**Report on Customs Notifications Amendment**
**1. Executive Summary:**
This report analyzes a set of amendments to existing customs notifications, as published in the Gazette of India on February 1, 2022. The core purpose of these amendments is to incorporate the Agriculture Infrastructure and Development Cess (AIDC), and in some cases, Health Cess, and Road and Infrastructure Cess, into the duty structures specified in the original notifications. Key findings indicate that the amendments impact duties applicable under various customs notifications by adding or clarifying the application of these cesses.
**2. Introduction:**
This report provides a policy analysis of the notification published in the Gazette of India on February 1, 2022, pertaining to amendments in certain customs notifications. The analysis is based solely on the provided text and aims to inform affected industries about the nature and implications of these changes.
**3. Policy Overview:**
This notification amends several existing customs notifications:
* Notification No. 104/2010-Customs, dated the 1st October, 2010
* Notification No. 38/96-Customs, dated the 23rd July, 1996
* Notification No. 40/2017-Customs, dated the 30th June, 2017
* Notification No. 60/2011-Customs, dated the 14th July, 2011
* Notification No. 148/94-CUSTOMS, dated the 13th July, 1994
Core Objective(s): Based on the provided text, the primary objective of these amendments is to update existing customs notifications to include specific cesses, particularly the Agriculture Infrastructure and Development Cess (AIDC) levied under Section 124 of the Finance Act, 2021. Some amendments also include Health Cess and Road and Infrastructure Cess. The objective appears to be harmonizing the notifications with current fiscal policies concerning these cesses.
**4. Background and Rationale:**
The rationale for these amendments is likely driven by the introduction of the Agriculture Infrastructure and Development Cess (AIDC) through the Finance Act, 2021, as well as the existing Health Cess, and Road and Infrastructure Cess. The amendments are necessary to ensure that these cesses are correctly applied to goods covered under the original customs notifications. The need to incorporate these cesses suggests a change in the overall fiscal policy, requiring adjustments to existing customs duty structures.
**5. Key Provisions / Changes:**
The amendments introduce the following specific changes:
* **Notification No. 104/2010-Customs:** Inserts the AIDC levied under Section 124 of the Finance Act, 2021, into the preamble, ensuring it is levied in addition to the existing customs duty.
*Effect: This amendment clarifies that the AIDC is applicable to goods already subject to customs duty under this notification.*
* **Notification No. 38/96-Customs:** Substitutes the existing entry in column 3 for S.No. 1 in the table with a list of levies including Duty of Customs leviable under the First Schedule to the Customs Tariff Act, 1975, Agriculture Infrastructure and Development Cess, leviable under section 124 of the Finance Act, 2021, Health Cess, leviable under section 141 of the Finance Act, 2020, Road and Infrastructure Cess, leviable under section 111 of the Finance Act, 2018 and integrated tax and goods and services tax compensation cess leviable thereon respectively under subsections 7 and 9 of section 3 of the said Act.
*Effect: Specifies all applicable duties and cesses.*
* **Notification No. 40/2017-Customs:** Inserts AIDC, Health Cess and Road and Infrastructure Cess into the preamble.
*Effect: Clarifies that these cesses are applicable to goods already subject to customs duty under this notification.*
* **Notification No. 60/2011-Customs:** Inserts the AIDC levied under Section 124 of the Finance Act, 2021, into the preamble, ensuring it is levied in addition to the existing customs duty.
*Effect: This amendment clarifies that the AIDC is applicable to goods already subject to customs duty under this notification.*
* **Notification No. 148/94-CUSTOMS:** Inserts AIDC, Health Cess and Road and Infrastructure Cess into the preamble.
*Effect: Clarifies that these cesses are applicable to goods already subject to customs duty under this notification.*
**6. Target Audience and Stakeholders:**
The direct target audience and stakeholders are businesses and individuals involved in importing goods into India that are covered by the specified customs notifications. This includes importers, customs brokers, and other entities involved in international trade.
**7. Implementation Aspects (Inferred):**
* **Responsible Agency/Bodies:** The Central Government, specifically the Ministry of Finance, Department of Revenue, is responsible for implementing these amendments.
* **Timelines or Procedures:** The notification states that it comes into force on February 2, 2022. The specific procedures for implementing the AIDC and other cesses will likely follow existing customs procedures, with adjustments to account for the new levies. The existing customs framework and processes will likely be adapted to incorporate these changes.
