tax treatment of domestic products under the

system of CVD and UED was not considered as serious a problem as the

tax disadvantages of the system of ST and SAD, because the

manufacturers could avail of credit under the MODVAT scheme for

CVD/UED paid on their inputs. Nevertheless, domestic producers suffered

a tax disadvantage because the producers not covered by MODVAT

scheme found imports less expensive as compared to domestic products.

Even the producers covered under the MODVAT scheme had to finance

24 The average CVD and average UED rates, obtained by using import values and VoC as

weights, with UED differing across products, could differ for a group, even when the

CVD and UED rates were the same for every product in the group. This differential

weighting scheme may have introduced a bias in our results.

25 In Maharashtra, the state under consideration, the retention rate on raw materials was to

the extent of 3 per cent.


the additional tax burden for their domestic purchases until duties paid

were credited back.

Services

As indicated earlier, services are non-tradable. By taking customs

duty on services as nil, ERP worked out to be negative for all services (item

numbers 54-60, Table IV. 1). This could be attributed to taxes/duties falling

on inputs. This suggests that when the trading of services (such as of

electricity) takes place, the domestic producers of these services, vis-a-vis

imports, would suffer a substantial tax disadvantage unless customs duty and

domestic trade taxes are rationalised. This would require removal of input

taxation and maintaining level playing field between domestic produce and

imports, in respect of domestic trade taxes.

General observations

From Table IV. 1 (columns 3 and 15), it may be noted that ERP was

negative or low for some products with even moderately high customs duty.

For example, ERP for paper and paper products, some non-electric

machinery, communication equipment, tractors and other agricultural

machinery, leather and leather products, electronic equipment, khandsari,

electrical machinery and some other manufacturing was negative though for

none of these products the rate of customs duty was below 22 per cent. Thus,

the problem of tax disadvantage to domestic producers was not only a

problem of nil or low customs duty, but also of a complicated and irrational

system of domestic trade taxes.

Composite duty rates for selected low duty products

The calculation of ERP required information on input-output

coefficients, which was available only at a relatively aggregative level.

Calculation of rates of protection, however, can be most illuminating at the

specific commodity level. At the specific commodity level, even though

lack of ready data on input-output coefficients prevents taking into account

the protection given to inputs, avoidance of any aggregation bias provides a

strong trade-off. In this section, we focus on the choice of specific

commodities and calculation of commodity-specific composite rates of duty.


It should be noted that the computation of composite rates of duty do

not account for indirect incidence of taxes through input taxation though

input taxation can add significantly to the relative tax burden of domestic

producers. The latest available estimates of input taxation relate to the year

1989-90 (see Aggarwal, 1998b). In 1989-90, for most commodities, input

taxation under UED was found to vary between 0.75 and 3.00 percentage

points. In the reform process of 1990s, expansion of the scheme of

MODVAT resulted in a substantial reduction in the incidence of input

taxation under the system of UED. Similarly, sales tax (to the extent not

rebated) and octroi falling on inputs result in an increase in the relative tax

burden of domestic producers of many commodities. Input taxation arises

from taxation of inputs, inputs into inputs, and so on. The neglect of input

taxation in the calculation is a serious limitation of the composite rates of

duty reported below.26

Products with low customs duty

Prima facie, the probability of the tax regime discriminating against

domestic producers, vis-a-vis, foreign producers being high for products with

a low rate of customs duty, we focused on such products with customs duty

not exceeding 10 per cent. On some products, standard rates of basic

customs duty were nil or low, and on some other products, through

notifications, the rates were lowered in general or for specific uses of the

products. These items alongwith relevant rates of customs duties, excise

duties, sales tax and octroi are given in Table IV.2.

There were as many as 223 commodities or specific uses of

commodities with effective customs duty not exceeding 10 per cent. Some

of these items related to specific uses of any item, broadening the scope of

the rate of customs duty not exceeding 10 per cent. On 110 items, the duty

was nil, and it did not exceed 5 per cent for another set of 33 items. Further,

on some of these items, the rate of SD was also nil or lower than the rate

applicable to most commodities, i.e., 5 per cent.27

Within the group of low duty products, CVD lower than UED could

put the domestic producers to competitive disadvantage, as CVD and UED

26 Even calculation of ERP accounts for only first round effects of taxes on inputs.

27 The SD of 5 per cent has been withdrawn in the proposed 1999-2000 budget.


were not fully rebatable during 1998-99. While, in general, the rates of CVD

on imports were matched with those of UED on domestic produce, on some

products or specific uses of the products, the rate of CVD was lower than

that of UED. Some of the products of the latter category are listed in box

IV. 1.

Calculation of composite duty rates

For products with effective customs duty rate not exceeding 10 per

cent, the excess of composite duty rate on the import of a product over that

on its domestic production was computed by using equations 3.17 to 3.20.

The excess of composite duty rate was computed for 205 items for which

full requisite information was available, and is given in Table IV.2 (columns

14-17). The products are arranged in an ascending order of excess of

composite duty rate e (column 14).

The number of products with negative, nil and positive values of

excess of composite duty rate on imports subject to different combinations of

tax provisions are given in Table IV.3. The number of products with values

of excess of composite duty rate on imports falling into different ranges, viz.,

less than minus 10, minus 10 to minus 5, minus 5 to 0, 0, 0 to 5, 5 to 10, 10

to 20 and above 20 percentage points are also given in table IV.3.

Tax discrimination because of customs duties and domestic trade

taxes

From table IV.2 (columns 14 to 17), it may be noted that a domestic

producer had a substantial tax advantage in directly importing his inputs, vis

a-vis, purchase of local inputs irrespective of application of octroi (columns

14 and 16), thereby, putting the domestic producers of such inputs to

substantial tax disadvantage. The domestic producers suffered tax

disadvantage in respect of 25 products (items 1 to 25). The tax disadvantage

varied from 2.64 percentage points for typewriters imported by accredited

journalists to as high as 8.10 percentage points for personal computers

imported by accredited journalists with application of octroi (column 14),

and from 2.31 percentage point to 5.12 percentage points without application


Box IV.l

Some of the products subject to lower rates of CVD than

the corresponding rates of UED

1. All goods required for setting up crude petroleum refinery (such as

conductors for steam or other vapour power units, refrigerationsystems, filtering/purifying machinery, boilers, compressors, heat

exchangers, pumps, distilling plants, pipes used for oil or gas

pipelines, all types of valves, and gaskets and seals)

2. All goods for manufacturing fertilisers;

3. Video cassettes and video tapes of a predominantly educational

character;

4. Personal computers or fax machines imported by accredited

journalists;

5. Specified life saving drugs or medicines;

6. Silicon resin and silicon rubber;

7. Copper wire;

8. Grape guard;

9. Specified goods for the manufacture of laser and laser based

instrumentation (such as polishing materials, vacuum pumps, flash

pumps, and arc lamps);

10. CD-ROMs containing books of educational nature;

11. Medical and surgical instruments and appliances;

12. Specified medical equipment (such as ophthalmic instruments and

appliances, sterilisers, instruments using optical radiations, surgical

operating microscopes, endoscopic surgery instruments and

stroboscopes);

13. Specified goods for tubal occlusion (such as trocal and connula,

laproscopes and scissors);

14. Requisite for games and sports;

15. Fogging machines imported by municipal committees;

16. Raw material for manufacture of specified components of wind

operated electricity generators;

17. Specified goods for construction of national highways;


Box IV.l (Contd.)

Some of the products subject to lower rates of CVD than

the corresponding rates of UED

18. Specified goods required in connection with petroleum operationsundertaken under specified contracts (such as drilling, threading ortappling tools; helicopters, vessels for transport, pipelines, crones andtransmission apparatus);

19. Recorded magnetic tapes etc. imported by University GrantsCommission for use in computers;

20. Specified fire fighting equipment imported by the Central or State

Governments;

21. Polypropylene; and

22. Stainless steel capillary tubes.

of octroi" (column 16). The tax disadvantage to the domestic producers

exceeded 5 percentage points in respect of specified goods required for

setting up crude petroleum refinery, such as conductors, refrigeration

systems, filtering/purifying machinery, boilers, compressors, heat

exchangers, pumps, distilling plants, pipes used for construction of oil and

gas pipelines, valves, catalysts, and filters. The tax disadvantage with or

without application of octroi ranged from 5 to 10 percentage points for 10

products and it existed but was less than 5 percentage points for another set

of 15 products (columns 2 and 4. Table IV.3). The tax disadvantage was

found to exist inspite of application of SAD to most of these products, 19

of the 25 products suffering tax disadvantage were subject to 4 per cent

SAD (items 1-25, column 9, Table IV.2). On the other hand, the tax

advantage to manufacturers in buying inputs from importers, vis-a-vis

from domestic producers was found to be negligible (columns 15 and 17.

Table IV.2). It occurred in respect of only three products with application

of octroi (items 10, 13 and 14, column 15). and for only one product

without application of octroi (item 10. column 17). It was so, because in

28 It is important to note that octroi wherever applicable does not distinguish between an

imported and a domestic product. Discrimination with and without application of octroi

arises because of discriminatory' application of other taxes since octroi is charged on

tax inclusive basis.


this process of acquiring inputs, discrimination arising out of existing sales

tax disappears - sales of imported products get taxed at par with domestic

products and tax set off was also available at par with domestic products.

Therefore, there was no net tax disadvantage to domestic producers vis-a

vis imports by traders. By implication, the domestic producers would not

suffer any tax disadvantage under the tax regime under consideration

provided an imported product and the domestic product suffer the same

burden of sales tax. The same will also be true if input taxation under sales

tax is eliminated, such as in Delhi, Haryana, and Punjab. Thus, a reform

of sales tax system that eliminates input taxation can go a long way in

mitigating tax disadvantages of domestic producers.

Implications of imposing a minimum customs duty

With a view to explore implications of imposing a minimum

customs duty on all products, the composite duty rates are simulated with

alternative rates of minimum customs duty, viz., 5 and 10 per cent of

combined (basic plus special) customs duty. The number of products with

negative, nil and positive values of excess of composite duty rate on

imports with 5 and 10 per cent minimum customs duty are given in tables

IV.4 and IV.5 respectively, for different combinations of tax provisions.

From a comparison of tables IV.3, IV.4 and IV.5, it would be

noted that the number of products suffering tax disadvantage declines

from 25 to 20 with minimum customs duty of 5 per cent (column 3, Table

IV.4) and to 8 with minimum customs duty of 10 per cent (column 3,

Table IV.5). Further, it can be inferred that there is a decline also in the

extent of tax disadvantage, with the policy of subjecting all goods to a

minimum customs duty. The higher the rate of minimum customs duty,

the lower is the tax disadvantage to the producers of such products.

29

30

Even in these states some input taxation takes place as long as some inputs are

purchased from outside the state, because of central sales tax.

The same principle should be applied to UED and additional duties of excise in lieu of

sales tax levied under the Additional Duties of Excise (Goods of Special Importance)

Act, 1957, (58 of 1957). Discriminatory application results in tax

advantages/disadvantages to the extent rebate for the taxes paid on inputs is denied.


Concluding remarks

From the above discussion it follows that producers of many low

duty products suffered substantial tax disadvantage, vis-a-vis, imports. They

suffered competitive disadvantage even in the international market to the

extent taxes on their inputs were not rebated/refunded.

It is important to note that, besides the tax disadvantages, domestic

producers suffer also from poor infrastructure and high cost of basic inputs

such as electricity, water, and transport. The disadvantage due to such non

tax factors is partly on account of inefficiency in production and partly due

to intended policies followed by the government such as distributional

considerations leading to dual price policies. If such non-tax disadvantages

were also taken into account, the net disadvantage to domestic producers

would have been substantially higher for the products suffering net tax

disadvantage, and some of the products with low tax advantage might also

have fallen in the category of products suffering net tax disadvantage.

Tax discrimination across the products was found to be substantial.

While the producers of some products suffered substantial tax

disadvantages, the producers of many products benefited from the tax

advantages, vis-a-vis, imports (direct or indirect). The tax advantage was

not less than 10 percentage points in respect of at least 94 products among

the 205 products considered, irrespective of application of octroi or SAD

or ST (Table IV.3). The tax advantages to the domestic producers of the

products subject to higher customs duty (not considered here) can be

expected to be higher. This indicates the need for rationalisation of the rate

structure of customs duties/

'' Some rough calculations show that the post-budget (1999-2000) scenario is notsignificantly different from the pre-budget scenario, in respect of tax

advantages/disadvantages for different products. This is so, in spite of imposition of a

minimum customs duty of 5 per cent on all project imports with a few exceptions,

hitherto the subject to nil duty. This is not surprising, as the special customs duty has

been withdrawn and the sales tax scenario has remained unchanged.

