## Policy Analysis Report: Customs Duty Exemption for Goods Used in Smart Meter Manufacturing
**1. Executive Summary:**
This report analyzes Notification No. 13/2022-Customs, G.S.R. 87(E), issued by the Ministry of Finance, Department of Revenue on February 1, 2022. This notification establishes a customs duty exemption on specific goods imported into India for use in the manufacture of smart meters. The core purpose is to reduce the cost of manufacturing smart meters by lowering import duties on components and materials. The key finding is that the notification provides varying degrees of duty exemption depending on the specific good and the time period of import, subject to compliance with the Customs Import of Goods at Concessional Rate of Duty Rules, 2017.
**2. Introduction:**
This report provides an informative analysis of Notification No. 13/2022-Customs, a customs duty exemption policy related to goods used in smart meter manufacturing, based solely on the text provided. The report aims to inform stakeholders about the key provisions, implications, and potential impact of this notification.
**3. Policy Overview:**
This is a new policy establishing a customs duty exemption.
* **Core Objective(s):** Based on the text, the primary objective is to encourage the domestic manufacturing of smart meters by reducing the cost of imported components and raw materials through customs duty exemptions. This is inferred from the explicit mention of goods "for use in manufacture of Smart Meters" as a recurring condition for receiving the exemptions.
**4. Background and Rationale:**
As the notification establishes a new policy, it is likely that the government aims to promote the adoption of smart meters in India. Reducing the import duties on components likely makes domestic production more cost-competitive, thereby stimulating local manufacturing and potentially lowering the overall cost of smart meters. This could accelerate their deployment and contribute to improved energy management and grid efficiency.
**5. Key Provisions / Changes:**
This is a new policy, therefore the key provisions are:
The notification exempts specific goods from customs duty when imported into India, subject to certain conditions. The goods and their corresponding exemptions are detailed in the provided table, categorized by Chapter/Heading/Subheading/Tariff Item.
Key provisions include:
* **Duty Exemption:** Most listed items are exempt from customs duty beyond a "standard rate," which, in many cases, is set to "Nil." Some items like "Relay for use in manufacture of Smart Meters" and "Smart Meters" themselves, have a standard rate of 5% and 15% respectively. "Printed Circuit Board Assembly PCBA for use in manufacture of Smart Meters" is set at 20%.
* **Eligible Goods:** The goods covered by the exemption include batteries, communication modules, antennas, liquid crystal displays (LCDs), relays, printed circuit board assemblies (PCBAs), and unspecified inputs, parts, or subparts used in the manufacture of smart meters.
* **Conditionality:** The primary condition for availing the exemption is compliance with the Customs Import of Goods at Concessional Rate of Duty Rules, 2017.
* **Time Validity:** Certain exemptions are valid only for specific periods, with varying end dates ranging from March 31, 2022, to beyond March 31, 2025. This suggests a phased approach or a trial period for the exemptions.
**6. Target Audience and Stakeholders:**
Based on the text, the target audience and stakeholders directly affected by this policy are:
* **Manufacturers of Smart Meters in India:** These manufacturers can benefit from reduced import costs for components and materials.
* **Importers of Components and Materials for Smart Meters:** These importers need to be aware of the specific goods covered by the exemption and the conditions for availing it.
* **Customs Authorities:** Customs officials are responsible for implementing and enforcing the provisions of the notification.
**7. Implementation Aspects (Inferred):**
Based on the text, the following can be inferred:
* **Responsible Agency:** The Ministry of Finance, Department of Revenue, is the responsible agency for issuing and overseeing the implementation of this notification.
* **Procedures:** Importers must follow the procedure specified in the Customs Import of Goods at Concessional Rate of Duty Rules, 2017, to avail the exemption.
* **Timelines:** The notification came into force on February 2, 2022. The validity of some exemptions is time-bound, requiring importers to monitor the expiry dates and adjust their sourcing strategies accordingly.
**8. Expected Outcomes / Impact of Changes:**
The likely intended outcomes and potential impact of this policy are:
* **Reduced Manufacturing Costs:** The exemption is expected to lower the cost of manufacturing smart meters in India.
* **Increased Domestic Production:** Lower costs could stimulate increased domestic production of smart meters.
* **Attract Investment:** This policy may attract further investment in the domestic smart meter manufacturing sector.
* **Accelerated Smart Meter Deployment:** Lower smart meter costs should contribute to the faster adoption and deployment of smart meters across the country.
**9. Conclusion:**
Notification No. 13/2022-Customs is a significant policy aimed at promoting the domestic manufacturing of smart meters by reducing import duties on key components and materials. The varying conditions and timelines require stakeholders to carefully monitor the specific provisions of the notification to maximize its benefits. This initiative is expected to contribute to lower smart meter production costs, increased domestic manufacturing, and faster smart meter deployment, ultimately supporting improved energy management and grid efficiency in India.
