Economy

Government Lists the Items for Custom Exemption Review

The government has identified items for customs exemptions for further review and invited suggestions from the trade and industry bodies to give their recommendations. Finance Minister Nirmala Sitharaman, in her Budget 2020-21 speech, had announced that the government would undertake a further review of the existing customs exemption notifications through extensive consultations.

The government invited the exporters, importers, trade associations and domestic industry to give their views on the subject for consideration identified by the government on the ‘MyGov.in’ portal by 10 August 2021. The government issued 97 notifications consisting of specified items for certain customs exemptions for further review.

Some of the crucial products covered under the list include:

  • Fabrics
  • Games/sports requisites
  • Magnetron for microwave manufacturing
  • Specified parts for PCB
  • Set-up box
  • Routers
  • Broadband modem
  • Contraceptives
  • Artificial kidney
  • Magnetic tapes
  • Photographic, filming and sound recording or radio equipment
  • Parts or raw material for the manufacture of goods supplied for off-shore oil exploration
  • Specified machinery or parts covered in the textile industry

The government has provided exemptions from customs duty in public interest from time to time. The customs laws and procedures review will help the government align them with changing times and ease of doing business.

The Central Board of Indirect Taxes and Customs (CBIC) had conducted a crowdsourcing exercise last year to identify the review of the customs duty exemptions. Following this, the government has given a list of notifications and invited stakeholder views for a comprehensive review.

The government is looking to provide exemptions for items from different sectors. The trade and industry experts and associations can review the list of items identified by the government for custom exemptions and give their suggestions by 10 August 2021. Their recommendations will help the government to review the custom exemptions for the specified items.

For any clarifications/feedback on the topic, please contact the writer at mayashree.acharya@cleartax.in

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