**8. Expected Outcomes / Impact of Changes:**
The intended outcome of these amendments is to ensure the correct and consistent application of the Agriculture Infrastructure and Development Cess, Health Cess, and Road and Infrastructure Cess on imported goods. This will likely result in:
* Increased revenue collection for the government.
* Potentially increased costs for importers, depending on the goods and applicable cess rates.
* Greater clarity regarding the total duties and taxes applicable to imported goods covered under the amended notifications.
**9. Conclusion:**
The amendments to the customs notifications, effective from February 2, 2022, primarily focus on integrating the Agriculture Infrastructure and Development Cess (AIDC), Health Cess, and Road and Infrastructure Cess into the existing customs duty framework. This signifies a move towards a more comprehensive taxation structure for imports and requires businesses involved in international trade to be aware of and comply with these changes to accurately calculate duties and taxes on imported goods.
Key Entities Referenced
Customs Act, 1962: An act of the Indian Parliament related to customs duties and regulations. Specifically, section 25 subsection 1 is mentioned.
Central Government: The executive authority of the Union of India, responsible for implementing and amending notifications related to customs and finance.
Customs Tariff Act, 1975: An act of the Indian Parliament related to customs tariffs. The First Schedule of the act is specifically mentioned.
Finance Act, 2021: An act of the Indian Parliament. Section 124, related to Agriculture Infrastructure and Development Cess, is specifically mentioned.
Finance Act, 2020: An act of the Indian Parliament. Section 141, related to Health Cess, is specifically mentioned.
Finance Act, 2018: An act of the Indian Parliament. Section 111, related to Road and Infrastructure Cess, is specifically mentioned.
Agriculture Infrastructure and Development Cess: A cess levied under section 124 of the Finance Act, 2021.
Health Cess: A cess levied under section 141 of the Finance Act, 2020.
Road and Infrastructure Cess: A cess levied under section 111 of the Finance Act, 2018.
Integrated tax and goods and services tax compensation cess: Tax levied under subsections 7 and 9 of section 3.
Ministry of Finance: The Indian government ministry responsible for financial matters, including customs and revenue.
Department of Revenue: A department within the Ministry of Finance responsible for revenue collection, including customs duties.
Nitish Karnatak: Under Secretary.
New Delhi: Capital of India
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-01022022-233038
xxxGIDHxxx
CG-DL-E-01022022-233038
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असाधारण
EXTRAORDINARY
भाग II—खण् ड 3—उप-खण्ड (i)
PART II—Section 3—Sub-section (i)
प्राजधकार स ेप्रकाजित
PUBLISHED BY AUTHORITY
स.ं 82] नई दिल्ली, मगं लिार, वरिरी 1, 2022/माघ 12, 1943
No. 82] NEW DELHI, TUESDAY, FUBRUARY 1, 2022/ MAGHA 12, 1943
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
अजधसचू ना
नई दिल् ली फ वरिरी, 2022
स.ं 08 /2022 – सीमािल्ु क
सा.का.जन. 82(अ).— केन्द रीय सरकार, सीमािुल्क अजधजनयम, फ962 (फ962 का 52) की धारा 25 की उपधारा
(फ) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, यह समाधान हो िाने पर दक लोकजहत म ें ऐसा करना आिश्यक ह,ै उि
सारणी के स्ट्तंभ (3) म ें तत्स्ट्थानी प्रजिजि म ें जिजनर्ििि जिस्ट्तार तक, नीच े िी गई सारणी के स्ट्तंभ (2) म ें जनर्ििि भारत