Key Entities Referenced
Customs Act, 1962: A legal act referred to in the notification, specifically section 25, subsection 1.
Central Government: The governing body that is issuing the exemption notification.
Customs Tariff Act, 1975: A legal act related to tariffs, specifically the First Schedule.
India: The country to which the goods are being imported.
Customs Import of Goods at Concessional Rate of Duty Rules, 2017: A set of rules related to importing goods at concessional duty rates.
Ministry of Finance: The ministry under which the Department of Revenue operates, which issued the notification.
Department of Revenue: The department that issued the notification.
New Delhi: The location where the notification was issued.
Smart Meters: Goods that are mentioned in the table.
Printed Circuit Board Assembly PCBA: Goods that are mentioned in the table.
रजिस्ट्री स.ं डी.एल.- 33004/99 REGD. No. D. L.-33004/99
सी.जी.-डी.एल.-अ.-01022022-233052
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CG-DL-E-01022022-233052
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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.ं 87] नई दिल्ली, मगं लिार, फरिरी 1, 2022/माघ 12, 1943
No. 87] NEW DELHI, TUESDAY, FUBRUARY 1, 2022/ MAGHA 12, 1943
जित्त मत्रं ालय
(रािस्ट्ि जिभाग)
अजधसचू ना
नई दिल्ली, 1 फरिरी, 2022
स.ं 13/2022 – सीमािल्ु क
सा.का.जन. 87 (अ).—केंद्रीय सरकार, सीमािुल्क अजधजनयम, 1962 (1962 का 52) की धारा 25 की उप-धारा
(1) द्वारा प्रित्त िजियों का प्रयोग करत े हुए, यह समाधान हो िाने पर दक ऐसा करना लोकजहत में आिश्यक है, नीचे िी
गई सारणी के स्ट्तंभ (3) में यथा-जिजनर्िष्टि और सीमािुल्क टैररफ अजधजनयम, 1975 (1975 का 51) की प्रथम अनुसूची के
अध्याय या िीर् ि या उपिीर् ि या टैररफ मि के अधीन आन े िाल े िर्णित माल को िो उि सारणी के स्ट्तंभ (2) म ें तत्सस्ट्थानी
प्रजिजष्ट म ें िर्णित दकए गए ह,ैं िब िह भारत म ें आयात दकए िाते ह,ैं उि प्रथम अनुसूची के अधीन उस पर उद्ग्रहणीय उतन े
सीमािुल्क से जितना उि सारणी के स्ट्तंभ (4) में तत्सस्ट्थानी प्रजिजष्ट में यथा-जिजनर्िष्टि मानक िर पर संगजणत रकम स े
अजधक ह,ै इस अजधसूचना के उपाबंध म ें यथा-जिजनर्िष्टि दकन्ही ितों के अध्याधीन, उस ित ि संख्या को िो उि सारणी के
स्ट्तंभ (5) में तत्सस्ट्थानी प्रजिष्टी म ेंउजल्लजखत ह,ै छूट िते ी ह ै।
669 GI/2022 (1)2 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
सारणी
क्र.सं. अध् याय या माल का जििरण मानक िर िति सं.
िीर्िक या
उपिीर्िक या
टैररफ मि
(1) (2) (3) (4) (5)
1. 8506 50 00 स्ट् माटि मीटरों में उपयोग के जलए बैटरी िून् य 1 और 4
5% 1 और 5
10% 1 और 6
10% 1 और 7
2. कोई अध् याय क्रम संख् या 1 पर उजल् लजखत मिों के जिजनमािण में उपयोग िून् य 1 और 3
के जलए इनपुट या पुिे या उपपिु े
3. 8517 69 90 स्ट् माटि मीटर के जिजनमािण म ें उपयोग के जलए संचार िून् य 1 और 4
मॉड्यूल
िून् य 1 और 5
5% 1 और 6
10% 1 और 7
4. कोई अध् याय क्रम संख् या 3 पर उलजलजखत मिों के जिजनमािण म ें िून् य 1 और 3
उपयोग के जलए इनपुट या पुिे या उपपुिे
5. 8517 71 00 स्ट् माटि मीटरों के जिजनमािण में उपयोग के जलए एन् टीना िून् य 1 और 4
िून् य 1 और 5
5% 1 और 6
10% 1 और 7
6. कोई अध् याय क्रम संख् या 5 पर उलजलजखत मिों के जिजनमािण म ें िून् य 1 और 3
उपयोग के जलए इनपुट या पुिे या उपपुिे
7. 8524 11 00 स्ट् माटि मीटर के जिजनमािण म ें उपयोग के जलए एलसीडी के िून् य 1 और 4
जलए तरल दक्रस्ट् टल प्रििि (एलसीडी) या प्ठष भाग प्रकाि
या 5% 1 और 5
8524 91 00
10% 1 और 6
10% 1 और 7
8. कोई अध् याय क्रम संख् या 7 पर उलजलजखत मिों के जिजनमािण म ें िून् य 1 और 3
उपयोग के जलए इनपुट या पुिे या उपपुिे
9. 8536 49 00 स्ट् माटि मीटर के जिजनमािण में उपयोग के जलए ररले 5% 1 और 4
10% 1 और 5
10% 1 और 6
15% 1 और 7
10. कोई अध् याय क्रम संख् या प पर उलजलजखत मिों के जिजनमािण म ें िून् य 1 और 3
