Home India Ministry of Finance In exercise of the powers conferred by sub section 1 of sect...
Date: 2021-02-05 Category: Extra Ordinary State: Union Government Country: India

In exercise of the powers conferred by sub section 1 of section 25 of the Customs Act

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

## Policy Analysis Report: Amendment to Customs Notifications Regarding Agriculture Infrastructure and Development Cess **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Finance, Department of Revenue, on February 5, 2021. This notification amends several existing Customs notifications (96/2008, 57/2009, 101/2007, and 50/2018). The core purpose of these amendments is to incorporate the "Agriculture Infrastructure and Development Cess" into the calculation of duties under these existing customs notifications. Key findings indicate that this change will impact the calculation of duties on goods covered by the aforementioned notifications, potentially increasing the overall import costs for the affected industries. **2. Introduction:** This report provides an analysis of the notification No. 16/2021-Customs, published in the Gazette of India on February 5, 2021. The purpose of this report is to inform the affected industry about the specific amendments made to existing Customs notifications, focusing on the implications of the Agriculture Infrastructure and Development Cess. This analysis is based solely on the text of the provided notification. **3. Policy Overview:** * **Type:** Amendment to existing Customs Notifications. * **Original Policies Amended:** Notifications No. 96/2008, 57/2009, 101/2007, and 50/2018 - Customs. * **Core Objective(s):** The core objective of this amendment, as inferred from the text, is to incorporate the Agriculture Infrastructure and Development Cess into the calculation of customs duties for the items covered under the specified original notifications. This likely aims to generate revenue earmarked for agricultural infrastructure development. **4. Background and Rationale:** The amendment's rationale, based on the text, appears to be the implementation of the Finance Bill, 2021 (specifically clause 115), which introduced the Agriculture Infrastructure and Development Cess. The existing Customs notifications needed to be updated to reflect this new cess, ensuring its inclusion in the total duty payable on imported goods. This suggests a broader government policy initiative to fund agricultural development through import duties. **5. Key Provisions / Changes:** The notification introduces a specific change to the *Explanation* sections of the four listed Customs notifications (96/2008, 57/2009, 101/2007, and 50/2018). * **Specific Part Changed:** The *Explanation* section within each of the four referenced Customs notifications. * **New Rule/Provision:** The amendment replaces the phrase "the standard rate of duty specified in the First Schedule to the said Customs Tariff Act, 1975" with "the sum of the standard rate of duty specified in the First Schedule to the Customs Tariff Act, 1975 and Agriculture Infrastructure and Development Cess leviable under clause 115 of the Finance Bill, 2021." * **Difference/Effect of Change:** This change mandates that the Agriculture Infrastructure and Development Cess (established under Clause 115 of the Finance Bill, 2021) *must* be added to the standard rate of duty when calculating the total duty payable under the original Customs notifications. This effectively increases the overall customs duty on the affected goods. **6. Target Audience and Stakeholders:** The primary target audience and stakeholders are businesses and individuals involved in importing goods covered under the pre-existing Notifications No. 96/2008, 57/2009, 101/2007, and 50/2018. This includes importers, customs brokers, and consumers who ultimately bear the cost of imported goods. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Department of Revenue, Ministry of Finance, is the responsible body for implementing this amendment. Customs officials will be responsible for enforcing the new calculation method at ports of entry. * **Timelines/Procedures:** The amendment is effective from the date of the notification (February 5, 2021). Importers are now required to calculate and pay the Agriculture Infrastructure and Development Cess in addition to the standard customs duty. The text does not specify particular procedures, but it is expected that existing customs procedures will be adapted to include this new element in the duty calculation. **8. Expected Outcomes / Impact of Changes:** The primary intended outcome is to generate revenue for the Agriculture Infrastructure and Development Fund. The amendment will likely result in: * Increased import costs for affected businesses. * Potential price increases for consumers of imported goods. * A shift in import patterns, potentially favoring domestic goods or imports from countries not subject to the cess. **9. Conclusion:** The amendment to Customs Notifications No. 96/2008, 57/2009, 101/2007, and 50/2018, effective February 5, 2021, introduces the Agriculture Infrastructure and Development Cess into the calculation of customs duties. This represents a significant change for businesses involved in importing goods covered under these notifications, as it will likely lead to increased costs and necessitate adjustments to import strategies. Affected industries must understand and adapt to these changes to remain competitive. The notification signifies the government's commitment to funding agricultural development through import duties, a move that warrants careful monitoring for its long-term economic effects.