सरकार, जित्त मंत्रालय (रािस्ट्ि जिभाग) की जनम्नजलजखत अजधसूचना का और संिोधन करती ह,ै अथाित ् :-
सारणी
क्रम सं. अजधसूचना संख्या और तारीख संिोधन
(फ) (2) (3)
फ. अजधसूचना सं. फ04/20फ0- सीमािुल्क, उि अजधसूचना में, प्रस्ट्तािना में, “सीमािुल्क टैररव अजधजनयम, फ975
तारीख फ अक्टूबर, 20फ0 िो भारत के (फ975 का 5फ) की पहली अनुसूची के अधीन उस पर उद्ग्रहणीय सम्पूणि
रािपत्र, असाधारण भाग 2, खंड 3, उप-खंड सीमािुल्क से” िब्िों, कोिकों और अंकों के स्ट्थान पर “और जित्त
(i) में सा. का. जन. 805(अ) तारीख फ अजधजनयम, 202फ (202फ का फ3) की धारा फ24 के अधीन उद्ग्रहणीय
अक्टूबर, 20फ0 द्वारा प्रकाजित ह ै। सम्पूणि कृजि अिसंरचना और जिकास उपकर से” िब्ि, कोिक और अंक
अंतःस्ट्थाजपत दकए िाएंगे ।
664 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
2. अजधसूचना सं. 38/96- सीमािल्ु क, तारीख उि अजधसूचना में, सारणी में क्रम सं. फ के सामने स्ट्तंभ 3 में प्रजिजि के
23 िुलाई, फ996 िो भारत के रािपत्र, स्ट्थान पर जनम्नजलजखत रखा िाएगा, अथाित् :-
असाधारण भाग 2, खंड 3, उप-खंड (i) में “सीमािल्ु क टैररव अजधजनयम, फ975 (फ975 का 5फ) की पहली
सा. का. जन. 290(अ) तारीख 23 िुलाई, अनुसूची के अधीन उस पर उद्ग्रहणीय सीमािुल्क, जित्त अजधजनयम,
फ996 द्वारा प्रकाजित ह ै। 202फ (202फ का फ3) की धारा फ24 के अधीन उद्ग्रहणीय कृजि
अिसंरचना और जिकास उपकर, जित्त अजधजनयम, 2020 (2020 का
फ2) की धारा फ4फ के अधीन उद्ग्रहणीय स्ट्िास्ट््य उपकर, जित्त
अजधजनयम, 20फ8 (20फ8 का फ3) की धारा फफफ के अधीन उद्ग्रहणीय
सड़क और अिसंरचना उपकर तथा उि अजधजनयम की धारा 3 की
क्रमिः उपधारा (7) और उपधारा (9) के अधीन उसपर उद्ग्रहणीय
एकीकृत कर और माल और सेिाकर प्रजतकर उपकर” ।
3. अजधसूचना सं. 40/20फ7- सीमािुल्क, उि अजधसूचना में, प्रस्ट्तािना म,ें “उसपर उद्ग्रहणीय सीमािुल्क िो
तारीख 30 िून, 20फ7 िो भारत के रािपत्र, उि पहली अनुसूची में जिजनर्ििि है” िब्िों के पश्चात्, “जित्त
असाधारण भाग 2, खंड 3, उप-खंड (i) में अजधजनयम, 202फ (202फ का फ3) की धारा फ24 के अधीन उद्ग्रहणीय
सा. का. जन. 775(अ) तारीख 30 िून, 20फ7 सम्पूणि कृजि अिसंरचना और जिकास उपकर, जित्त अजधजनयम, 2020
द्वारा प्रकाजित ह ै। (2020 का फ2) की धारा फ4फ के अधीन उद्ग्रहणीय सम्पूणि स्ट्िास्ट््य
उपकर, और जित्त अजधजनयम, 20फ8 (20फ8 का फ3) की धारा फफफ के
अधीन उद्ग्रहणीय सम्पूणि सड़क और अिसंरचना उपकर” िब्ि, अंक और
कोिक अंतःस्ट्थाजपत दकए िाएंगे ।
4. अजधसूचना सं. 60/20फफ- सीमािुल्क, उि अजधसूचना में, प्रस्ट्तािना में, “सीमािुल्क टैररव अजधजनयम, फ975
तारीख फ4 िुलाई, 20फफ िो भारत के (फ975 का 5फ) की पहली अनुसूची के अधीन उस पर उद्ग्रहणीय सम्पूणि
रािपत्र, असाधारण भाग 2, खंड 3, उप-खंड सीमािुल्क से” िब्िों, अंकों और कोिकों के स्ट्थान पर “और जित्त
(i) में सा. का. जन. 536(अ) तारीख फ4 अजधजनयम, 202फ (202फ का फ3) की धारा फ24 के अधीन उद्ग्रहणीय
िुलाई, 20फफ द्वारा प्रकाजित ह ै। सम्पूणि कृजि अिसंरचना और जिकास उपकर से” िब्ि, अंक और कोिक
अंतःस्ट्थाजपत दकए िाएंगे ।
5. अजधसूचना सं. फ48/94- सीमािल्ु क, तारीख उि अजधसूचना में, प्रस्ट्तािना में, “उि पहली अनुसूची के अधीन उस
फ3 िुलाई, फ994 िो भारत के रािपत्र, पर उद्ग्रहणीय सम्पूणि सीमािुल्क से” िब्िों के पश्चात् “जित्त अजधजनयम,
असाधारण भाग 2, खंड 3, उप-खंड (i) में 202फ (202फ का फ3) की धारा फ24 के अधीन उद्ग्रहणीय सम्पूणि कृजि
सा. का. जन. 577(अ) तारीख फ3 िुलाई, अिसंरचना और जिकास उपकर, जित्त अजधजनयम, 20फ8 (20फ8 का
फ994 द्वारा प्रकाजित ह ै। फ3) की धारा फफफ के अधीन उद्ग्रहणीय सम्पूणि सड़क और अिसंरचना
उपकर” िब्ि, अंक और कोिक अंतःस्ट्थाजपत दकए िाएंगे ।
2. यह अजधसूचना 2 वरिरी, 2022 को प्रिृत्त होगी ।
[वा.स.ं 334/01/2022-टीआरयू]
जनजति कनािटक, अिर सजचि
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 1st February, 2022
No. 08/2022-Customs
G.S.R. 82(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[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
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. Notification number and Date Amendments
No.
