In a major trade-facilitation step, the Central Board of Indirect Taxes and Customs (CBIC) announced on Saturday that it has consolidated 31 separate customs duty notifications into a single, unified notification. The consolidation will be effective from November 1.
As per the new notification, exemption and concessional duty provisions previously scattered across multiple older documents will now be merged. The CBIC assured that all existing benefits and duty exemptions are being retained, so importers and exporters will not lose out even as regulatory complexity is reduced.
According to the CBIC, this streamlining is intended to boost transparency and ease of doing business, especially for trade stakeholders who previously had to navigate a maze of overlapping notifications. Under the new framework, importers, exporters, and customs brokers will only need to refer to the consolidated notification instead of juggling dozens of older ones.
Previously, they had to scan a complex web of multiple notifications to determine applicable duty rates and exemptions.
To ensure there is no confusion among the traders regarding the consolidation of the custom duty, CBIC has also issued a set of frequently asked questions (FAQs). These cover issues like applicability of IGST, basic customs duty (BCD), and the validity of exemptions under the new notification.
There have been two small changes in terms of exemption. First, exemption to supplies by Air India Engineering Services Limited and the current entry will now cover three specific B-737 and two specific B-777 aircraft maintained and operated by the Indian Air Force. Second, the provision related to 5% Basic Custom Duty (BCD) for bulk drugs used in the manufacture of poliomyelitis vaccine (inactivated and live) and mono-component insulins has been removed. Overall, the move is in tandem with the government’s broader push to simplify indirect tax regulation and create a more conducive environment for global trade.