Table

IV.

45

Table

IV.l

s. No. I

DutyRatesand

theirContribution

toEffectiveRatesofProtection

forSixtyBroadGroupsofCommodities(arranged

Industrysector

2

Inmanufactured

products

1 2 3 4 5 6 7 8 9 10

11

12

13

14

Raw

cotton

Coffeeplantation

Paddy

Wheat

Cerealsotherthanpaddyand

wheat

Tea

plantation

Forestry&

logging

Animalhusbandryand

milk

products

Pulses

Rubber

Fish&

pearls

etc.

Sugarcane

Vegetable

plaitingandother

crops

n.e.s.

Jute,hemp&

mesta

Effective

ratesofduty

onimports(percent)

Custo

ms

duty

cxclusi

vcof

CVD

ASAD 3

000

000

0.00

0.00

0.00

0.00

633

21.41

10.00

25.09

4466

45.00

41.43

3500

Count

er

vailing

duty

(CVI)) 4

000

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.23

1500

Special

additio

nal

dutv

(SAD)

5

0.00

0.00

000

0.00

0.00

0.00

0.82

3.30

4.00

400

4.00

4.00

400

400

Effectiv

erate

ofbasic

excise

duty

weighte

dbv

VoC

less

exp.

(IED)

6

0.00

000

0.00

0.00

0.00

0.00

000

000

0.00

0.00

0.00

0.00

2.49

000

Effect

ive

rate

of

sales

tax

in

Maha

rashtr

a(ST)

98-99

(Per

cent)

7

4.00

000

0.00

0.00

0.00

000

7.80

291

000

0.00

2.00

0.00

2.00

4.00

Rateof

octroi

in

(..

Mumba

icorpo

ration

97-98

(OCT)

8

200

0.00

0.50

0.50

0.50

0.00

025

2.11

0.50

000

0.00

0.00

0.87

2.00

Value

of

input

per

rupee

of

outpu

t

9

040

0.31

028

0.29

0.20

0.09

0.08

052

0.32

0.19

0.04

0.19

051

0.16

Share

of

import

s(per

cent) 10

0.02

000

0.00

0.29

000

0.00

0.75

0.78

0.65

0.03

0.00

0.00

0.87

0.00

Effectiverateofprotection(ERP)with

differenttaxregimes(Percent)

Custom

ME') 11

-13.57

-5.63

-4.51

-4.33

-414

-1.83

642

12.12

8.61

24.85

45

12

50.25

6488

38.10

Custom

siED

ACAT)

(E2)

12

-1366

-5.67

-453

-4.35

-4.15

-1.83

6.41

1209

859

24.80

45.09

50.24

5851

6224

Custo

ms

IED

CAT)

AST

(EJ)

13

-20.1

-5.7

-4.5

-4.4

-42

-1.8

-2.0

5.0

8.6

24.8

42.2

502

53.0

55.1

Custom

siED

CM)

STA

SAD

(E4)

14

-2239

-668

-5.30

-5.09

-4.89

-2.15

-1.18

8.47

1345

3000

47.85

5661

60.84

61.60

Custo

ms

IED

CAD

ST

SAD

A

OCT

(E)

15

-2372

-7.29

-5.80

-5.57

-5.33

-2.33

-1.25

706

12.93

29.47

47.75

56.33

59.25

61.20

byE)

EffectofdifferenttaxesonERP

(percentagepoints)

IED

ACVD

(E2-

E') 16

-0.09

-0.03

-0.02

-0.02

-0.01

0.00

-0.01

-0.03

-0.02

-0.04

-0.03

-0.01

-6.37

24.14

ST

<EJ-

E2) 17

-643

0.00

0.00

0.00

000

000

-8.39

-7.09

0.00

000

-2.94

0.00

-5.50

-7.12

SAD

(E4-

EJ) 18

-2.30

-1.01

-0.77

-074

-0.74

-0.32

0.80

347

4.86

5.20

570

6.37

783

6.48

STA

SAD

<E4-

E2) 19

-874

-1.01

-0.78

-0.74

-0.74

-0.32

-7.59

-3.62

4.85

5.20

2.75

6.37

2.33

-064

ST

SAD

and

OCT

(E-E

2) 20

-10.06

-1.62

-1.28

-1.22

-1.18

-0.50

-7.66

-5.03

4.34

4.67

2.66

6.09

0.74

-1.03

Domestic

trade

taxes

(E-E

1)

21

-10

1

-1.7

-1.3

-1.2

-1.2

-0

5

-7.7

-5.1

43

4.6

2.6

6.1

-5.6

23.1

46

DiscriminatoryTaxTreatment

Table

IV.1(Contd.)

DutyRatesand

theirContribution


forSixtyBroadGroupsofCommodities(arrangedby

E)

s.

No. 1

Industry

sector

2

Manufactured

products

15

16

17

18

19

20

21

22

23

24

25

26

27

28

Wood&wood

products

Paper&

paperproducts

Tractors&

otheragricultural

machinery

Leather&

leatherproducts

Manufacturing

n.e.s.

Non-electricalmachinery

n.e.s.

Communicationequipment

Khundsari,huora

Klcctronicequipment

etc.

Other

metallicminerals

Machine

tools

Ironore

Coal&

lignite

Klectricalmachinery

Kffcctivc

ratesofduty

onimports(percent)

Custom

sduty

exdusiv

eof

(ADA

SAD

3

693

2223

26.31

28.74

2374

2429

33.73

1500

2782

10.00

25.00

10.00

15.00

3056

Count

er

vailin

gduty

(CM)

4

323

5.24

0.79

407

1077

2025

1594

800

1696

000

1300

0.00

000

1662

Special

additio

nal

duty

(SAD)

5

0.99

206

4.00

3.95

400

4.00

400

400

400

4.00

4.00

4.00

4.00

400

Kffectiv

erate

ofbasic

excise

duty

weighte

dbv

VoC

less

exp.

(IKD)

6

1501

1597

12.78

16.74

1500

14.10

17.46

800

17.35

0.00

1300

0.00

000

15.76

Kffect

ive

rate

of

sales

tax

in

Maha

rashtr

a(ST)

98-99

(Per

cent)

7

1300

857

2.00

9.20

747

12.67

1133

000

1650

483

13.00

4.00

533

10.13

Kateof

octroi

inG.

Mum

ha

icorpo

ration

97-98

((XT)

8

488

300

200

2.00

348

333

4.00

0.75

400

1.17

2.00

200

0.50

271

Value

of

input

per

rupee

of

outpu

t

9

0.67

0.73

073

065

072

0.88

0.84

069

044

0.35

0.35

0.24

0.44

069

Share

of

import

s(per

cent) 10

0.77

172

0.06

027

6.36

12.97

0.34

0.00

2.21

0.28

1.14

0.08

2,26

1.93

Kffcctivcrateofprotection(KKP)with

differenttaxregimes(percent)

Custom

s(E'

) II

967

39.38

39.53

4828

33.90

67.67

99.86

-945

31.10

11.63

2823

1048

18.13

4880

Custom

slKD

&CVI)

(K2)

12

-2403

-318

-12.18

821

16

16

11963

85.67

-9.78

29.75

11.48

27.94

10.36

17.81

5058

Custo

ms

IKD

(VI)

&ST

(KJ)

13

-57.9

-356

-20.5

-192

-13.7

-45

2.4

-9.8

-2.3

3.7

5.9

4.8

74

12.1

Custom

sIKD

(VI)

ST&

SAD

(K4)

14

-57.05

-3383

-14.92

-1336

-724

775

10.96

-345

1.92

935

10.79

9.79

13.35

18.45

Custo

ms

IKD

(VI)

ST

SAD

&

(XT

(E) 15

-5825

-4075

-21.95

-16.97

-1409

-1219

-656

-456

-1.10

870

9.44

947

11.81

1204

Kffectofdifferenttaxeson

IKD

&CM)

(K2-

K') 16

-33.70

-4256

-51.71

-40.07

-17.74

51.96

-14.19

-0.33

-1.35

-0.15

-029

-0.12

-0.32

1.78

ST

(K'-K1) 17

-33.90

-3239

-832

-2742

-2982

-124.11

-8325

000

-32.04

-7.74

-22.02

-5.57

-10.39

-3850

SAD

(K4-

KJ) 18

088

1.74

5.58

585

642

1223

8.54

633

4.21

5.61

487

5.00

5.93

637

KKP

(percentagepoints)

ST&

SAD

(K^-

K2) 19

-33.02

-30.65

-2.74

-21.57

-2341

-111.87

-74.71

6.34

-2782

-2.12

-17.15

-056

-4.46

-32.13

ST

SAD

and

(XT

(K-K

2) 20

-34.22

-37.57

-9.76

-25.18

-3025

-13182

-92.23

5.22

-3084

-2.77

-18.50

-0.88

-600

-3855

Domes

tic-

trade

taxes

(K-K

1) 21

-67.9

-80.1

-61.5

-65.2

-48.0

-799

-106.4

4.9

-32.2

-2.9

-18

8

-1.0

-6.3

-36.8

Table

IV.I

47

Table

IV.l(Contd.)

DutyRatesand

theirContribution


forSixtyBroadGroupsofCommodities(arrangedbyE)

s. No. 1

Industry

sector

2

Manufactured

products

29

30

31

32

33

34

35

36

37

38

39

40

41

42

Railequipment

Crudepetroleum,natural

j>"s

etc.

Motor

vehicles

Transportequipments

n.e.s.

Pesticides

Non-metallicmineralproducts

n.e.s.

Coated

fabrics&

other

textiles

llydrogcnated

oils

Non-metallic&

minor

minerals

Woollen

textiles

Cotton

(cmik's

Fertilisers

Iron&

steel

Rubber

products,thread,cord

etc.

coveredwith

textiles

Effectiveratesofduty

onimports(percent)

Custom

sduty

exclusiv

eof

CVD&

SAD

3

3902

22.00

4496

43.18

3500

4012

40.78

3500

4227

34.26

4226

3425

34.61

44.53

Count

er

vailin

Uduty

((AD

)

4

16.11

000

1656

2.71

9.38

1605

13.39

005

0.01

7.76

998

0.00

15.00

18.58

Special

additio

nal

duty

(SAD)

5

4.00

4.00

4.00

4.00

4.00

4.00

4.00

4.00

388

400

400

4.00

400

4.00

Effectiv

erate

ofbasic

excise

duty

weighte

dby

\o(

less

exp.

(I'ED)

6

1702

000

21.93

8.75

9.38

17.24

12.42

0.37

0.00

4.42

16.78

0.00

15.00

19.80

Effect

ive

rate

of

.sales

tax

in

Maha

rashtr

a(SI)

98-99

(per

cent)

7

13.00

8.50

10.00

400

8.00

8.56

789

1.50

4.25

5.67

3.33

0.00

4.00

1033

Rateof

octroi

inG.

Mumba

icorpo

ration

97-98

(OCT)

8

2.50

1.00

367

2.00

2.00

3.38

200

2.00

400

2.00

1.67

2.00

250

2.25

\alue

of

input

per

rupee

of

outpu

t

9

062

0.22

084

045

066

0.55

0.53

058

0.13

0.63

0.61

0.67

0.80

084

Share

of

import

s(per

cent) 10

Effectiverateofprotection(ERP)with


Custom

s(K') 11

035

60.71

1349

26.03

1.26

153.96

0.77

58.31

011

66.83

0.33

66.77

0.28

60.38

0.01

50.01

815

46.44

0.08

62.35

0.07

88.16

I45

6502

4.59

96.54

0.24

168.59

Custom

sIED

&CYD

(E2)

12

5661

25.94

111.31

43.43

6591

63.25

6241

4859

4638

73.40

66.73

6433

94.68

15625

Custo

ms

IED

(YD

&ST

(E3)

13

14.5

13.7

34.0

33.9

36.6

392

40.1

43.9

397

53.4

558

64.3

69.1

70.3

Custom

sIED

CVD

ST&

SAD

(E4)

14

1992

19.05

43.77

40.20

44.58

46.76

47.06

50.88

4537

6224

65.88

73.88

8030

82.58

Custom

siED

CAD

ST

SAD&

OCT

<E)

15

14.85

18.76

28.00

38.21

39.30

4426

4476

45.05

4506

5928

6329

69.53

70.84

70.87


(percentage

IED

&CVD

(E2-

E')

-4.11

-0.09

-42.65

-14.88

-0.93

-352

203

-142

-0.06

11.05

-21.43

-0.69

-1.85

-12.35

ST

(EJ-

E2) 17

-42.10

-12.21

-77.30

-951

-29.29

-24.08

-2230

-4.71

-6.65

-20.05

-10.97

0.00

-25.59

-85.97

SAD

(E4-E3)

5.41

5.32

976

628

7.96

7.59

6.95

7.00

5.64

889

10.12

955

11.21

12.30

ST&

SAD

(E4-E2) nr

-36.69

-6.89

-67.54

-3.24

-21.33

-16.48

-15.35

2.29

-101

-11.15

-085

9.55

-14.38

-73.66

ST

SAD

and

OCT

(E-E

2) 2lT

-41.75

-7.18

-8331

-5.22

-2660

-1899

-17.65

-3.54

-132

-14.11

-3.45

5.2C

-2385

-8538

points)

Domes

tic-

trade

taxes

(E-E

1) 2T

-45.9

-7.3

-1260

-20.1

-27.5

-22.5

-15.6

-5.0

-14

-3.1

-249

4.5

-25.7

-97

7

48


Table

IV.