Key Entities Referenced

NEW DELHI: Place of publication of the notification. Ministry of Finance Department of Revenue: The Government of India's Ministry responsible for the notification. Customs Act, 1962: Act of the parliament of India to consolidate and amend the law relating to customs. Central Government: The executive authority of India. Customs Tariff Act, 1975: An act related to duties on imported and exported goods. Finance Bill, 2021: Bill related to finance. Agriculture Infrastructure and Development Cess: Cess levied under clause 115 of the Finance Bill, 2021. GAURAV SINGH: The name of the Dy. Secy. Mayapuri, New Delhi: Location of Dte. of Printing at Government of India Press Delhi: Location of the Controller of Publications
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-05022021-224986 xxxGIDHxxx CG-DL-E-05022021-224986 xxxGIDExxx असाधारण EXTRAORDINARY भाग II—खण् ड 3—उप-खण्ड (i) PART II—Section 3—Sub-section (i) प्राजधकार स ेप्रकाजित PUBLISHED BY AUTHORITY स.ं 65] नई दिल्ली, िुक्रिार, फरिरी 5, 2021/माघ 16, 1942 No. 65] NEW DELHI, FRIDAY, FEBRUARY 5, 2021/MAGHA 16, 1942 जित्त मत्रं ालय (रािस्ट्ि जिभाग) अजधसचू ना नई दिल्ली, 5 फरिरी, 2021 स.ं 16/2021-सीमािल्ु क सा.का.नि. 103(अ).—सीमा शुल्क अनिनियम, 1962 (1962 का 52) की िारा 25 की उपिारा (1) के तहत प्रदत्त शनियों का प्रयोग करते हुए, केन्‍द र सरकार, इस बात से संतुष्ट हतत े ुएए दक ससा करना िनजहत म आवश्यक ह,ै एतद्द्वारा, जनिेि िेती ह ै दक नीचे िी गई सारणी के कॉलम (2) म जिजनर्िष्ि ट भारत सरकार, जित् त मंत्रालय (राजस्ट् ि नवभाग) की प्रत् यके अनिसूचिा कत उसके सामने कॉलम (3) म िी गई तत्स ंबंधी प्रजिजम म जिजनर्िष्ि ट तरीके से संितजधत दकया िाएगा, यथा:- सारणी क्र.सं. अजधसूचना संख् या तथा तारीख संितधन (1) (2) (3) 1. अजधसूचना संख् या 96/2008-सीमा उक्त अजधसूचना म, - िुल् क, दिनांक 13 अगस्ट् त, 2008 जिसे (i) प्रस्ट् तािना म, उपिाक्य (i) म, िब् ि, अंक और कतष्ठ क “सीमािुल् क सा.का.जन. 590(अ), दिनांक टैररफ अजधजनयम, 1975 की पहली अनुसूची म यथा-जिजनर्िष्ि ट 13 अगस्ट् त, 2008 के तहत भारत के संपूणि सीमा िुल् क से” के पश् चात िब् ि, अंक और कतष्ठ क “और जित् त 770 GI/2021 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] रािपत्र, असाधारण, के भाग II, जिधेयक, 2021 (2021 का 15) के खडं 115 के अंतगित लगाए खंड 3, उप-खंड (i) म प्रकाजित दकया िाने िाले संपणू ि कृजि अिसंरचना एिं जिकास उपकर से” ितडे गया था । िाएंगे । (ii) स्ट् पष्ट ीकरण म िब् ि, अंक और कतष्ठ क “उि सीमािुल क टैररफ अजधजनयम की पहली अनुसूची म जिजनर्िष्ि ट िल्ु क की मानक िर” के स्ट् थान पर िब् ि, अंक और कतष्ठ क “उि सीमािुल् क टैररफ अजधजनयम की पहली अनुसूची म जिजनर्िष्ि ट िुल् क की मानक िर और जित् त जिधेयक, 2021 (2021 का 15) के खडं 115 के अतं गित लगाए िाने िाल े कृजि अिसंरचना एिं जिकास उपकर की मािक दर का यतग” कत प्रजतस्ट् थाजपत दकया िाएगा । 2. अजधसूचना संख् या 57/2009- उक्त अजधसूचना म, स्ट् पष्ट ीकरण म, िब् ि, अंक और कतष्ठ क “उि सीमािुल् क, दिनांक 30 मई, 2009, सीशुल्क टैररफ अजधजनयम, 1975 म जिजनर्िष्ि ट सीमािुल् क अजधजनयम जिसे सा.का.जन. 371(अ), दिनांक 1962 (1062 का 52) की िारा 25 की उपिारा (1) की तहत जारी की 30 मई, 2009 के तहत भारत के गई ककसी भी प्रभावी अनिसूचिा के साथ पठित कर का दर होगा” के रािपत्र, असाधारण, के भाग II, स्ट् थान पर िब् ि, अंक और कतष्ठ क “जारी की गई ततसमय प्रवृत ककसी खंड 3, उप-खंड (i) म प्रकाजित दकया अन्य आनिसूचिा के साथ पठित उि सीमा शुल्क टैररफ अजधजनयम, गया था । 