Home India Ministry of Finance Increase import duty on Gold...
Date: 2022-06-30 Category: Extra Ordinary State: Union Government Country: India

Increase import duty on Gold

Issued by Ministry of Finance · Department of Revenue

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Executive Summary & Key Takeaways

Okay, I will generate a policy analysis report based on the provided government policy text, following the specified structure and adapting it for amendments. **Report: Analysis of Customs Notifications (June 30, 2022)** **1. Executive Summary:** This report analyzes four customs notifications (No. 33/2022, No. 34/2022, No. 35/2022 and No. 36/2022) issued by the Ministry of Finance, Department of Revenue, on June 30, 2022. Notifications 33/2022, 35/2022 and 36/2022 amend existing customs notifications to modify tariff rates on specific items. Notification 34/2022 exempts goods falling under heading 7108 of the First Schedule to the Customs Tariff Act, 1975 when imported into India, from the whole of the Social Welfare Surcharge. These changes are likely intended to adjust import duties and surcharges in the public interest and impacting businesses involved in the import of related goods. **2. Introduction:** This report provides an informative analysis of four customs notifications issued on June 30, 2022, based solely on the content of the provided text. The purpose is to outline the changes implemented by these notifications and their potential implications for affected parties. **3. Policy Overview:** * **Notification No. 33/2022-Customs:** Amends Notification No. 50/2017-Customs, dated June 30, 2017. * Core Objective(s): To modify existing customs duty rates on specific goods. * **Notification No. 34/2022-Customs:** Introduces a new exemption. * Core Objective(s): To exempt certain goods from the Social Welfare Surcharge. * **Notification No. 35/2022-Customs:** Amends Notification No. 57/2000-Customs, dated May 8, 2000. * Core Objective(s): To modify existing customs duty rates on specific goods. * **Notification No. 36/2022-Customs:** Amends Notification No. 22/2022-Customs, dated April 30, 2022. * Core Objective(s): To modify existing customs duty rates on specific goods. **4. Background and Rationale:** * **Notifications No. 33/2022, 35/2022 and 36/2022 (Amendments):** The amendments suggest a need to adjust tariff rates, potentially in response to changing market conditions, trade agreements, or domestic industrial policy. The specific reasons are not detailed in the provided text, but adjustments to Column 4/5 entries suggests that import costs are intended to be altered. * **Notification No. 34/2022 (New Exemption):** The exemption of goods under heading 7108 from the Social Welfare Surcharge indicates a policy decision to incentivize or reduce the cost of importing these specific goods. This might be to support a particular industry or address a supply issue. The rationale is described within the notification as "necessary in the public interest". **5. Key Provisions / Changes:** * **Notification No. 33/2022-Customs:** * Specific Part of Original Policy Changed: Table entries related to S. No. 354, S. No. 356 and S. No. 357A. * New Rule/Provision: * S. No. 354, Column 4: "6.9" is replaced with "11.85". * S. No. 356, Column 4: "7.5" is replaced with "12.5" in both places where "7.5" existed. * S. No. 357A, Column 4: "7.5" is replaced with "12.5". * Effect of Change: The changes increase the tariff rates on the items listed in S. Nos. 354, 356 and 357A in Column 4 of the original notification's table, potentially increasing import costs. * **Notification No. 34/2022-Customs:** * This notification provides an exemption from Social Welfare Surcharge for all goods falling under heading 7108 of the First Schedule to the Customs Tariff Act, 1975 when imported into India. This essentially reduces the cost of importing these goods into India. * **Notification No. 35/2022-Customs:** * Specific Part of Original Policy Changed: Table entry related to Sl. No. 1. * New Rule/Provision: Sl. No. 1, Column 4: "6.9" is replaced with "11.85". * Effect of Change: The change increases the tariff