1(Contd.)

DutyRatesand

theirContribution


forSixtyBroadGroups

ofCommodities(arrangedbyE)

s. No. 1

Industrysector

2Manufactured

products

43

44

45

46

47

48

49

50

51

52

53

Plasticproducts

Jute,hemp

<&mesta

textiles

Sugar

Non-ferrous

basicmetals

Synthetic

fibre.srpolviners,&

yarn

etc.

Cement

Chemicals

<&cinematographic

films

etc.

Lubricatingpreparations&

otherpetroleumproducts

Otherfooditems

<&beverages

n.e.s.

Coal

tarproducts

Articlesof

silk

orsynthelic

fibre,

etc.

Effective

ratesofduty

onimports(percent)

Custom

sduty

exclusiv

eof

(VI)&

SAD

J

35.12

4470

45.00

3761

3686

4500

29.88

3081

38.19

2488

36.91

Count

er

vailin

gduty

(CVD

)

4

2500

11.19

584

818

21.07

2500

15.96

24.24

060

995

18.45

Special

additio

nal

duty

(SAD)

5

400

400

400

4.00

400

4.00

3.84

400

398

4.00

400

Kffectiv

erate

of

basi

c-

excise

duty

weighte

dby

VoC

less

exp.

(IED)

6

2000

528

8.00

14.89

2028

13.35

17.19

2849

5.11

1502

21.75

Kffect

ive

rate

of

sales

tax

in

Maha

rashtr

a(SI)

98-99

(per

cent)

7

1020

4.00

000

6.00

8.50

1300

10.14

890

875

400

200

Rateof

octroi

in(.

.

Miimba

icorpo

ration

97-98

(OCT)

8

200

2.00

050

250

200

1.00

3.42

1.33

519

1.75

2.00

\alue

of

input

per

rupee

of

outpu

t

9

082

072

079

092

092

097

1.13

1.45

1.02

1.17

1.16

Share

of

import

s(per

cent) 10

0.32

0.01

000

604

241

0.00

9.63

13.17

2.52

065

0.31

Kffective

rateofprotection(KRP)with

different

ta*

(ustom

s(E1)

11

121

21

99.00

113.51

311.47

26283

972.60

-67.08

-907

-887.10

-7937

-85.80

(ustom

sIED

&(VI)

(K2,

12

149.77

126.59

99.53

20530

26809

1501.99

-5246

1.14

-56572

-4661

-58.59

regimes(percent)

Custo

ins

IKD

CVD

&SI

(KJ)

13

773

1056

995

111.5

131.1

840.3

40.8

.4.1

-0.1

-19.8

-42.4

(ustom

sIKD

CVD

ST&

SAD

(F4)

14

92

18

11664

113.17

13956

15899

939.80

35.67

2684

-7203

-28.53

-50.09

Custom

sIED

CVD

SI

SAD&

OCT

(E)

15

83.70

11132

11187

120.12

128.41

869.22

60.97

30.92

11.19

-24

12

-36.21

Kffectofdifferenttaxeson

IED

&CM)

(E2-

E') 16

2856

2760

-1398

-106.18

5.26

529.39

1462

10.21

321

38

32.76

27

21

SI

(EJ-E2) 17

-7245

-21.02

0.00

-9379

-137.00

-66168

9329

2292

56567

26.80

16.22

SAD

(K4-EJ) 18

14.86

11.07

1364

2805

27.90

9949

-516

2.78

-71.98

-872

-7.72

KRP

(percentage

points)

SI&

SAD

(EJ-

E2) 19

-5759

-996

13.64

-6573

-109.09

-562

19

88.12

2570

49369

18.07

8.50

SI

SAD

and

OCT

(K-E

2) 20

-66.07

-1527

12.34

-8517

-13968

-632.77

113.43

2978

576.91

2249

22.38

Domes

tic-

trade

taxes

(K-E1) 21

-37.5

12.3

-1.6

-191.4

-134.4

-103

4

1280

40.0

898.3

55.3

496

TableIV

I49

Table

IV.l(Contd.)

DutyRatesand

theirContribution


forSixtyBroadGroupsofCommodities(arrangedbyE)

s. No. 1 54

55

56

57

58

59

60

Industrysector

2 Services

Other

services

n.e.

s.

Construction

Railtransportservices

Electricity

etc.

Transportsen

icesotherthan

railways

Trade

Communication

services

Effectiveratesofduty

onimports(percent)

Custom

sduty

exclusiv

eof

CVD&

SAD

3

000

000

0.00

000

0.00

0.00

0.00

Count

er

vailin

gduty

(CVD

)

4

0.00

0.00

000

0.00

0.00

000

0.00

Special

additio

nal

durv

(SAD)

5

0.00

0.00

0.00

0.00

0.00

0.00

000

Effectiv

erate

ofbasic

excise

duty

weighte

dby

VoC

less

exp.

(IED)

6

000

0.00

0.00

000

0.00

000

0.00

Effect

ive

rate

of

sales

tax

in

Maha

rashtr

a(SI)

98-99

(per

cent)

7

0.00

0.00

0.00

000

000

0.00

0.00

Rateof

octroi

inG.

Mumba

icorpo

ration

97-98

(OCT)

8

000

0.00

0.00

0.00

0.00

0.00

0.00

Value

of

input

per

rupee

of

outpu

t

9

0.69

048

0.36

0.56

0.31

0.29

0.09

Share

of

import

s(per

cent) 10

0.00

0.00

0.00

0.00

0.00

000

0.00

Effecti\erateofprotection(ERP)with


Custom

s(E') 11

-36.84

-18.47

-1054

-7.95

-6.24

-3.02

-0.90

Custom

sUED

&CVD

(E2)

12

-37.54

-1889

-10.85

-8.08

-6.46

-3.09

-0.93

Custo

ms

IED

CVD

&ST

(K3)

13

-37.5

-18.9

-10.9

-8.1

-6.5

-3.1

-0.9

Custom

sIED

CVD

ST&

SAD

(E4)

14

-4376

-21.95

-1273

-10.11

-7.58

-3.62

-1.07

Custom

sl'ED

CVD

ST

SAD&

OCT

(E)

15

-47.85

-2431

-13.90

-10.84

-8.25

-4.00

-1.24


(percentagepoints)

IED

&CVD

(E2-

E') 16

-0.70

-0.42

-0.31

-0.13

-0.22

-007

-0.02

ST

(E3-

E2) 17

0.00

000

0.00

0.00

0.00

0.00

000

SAD

(E4-

EJ) 18

-6.22

-3.06

-1.88

-203

-1.12

-0.53

-014

ST&

SAD

<EJ-EJ) 19

-6.21

-3.06

-1.88

-2.03

-1.11

-0.53

-0.15

ST

SAD

and

OCT

(E-E

2) 20

-10.31

-5.42

-3.05

-2.75

-1.78

-0.92

-0.31

Domes

tic

trade

taxes

(E-E

1) 21

-11.0

-5.8

-3.4

-2.9

-2.0

-1.0

-0.3

50


Table

1V.2

Tax

Rates

forItemssubject

toEffectiveRateofBasicCustomsDuty

notExceeding

10PercentandCompositeDutyRatesonImportsandDomestic

Products(arranged

inascendingorderor

e1)

Sr.

No.

Item

No.in

notifi

cation

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CVD

Basic

excise

duty

Standar

drateof

customs

duty

Kateof

sales

tax(ST)

Kctenlio

nrateof

ST

when

used

as

input

(ST*)

Octroi

rate

Excessofcompositeduty

rateonimport

due

tocustoms

dutiesanddomestic

tradetaxes

BC'D,SD,

CAD,

SADand

octroi

BCD.SD,

CVD,ST

and

octroi

BCD,SD

,CVD

and

SAD

e

BCD,SD

,CVI)

andST

12

14

16

1234

84,85or90

Personalcomputers

including

laptoppersonalcomputers

importedbyan

accreditedjournalist(84.71)

2234

84,85

or

9(1

Kaxmachinesimportedbyan


3190

85,90orAOC

Televisionequipment,camerasandotherequipment

for

taking

films,importedby

aforeign

film

unitor

television

team(8525.30)

4222

88

Aeroplanes,

heli

copt

ers,

simulatorsofaeroplanesand

gliders

5134

84

Foggingmachinesimported

by

aMunicipalCommittee,

DistrictBoardorotherauthority

legallyentitled

to,or

entrustedby

thegovernment

with,thecontrolor

management

ofamunicipal

fund,foruse

incombating

malariaand

othermosquitobornediseases

6166

84orany

Goods

specified

inli

st28required

forconstructionof

other

chapter

nationalhighways(8474.20/31)

7221

Any

chapter

Thegoods

spec

ifie

din

List

19,importedby

the

fire

serv

ices

administeredby

thecentralgovernmentorthegovernment

ofany

stateor

theadministrationofanyunion

territoryor

a

loca

lbody

for

fire

fightingoperationssuch

as

:

a.Portablepumps

(8413.00)

b.Phenumatic

liftingbags(8428.20)

c.Turnablcladders(8519.30)

5/2

20

0 0 0 0

5 5

5/0

5

0 0 0 0

18

13 0 13

4 4 4 4

30

40

40/3

20

13

13 13 13

13 13

13

13

20

3.13

2.12

-7.70

1.62

-7.52

-68S

-6.53

-6.51

2 2 2 3

.12

95

.88

.13

-7.04

-6

14

-6.40

-6.14

i 3 i 3

.41

31

.83

31

3.31

3.31

TableIV2

51

Table

IV.2(Contd.)

Tax

RatesforItemssubject


notExceeding


Products(arranged

inascendingorderor

e')

!S.

|Item

Mo.

No.in

notifi

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CVD

Basic

excise

duty

Standar

drateof

customs

duty

Kate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustoms

dutiesand

domestictradetaxes

BCD.SD,

CVD,

SADand

octroi

BCD,SD

STand

octroi

BCD,SD

,CVD

and

SAD

BCD

,SD,

CVD

and

ST

17

235

90

orAOC

Medicaland

surgicalinstruments,apparatusandappliances

includingsparepartsand

accessoriesthereof

237

90.20

Compressed

airbreathingapparatus

ifimported

for

fire

fightingservice

164

84orAOC

Goods

specified

inList27required

forsettingupcrude

petroleum

refinery,such

as:

a.Conductors

forsteamorothervapourpower

units(8404.20)

b.Refrigerationsystems(8418.21)

c.Eiltering/purifyingmachinery

(84.21)

d.Boilers(8402.11)

e.Compressors

(8414.30)

f.lleatexchangers(8418.61)

g.Pumps(8413.00)

h.Distillingplants(8419.40)

i.Pipesused

for

oilor

gaspipelines(7304.10)

j.Alltypesofvalves(84.81)

k.Gaskets,washersandotherseals(4016.93)

I.Eirefightingequipment

(38.13)

m.Catalysts(38.15)

n.Eilters(9002.20)

40/25/20

20

-5.75

3.68

4.07

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0 0

10

10

10

10

10

10

10

10

10

10

10

10

10

10

13 18

13

13

30 18

13

13

15

30/13

18

18

18

18

0 0 0 0 0 0 0 0 0 0 0 0 0 0

20

40

20

20

20

20

20

20

30

20

40

30

25

40

13

13

13 13

13

13 13

13

13

13 13 13 13

13

4 4 4 4 4 4 4 4 4 4 4 4 4 4

-5.24

4.21

■5.02

■5.59

■5.02

■5.02

■6.94

■5.59

-5.02

-5.02

-5.25

-5.98

-5.59

-5.59

-559

-5.59

-0.34

-090

-0.34

-0.34

-2.25

-0.90

-0.34

-0.34

-0.56

-1.29

-0.90

-090

-0.90

-090

-4.67

-5.12

-4.67

-4.67

-620

-5.12

-4.67

-4.67

-4.85

-5.44

-5.12

-5

12

-5.12

-5.12

-0.27

-0.72

-0.27

-0.27

-1.80

-0.72

-0.27

-0.27

-0.45

-1.04

-0.72

-0.72

-0.72

-0.72

52


Table

IV.2(Contd.)

