In her budget speech dated February 1, 2021, the Hon’ble Finance Minister Ms. Nirmala Sitharaman, had announced the Government’s intent to review the existing customs exemption notifications issued over the years after conducting extensive industry consultations. Accordingly, certain Customs’ exemptions have been identified for the purpose of reassessment.
Certain goods (largely falling under Notification no. 50/2017-Customs dated 30.06.2017) have been specified for review, and the list illustratively includes crude glycerine for manufacturing of soaps, specified lifesaving drugs, prescribed fabrics, sports related equipment, machinery/equipment for treatment of leather, magnetron for microwave manufacturing, specified parts for Printed Circuit Boards, parts of set-top box, routers and broadband modem, artificial kidney, contraceptives, magnetic tapes, photographic, filming, sound recording and radio equipment, parts/raw material for manufacture of goods supplied for off-shore oil exploration, specified machinery/parts covered in textile industry amongst others.
Importers, exporters, domestic industry, trade associations, all stakeholders, especially in international trade, and the public at large are invited to give pertinent views on the subject for consideration by the Government, in the format prescribed, latest by August 10, 2021. Click here to visit the web page for viewing the list of exemptions under review and for submitting your suggestions.
We encourage you to peruse the list and the associated line items and examine its impact on your business. It will be imperative to strategize over business / sector specific concerns to put forward an adequate representation before the Government in order to avoid any increase in overall tax cost.