rate on the item listed in Sl. No. 1 in Column 4 of the original notification's table, potentially increasing import costs. * **Notification No. 36/2022-Customs:** * Specific Part of Original Policy Changed: Table III entry related to S. No. 12. * New Rule/Provision: S. No. 12, Column 5: "6.6" is replaced with "11.5". * Effect of Change: The change increases the tariff rate on the item listed in S. No. 12 in Column 5 of the original notification's table, potentially increasing import costs. **6. Target Audience and Stakeholders:** * Businesses involved in the import of goods covered under S. Nos. 354, 356 and 357A (Notification 33/2022), goods falling under heading 7108 of the First Schedule to the Customs Tariff Act, 1975 (Notification 34/2022), Sl. No. 1 (Notification 35/2022) and S. No. 12 (Notification 36/2022). This includes importers, distributors, and manufacturers using these imported goods as inputs. * Customs brokers and agents facilitating the import process. * The Ministry of Finance and the Department of Revenue, responsible for implementing and monitoring the changes. **7. Implementation Aspects (Inferred):** * Responsible Agency: The Department of Revenue, Ministry of Finance. * Timelines: Effective from the date of notification (June 30, 2022). * Procedures: Existing customs procedures will be adjusted to reflect the revised tariff rates and the new exemption. Importers will need to ensure their declarations and payments reflect the new rates and exemptions. **8. Expected Outcomes / Impact of Changes:** * **Notifications 33/2022, 35/2022 and 36/2022 (Tariff Increases):** The likely intended outcome is to increase revenue collection through customs duties and/or to protect domestic industries by making imports more expensive. The potential impact includes: * Increased costs for importers of the affected goods. * Potential price increases for consumers if importers pass on the increased costs. * Possible shifts in sourcing strategies as importers seek alternative suppliers or goods. * **Notification 34/2022 (Social Welfare Surcharge Exemption):** The likely intended outcome is to decrease the cost of imports for goods under heading 7108. The potential impact includes: * Reduced costs for importers of these goods. * Increased import volumes of these goods. * Potential benefits for industries using these goods as inputs. **9. Conclusion:** The four customs notifications issued on June 30, 2022, represent adjustments to India's import duty and surcharge regime. Notifications 33/2022, 35/2022 and 36/2022 increase the tariff rates on specific imported goods. Notification 34/2022 introduces an exemption from the Social Welfare Surcharge for specific imports. These changes impact businesses involved in importing these goods, and may affect prices and sourcing strategies. Further information on the specific goods affected by S. Nos. 354, 356, 357A, Sl. No. 1 and S. No. 12 is necessary for a more granular assessment.

Key Entities Referenced

Customs Act, 1962: A legal act referenced for conferring powers related to customs duties and regulations. Customs Tariff Act, 1975: A legal act referenced in relation to customs tariffs. Central Government: The governing body responsible for making amendments and exemptions related to customs duties. Ministry of Finance: A department of the Government of India responsible for revenue and financial matters, including customs. Department of Revenue: A department within the Ministry of Finance. Finance Act, 2018: A legal act referenced in relation to Social Welfare Surcharge. Social Welfare Surcharge: A levy on goods imported into India. New Delhi: The location where the notifications were issued. No. 502017Customs: A notification of the Government of India, Ministry of Finance, Department of Revenue, dated 30th June, 2017. No. 312022Customs: A notification of the Government of India, Ministry of Finance, Department of Revenue, dated 7th June, 2022. No. 572000Customs: A notification of the Government of India, Ministry of Finance, Department of Revenue, dated 8th May, 2000. No. 392021Customs: A notification of the Government of India, Ministry of Finance, Department of Revenue, dated 19th August, 2021. No. 222022Customs: A notification of the Government of India, Ministry of Finance, Department of Revenue, dated 30th April, 2022.
