The government has made various promises in Union Budget 2024-25 out of which 8 promises are fulfilled.
Trade Facilitation
In the Union Budget 2024-25 it was announced to promote domestic aviation and boat & ship MRO, the Union Finance Minister, Nirmala Sithraman proposed to extend the period for export of goods imported for repairs from six months to one year. In the same vein, it was proposed to extend the time-limit for re-import of goods for repairs under warranty from three to five years.
Progress So Far
The Basic Customs Duty (BCD) on components and consumables for use in the manufacture of vessels; technical documentation and spares for construction of warships was fully exempted vide Notification No. 34/2024-Cus dated 23.07.2024.
The time limit for re-export of ships/ aircrafts imported for repairs was extended from 6 months to 2 years vide Notification No. 38/2024-Cus dated 23.07.2024.
Similarly, the time limit for re-import of goods exported for repair was increased from 3 to 5 years vide Notification No. 39/2024-Cus dated 23.07.2024.
Electronics
To increase value addition in the domestic electronics industry, it was proposed to remove the BCD, subject to conditions, on oxygen free copper for manufacture of resistors. It was also proposed to exempt certain parts for manufacture of connectors.
Progress So Far
The Basic Customs Duty (BCD) on oxygen free copper for manufacture of resistors was exempted vide Notification No. 34/2024-Cus dated 23.07.2024.
Metals
Steel and copper are important raw materials. To reduce their cost of production, it was proposed to remove the BCD on ferro nickel and blister copper. The nil BCD on ferrous scrap and nickel cathode and concessional BCD of 2.5 per cent on copper scrap was also proposed to be continued.
Progress So Far
The Basic Customs Duty (BCD) on ferro nickel and blister copper was exempted vide S.No. 40 and 44 of Notification No. 30/2024-Cus dated 23.07.2024
Leather & Textiles
To enhance the competitiveness of exports in the leather and textile sectors, it was proposed to reduce BCD on real down filling material from duck or goose. The list of exempted goods for manufacture of leather and textile garments, footwear and other leather articles for export was added.
To rectify inversion in duty, it was proposed to reduce BCD, subject to conditions, on methylene diphenyl diisocyanate (MDI) for manufacture of spandex yarn from 7.5 to 5 per cent.
Furthermore, the export duty structure on raw hides, skins and leather was proposed to be simplified and rationalized.
Progress So Far
Exemption from Basic Customs Duty (BCD) was extended on Wet white, Crust and finished leather and additional accessories and embellishments for manufacture of textile or leather garments, leather/ synthetic footwear or other leather products for export.
The BCD was reduced from 30% to 10% on Real down filling material from duck or goose for manufacture of textile or leather garments for export.
The BCD on Methylene Diphenyl Diisocyanate (MDI) was reduced from 7.5% to 5%, subject to conditions, for manufacture of spandex yarn.
The export duty structure on raw hides and skins and leather was rationalised and simplified along with incorporation of CTH as a trade facilitation measure.
The changes were given effect vide Notification No. 30/2024-Cus dated 23.07.2024 and Notification No. 37/2024-Cus dated 23.07.2024.
Marine Products
India’s seafood exports in the last financial year touched an all-time high of more than 60,000 crore. Frozen shrimp accounted for about two-thirds of these exports. To enhance their competitiveness, it was proposed to reduce BCD on certain broodstock, polychaete worms, shrimp and fish feed to 5 per cent. It was proposed to exempt customs duty on various inputs for manufacture of shrimp and fish feed.
Progress So Far
The Basic Customs Duty (BCD) was reduced to 5% on Mineral & vitamin premixes, Krill Meal, Fish lipid oil, Crude fish oil, Algal prime (flour), Algal oil for manufacture of aquatic feed.
To facilitate R&D, the BCD on Insect Meal and Single Cell Protein from natural gas for aquatic feed manufacturing was reduced to 5%.
The BCD was also reduced to 5% on Prawn and Shrimps feed and Fish feed.
The changes were implemented vide Notification No. 30/2024-Cus dated 23.07.2024.
Energy Transition
Energy transition is critical in the fight against climate change. To support energy transition, it was proposed to expand the list of exempted capital goods for use in the manufacture of solar cells and panels in the country. In view of sufficient domestic manufacturing capacity of solar glass and tinned copper interconnect, it was proposed not to extend the exemption of customs duties provided to them.
Progress So Far
To support domestic manufacturing of solar glass and tinned copper interconnect, Basic Customs Duty (BCD) exemptions on these were allowed to lapse.
The BCD was also fully exempted on additional capital goods for use in manufacture of solar cells and modules.
The said changes were implemented vide Notification No. 30/2024-Cus dated 23.07.2024 and Notification No. 34/2024-Cus, dated 23.07.2024.
Precious Metals
To enhance domestic value addition in gold and precious metal jewellery in the country, it was proposed to reduce customs duties on gold and silver to 6 percent and that on platinum to 6.4 per cent.
Progress So Far
The import duty on gold and silver was reduced to 6% and that on platinum to 6.4% vide Notification No. 30/2024-Cus dated 23.07.2024 and Notification No. 32/2024-Cus dated 23.07.2024.
Mobile Phone & Related Parts
With a three-fold increase in domestic production and almost 100-fold jump in exports of mobile phones over the last six years, the Indian mobile phone industry has matured. In the interest of consumers, it was proposed to reduce the BCD on mobile phone, mobile PCBA and mobile charger to 15 per cent.
Progress So Far
The Basic Customs Duty (BCD) on mobile phone, PCBA of mobile phone and charger or adapter of the mobile phone was reduced vide Notification No. 34/2024-Cus dated 23.07.2024.
Medicine & Medical Equipments
To provide relief to cancer patients, it was proposed to fully exempt three more medicines from customs duties. It has also proposed changes in the BCD on x-ray tubes & flat panel detectors for use in medical x-ray machines under the Phased Manufacturing Programme, so as to synchronise them with domestic capacity addition.
Progress So Far
The Basic Customs Duty (BCD) was fully exempted on cancer medicines;
• Trastuzumab Deruxtecan,
• Osimertinib and
• Durvalumab.
The exemption from BCD was extended to all types of polyethylene for use in manufacture of orthopaedic implants.
The BCD was also fully exempted on Special grade stainless steel, Titanium alloys, Cobalt-chrome alloys, and all types of polyethylene for use in manufacture of other artificial parts of the body.
The BCD was reduced to 5% on X-ray tubes and Flat panel detectors (including scintillators) for use in manufacture of medical, surgical, dental or veterinary X-ray machines.
These changes were implemented vide Notification No. 30/2024-Cus dated 23.07.2024.
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