Tax

Rates

forItemssubject

toEffectiveRateofBasicCustomsDutynotExceeding


Products(arranged

inascendingorderor

e')

s.

No. 1 11 12

13

1-1

15

16

17

Item

No.in

notifi

catio

n 2

244

-

214

215

93

97

Chapter/

headingNo.

3

90orAOC

49.04

85

85

87.10

49

49.11

Descriptionofgoods

4

Medicalequipments(excluding

foleyballooncatheters)

specified

in

list

22includingaccessoriesandspareparts

(90.18)such

as

:

a.Cardiaccatheters(9018.39)

b.Heartlungmachine(9018.90)

c.Programmer

forpacemaker(9021.50)

d.Indium

wire(7110.40)

Music

(printedor

inmanuscript)

Video

cassettesand

video

tapes,of

apredominantly

educational

character(8523.11)

Audio

cassettes,

ifrecordedwithmaterialfrom

books,

newspaperormagazines,fortheblind(8523.11)

Tanksandotherarmoured

fighting

vehicles

Greetingcards,diariesand

calendars,andcorresponding

number

of

envelopes

forsuchgreetingcards,

diariesand

calendars,importedby

theUnitedNationsInternational

Children'sEmergencyFund

(IMCF.F)

(49.09)

Plans,drawingsand

designs

Basic

custo

ms

duty

5 0 0 0 0 0 0 0 0 0 0

F,ffectiverateof

Special

duty

6 5 5 5 5 0 2 2 0 5 5

CM)

7 8 8 8 18 0 0 0 0 0 0

Basic

excise

duty

8 8 8 8 18 0 13 13 0 0 0

SAD

9 4 4 4 4 0 4 4 0 4 4

Standar

drateof

customs

duty

10

20

20

20

40 0 40

40 0 20

20

Rate

of

sales

tax

(ST)

11 13

13

13

13 13 8 8 13

13 13

Retention

rateofST

when

used

as

input

(ST*)

12

13

13 13

13 4 8 8 4 13

13

Octroi

rate

13 4 4 4 4 4 4 4 0 3 2

Kxcessofcompositeduty

rateon

importsdue

tocustoms

dutie

domestictradetaxes

BCD.SD,

CVD,

SAD

and

octroi

e1 14

-4.65

-4.65

-465

-5.52

-4.52

-4.25

-4.25

-400

-3.91

-388

BCD.SD

,(VD,

STand

octroi

e2 15

5.97

5.97

597

608

0.00

-0.01

-001

000

5.82

5.76

BCD.SD

,CVD

and

'SAD

eJ 16

-448

-448

-448

-534

-400

-3.61

-361

-400

-3.80

-3.80

»and

BCD

,SD,

CVD

and

ST e' 17

5.72

572

572

581

0.00

0.47

0.47

0.00

5.65

5.65

TableIV.2

53

TableIV.2(Contd.)

Tax

RatesforItemssu

bjec

tto

EffectiveRateof

BasicCustomsDutynotExceeding10

Perce

ntandCompositeDutyRatesonImportsandDomestic

Products(arranged

inascendingorderor

e1)

s.

No.

Item

No.in

notifi

catio

n

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CVD

Basic

excise

duty

Standar

drateof

customs

duty

Rate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD,SD,

CVD,

SADand

octroi

BCD.SD

,CVD,

STand

octroi

BCD,SD

,CVD

and

SAD

BCD

,SD,

CVD

and

ST

17

18

226

Bargesimportedalongwithships

forthemorespeedy

unloadingofimportedgoodsand

loadingof

exportgoods

19

228

89.01,89.02,

Allgoods(excludingvesselsandotherfloatingstructuresas

89.04.8905.10,

are

imported

forbreakingup)

8905.90or

89.06

20

-28.14

Ammonia

(anhydrousor

inaqueous

solution)

21

-41.01-03

Raw

hides&

skins(freshorpreservedbutnottanned)

22

-4301-02

Furskin

oflamb

(raw,tannedordressed

)

23

243

Any

chapter

Hospitalequipment

(90.18-90.22,90.33)

24

234

84,85

or90

Typewritersimportedbyan


-3.88

5.76

-380

565

0 0 0 0 0

0 0 0 5

5/2

0 0 0 0 0

0 0 0

13/8/0

15

0 0 0 4 4

0 0 0 20

40

13 4 4

13/8

8

3 3 3

13/8

8

-3.26

0.00

-3.00

0.00

-3.08

0.00

-3

0.00

-3.04

0.00

-3.00

0.00

-2.75

4.35

-2.39

4.44

-2.64

1.58

-2.31

1.83

54


TableIV.2(Contd.)

Tax

Rates

forItemssubject



Products(arranged

inascendingorderor

e1)

s.

No.

1

25

26

27

28

Item

No.in

noti

f'i

catio

n 2

180

or

181

-

(hapter/

headingNo.

3

84orany

other

chapter

27.16

3102.21

3102.50

Descriptionofgoods

4

Goods

specified

inList

12required

inconnectionwith

petroleum

operationsundertakenunder

specifiedcontracts,

such

as:

a.Drilling,threadingortapplingtools(8205.IO)

b.Drillingormorticingmachines

(8-465.95)

(.-.Helicopters(8802.11/12)

d.Vcssels

fortransport(8901.10/90)

(.Pipelines(7304.10)

f.Croncs

etc(8426.00)

g.Transmissionapparatus(8525.20)

h.Tin(80.01)

1.Tools(44.17)

Electricalenergy

Fertilisers:Ammonium

sulphate

Fertilisers:

Sodium

nitrate

Effectiverateof

Basic

custo

ms

duty

5 0 0 0 0 0 0 0 0 0 0 0 0

Special

duty

6 5 5 5 5 5 5 5 5 5 0 0 0

CYD

7 0 0 0 0 0 0 0 0 0 0 0 0

Basic

excise

duty

8 15

13 0 0 15

13

13

15 0 0 0 0

SAD

9 4 4 4 4 4 4 4 4 4 0 0 0

Standar

drateof

customs

duty

10

25

20

40

40

30

20

20

20

30 0 0 0

Rate

of

sales

tax

(ST)

11 13

13

13

13

13

13

13

13

13 0 0 0

Retention

rateofST

when

used

as

input

(ST*)

12 4 4 13 4 4 4 4 4 4 0 0 0

Octroi

rate

13

2 2 2 2 2 2 2 i 2 0 0 0


rateon

importsdue

tocustoms

dutiesand

domestictradetaxes

BCD.SD,

CVO.

SAD

and

octroi

e1 14

344

3.66

-388

5.12

3.44

3.66

366

3.44

5.12

0.00

0.00

0.00

BCD.SD

,CVD,

STand

octroi

e2 15

3.62

385

5.76

531

3.62

3.85

385

3.62

5.31

000

0.00

0.00

BCD.SD

,C\D

and

SAD

eJ 16

385

4.03

-3.80

5.20

385

4.03

4.03

3.85

5.20

0,00

0.00

0.00

BCD

,SD,

CM)

and

ST c4 17

3.85

403

5.65

5.20

3.85

4.03

4.03

3.85

520

0.00

0.00

0.00

Table

IV.2

55

TableIV.2(Contd.)

Tax

Rates

forItemssubject



Products(arranged

inascendingorderor

e1)

s. No. 1

29

30

31

32

33

34

35

36

37

38

39

40

Item

No.in

notifi

catio

n 2 - - - - - - - 89

144

54

55

Chapter/

headingNo.

3

44.01-03

49.02

49.05

99.01

99.02-03

99.04

99.14

49.06

48.01

84or85

3105,40

3105.30

Descriptionofgoods

4

Fuelwood,wood

charcoal,roughwood

Newspapers,journals

etc.

Maps,

charts,atlases

etc.

Thebloodgroup

sera

Artificialplasma

orkidney

Alltypesofcontraceptives

Common

salt

Plans&

drawings

forarchitectural,engineeringorsimilar

purposes

Newsprint,havinganashcontent

byweightnotexceeding

8%

Spares,suppliedwithoutboard

motors

formaintenanceof

such

outboardmotors

Ammonium

phosphateorammonium

nitrophosphate,foruse

asmanureor

fortheproductionofcomplex

fertilisers

Dianirnoniumphosphate,foruse

asmanure

orforthe

productionofcomplex

fertilisers

Effectiverateof

Basic

ms

duty

5 0 0 0 0 0 0 0 0 0 5 0 0

Special

duty

6 0 0 0 0 0 0 0 0 0 5 0 0

CVD

7 0 0 0 0 0 0 0 0 0 13 0 0

Basic

duty

8 0 0 0 0 0 0 0 0 0 13 0 0

SAD

9 0 0 0 0 0 0 0 0 0 4 4 4

Standar

drateof

customs

duty

10 0 0 0 0 0 0 0 0 20

20 5 5

Kate

of

sales

tax

(ST)

11 0 0 0 0 0 0 0 0 0 13 13

13

Retention

rateofST

when

used

as

input

(ST*)

12 0 0 0 0 0 0 0 0 0 13 3 3

Octroi

rate

13 0 0 0 0 2 2 0 2 3 2 2 2


rateon

importsdue

tocustoms

dutiesand

domestictradetaxes

BCD.SD,

(YD,

SAD

and

octroi

e1 14

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.38

0.82

0.82

BCD.SD

,CVD,

STand

octroi

e2 15

0.00

000

0.00

0.00

0.00

0.00

0.00

0.00

0.00

11.79

0.00

0.00

BCD.SD

,CVD

and

SAD

eJ 16

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.35

100

1.00

BCD

,SD,

CVD

and

ST e4 17

0.00

0.00

0.00

0.00

0.00

0.00

000

0.00

0.00

11.53

0.00

0.00

56


TableIV.2(Contd.)

Tax

Rates

for

Itemssubject



Products(arranged

inascendingorderor

e1)

s.

No.

1

41

42

43

44

45

46

47

48

49

Item

No.in

notifi

catio

n 2

199

26

25

255

233

223

57

90

Chapter/

headingNo.

3

85orAOt

27.10

27.10

95

84,85

or90

Anychapter

31.05

88.02-03

4802.60

Descriptionofgoods

4

Photographic,

filming,sound

recordingand

radioequipment,

raw

films,

videotapesandsound

recordingtapesofforeign

origin,

ifimported

intoIndia

afterhavingbeenexported

therefrom(85.21,85.23)

Naphtha

Kerosene

Requisite

forgamesand

sports(95.06)

Photographiccameras,cinematographiccameras,

lenses,

filters,

flash

lightapparatusandexposuremetersrequired

forusewith

theaforesaidcameras,

imported

byan

accreditedpresscameraman

:(90.06-07)

Partsofaeroplanes,

gliders,helicoptersorsimulatorsof

aircrafts

(excludingrubber

tyresandtubes

foraeroplanesor

gliders)

Composite

fertilisers

Partsofhelicopters&

spacecraft

Paper(excludingchrome

paper,

marblepaper,

flin

tpaper,

poster

paper,stereopaperand

artpaper)containing

mechanicalwood

pulpamounting

tonot

lessthan70per

cent

byweight

ofthe

totalfibrecontent

Effectiverateof

Basic

custo

duty

5 0 0 0 0 0 3 0 3 0

Special

duty

6

5/2

2■

2 5 5 0 0 0 5

CVD

7 0 15

15/0c

0 0 0 0 0 0

Basic

excise

duty

8

18/13

15

15/0c

13 18 0 0 0 18

SAD

9 4 4 4 4 4 4 4 4 4

Standar

drateof

customs

duty

10

40

30

30

25

40/25

3

5/0

3 30

Rate

of

sales

tax

(ST)

11 8 13 8 4 13 13 0 13 8

Retention

rateofST

when

used

as

input

(ST*)

12 3 3 3 4 3 3 0 3 3

Octroi

rate

13 4 2 0 3 4 2 2 0 3


rateon

importsdUl

IULU31UIII3UUlll

domestictradetaxes

BCD,SD,

CVD,

SADand

octroi

e1 14

2.72

3.10

3.17

378

3.79

4.00

4.08

4.12

421

BCD.SD

.CVD,

STand

octroi

e! 15

1.85

2.14

2.07

378

3.12

3.16

000

3.09

3.29

BCD.SD

,CVD

and

SAD

eJ 16

3.40

3.26

317

403

4.76

412

400

4.12

4.76

rtllU

BCD

,SD,

CVD

and

ST e4 17

2.37

2.08

2.07

4.03

3.71

3.09

0.00

3.09

3.71

Table

IV.2

57

Table

IV.2(Contd.)