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रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99 सी.जी.-डी.एल.-अ.-01072022-236924 xxxGIDHxxx CG-DL-E-01072022-236924 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.ं 465] नई दिल्ली, बृहस्ट्प जतिार, िनू 30, 2022/ आषाढ़ 9, 1944 No. 465] NEW DELHI, THURSDAY, JUNE 30, 2022/ASHADHA 9, 1944 जित्त ं्ं ाल (रािस्ट्ि जिभाग अजधसचू ना नई दिल् ली, 30 िून, 2022 स.ं 33/2022-सींा िल्ु क सा.का.जन. 486(अ .—केंद्री सरकार, सींा िुल्क अजधजन ं, 1962 (1962 का 52 की धारा 25 की उप- धारा (1 और सींा िुल्क टैररफ अजधजन ं, 1975 (1975 का 51 की धारा 3 की उप-धारा (12 के अधीन प्रित्त िजि ों का प्र ोग करत े हुए, ह संाधान हो िान े पर की लोकजहत ं ें ऐसा करना आिश् क ह,ै भारत सरकार, जित्त ंं्ाल (रािस्ट्ि जिभाग की अजधसूचना संख् ा 50/2017 - सींा िुल्क, दिनांक 30 िून 2017, जिसे सा. का. जन. 785(अ , दिनांक 30 िून 2017 के तहत भारत के रािप्, असाधारण, भाग II, खंड 3 , उप - खंड (i ) ंें प्रकाजित दक ा ग ा था, ंें और आगे भी जनम्नजलजखत संिोधन करती ह,ै था:- उि अजधसूचना ं,ें सारणी ंें – (i) क्रंांक 354 के सांन,े स्ट्तंभ (4) ं,ें “6.9%” प्रजिजि के स्ट्थान पर, "11.85%" प्रजिजि को प्रजतस्ट्थाजपत दक ा िाएगा; (ii) क्रंांक 356 के सांने, स्ट्तंभ (4) ं,ें "7.5%" की िोनों प्रजिजि के स्ट्थान पर िहााँ िे आत े ह,ैं "12.5%" प्रजिजि को प्रजतस्ट्थाजपत दक ा िाएगा ; (iii) क्रंांक 357A के सांने, स्ट्तभं (4) ं,ें "7.5%" प्रजिजि के स्ट्थान पर, "12.5%" प्रजिजि को प्रजतस्ट्थाजपत दक ा िाएगा। [फा. स.ं 354/16/2022-टीआर ू] जिक्रं जिि िानेरे, अिर सजचि 4390 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] नोट : ंूल अजधसूचना संख् ा 50/2017- सींा िुल्क दिनांक 30 िून, 2017, को सा.का.जन. 785(अ , दिनांक 30 िून, 2017, के तहत भारत के रािप्, असाधारण भाग II, खड 3, उप खडं (i), ंें प्रकाजित दक ा ग ा था, और इसं ें अंजतं बार अजधसूचना संख् ा 31/2022- सींा िुल्क, दिनांक 7 िून, 2022, जिसे सा.का.जन. 428(अ , दिनांक 7 िून, 2022, के तहत भारत के रािप्, असाधारण भाग II, खंड-3, उप-खंड(i) ंें प्रकाजित दक ा ग ा था, के द्वारा संिोधन दक ा ग ा था। MINISTRY OF FINANCE (Department of Revenue) NOTIFICATION New Delhi, the 30th June, 2022 No. 33/2022-Customs G.S.R. 486(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section (3) of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E), dated the 30th June, 2017, namely :- In the said notification, in the Table, - (i) against S. No. 354, in Column (4), for the entry “6.9%”, the entry “11.85%” shall be substituted; (ii) against S. No. 356, in Column (4), for the entry “7.5%”, at both the places, the entry “12.5%” shall be substituted; (iii) against S. No. 357A, in Column (4), for the entry “7.5%”, the entry “12.5%” shall be substituted. [F. No. 354/16/2022-TRU] VIKRAM VIJAY WANERE, Under Secy. Note : The principal notification No.50/2017-Customs, dated the 30th day of June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 785(E)., dated the 30th day of June, 2017 and last amended, vide notification No. 31/2022-Customs, dated the 7th June, 2022 published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 428(E)., dated the 7th June, 2022. अजधसचू ना नई दिल् ली, 30 िून, 2022 स.ं 34/2022-सींा िल्ु क सा.का.जन. 487(अ .—केंद्री सरकार, जित्त अजधजन ं, 2018 (2018 का 13 ) की धारा 110 के साथ परित सींा िुल्क अजधजन ं, 1962 (1962 का 52 की धारा 25 की उप- धारा (1 द्वारा प्रित्त िजि ों का प्र ोग करते हुए, ह संाधान हो िान े पर की लोकजहत ंें ऐसा करना आिश् क ह,ै एतद्द्वारा भारत ंें आ ात दकए िाने पर सींा िुल्क टैररफ अजधजन ं, 1975 (1975 का 51) की पहली अनुसूची के िीष ष 7108 के तहत आन े िाल े सभी सांानों को उि जित्त अजधजन ं की धारा 110 के तहत उस पर लगाए िाने िाले संपूण ष संाि कल् ाण अजधभार से छूट िते ी ह।ै [फा. स.ं 354/16/2022-टीआर ू] जिक्रं जिि िानेरे, अिर सजचि[भाग II—खण् ड 3(i)] भारत का रािप् : असाधारण 3 NOTIFICATION New Delhi, the 30th June, 2022 No. 34/2022-Customs G.S.R. 487(E).—In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with section 110 of the Finance Act, 2018 (13 of 2018), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts all goods falling under heading 7108 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) when imported into India, from the whole of the Social Welfare Surcharge leviable thereon under the section 110 of the said Finance Act. [F. No. 354/16/2022-TRU] VIKRAM VIJAY WANERE, Under Secy. अजधसचू ना नई दिल् ली, 30 िून, 2022 स.