Give effect to 13th tranche of AITIGA Agreement

## Report on Amendment to Customs Notification No. 46/2011-Customs **1. Executive Summary:** This report analyzes a notification (No. 54/2021-Customs) issued by the Ministry of Finance, Department of Revenue, which amends the original notification No. 46/2011-Customs. This amendment, effective January 1, 2022, revises the entries in column 5 against specific serial numbers (80, 81, 83, 124, and 125) within the Table of the original notification. The core purpose of this amendment appears to be to adjust specific customs duty rates or exemptions based on the changes in column 5. The key finding is that this amendment will impact the applicable customs duties for items covered under the specified serial numbers in the original notification. **2. Introduction:** The purpose of this report is to provide a detailed analysis of Notification No. 54/2021-Customs, issued by the Ministry of Finance, Department of Revenue on December 24, 2021. This notification pertains to amendments to the existing Customs Notification No. 46/2011-Customs. The analysis is based solely on the information provided in the text of the notification. **3. Policy Overview:** * **Original Policy Amended:** Customs Notification No. 46/2011-Customs, dated June 1, 2011. * **Core Objective(s):** Based on the provided text, the amendment to Notification No. 46/2011 aims to revise specific entries in the table. Given the context of the Customs Act, this likely involves adjusting customs duties or exemptions to align with evolving economic and policy considerations. The text explicitly mentions that these changes are deemed necessary in the public interest. **4. Background and Rationale:** The provided text does not explicitly state the rationale for the specific amendments. However, the statement "on being satisfied that it is necessary in the public interest so to do" suggests that the government has identified a need to modify the existing customs duty structure to better serve the country's economic interests. This may be due to changes in market conditions, domestic industry needs, or international trade agreements. The amendment is likely intended to address some issue pertaining to items or classifications corresponding to serial numbers 80, 81, 83, 124, and 125 in the original notification. **5. Key Provisions / Changes:** This notification introduces the following specific changes to the original Customs Notification No. 46/2011-Customs: * **Specific Part of Original Policy Changed:** The "Table" within the original notification is being amended. Specifically, entries in column 5 are being substituted for specific serial numbers. * **New Rules/Provisions:** * Against serial number 80, the entry in column 5 is changed to "48.0". * Against serial number 81, the entry in column 5 is changed to "48.0". * Against serial number 83, the entry in column 5 is changed to "51.0". * Against serial number 124, the entry in column 5 is changed to "41.0". * Against serial number 125, the entry in column 5 is changed to "51.0". * **Effect of Change:** The amendment modifies the value in column 5 for the specified serial numbers. As the Notification amends a customs notification and the text specifies, "the powers conferred by subsection 1 of section 25 of the Customs Act, 1962," it can be concluded that the values in column 5 are likely related to the applicable duty rate. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are businesses and individuals involved in the import and export of goods that fall under the Customs Act, specifically those dealing with goods classified under serial numbers 80, 81, 83, 124, and 125 as defined in the original notification. This includes importers, exporters, customs brokers, and related government agencies. **7. Implementation Aspects (Inferred):** * **Responsible Agency:** The Ministry of Finance (Department of Revenue) is responsible for implementing the amended notification through the Central Board of Indirect Taxes and Customs (CBIC). * **Timelines:** The notification comes into effect on January 1, 2022. * The changes require that customs officials apply the revised entries in column 5 (i.e. the new values) when assessing customs duties for goods falling under serial numbers 80, 81, 83, 124, and 125. **8. Expected Outcomes / Impact of Changes:** The likely intended outcome of these specific changes is to adjust the customs duties or exemptions applicable to the goods covered under serial numbers 80, 81, 83, 124, and 125. Depending on the previous entries in column 5, the changes could result in increased or decreased customs duties, impacting the cost of importing or exporting these goods. This may affect the competitiveness of domestic industries and the prices of imported goods for consumers. **9. Conclusion:** Notification No. 54/2021-Customs introduces specific amendments to Customs Notification No. 46/2011-Customs, primarily involving changes to column 5 for entries corresponding to serial numbers 80, 81, 83, 124, and 125 within the Table. These changes, effective January 1, 2022, will likely affect the customs duties applicable to the goods classified under these serial numbers, impacting importers, exporters, and ultimately, the cost of goods. The amendment highlights the government's ongoing efforts to fine-tune customs duty structures to serve the public interest and align with evolving economic realities.

Key Entities Referenced