Tax

Rates

forItemssubject


notExceeding


Products(arranged

inascendingorderor

e1)

;>o.1 50 51 52 53 54 55

Item No.in notifi catio n 2 59 87 137 137 216 193Chapter/ heading No.

3 39.10 4811.90 Any chapter Any chapter 85.24 28,29,84, 85or 90Silicone resin and siliconc rubber Grape guard, namely, paper ofatype generally used for packaging of grapes Parts ofwind operated electricity generators, for manufacture ofwind operated electricity generators, namely: special bearings, gear box, yaw components, sensors, and parts Parts and raw material for manufacture ofblades for rotor of wind operated electricity generators (8511.90) Recorded magnetic tapes, compact disc read only memory (CD-ROMS) and floppy diskettes, imported bythe I'niversity Grants Commission for use in computers The goods specified inList 16, for the manufacture oflaser and laser based instrumentation (9013.20) such as: a. Quartz (2506.10) b. Polishing materials (3204.20) c.Yaccutn pumps (8414.10) d.Flash pumps (8513.10) e.Arc lamps (8539.40)

0

00 0 05

550

58


TableIV.2(Contd.)

Tax

Rates

forItemssubject


notExceeding10PercentandCompositeDutyRatesonImportsandDomestic

Products(arranged

inascendingorderor

e1)

s. No.

Item

No.in

nolifi

catio

n

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CVD

Basic

excise

duty

SAD

Standar

drateof

customs

duty

Rate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD,SD,

CVD,

SADand

octroi

BCD.SD

,CVD,

STand

octroi

BCD.SD

,CVD

and

SAD

BCD

,SD,

CVD

and

ST

17

247

90orany

Medicalequipment

specified

inList23includingaccessories

other

chapter

andspareparts(90.18)such

as

:

a.Ophthalmicinstrumentsandappliances(9018.50)

b.Sterilisers(8419.20)

c.Instrumentsusingopticalradiations(9027.50)

d.Surgicaloperatingmicroscopes(9012.10)

248

90or\O(

Medicalequipment

specified

inList24includingaccessories

andspareparts(90.18)such

as

:

a.Surgicaloperatingmicroscopes(9012.10)

b.Endoscopicsurgeryinstruments(9018.90)

c.Stroboscopes(9029.20)

3105.20-90

Mineralorchemical

fertilisers

203

85.24

CD-ROMs

containingbooks

ofan

educationalnature

79

7408.11

Copperwire

186

84.71

or

85.04

Computer

peripheraldevicesand

powersupply

units

supplyingpowerunder

thecontrolofcomputer

system

to

which

theybelong,forthemanufactureofcomputersystems

tobesupplied

toaresearch

institutiononly

0 0 0 0 0 0 0

5.0

0 0 0

5 5 5 5 5 5 5 0 5 5 5

0 0 0 0 0 0 0 0 0 0 0

g 13

13 13

13 8 13 0

18/13

15

13

4 4 4 4 4 4 4

4,0

4 4 4

20

20

20

20

20

20

20

5.0

40

35

20

13

13

13

13

13 13

13 0 8 4 13

3 3 3 3 3 3 3 0 3 3 3

4 4 4 4 4 4 4 0 2

2.5

2

5.05

4.42

4.42

4.42

4.42

5.05

4.42

4.55

4.65

4.74

4.79

4.37

3.75

3.75

3.75

3.75

4.37

3.75

2.50

3.68

3.69

3.93

5.56

5.16

5.16

5.16

5.16

5.56

5.16

455

4%

5.00

5.16

4.51

4.11

41

1

4.11

4.11

4.51

4.11

2.50

3.91

3.95

4.11

Table

IV.2

59

TableIV.2(Contd.)

Tax

Rates

forItemssubject



Products(arranged

inascendingorderor

e1)

No.

Item

No.in

notifi

catio

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CVD

Basic

excise

duty

SAD

Standar

drateof

customs

duty

Rate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD,SD,

CVD,

SADand

octroi

BCD,SD

,CVD,

STand

octroi

BCD,SD

,CVD

and

SAD

BCD

,SD,

CVD

and

ST

16

17

One

setofpre-recorded

cass

ette

saccompanyingbooks

for

05/2

learninglanguagesand

essentialcomplement

tosuchbooks

(85.20)

Life

savi

ngmedicalequipmentincludingac

cess

orie

sand

05

0spareparts(90.19/20)

Goods

forTubalocclusionspecified

inlist

25(90.18)such

as

a.Trocal&connula(9018.39)

05

0

b.Laproscopes(9018.90)

05

0

c.Scissors(8213.00)

05

0

Medicalequipment

specified

inlist

14&

parts,such

as

:

a.Catheters(9018.30)

10

50

1).Dentalequipment(9018.40)

10

50

c.Opthamicinstruments(9018.50)

105

0

d.Ultrasonicdentalcleaningsystem(9018.90)

10

50

e.X-Raymachinery(9022.10)

105

0

f.Operating

tables(9402.90)

105

0

g.DentalX-raymachines(9022.13/21)

105

0

h.Dentalcementand

fill

ings

(3006.40)

105

0

132

Any

chapter

Machineryand

tool

ssp

ecif

ied

inList

5(8

462.

91,8441.40)

05

13

Gibberellicacid

05

0

Allgoods

formanufacturing

fertilisers

02

0

63

245

90orAOC

64

249

90orAOC

65

185

29,30,34,37,38,

39,69,84,85,

90or94

67

68

34

27

3803.30

27.10or

2714.90

20

20

20

40

20

20

20

20

20

40

20

30

20

30

30

5.05

3.83

4.37

4.88

3.66

5.56

4.51

4 4 4 2 2 2 2 2 2 2 2 2 2 0

5.05

5.05

4.17

5.11

5.11

5.11

5.11

4.10

3.09

5.11

3.69

517

5.30

5.33

4.37

4.37

3.50

15.67

15.67

15.67

15.67

14.66

13.64

1567

14.25

5.39

444

1.25

5.56

5.56

5.00

5.16

5.16

5.16

5.16

4.26

3.36

5.16

3.90

5.26

5.56

5.33

4.51

4.51

3.95

15.51

15.51

15.51

15.51

14.61

13.71

15.51

14.25

526

451

1.25

60


Table

IV.2(Contd.)

Tax

Rate

sforIt

emssubject

toEffectiveRate

ofBasicCustomsDuty

notExceeding

10Pe

rcentandCompositeDutyRa

tes

Prod

ucts

(arr

ange

din

asce

ndin

gorderor

e')

onImportsandDomestic

s. No.

Item

No.in

notifi

catio

Chapter/

headingNo.

3

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

(YD

Basic

excise

duty

SAD

Standar

drateof

customs

duty

10

20

25 5 30

30

Rate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

bxcess

ofcompositeduty

rateon

importsdue

tocustomsdutiesand

domestictradetaxes

B(D,SD,

CAT),

SADand

octroi

14

BCD.SD

,CA'D,

STand

octroi

15

BCD.S

D.CV

Dand

SAD

BCD,S

n,rv

Dand

ST

261

19

56

72

53

73

58

74

230

75

42

242

17

83

98.01

25.03

3104.30

31

3104.90

Any

chapter

29

90.22

2309.90

41

47.01-06

80

81

8?

100

112

112

5303.

7101.

7103.

10

10

91

Fertilsergoodsrequired

forproject

Crude

orunrefinedsulphur

Potassiumsulphatecontainingnotmorethan52%

byweight

0fK2O

Muriate

ofpotash,foruseasmanure

orfortheproductionof

complex

fertilisers

Potassium

Nitrate,

inaform

indicativeof

itsuseformanurial

purpose

Parts,forrepairofdredgers(8905.10)

Specifiedgoods,forthemanufactureofEnzymeLinked

Immunoabsorbent

AssayKits(FTTSA

Kits)

Linearacceleratorwithbeam

energy

15MeV

andabove

Prawn

feed

Wet

bluechrometanned

leather,crust

leather,finished

leatherof

all

kinds,including

splits

and

sidesof

theaforesaid

Wood

pulp(excludingrayongradewood

pulp)derivedby

mechanicalor

chemicalmeansfromanyfibrous

vegetable

material

Raw

jute

Raw

pearls,otherthancultured

pearls

Rubies,emeraldsand

sapphires,

unsetandimporteduncut

13/8

13/8

00

00

440/20

13

440

4

420

8

00

6.12

6.12

6.12

6.12

6.12

615

6.18

620

6.22

624

5.26

5.26

5.26

5.26

5.26

569

5.31

0 0 0

5 5 S

0 0 0

0 0 0

4 4 4

30

40

40

4 4 4

3 3 3

6.20

515

6.20

5.15

6.20

515

6.20

5.15

6.20

646

5.15

5.22

5.44

6.35

5.19

5.15

6.20

5.15

5.26

620

5.15

6.20

5.15

6.30

6.30

6.30

5 5 5

.25

.25

.25

6.20

6.20

6.20

5. 5. 5

15

15

15

Table

IV.2

61

Tax

Rates

forItemssubject

toEffectiveRateofBasicCustoms

Products

(a

TableIV.2(Contd.)

Duty

notExceeding


rranged

inascendingorderor

e1)

s.

No.

1 83

84

85

86

87

88

89

90

91

92

93

Item

No.in

notifi

catio

ii 2

112

113

IN

98

MS

36

29

47

48

218

59

Chapter/

headingNo.

3

71.02

7101.21

7101.22

7103.10

51.01

84or85

2941.10

28or29

29.40

2902.43

8540.40

3212.90

7106.10

Descriptionofgoods

4

Roughdiamonds

Raw

cultured

pearls(including

admixtures

ofpearls

containingraw

realpearlsand

cultured

pearls)

Rough

semi-preciousstones

Raw

wool,importedby

aregistered

Apexllandloom

Cooperative

Society,

etc.

Partsofoutboardmotors

specified

in

List7such

as

:

a.Crankand

pistonring

sets(8409.91)

b.Ignition

coils(8511.30)

c.Gearadjustment(8461.40)

Potassium

pencillinG

orV

firstcrystals,potassium

pencillin

Gcrude,

potassium

pencillinV

acid

crystals

Chemicals,

foruse

inthemanufactureofccntchroman

Maltol,

ifimported

foruse

inthe

manufactureofdeferiprone

Paraxylene

Data

orgraphicdisplaytubes,

colour

Silverpowdersuspension

Basic

custo

ms

duty

5 0 0 0 0 0 0 0 0 0 0 5 5 0

Effectiverateof

Special

duty

6 5 5 5 5 5 5 5 5 5 5 0 0 5

CVD

7 0 0 0 0 13

13

13

18

18

18

18

18 0

Basic

excise

duty

8 0 0 0 0 13 18

13 18

18

18

18

18

18/0

SAD

9 4 4 4 4 4 4 4 4 4 4 4 4 4

Standar

drateof

customs

duty

10

40

40

40

30

30

40

20

30

30

30 10

10

40/30

Rate

of

sales

tax

(ST)

11 4 4 4 4 13

13

13 13

13

13

13 13 2

Retention

rateofST

when

used

as

input

(ST*)

12 3 3 3 3 3 3 3 3 3 3 3 3 2

Octroi

rate

13 2 2 2 2 2 2 2 2 2 2 2 2

05


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD.SD,

CVD,

SADand

octroi

e1 14

6.30

6.30

6.30

6.30

6.30

5.79

6.30

6.37

6.37

6.37

6.37

6.37

656

BCD.SD

,CVD,

STand

octroi

e2 15

5.25

5.25

5.25

5.25

5.33

4.82

5.33

5.36

5.36

5.36

5.36

536

4.45

BCD,S

D,CV

Dand

SAD

eJ 16

6.20

6.20

6.20

6.20

6.39

599

6.39

6.46

646

646

6.46

6.46

6.57

BCD.S

D,CV

Dand

ST e4 17

5.15

5.15

5.15

5.15

5.20

4.80

5.20

5.22

5.22

5.22

5.22

5.22

447

62


TableIV.2(Contd.)

Tax

Rates

forItemssubject



Products(arranged

inascendingorderor

e1)

s. No.

1

Item

No.in

nolifi

catio

n 2

Chapter/

headingNo.

3

Descriptionofgoods

4

Effectiverateof

Basic

custo

ms

duty

5

Special

duty

6

CVD

7

Basic

excise

duty

8

SAD

9

Standar

drateof

customs

duty

10

Rate

of

sales

tax

(ST)

11

Retention

rateofST

when

used

as

input

(ST*)

12

Octroi

rate

13


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD,SD.