उपयोग के जलए इनपुट या पुिे या उपपुिे
11. 9028 30 10 स्ट् माटि मीटर 15% 2
12. 9028 90 10 स्ट्माटि मीटर के जिजनमािण म ें उपयोग के जलए जप्रन्टेड 20% 1 और 3[भाग II—खण् ड 3(i)] भारत का रािपत्र : असाधारण 3
सर्किट बोडि समुच्चय (पीसीबीए)
13. कोई अध् याय क्रम संख् या 12 पर उलजलजखत मिों के जिजनमािण म ें िून् य 1 और 3
उपयोग के जलए इनपुट या पुिे या उपपुिे
उपाबधं
िति सं. ित ि
1. यदि आयातक सीमािल्ु क (िुल्क की ररयायत िर पर माल का आयात) जनयम, 2017 में
जिजनर्िष्ि ट प्रदक्रया का पालन करता ह ै।
2. तारीख 31 माच,ि 2022 तक जिजधमान् य
3. 1 अप्रलै , 2022 से जिजधमान् य
4. तारीख 1 अप्रलै , 2022 से 31 माचि, 2023 तक जिजधमान् य
5. तारीख 1 अप्रलै , 2023 से 31 माचि, 2024 तक जिजधमान् य
6. तारीख 1 अप्रलै , 2024 से 31 माच,ि 2025 तक जिजधमान्य
7. 1 अप्रलै , 2025 से जिजधमान् य
2. यह अजधसूचना 2 फरिरी, 2022 स े प्रिषत होगी ।
[फा. स.ं 334/01/2022-टीआरयू]
जनजति कनािटक, अिर सजचि
MINISTRY OF FINANCE
(Department of Revenue)
NOTIFICATION
New Delhi, the 1st February, 2022
No. 13/2022-Customs
G.S.R. 87 (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 exempts the goods of the description as specified in column (3) of the Table below and falling within the
Chapter or heading or sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as
are specified in the corresponding entry in column (2) of the said Table, when imported into India, from so much of
the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the
standard rate as specified in the corresponding entry in column (4) of the said Table, subject to any of the conditions
as specified in the Annexure to this notification, the Condition No. of which is mentioned in the corresponding entries
in column (5) of the said Table.
TABLE
S.No. Chapter or Description of goods Standard rate Condition No.
heading or
sub-heading or
tariff item
(1) (2) (3) (4) (5)
1. 8506 50 00 Battery for use in Smart Meters. Nil 1 and 4
5% 1 and 5
10% 1 and 6
10% 1 and 74 THE GAZETTE OF INDIA : EXTRAORDINARY [PART II—SEC. 3(i)]
2. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 1.
3. 8517 69 90 Communication module for use in manufacture of Nil 1 and 4
Smart Meters. Nil 1 and 5
5% 1 and 6
10% 1 and 7
4. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 3.
5. 8517 71 00 Antenna for use in manufacture of Smart Meters. Nil 1 and 4
Nil 1 and 5
5% 1 and 6
10% 1 and 7
6. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 5.
7. 8524 11 00 or Liquid Crystal Display (LCD) or Back light for LCD Nil 1 and 4
8524 91 00 for use in manufacture of Smart Meters. 5% 1 and 5
10% 1 and 6
10% 1 and 7
8. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 7.
9. 8536 49 00 Relay for use in manufacture of Smart Meters. 5% 1 and 4
10% 1 and 5
10% 1 and 6
15% 1 and 7
10. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 9.
11. 9028 30 10 Smart Meters 15% 2
12. 9028 90 10 Printed Circuit Board Assembly (PCBA) for use in 20% 1 and 3
manufacture of Smart Meters.
13. Any Chapter Inputs or parts or sub-parts for use in manufacture of Nil 1 and 3
items mentioned at S. No. 12.
ANNEXURE
Condition No. Conditions
1. If the importer follows the procedure specified in the Customs (Import of Goods at
Concessional Rate of Duty) Rules, 2017.
2. Valid up to 31st March, 2022.
3. Valid from 1st April, 2022 onwards.
4. Valid from 1st April, 2022 up to 31st March, 2023.
5. Valid from 1st April, 2023 up to 31st March, 2024.
6. Valid from 1st April, 2024 up to 31st March, 2025.
7. Valid from 1st April, 2025 onwards.
2. This notification shall come into force on the 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.