1975 की प्रथम अनुसूची म यथा जिजनर्िष्ि ट िुल् क की मानक िर और जित् त जिधेयक, 2021 (2021 का 15) के खडं 115 के अंतगित लगाए िाने िाले कृजि अिसंरचना एिं जिकास उपकर का यतग अनभप्रेत ह”ै कत प्रजतस्ट् थाजपत दकया िाएगा । 3. अजधसूचना संख् या 101/2007- उक्त अजधसूचना म, स्ट् पष्ट ीकरण म, िब् ि, अंक और कतष्ठ क “उि सीमािुल् क, दिनांक 11 जसतम्ब र, सीमाशुल्क टैररफ अजधजनयम, 1975 म जिजनर्िष्ि ट सीमािुल् क 2007, जिसे सा.का.जन. 583 (अ), अजधजनयम 1962 (1962 का 52) की िारा 25 की उपिारा (1) की दिनांक 11 जसतम्ब र, 2007 के तहत तहत जारी की गई ककसी भी प्रभावी अनिसूचिा के साथ पठित कर का भारत के रािपत्र, असाधारण, के दर होगा” के स्ट् थान पर िब् ि, अंक और कतष्ठ क “जारी की गई ततसमय भाग II, खंड 3, उप-खंड (i) म प्रवृत ककसी अन्य आनिसूचिा के साथ पठित उि सीमा शुल्क टैररफ प्रकाजित दकया गया था । अजधजनयम, 1975 की प्रथम अनुसूची म यथा जिजनर्िष्ि ट िुल् क की मानक िर और जित् त जिधेयक, 2021 (2021 का 15) के खडं 115 के अंतगति लगाए िान े िाले कृजि अिसंरचना एिं जिकास उपकर का यतग अनभप्रेत ह”ै कत प्रजतस्ट् थाजपत दकया िाएगा । 4. अजधसूचना संख् या 50/2018- उक्त अजधसूचना म, स्ट् पष्ट ीकरण म, िब् ि, अंक और कतष्ठ क “उि सीमािुल् क, दिनांक 30 िून, 2018, सीमािुल् क टैररफ अजधजनयम, 1975 की प्रथम अनुसूची म जिजनर्िष्ि ट जिसे सा.का.जन. 604 (अ), दिनांक मानक िर से ह”ै के स्ट् थान पर िब् ि, अंक और कतष्ठ क “उि सीमािुल् क 30 िून, 2018 के तहत भारत के टैररफ अजधजनयम, 1975 की प्रथम अनुसूची म यथा जिजनर्िष्ि ट िुल् क रािपत्र, असाधारण, के भाग II, की मानक िर और जित् त जिधये क, 2021 (2021 का 15) के खंड 115 खंड 3, उप-खंड (i) म प्रकाजित दकया के अंतगित लगाए िान े िाले कृजि अिसंरचना एिं जिकास उपकर का गया था । यतग अनभप्रेत ह”ै कत प्रजतस्ट् थाजपत दकया िाएगा । [फा. स.ं 334/02/2021-टीआरयू] गौरव ससंह, उप सनचव[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3 नतट: 1. प्रधान अजधसूचना सख्ं या 96/2008-सीमािुल् क, दिनांक 13 अगस्ट् त, 2008 कत सा.का.जन. 590(अ), दिनांक 13 अगस्ट् त, 2008 के तहत भारत के रािपत्र, असाधारण, के भाग II, खंड 3, उप-खंड (i) म प्रकाजित दकया गया था और इसम अंजतम बार अजधसूचना संख् या 68/2017-सीमािुल्क, दिनांक 27 िलु ाई, 2017 जिसे सा.का.जन. 962(अ), दिनांक 27 िुलाई, 2017 के तहत प्रकाजित दकया गया था, के द्वारा संितधन दकया गया ह ै। 2. प्रधान अजधसूचना संख् या 57/2009-सीमािुल् क, दिनांक 30 मई, 2009 कत सा.का.जन. 371(अ), दिनांक 30 मई, 2009 के तहत भारत के रािपत्र, असाधारण, के भाग II, खंड 3, उप-खंड (i) म प्रकाजित दकया गया था और इसम अंजतम बार अजधसूचना संख् या 36/2019-सीमािुल्क, दिनांक 30 दिसम् बर, 2019 जिसे सा.का.जन. 964(अ), दिनांक 30 दिसम् बर, 2019 के तहत प्रकाजित दकया गया था, के द्वारा संितधन दकया गया ह ै। 3. प्रधान अजधसूचना संख् या 101/2007-सीमािुल् क, दिनांक 11 जसतम्ब र, 2007 कत सा.का.जन. 583 (अ), दिनांक 11 जसतम्ब र, 2007 के तहत भारत के रािपत्र, असाधारण, के भाग II, खंड 3, उप-खंड (i) म प्रकाजित दकया गया था और इसम अंजतम बार अजधसूचना संख् या 10/2020-सीमािुल्क, दिनांक 2 फरिरी, 2020 जिस े सा.का.जन. 70(अ), दिनांक 2 फरिरी, 2020 के तहत प्रकाजित दकया गया था, के द्वारा संितधन दकया गया ह ै। 4. प्रधान अजधसूचना संख् या 50/2018-सीमािुल् क, दिनांक 30 िून, 2018, कत सा.का.जन. संख्या 604(अ), दिनांक 30 िनू , 2018 के तहत भारत के रािपत्र, असाधारण, के भाग II, खंड 3, उप-खंड (i) म प्रकाजित दकया गया था और इसम अंजतम बार अजधसूचना संख् या 36/2019-सीमािुल्क, दिनांक 30 दिसम् बर, 2019 जिसे सा.