(1) (2) (3)
1. Notification No. 104/2010-Customs, In the said notification, in the preamble, after the words, figures
dated the 1st October, 2010, published in and brackets “from the whole of the duty of Customs leviable
the Gazette of India, Extraordinary, Part thereon under the First Schedule to the Customs Tariff Act, 1975
II, Section 3, Sub-section (i), vide (51 of 1975)”, the words, figures and brackets “and from the whole
number G.S.R. 805(E), dated the 1st of Agriculture Infrastructure and Development Cess, leviable under
October, 2010. section 124 of the Finance Act, 2021 (13 of 2021)” shall be
inserted.
2. Notification No.38/96-Customs, dated In the said notification, in the TABLE, against S.No. 1, for the
the 23rd July, 1996, published in the entry in column 3, the following shall be substituted, namely: -
Gazette of India, Extraordinary, Part II, “Duty of Customs leviable thereon under the First Schedule to the
Section 3, Sub-section (i), vide number Customs Tariff Act, 1975 (51 of 1975), Agriculture Infrastructure
G.S.R. 290(E), dated the 23rd July, 1996. and Development Cess, leviable under section 124 of the Finance
Act, 2021 (13 of 2021), Health Cess, leviable under section 141 of
the Finance Act, 2020 (12 of 2020), Road and Infrastructure Cess,
leviable under section 111 of the Finance Act, 2018 (13 of 2018)
and integrated tax and goods and services tax compensation cess
leviable thereon respectively under sub-sections (7) and (9) of
section 3 of the said Act.”
3. Notification 40/2017-Customs, dated the In the said notification, in the preamble, after the words, “from the
30th June, 2017, published in the Gazette whole of the duty of Customs leviable thereon which is specified in
of India, Extraordinary, Part II, Section the said First Schedule”, the words, figures and brackets “, the
3, Sub-section (i), vide number G.S.R. whole of Agriculture Infrastructure and Development Cess,
775(E), dated the 30th June, 2017. leviable under section 124 of the Finance Act, 2021 (13 of 2021),
the whole of Health Cess, leviable under section 141 of the Finance
Act, 2020 (12 of 2020) and the whole of Road and Infrastructure
Cess, leviable under section 111 of the Finance Act, 2018 (13 of
2018)” shall be inserted.
4. Notification 60/2011-Customs, dated the In the said notification, in the preamble, after the words, figures
14th July, 2011, published in the Gazette and brackets “from the whole of the duty of Customs leviable
of India, Extraordinary, Part II, Section thereon under the First Schedule to the Customs Tariff Act, 1975
3, Sub-section (i), vide number G.S.R. (51 of 1975)”, the words, figures and brackets “and from the whole
536(E), dated the 14th July, 2011 of Agriculture Infrastructure and Development Cess, leviable under
section 124 of the Finance Act, 2021 (13 of 2021)” shall be
inserted.
5. Notification 148/94-CUSTOMS, dated In the said notification, in the preamble, after the words “from the
the 13th July, 1994, published in the whole of the duty of Customs leviable thereon under the said First
Gazette of India, Extraordinary, Part II, Schedule”, the words, figures and brackets “, the whole of
Section 3, Sub-section (i), vide number Agriculture Infrastructure and Development Cess, leviable under
G.S.R. 577(E), dated the 13th July, 1994. section 124 of the Finance Act, 2021 (13 of 2021), the whole of
Health Cess, leviable under section 141 of the Finance Act, 2020
(12 of 2020), the whole of Road and Infrastructure Cess, leviable
under section 111 of the Finance Act, 2018 (13 of 2018)” shall be
inserted.
2. This notification shall come into force on 2nd day of February, 2022.
[F.No. 334/01/2022-TRU]
NITISH KARNATAK, Under 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.