CVD,

SADand

octroi

e1 14

BCD.SD

,CVD,

SI

and

octroi

e1 15

BCD.S

D.CV

Dand

SAD

e* 16

BCD.S

D.CV

Dand

ST e4 17

94

35

2905.14

DL-2aminobutanol,diethylmalonate,

triethylorthoformate,

05

18

18

430

43

26.58

534

646

5.22

acetobutyrolactone,thymidine

95

251

90orAOC

Goods

specified

inList26importedbyhandicappedor

disabledperson

forhispersonal

use,such

as

:

a.Brailletypewriters(8469.20)

05

015

440

22

2.5

5.95

380

6.15

4.05

b.Drawing

aids(9017.20)

05

00

420

22

2.5

738

523

7.20

5.10

c.Micro

meters,gauges(9017.30)

05

00

420

22

2.5

738

5.23

7.20

510

d.Orthopeadicappliances(9021.00)

05

08

420

22

2.5

6.62

446

664

4.54

e.Specialclocksandwatches(9105.99)

05

08

440

22

2.5

662

446

664

4.54

96

46

28,29,30or38

Bulkdrugsused

inthemanufactureof

life

savingdrugsor05004

220

720

5.10

720

510

medicines

atSr.No.23

97

815

Edible

oils

orany

materialfromwhich

edible

oilcanbe

05

00

430

1.5

1.5

2785

5.18

7.70

5.08

extracted

98

31

2809.20

Phosphoric

acid

for

fertilisers

05

018

430

00

08.30

4.10

8.30

4.10

99

206

4911.99

Computersoftwareand

otherprintedmatter

05

18/13

18/13

440

11

2892

5.21

873

5.10

8524.99

100

135

84or90

Goods

specified

inList

6,designed

foruse

intheleather

industrysuch

as:

a.Dryingmachines(8451.21)

55

013

420

13

42

896

9.16

923

923

b.Leatherperforatingandpunchingmachines(8203.40)

55

015

425

13

42

8.74

894

9.05

9.05

c.Millingmachines

(84.59)

55

013

420

134

2896

9.16

9.23

9.23

d.llydralicpress(8462.91)

55

013

420

13

42

896

916

9.23

923

e.Moldingmachines(8441.40)

55

013

420

13

42

896

9.16

9.23

923

Table

IV.2

63

Table

IV.2(Contd.)

Tax

Rates

forItemssubject

toEf

fect

iveRateofBasicCustomsDuty

notExceeding


Products(arranged

inascendingorderor

e1)

s. No.

Item

No.in

not

ill

catio

n

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CYD

Basic

excise

duty

SAD

Standar

drateof

customs

duty

Kate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictrade

taxes

BC"D,SD,

CVD,

SADand

octroi

BCD.SD

,CVO,

STand

octroi

BCD,S

D,(V

Dand

SAD

BCD.S

D,CV

Dand

ST

10

14

15

16

17

101

102

103

104

105

106

107

46

:

260

23

252

51

94

28,29,30or

98.04

27.01

9804.90

3102.10

4901.10

108

91

f.Bandsaw

(8461.50)

(■.Sewingmachines(8452.21/29)

h.Conveyorsystem(8428.20)

i.Dyeingmachine(8451.40)

j.Hcattransferpress(8419.50)

k.Injectionmouldingpress(8477.10)

I.Ironingand

conditioningmachine(8451.30)

28,29,30or38

The

life

savingsdrugsormedicines(includingdiagnostic

test

kits)

specified

inlist

2

28,29,30or38

Other

life

savingdrugsor

medicines

Lifesavingdrugsormedicines

(oaking

coalofashcontentbelow

12%

Braillewatchesand

brailleone-day

clocksby

postor

air

I'rea,foruse

asmanure

Printedbooks(includingcovers

for

printedbooks)and

printedmanuals

(includingthose

inloose-leafform

with

binder)

Lightweightcoatedpaperweighing

upto

51g/m2,imported

by

actual

usersforprintingofmagazines

i 5 5 5 5 5 5 0 0 0 3 0 0 0

5 5 5 5 5 5 5 5 5 5 5 5 5 5

0 0 0 0 0 0 0 0 0 0 0 0 0 0

13 8 13

13

13

13

13

8/0

0 0 0 0 0 0

4 4 4 4 4 4 4 4 4 4 4 4 4 4

20

40

20

20

20

20

20

30

30 10

40

30

20

13

13

13

13

13

13

13 0 0 0 4 0 0 0

4 4 4 4 4 4 4 0 0 0 3 0 0 0

8.96

9.16

48.10

9.57

9.23

9.23

7 2 2 2 2 2 0 0 0

0.5

i 2 3

953

8.96

896

8.96

896

8.96

9.00

9.20

9.20

9.36

938

9.38

9.48

9.73

9.16

916

9.16

9.16

9.16

4.80

5.00

5.00

8.28

5.10

5.10

5.15

9.68

9.23

9.23

9.23

9,23

9.23

9.00

9.20

9.20

9.32

9.20

9.20

9.20

9.68

9.23

9.23

9.23

9.23

9.23

4.80

5.00

5.00

8.24

500

5.00

5.00

8.86

64


Table

IV.2(Contd.)

Tax

Rates

forItemssubject

toEf

fect

iveRateofBasicCustomsDutynotExceeding


Products(arranged

inascendingorderor

e1)

s.

No. 1

109

III)

111

112

113

114

115

116

117

118

119

120

Item

Nilin

notifi

catio

n 82

252

253

52

88

155

28

157

231

- -

191

Chapter/

headingNo.

3

4012.10

91

91

2808.50

48.01

84.21

2711.1lor

2714.90

Any

chapter

28,29,32,39,

70»r90

47.02-04

47.06-07

28,38,85

or98

Descriptionofgoods

4

Retreated

tyres,ofakindusedon

aircrafts

Braillewatchesand

brailleone-day

clocks

Partsand

cases,ofbraillewatches,forthemanufactureof

braille

watches

Kyanite

salt

s,in

aform

indicativeof

theiruseformanurial

purpose

Newsprint,havinganashcontent

byweightnotexceeding

8%

Catalyticconvenors

Allgoods

forpurposesofpowergeneration

The

followinggoods

formanufactureofcatalyticconvcrtors

and

theirparts,namely,

a)palladium;

b)rhodium;

c)raw

substrate(ceramic);

d)raw

substrate(metal)

e)noblemetal

solution(7110.20/30)

Goods

specified

inList20

(B),formanufactureof

telecommunicationgradeKRP

(13.01)

Wood

pulp(otherthandissolvinggrade)

Wastepaper&

pulp

offibresderivedtherefrom

Silicon

inallforms,that

is,polycrystalline

siliconor

ingots,

forthe

manufacture

ofundiffused

siliconwafers(2804.61)

Kffectiverateof

Basic

custo

duty

5 3 0 0 0 10 5 10 5 5 5 5 5

Special

duty

6 5 5 5 5 0 5 2 5 5 5 5 5

CVD

7

30-13

18/8

18/8

18 0 13 0 0 0 0 0 g

Basic

excise

duty

8

30/13

18/8

18/8

18 0 13

15/10

0 0 0 0 g

SAD

9 4 4 4 4 0 4 4 4 4 4 4 4

Standar

drateof

customs

duty

10

40

40/30

40/30

25

20

20 10

40

40 5 5 30

Rate

of

sales

tax

(ST)

11 10 0 0 0 0 13

13

13 13

13

13

13

Retention

rateofST

when

used

as

input

(ST*)

12 3 0 0 0 0 4 4 3 3 3 3 3

Octroi

rate

13 4 2 2 0 3 2 2 2 2 2 2 2

Kxcessofcompositeduty

rateon

importsdue

tocustoms

dutiesand

domestictradetaxes

BCD.SD,

CVD,

SAD

and

octroi

c1 14

9.80

999

999

10.00

10.30

10.55

11.14

1143

1143

1143

1143

11.58

BCD.SD

,C\D,

STand

octroi

e2 15

8.81

5.15

515

5.05

1030

10.77

11.34

10.53

10.53

10.53

10.53

10.61

BCD.S

D,CV

I)and

SAD

eJ 16

9.69

9.78

9.78

10.00

1000

10.52

11.36

11.40

11.40

11.40

11.40

11.55

BCD.S

I),(V

1)and

ST e' 17

8.38

5.03

5.03

5.05

1000

10.52

1136

10.30

10.30

1030

1030

10.36

TableIV.2

65

Table

IV.2(Contd.)

Tax

Rates

forItemssubject



Products(arranged

inascendingorderor

e1)

s.

No.

1

121

122

123

124

125

126

127

128

129

130

131

Item

No.in

notifi

catio

n 85

86

156

187

205

217

123

Chapter/

headingNo.

3

47.02

47.07

Any

chapter

8471.70

85.42

85

8540.40

26.01-17

26.18-10

26.20-21

72.04

Descriptionofgoods

4

(hemicalwood

pulp

(dissolving

grade)

Recoveredpaperorpaperboard

Partsofcatalyticconvenors,

for

manufacture

ofcatalytic

convenors

Hard

disk

drive,floppydisk

drive,compact

diskreadonly

memory

(CD-ROM)

drive

Integrated

circuitsofCIKvalue

exceedingRs.1000perpiece

Deflectioncomponents

foruse

incolourmonitors

for

computers

(8538.10)

Data/graphicdisplaytubes

Ores&

concentrates

Slag,drossand

otherwastefrommanufacturingofironand

Ash&

residuescontainingmetalsotherthan

zincorcopper

Meltingscrapofironor

steel(other

than

stainless

steelor

heat

resisting

stee

l),foruse

inelectricarcfurnaceor

inductionfurnaceormelting

inahot

blastcupolaorfor

supply

toaunit

foruse

inelectricarcfurnace

etc.

Effectiverateof

Basic

custo

ills

duty

5 5 5 5 5 5 5 10 5 5 5 5

Special

duty

6 5 5 5 5 5 5 0 5 5 5 5

CVD

7 0 0 13

13

18

18

18 8 8 8 15

Basic

excise

duty

8 0 0 13 13

18

18

18 8 8 8 15

SAD

9 4 4 4 4 4 4 4 4 4 4 4

Standar

drateof

customs

duty

10

10 5 20 10

10

30 10 5 5 5 30

Rate

of

sales

tax

(ST)

11 8 8 13 13

13

13

13 4 4 4 4

Retention

rateofST

when

used

as

input

(ST*)

12 3 3 3 3 3 3 3 3 3 3 3

Octroi

rate

13 3 3 ■> 2 2 2 4

2.5

2.5

2.5

2


rateon

importsdue

tocustoms

dutiesand

domestictradetaxes

BCD.SD,

CVD,

SAD

and

octroi

e1 14

11.59

11.59

11.68

11.68

11.78

11.78

11.81

11.83

11.83

11.83

11.92

BCD.SD

,CVD,

STand

octroi

c2 15

10.62

10.62

10.66

10.66

10.71

10.71

10.98

10.64

1064

10.64

10.66

BCD,S

D,CV

Dand

SAD

eJ 16

11.40

11.40

11.65

11.65

11.74

11.74

11.74

11.55

11.55

11.55

11.69

BCD,S

D,CV

Dand

ST e4 17

1030

10.30

10.40

10.40

10.44

10.44

10.44

10.36

1036

1036

10.42

66


Table

IV.2(Contd.)

Tax

Rates

forItemssubject

toEf

fect


notExceeding

10Percent

andCompositeDutyRatesonImportsandDomestic

Products(arranged

inascendingorderor

e')

s. No.

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CVI)

Basic

excise

duty

SAD

Standar

drateof

customs

duty

Kate

of

sales

tax

(ST)

Retention

rateofSi'

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD.SD,

CAD,

SADand

octroi

BCD,SD

,C.'VD,

STand

octroi

BCD.S

D,CV

Dand

SAD

BCD,S

D,CV

Dand

SI

14

15

16

32

1J3

134

135

136

137

138

139

140

141

142

14*

126

63

66

67 11

188

208

10

ii

137

250

7204.21

35.05

37

37

1806.90

8473.30

27.14

85

17.01

2825.60

Any

chapter

3506.99

Scrapofstainless

steel,

forthe

purposeofmelting

llydroxyethylstarch,imported

foruse

inthemanufactureof

plasmavolumeexpanders

Filmofapredominantlyeducationalcharacter(3706.00/90)

Microfilms,ofprintedbooks(includingnewspapers),music

manuscripts

maps,charts,plan,drawingsand

designs

(3505.20)

Foodpreparationsmeant

forinfantuse

Parts(excludingpopulated

printed

circuitboards)ofthe

machines

of

headingNo.84.71

Bitumenand

asphalt

Compact

discreadonlymemory(CD-ROM)

(8523.20)

Refinedsugurincludingwhitecrystalsugarandrawsugar

Zirconiumoxideoryttriumoxide,forthethemanufactureof

raw

cubiczirconia

Blades

forrotorofwindoperated

electricitygenerators,for

manufacturingwindoperated

electricitygenerators(8511.90)

Adhesiveepoxy

5 5 10

10

10

10

10

10 5 10

10

10

5 5 5 5 5 2 2 2 5 5 5 5

15

18 0 0 18

13

15

18

8/0

0 0 0

15

18 0 0 18

13 15

18

8/0

18

18

18

4 4 4 4 4 4 4 4 4 4 4 4

30

30

25

25

40

20 10

40

40

30

40

30

4 4 8 8 8 13 13

13 0 13

13

13

3 8 8 8 3 3 3 0 3 3 3

4 4 7 2 3 2 )5

2 2 ->

12.06

12.06

1208

13.83

1391

1394

1467

14.89

14.89

1489

10.72

1169

1042

1069

11.74

1044

1685

11.60

16.20

16.85

11.60

16.20

1789

11.12

1655

1279

1375

12.48

1297

13.79

12.50

12.85

1385

1253

10.07

14.60

10.02

13.94

15

16

1401

1394

15.16

14.01

1394

15.16

14.01

Table

IV.2

67

TableIV.2(Contd.)