का.जन. 694(अ), दिनांक 30 दिसम् बर, 2019 के तहत प्रकाजित दकया गया था, के द्वारा संितधन दकया गया ह ै। MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 5th February, 2021 No. 16/2021-Customs G.S.R. 103(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby further amends the following notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table below, to the extent specified in the corresponding entry in column (3) of the said Table, namely: - TABLE S. No. Notification number and Date Amendments (1) (2) (3) 1. Notification No.96/2008- Customs, In the said notification, - dated the 13th August, 2008, (i) in the preamble, in clause (i), after the words, figures published in the gazette of India, and brackets “from whole of the duty of Customs as Extraordinary, Part II, Section 3, specified in the first schedule of the Customs Tariff Sub-section (i), vide number Act, 1975”, the words, figures and brackets “and from G.S.R. 590(E), dated the whole of Agriculture Infrastructure and Development 13th August, 2008 Cess, leviable under clause 115 of the Finance Bill, 2021 (15 of 2021)” shall be inserted;4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] (ii) in the Explanation, for the words, figures and brackets “the standard rate of duty specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975)”, the words, figures and brackets “the sum of the standard rate of duty specified in the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and Agriculture Infrastructure and Development Cess leviable under clause 115 of the Finance Bill, 2021 (15 of 2021)” shall be substituted. 2. Notification No.57/2009- Customs, In the said notification, in the Explanation, for the words, dated the 30th May, 2009, figures and brackets “ the standard rate of duty specified in published in the Gazette of India, the First Schedule to the said Customs Tariff Act, 1975”, Extraordinary, Part II, Section 3, the words, figures and brackets “the sum of the standard Sub-section (i), vide number rate of duty specified in the First Schedule to the Customs G.S.R. 371 (E), dated the 30th May, Tariff Act, 1975 and Agriculture Infrastructure and 2009 Development Cess leviable under clause 115 of the Finance Bill, 2021 (15 of 2021)” shall be substituted. 3. Notification No. 101/2007- In the said notification, in the Explanation, for the words, Customs, dated the 11th September, figures and brackets “ the standard rate of duty specified in 2007, published in the Gazette of the First Schedule to the said Customs Tariff Act, 1975”, India, Extraordinary, Part II, the words, figures and brackets “the sum of the standard Section 3, Sub-section (i), vide rate of duty specified in the First Schedule to the Customs number G.S.R. 583(E), dated the Tariff Act, 1975 and Agriculture Infrastructure and 11th September, 2007 Development Cess leviable under clause 115 of the Finance Bill, 2021 (15 of 2021)” shall be substituted. 