ं 35/2022-सींा िल्ु क सा.का.जन. 488(अ .—केंद्री सरकार, सींा िुल्क अजधजन ं, 1962 (1962 का 52 की धारा 25 की उप- धारा (1 के अधीन प्रित्त िजि ों का प्र ोग करत े हुए, ह संाधान हो िाने पर की लोकजहत ंें ऐसा करना आिश् क ह,ै भारत सरकार, जित्त ंं्ाल (रािस्ट्ि जिभाग की अजधसूचना संख् ा 57/2000 - सींा िुल्क, दिनांक 8 ंई 2000, जिसे सा. का. जन. 413(अ , दिनांक 8 ंई, 2000 के तहत भारत के रािप्, असाधारण, भाग II, खंड 3 , उप - खंड (i) ंें प्रकाजित दक ा ग ा था, ंें और आगे भी जनम्नजलजखत संिोधन करती ह,ै था:- उि अजधसूचना की, सारणी के, क्रं संख् ा 1 के सांने, स्ट्तंभ (4) ं,ें “6.9%” प्रजिजि के स्ट्थान पर, "11.85%" प्रजिजि को प्रजतस्ट्थाजपत दक ा िाएगा । [फा. स.ं 354/16/2022-टीआर ू] जिक्रं जिि िानेरे, अिर सजचि नोट : ंूल अजधसूचना संख् ा 57/2000 - सींा िुल्क, दिनांक 8 ंई 2000, को सा.का.जन. 413(अ , दिनांक 8 ंई 2000, के तहत भारत के रािप्, असाधारण भाग II, खड 3, उप खडं (i), ंें प्रकाजित दक ा ग ा था, और इसं ें अंजतं बार अजधसूचना संख् ा 39/2021- सींा िल्ु क, दिनांक 19 अगस्ट्त, 2021, जिसे सा.का.जन. 581(अ , दिनांक 19 अगस्ट्त, 2021, के तहत भारत के रािप्, असाधारण भाग II, खंड 3, उप-खंड (i) ंें प्रकाजित दक ा ग ा था, के द्वारा संिोधन दक ा ग ा था। NOTIFICATION New Delhi, the 30th June, 2022 No. 35/2022-Customs G.S.R. 488(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, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue) No. 57/2000-Customs,dated the 8th May, 2000,published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide number G.S.R. 413 (E), dated the 8th May, 2000, namely:- In the said notification, in the Table, against Sl. No. 1, in Column (4), for the entry “6.9%”, the entry “11.85%” shall be substituted. [F. No. 354/16/2022-TRU] VIKRAM VIJAY WANERE, Under Secy.4 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)] Note : The principal notification No. 57/2000-Customs, dated the 8th May, 2000 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide number G.S.R. 413 (E), dated the 8th May, 2000 and was last amended by notification No. 39/2021-Customs, dated 19th August, 2021, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-Section (i), vide number G.S.R. 581(E), dated the 19th August, 2021. अजधसचू ना नई दिल् ली, 30 िून, 2022 स.ं 36/2022-सींा िल्ु क सा.का.जन. 489(अ .—केंद्री सरकार, सींा िुल्क अजधजन ं, 1962 (1962 का 52 की धारा 25 की उप- धारा (1 के अधीन प्रित्त िजि ों का प्र ोग करत े हुए, ह संाधान हो िाने पर की लोकजहत ंें ऐसा करना आिश् क ह,ै भारत सरकार, जित्त ंं्ाल (रािस्ट्ि जिभाग की अजधसूचना संख् ा 22/2022 - सींा िुल्क, दिनांक 30 अप्रैल 2022, जिसे सा. का. जन. 328(अ , दिनांक 30 अप्रलै 2022 के तहत भारत के रािप्, असाधारण, भाग II, खंड 3, उप-खंड (i) ंें प्रकाजित दक ा ग ा था, ंें और आगे भी जनम्नजलजखत संिोधन करती ह,ै था:- उि अजधसूचना ं,ें सारणी III ं,ें क्रंांक 12 के सांने, स्ट्तंभ (5) ं,ें “6.6” प्रजिजि के स्ट्थान पर, प्रजिजि "11.5" को प्रजतस्ट्थाजपत दक ा िाएगा । [फा. स.ं 354/16/2022-टीआर ू] जिक्रं जिि िानेरे, अिर सजचि नोट : ंलू अजधसूचना संख् ा 22/2022-सींा िुल्क, दिनांक 30 अप्रलै 2022, को सा.का.जन. 328(अ , दिनांक 30 अप्रलै 2022, के तहत भारत के रािप्, असाधारण भाग II, खंड 3, उप खंड (i), ंें प्रकाजित दक ा ग ा था I NOTIFICATION New Delhi, the 30th June, 2022 No. 36/2022-Customs G.S.R. 489(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, being satisfied that it is necessary in the public interest so to do, hereby makes the following amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 22/2022-Customs, dated the 30th April, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 328(E), dated the 30th April, 2022, namely :- In the said notification, in the Table III, against S. No. 12, in Column (5), for the entry “6.6”, the entry “11.5” shall be substituted. [F. No. 354/16/2022-TRU] VIKRAM VIJAY WANERE, Under Secy. Note : The principal notification No. 22/2022-Customs, dated the 30th April, 2022, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 328(E), dated the 30th April, 2022. 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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