Tax

Rates

forItemssubject


10Perce

ntandCompositeDutyRatesonImportsandDomestic

Products(arranged

inascendingorderor

e1)

No.

1

144

145

146

147

148

149

150

151

Item

No.in

notifi

n -

240

250

250

250

176

72

71 -

(hapter/

headingNo.

31

90orOAC

7306.90

3901.10

3902.10

84,85or

90

37.06,8524.52/

53

3701.20/

3702.20

27.02-04

Descriptionofgoods

4

Parts(otherthanprimary

cell

sandprimary

batteries),for

themanufactureofhearingaidsincludingdeafaids(90.33)

Stainless

stee

lcapillarytube

Low

densitypolyethylene

Polypropylene

Themachinery

orequipment

specified

inli

st10,required

for

textile

industrysuch

as:

a.Washing,bleachingordyeingmachines(8451.40)

b.Hatpaper

press(8462.91)

c.C'ircularknittingmachines(8447.11/12)

d.Industrialsewingmachines(8452.21/29)

e.C'onveyors

forgarments(8428.20)

f.Rovingmachine

forflax

(8445.13)

Kilnisand

videocassettes

Instant

print

film

Lignite,peatandcoke

Effectiverateof

Basic

custo

ms

duty

5 10

10

10

10

10

10

10

10

10

10

10

10

10

Special

duty

6 5 5 5 5 5 5 5 5 5 5 5 5 5

CVD

7 0 0 0 0 13

13

13 8 13

13 0 8 0

Basic

excise

duty

8 13

15

25/0

25/0

13

13

13 8 13

13

18/0

18 0

SAD

9 4 4 4 4 4 4 4 4 4 4 4 4 4

Standar

drateof

customs

duty

10

20

30

30

30

20

20

20

40

20

20

40/25

10

10

Rate

of

sales

tax

(ST)

11 13 4 13 13

13

13

13

13

13

13 8 8 4

Retention

rateofST

when

used

as

input

(ST*)

12 3 3 3 3 4 4 4 4 4 4 3 3 3

Octroi

rate

13 4 2.5

2 2 2 2 2 2 2 2 4 4

0.5


rateon

importsdue

tocustoms

dutiesand

domestictradetaxes

BCD,SD,

CVD,

SADand

octroi

e1 14

15.24

15.40

15.45

15.45

15.92

15.92

15.92

15.85

15.92

15.92

15.96

16.06

1668

BCD,SD

,CVD,

STand

octroi

e2 15

14.50

14.25

14.51

14.51

16.16

16.16

16.16

16.07

16.16

16.16

1499

15.01

15.53

BCD.S

D.CV

Dand

SAD

eJ 16

15.56

15.40

1560

15.60

15.78

15.78

15.78

15.71

15.78

15.78

1588

15.99

1660

BCD.S

D,CV

Dand

ST e4 17

14.41

1425

1445

14.45

15.78

15.78

1578

15.71

15.78

15.78

14.73

14.75

15.45

68


Table

IV.2(Contd.)

Tax

Rate

sforIt

emssubject

toEffectiveRate

ofBasicCustomsDuty

notExceeding

10Pe

rcentandCompositeDutyRateson

Impo

rtsandDomestic

Prod

ucts

(arr

ange

din

asce

ndin

gor

deror

e')

s.

No. 1

152

153

154

155

156

157

158

159

160

161

162

163

Item

No.in

notifi

catio

n -> 1 20

99

220

. 21

22

177

117

Chapter/

headingNo.

3

28.45.10

47.02-04

1301.90

25

4301-02

51.01

87

22.07.20

2620.19

2620.30

Any

chapter

71.04

Descriptionofgoods

4

Heavywater(deuterium

oxide)

Wood

pulp(dissolvinggrade)

Oleopine

resin

Crude

orunrefinedsulphurboronore

Kurskin

ofanimalsotherthanlamb(raw,tanned

ordressed

)

Raw

wool

ofaverage

fibrediametre

32micronsandabove

Tricyclesdesigned

foruseby

crippledand

disabledpersons

(87.13)

Ethylalcohol&

other

spir

it,denatured

Ash&

residuescontainingmainly

zinc(excludingzincdross)

Ash&

residuescontainingmainlycopper(excludingcopper

millscale)

F'arts,fu

rmanufacture

ofthemachinery/equipment

specified

in

list

10

Rough

syntheticstones

Effectiverateof

Basic

custo

ms

duty

5 10

10

10

10

10

10

10

10

10

10

10

10

Special

duty

6 5 5 5 5 5 5 5 5 5 5 5 5

CVD

7 0 0 0 0 0 0 0 g 8 8

13/8

0

Basic

excise

duty

8 0 0 0 0 0 0 0 8 8 8

13/8

0

SAD

9 4 4 4 4 4 4 4 4 4 4 4 4

Standar

drateof

customs

duty

U)

10

10

40

25 10

30

40 10

30

30

40/20

40

Rate

of

sales

tax

(ST)

n 13 13

13 13 4 4 4 13 13 13

13 4

Retention

rateofST

when

used

as

input

(ST*)

12 3 3 3 3 3 3 3 3 3 3 3 3

Octroi

rate

13 2 2 2 2 1 2 2 ~> 2 2 2 2.5

F.xcessofcompositeduty

rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD.SD,

CVD,

SADand

octroi

e1 14

16.73

16.73

1673

16.73

16.76

16.91

16.91

1693

16.93

16.93

1699

1699

BCD.SD

,CVD,

STand

octroi

e2 15

15.79

15.79

15.79

1579

15.61

15.76

1576

1591

1591

15.91

1595

15.84

BCD.S

D.CV

Dand

SAD

eJ

1660

1660

16.60

1660

1660

16.60

16.79

16.79

16.79

16.85

16.60

BCD,S

D.CV

Dand

ST c'

1545

15.45

15.45

1545

1545

15.45

15.55

15.55

15.55

1558

15.45

Table

IV.2

69

Table

IV.2(Contd.)

Tax

Rates

forItemssubject

toEf

fect


10Per

Products(arranged

inascendingorderor

e')

centandCompositeDutyRatesonImportsandDomestic

No.

Item

No.in

notifi

catio

n

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

custo

ms

duty

Special

duty

CVD

Basic

excise

duty

SAD

Standar

drateof

customs

duty

Kate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD.SD,

CVD,

SADand

octroi

BCD.SD

,CVD,

STand

octroi

BCD,S

D,CV

Dand

SAD

BCD,S

D,CV

Dand

ST

14

15

16

17

I6"*

8144

07.9

2Willow

clefts,ashwood

orbeech

wood

fallingunderchapter

104407.99

44

165

64

3502.20

Isolated

soyaprotein

10

166

184

84,8

5or

90Thegoods

spec

ifie

din

List

13,for

themanufactureof

goods

10falling

underheadingNos.85.41

or85

.42,

such

asdi

odes

,

transtitorand

electronicintregated

circuts(9013.20,

9022.19/29)

"•7

1-tl

84,85

Goods,

formanufactureof

groundpower

unitsand

airjet

10starters,namely,

dieselenginesof2400rpm;

alternatorsof

400Hz,115/2OOVand2400rpm;

oilfreedryscrew

compressor(8408.90)

37

Film

stri

psand

film

slid

esfo

reducationalpurposes(3705.90)

37

Exposedanddeveloped

film

sheets

forprintingor

reproduction

ofprintedbooks(includingcovers

forprinted

books),periodicals(includingnews

papers),music

manuscripts,maps,

charts,plans,drawingsanddesigns

(3705.10)

37.06

Exposedcinematographic

films

954504.90

Corkbottoms

fallingunderchapter

45or95

3824.90

Dipping

oil,

paclobutrazol

(cul

tar)

71.05

Ashand

residues

cont

aini

ngpr

ecio

usmetalor

prec

ious

metal

compounds,

ofakindused

principallyfortherecoveryof

preciousmetal

174

148

85.06

Button

cell

s10

168

169

170

171

172

173

69

81

74

115

5 5 5

0 18

13

0 18

13

4 4 4

25

30

20

17.00

17.02

17.05

16.47

16.60

15.45

15.67

17.02

1567

15.99

16.91

15.61

20

13

10

10

5 5

0 0

0 0

4 4

25

25

8 8

3 3

10

10

10

10

5 5 5 5

0 18

18

18

0 18

18

18

4 4 4 4

25

30

30

40

8 13

13

13

3 3 3 3

4 1.5

2 i

17.05

15.99

16.91

15.61

41706

16.10

16.60

15.45

417.06

16.10

16.60

15.45

17.06

16.10

16.60

15.45

17.14

15.97

17.02

15.67

17.18

16.07

17.02

15.67

17.18

16.07

17.02

15.67

17.18

16.07

1702

15.67

70


Table

IV.2(Contd.)

Tax

Rates

forItemssubject

toEf

fect


notExceeding

10Per

Products(arranged

inascendingorderor

e1)


s. No.

Item

No.in

notifi

catio

n

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic-

customs

dutv

Specia

Idutv

CAD

Basic

excise

duty

SAD

Standar

drateof

customs

duty

Kate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustoms

dutiesand

domestictradetaxes

BC"D,SD,

CAD,

SAD

and

octroi

BCD,SD

,CAO,

STand

octroi

BCD.S

D,CA

Dand

SAD

BCD.S

D,C\

Dand

ST

17.S

176

177

I'M

213

28,38

,85or98

Indiffused

siliconwafers,

forthemanufactureofsolar

cell

s

(6815.99)

85orAOC

Mono

or

bipolarmembrane

electrolysersand

partsthereof

(8543.30)

28

Radiumand

itssa

lts,

radioactiveisotopesofiodine,

phosphorus,

cobalt,caesiumand

allchemicalcompounds

containingsuch

radioactiveisotopesmolybdenum

99and

technetium99m

isotopes,enricheduranium

oruranium

oxide

178

-2903.15

Ethylenedichloride

179

-2903.21

Chloroethylcne

180

-2926.10

Acrylonitrite

181

231

28,29,32,39,70

Goods

specified

inli

st20

(A),forthemanufactureof

or90

telecommunicationgrade

opticalfibresoropticalfibrecables

such

as:

a.Chlorine(2801.10)

b.Helium

(2804.29)

c.Polyestertape(3907.00)

d.Nylonethcard/tape(5607.50)

e.Polyethenecord(5903.90)

f.Silicatube/rod(7228.20)

238

90

Spare

partsofhearingaids(90.33)

246

90orAOC"

Partsrequired

forthemanufacture,andsparepartsrequired

forthe

maintenance,ofmedicalequipmentNo.90.18

to90.21

andsub-heading

Nos.9022.12,9022.13,9022.14or

9022.21

(90.33)

184

75

3808.90

Bio

pesticides,namely,

Bacillus

thurin-giensisvar.kurstaki,

Bacillus

Iliuringiensisvar.

israelensisand

Bacillussphaericus

182

183

0 0 0

5 5 5

18

18

18

18

18

18

17.18

17.18

17.02

1567

1607

17.02

15.67

10

10

10

5 5 5

18

18

18

18

18

18

4 4 4

10

10

10

13 13

13

3 3 3

17

18

17

18

17.18

16

16

16

07

.07

.07

1702

17.02

1702

15.67

15.67

15.67

10

10

10

10

10

10

10

10

5 5 5 0 0 5 5 5

18

18

18

15

18 15

13

13

18

18

18

15

18

15

13

13

4 4 4 4 4 4 4 4

30

30

30

40

40

30

20

20

13

13 13 13

13

13 13

13

3 3 3 3 3 3 3 3

2 2 2 i 2 2 4 4

17.18

17.18

17.18

11.72

11.78

17.10

17.20

17.20

16.07

16.07

16.07

1068

1071

16.02

1637

16.37

17.02

17.02

1702

11.69

1174

1695

1691

16.91

15.67

1567

15.67

10.42

1044

1563

15.61

156!