4. Notification No. 50/2018-Customs, In the said notification, in the Explanation, for the words, dated the 30th June, 2018, figures and brackets “ the standard rate of duty specified in published in the Gazette of India, the First Schedule to the said Customs Tariff Act, 1975”, Extraordinary, Part II, Section 3, the words, figures and brackets “the sum of the standard Sub-section (i), vide number rate of duty specified in the First Schedule to the Customs G.S.R. 604 (E), dated the 30th June, Tariff Act, 1975 and Agriculture Infrastructure and 2018 Development Cess leviable under clause 115 of the Finance Bill, 2021 (15 of 2021)” shall be substituted. [F. No. 334/02/2021-TRU] GAURAV SINGH, Dy. Secy. Note : 1. The principal notification No. 96/2008-Customs, dated the 13th August, 2008 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 590(E), dated the 13th August, 2008 and was last amended vide notification No. 68/2017-Customs, dated the 27th July, 2017, published vide number G.S.R. 962(E), dated the 27th July, 2017. 2. The principal notification No.57/2009- Customs, dated the 30th May, 2009 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 371(E), dated the 30th May, 2009 and was last amended vide notification No. 36/2019-Customs, dated the 30th December, 2019, published vide number G.S.R. 964(E), dated the 30th December, 2019. 3. The principal notification No. 101/2007-Customs, dated the 11th September, 2007, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 583(E), dated the 11th September, 2007 and was last amended vide notification No. 10/2020-Customs, dated the 2nd February 2020, published vide number G.S.R. 70(E), dated the 2nd February 2020.[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 5 4. The principal notification No. 50/2018-Customs, dated the 30th June, 2018, was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 604(E), dated the 30th June, 2018 and was last amended vide notification No. 36/2019-Customs, dated the 30th December 2019, published vide number G.S.R. 964(E), dated 30th December 2019. िजु ि-पत्र नई दिल् ली, 5 फरिरी, 2021 सा.का.जन. 104(अ).—भारत सरकार, जित् त मंत्रालय (रािस्ट् ि जिभाग) की अजधसूचना संख् या 11/2021- सीमािुल् क, दिनांक 1 फरिरी, 2021, जिसे सा.का.जन. 69(अ) दिनांक 1 फरिरी, 2021 के तहत भारत के रािपत्र, असाधारण, के भाग II, खंड 3, उप-खंड (i) म प्रकाजित गया था, म :— (i) पृष्ठ संख् या 33 पर, पंजि 21 म, ‘2008’ के स्ट् थान पर ‘2208’ पढ ; (ii) पृष्ठ संख् या 34 पर, अनुबंध म, अंत म जनम्न जलजखत क्र.स.ं कत ितडा िाएगा;- “ 9. सा.का.जन. 801(अ) तारीख 9 निम् बर, 2011 द्वारा अजधसूचना सं. 99/2011-सीमा िुल् क, तारीख 9 निम् बर, 2011 ।”। [फा. स.ं 334/02/2021-टीआरयू] गौरि ससंह, उप सजचि CORRIGENDA New Delhi, the 5th February, 2021 G.S.R. 104(E).—In the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 11/2021-Customs, dated the 1st February, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 69(E), dated the 1st February, 2021, (i) at page 35, in line 9, for ‘2008’ read ‘2208’; (ii) at page 36, in the ANNEXURE, the following S. No. shall be added at the end, namely :- “ 9. Notification No. 99/2011-Customs, dated the 9th November, 2011 vide number G.S.R. 801(E), dated the 9th November, 2011.”. [F. No. 334/02/2021-TRU] GAURAV SINGH, Dy. Secy. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054.

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