17.30

1605

17.02

15.67

Table

IV.2

71

TableIV.2(Contd.)

TaxRates

forItemssubjectto

Effe

ctiv

eRateofBasicCustomsDutynotExceeding

10Per

Products(arranged

inascendingorder


ore1

)

Item

No.in

notifi

catio

n

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

customs

duty

Specia

Iduty

CVD

Basic

excise

duty

SAD

Standar

drateof

customs

duty

Rate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD,SD,

CVD,

SADand

octroi

BCD.SD

,CVD,

STand

octroi

BCD.S

D,CV

Dand

SAD

BCD,S

D,CV

Dand

ST

185

28.01.20

Iodine

186

187

188

189

190

191

192

193

37

120

121

131

8541.90

85.42

29.22

29.01

29.02

72.01

7202.60

Any

chapter

194

195

196

197

151

70

. 44

8543.89

3702.31

75

2941.50or

3004.20

Partsdiodes,transistors

etc.

Electronicintegrated

circuits&

microassemblies

1.lysine,L

lysi

nemono

hydrochlo-

ride,DL

methionineor

methioninehydroxyAnalog

ACyclichydrocarbons

(ethylene,butane,

etc.

)

Cyclichydrocarbons(cyclohexene,benezene,xylenes

etc.

)

Pigiron

Kerro-nickel

The

horologicalraw

materials

specified

inLi

st4(Metalic

strips

and

sheets)such

as

of:

a.Stainless

steel(72.18-72.29)

b.Copper(74.07-74.10)

c.Nickel(75.05/06)

d.Aluminium

(76.04-76.07)

e.Lead

(78.03/04)

f.Zinc(79.04/05)

g.Tin(83.03-80.05)

Completeozonegenerators

Colour

positiveandcolournegative

unexposed

cinematographic

film

injumbo

roll

s

Nickel&

articlesthereof

Formulationsorbulkdrugs,namely:

nilutamide,sodium

fusidate.lowmolecularweightheparinorerythropoietin

15

15

15 15

15 15

15

18

18

15

18/15

15

15

15 15

15

15

15

18.13c

18

15

18/15

410

4

410

4

430

4

420

4

30

35 10

20

30

30

20

30

25 10

30

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

2.5

17.30

16.05

17.02

15.67

17.33

16.47

17.02

15.67

17.33

16.47

17.02

15.67

17.39

16.03

1702

1567

17.39

1603

17.02

1567

1739

16.03

17.02

15.67

17.40

16.08

16.95

15.63

17.40

16.08

1695

15.63

17.40

17.40

1740

17.40

17.40

17.40

17.40

17.44

17.57

17.67

18.15

16.08

16.08

16.08

1608

16.08

16.08

16.08

16.32

1643

16.35

15.47

16.95

16.95

16.95

1695

16.95

16.95

16.95

17.22

17.02

16.95

18.15

1563

15.63

15.63

15.63

15.63

15.63

1563

15.87

15.67

15.63

15.47

72


TableIV.2(Contd.)

Tax

Rates

forItemssubject

toEf

fect



Products(arranged

inascendingorderor

e1)

No.

Item

No.in

notifi

catio

Chapter/

headingNo.

Descriptionofgoods

Effectiverateof

Basic

customs

duty

Specia

Iduty

CVD

Basic

excise

duty

Standar

drateof

customs

duty

Rate

of

sales

tax

(ST)

Retention

rateofST

when

used

as

input

(ST*)

Octroi

rate


rateon

importsdue

tocustomsdutiesand

domestictradetaxes

BCD.SD,

CVD,

SAD

and

octroi

BCD.SD

.CVD,

STand

octroi

BCD.S

D,CV

Dand

SAD

BCD.S

D,CV

Dand

ST

I

798"

14

15

16

17

200

9518

23,2

8,29

,30or

Veterinarydrugsand

othergoods

specified

inli

st1

38

143

84orany

Vacuum

tubesolarcollectors,concentratingsolarco

llec

tors

other

chapter

or

Stirling

engines,

formanufactureofso

larenergy

equipment;and

linearactuatorsfortrackingsystems,fresnel

lensesorsun

sensors,formanufactureofconcentratingsolar

collector

49.07

Chequeforms(includingblank

travellerscheques)

Food

preparation

forinfantuse

Tanning

extractsofvegetableorigin

Molassesfromsugar

refining

204

239

90or

9804.90

Hearing

aidappliances(9021.40)

205

8139,54,56

Nylongut

fall

ingunderchapter39,54

or56

(5402.51)

40/30

20

18.20

1908

I960

15.49

1820

15.49

1439

1895

1435

15.00

19.60

1500

201

202

203

19.01.10

3201

17.03

10

10

10

5 5 5

8 8 8

8 8 8

4 4 4

10

10

10

0 0 0

0 0 0

0 0

0.5

20.03

15.06

20.03

15.06

20.03

1506

20.03

1506

20

13

15

14

20.03

1506

8/0

25

25

40/20

30

20.63

20.94

15.65

19.81

1503

15.19

2094

15.19

Source:Pr

epar

edon

thebasisof

info

rmat

ionco

ntai

ned

inCustoms

Tari

ffwithNew

Impo

rtPolicy

(1998-99),

andCentralExcise

Tari

ffwi

thManual

(1998-99).BusinessDatabase

PublicityCompany.

Notes:.

1.Co

ndit

ions

and

list

sex

clud

ed.

Interested

read

ersmay

refe

rto

exemption

notification

No.23.

2-AOC:Any

othe

rchapter,

SAD:

Spec

ialaddi

tion

aldu

ty,CVD:

Coun

terv

aili

ngduty,UED:

Union

excise

duty.

Table

IV.

73

TableIV.3

Number

Range

ofexcessof

compositeduty

rateon

imports(percentage

points)

1

Lessthan0

Lessthan-10

-10

tole

ssthan

-5

-5to

less

than0

EqualtoO

Greaterthan0

Greaterthan0

tole

ssthan

5

5to

less

than

10

10

tole

ssthan20

20andabove

ALL

ofCommoditieswithNegative,Niland

Positive

ValuesofExcessofCompositeDutyRate

(

BCD,S

No.of

items 25 0

10

15

12

168

25

49

89 5

205

)nImports

Basedonexcessof

compositeduty

rateonimportsdue

tocustomsdutiesanddomestictradetaxes

D,CVD,SADand

octroi

e1

SerialNo.ofitems

in

tableIV.2

^3

1-10

11-25

26-37

38-62

63-111

112-200

201-205

BCD,SD,CVD,STand

octroi

e2

No.of

items

4

3 0 0 3

20

182

42

45

95 0

205

SerialNo.ofitems

in

tableIV.2

5

BCD,

No.of

items

6

25 0

10

10.13,14

15

12,15,20-22,26-37,39,

12

40,47

166

1-9,23-25,41-46,48-64,

21

67-69,93,95,98,

101

11,16-19,66,70-92,94,

53

96,97,99,100,102-112

38,65,113-205

90 4

205

SD,CVD

andSAD

eJ

SerialNo.ofitems

in

tableIV.2

7

1-10

11-25

26-37

38-55.

58,59.62

56,57,60,61,63-111

112-200,204

201-203,205

BCD,SD,CVD

andST

e4

No.of

items

8

1 0 0 1

20

184

44

45

95 0

205

SerialNo.ofitems

intable

IV.2

9

10

12,15,20-22,26-37,39,40,

47

1-9,13,14,23-25,41-46,

48,64,67-69,93,95,98,

101

11,16-19,66,70-92,94,96,

97,99,

100,102-112

38,65,

113-205

74


Table

IV.4

Number

ofCommoditieswi

thNegative,A77and

Posi

tive

Valuesof

Excessof

CompositeDutyRateonImports

Rangeofexcessof

compositeduty

rateon

imports(percentage

points)

Base

don

excess

ofcompositeduty

rate

onim

port

sdue

tocustomsduties

anddo

mest

ictr

adeta

xes(withBCD

plus

SI)as5%)

BCD,

SI),

(VI),SADand

octroi

e1

No.of

items

SerialNo.ofitems

intable

IV.2

BCD,SO,CVD,SIand

octroi

No.of

items

SerialNo.ofitems

in

table1V.2

BCD,

SI),CM)

andSAD

No.of

items

SerialNo.ofitems

in

tableIV.2

BCD,SD,CVD

andSI

e4

No.of

items

SerialNo.ofitems

in

tableIV.2

Lessthan0

20

lessthan-10

0

-10

tole

ssthan

-58

-5to

less

than0

Kqual

to0

Greaterthan0

Greaterthan0

tole

ssthan

5to

less

than

10

1-3.5-9

12

4.10.

11,

13,

14,16-19,23-

25

0

185

25

12.15,20-22.38.41.44-46,

48-57.59-61.

104,

109

66

26-37.39.40.42.43.47.

58.62-103.

105-108.

110.

Ill

10

tole

ssthan20

89

20andabove

5

All.

205

112-200

201-205

0 0 0 0 0

205

43

67

95 0

205

1-3.

5-10.12-15.23-

25.41,44-46.48-57,

59-61.63.64.67.68.

93.95,98.

101.

104.

109

4.11.16-22.26-37,

39.40,42,43,47.

58,

62.

66,69-92,94.96,

97,99,

100.

102.

103.

105-108,

110-112

38.65.

113-205

20 0 8

12 0

185

21

1-3.

5-9

4.10

.II

.13

.14

.16-

19.23-25

12.15.20-22.38,41.

44.46.48-55.

59.

104,

109

70

26-37.39.40.42.43.

47,56-58,60-103.

105-108,

110,

111

90

112-200.204

4201-203.205

205

0 0 0 0

205

41

1-3.5-10.

13.14.23-25

41.44-46.48-57,

~"'-

61

63.64.67.

68.93.95

98.

101.

104.

10(;

69

4.11

.12

.15-22,26-37

39.40.42.43.47.58

62.66.69-92.94.96

97.99.

100.

102.

103

105-108.

110-112

95

38.65.

113-205

0

205

TableIV.5

75

TableIV.5

Number

Rangeofexcessof

compositeduty

rateon

imports(percentage

points)

1

Lessthan0

Lessthan-10

-10

toless

than

-5

-5to

less

than0

Equal

to0

Greaterthan0

Greaterthan0

tole

ssthan

5 5to

less

than

10

10

tole

ssthan20

20andabove

ALL

otCommoditieswithNegative,Niland

PositiveValuesofExcessofCompositeDutyRateonImports

Basedonexcess

ofcompositeduty

rate

onimportsdue

tocustomsduties

anddomestictradeta

xes(withBCD

plusSD

as10%)

BCD,

SI]

No.of

items

2

8 0 0 8 0

197 12

22

158 5

205

,CYD,SADand

octroi

e1

SerialNo.ofitems

in

tableIV.2

3

1-3,5-9

4.10,

11.

13.

14,

16-19,

23.24.38

12.15,20-22.25.41.

44.45.49-57,59,65.

100,108

26-37.39,40,42,43.

46-48.

58,60-64.66-99.

101-107,

109-200

201-205

BCD,SD

No.of

items

4

0 0 0 0 0

205 0

38

167 0

205

,CVD,STand

octroi

e2

SerialNo.ofitems

in

tableIV.2

5

1-3,5-10.

13.

14.24.

25.41.44.45.49-57,

59-61.63.64.67,68,

93,95.98,

100,

101,

108

4.11

,12

,15-23.26-

40.42.43.46-48,

58,

62.65.66.69-92,94,

96,97.99,

102-107.

109-205

BCD

No.of

items

6

9 0 0 9 0

196

11 18

163 4

205

SD,CVD

andSAD

eJ

SerialNo.ofitems

in

tableIV.2

7

1-3.5-9,

11

4,10

.13

.14

.16-19.23.

24,38

12.15.20-22.25.44,45.

49-55.65,

100.

108

26-37

39-43

46-48

56-

64.66-99.

101-107,

109-

200,204

201-203.205

BCD,SD,CVD

andST

e4

No.of

items

8

0 0 0 0 0

205 0

39

166 0

205

SerialNo.ofitems

intable

IV.2

9

1-3.

5-10.

13.14.23-25,41

44.45,49-57.59-61,63.64.

67

68

93

95

98

100

101

108

411

P15-??

76-40

4?

43.46-48.

58.62,65.66

69-92,94.96,97,99,

102-

107,

109-205

iv. empiricalfindings asthe study wasconductedduring 1998 .... empirical... · iv....

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