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Union Budget 2016-2017
Key Customs Tariff Amendments
2/19, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai-400 069.
03/03/2016

Right advice at right time....
Address: 2/19, Nityapriya, Nityanand Nagar, Sahar Road, Andheri (East), Mumbai – 400 069.
Tel: +91 22 26836519; Email: info@gscintime.com Page 2 of 12
Abbreviations:
Name Particulars
BCD Basic Customs Duty
CVD Countervailing Duty
SAD Special Additional Duty

1. Customs Duty imposed (BCD/CVD/SAD):
Sr. No. Particulars Existing
Rate
New Rate
1 Magnetic - Heads (all types), Ceramic/ Magnetic
cartridges and stylus, Antennas, EHT cables,
Level meters/level indicators/ tuning indicators/
peak level meters/ battery meter/VC meters/
Tape counters, Tone arms, Electron guns: BCD
NIL 7.50%/10%
2 Specified machinery required for construction
of roads : CVD
NIL 12.50%
3 Charger / adapter, battery and wired headsets /
speakers for manufacture of mobile phones:
I) BCD
II) CVD
III) SAD
NIL
NIL
NIL
10%
12..50%
4.00%
4 Plans, drawings and designs falling under
chapter 49 : BCD
NIL 10%
5 Specified telecommunication equipment [Soft
switches and Voice over Internet Protocol
(VoIP) equipment namely VoIP phones, media
gateways etc. : BCD
NIL 10%
6 Preform of silica for manufacture of telecom
grade optical fibre/cables : BCD
NIL 10%
7 E-Readers : BCD NIL 7.5%
8 Solar tempered glass / solar tempered (anti-
reflective coated) glass : BCD
NIL 5%
9 Cashew nuts in shell : BCD NIL 5%
10 Populated PCBs for manufacture of personal
computers (laptop or desktop) : SAD
NIL 4%
11 Populated PCBs for manufacture of mobile
phone/tablet computer : SAD
NIL 2%

2. Customs Duty exempted on inputs/Capital Goods (BCD/CVD/SAD):
Rate
New Rate
1 Machinery, electrical equipment and instrument
and parts thereof (except populated PCBs) for
semiconductor wafer fabrication / LCD
fabrication units
i) BCD
ii) SAD
7.5%/10%
4%
NIL
NIL
2 Machinery, electrical equipment and instrument
and parts thereof (except populated PCBs)
imported for Assembly, Test, Marking and
Packaging of semiconductor chips (ATMP)
i) BCD
ii) SAD
7.5%/10%
4%
NIL
NIL
3 Inputs, parts and components, subparts for
manufacture of charger / adapter, battery and
wired headsets/speakers of mobile phones :
i) BCD,
ii) CVD
iii) SAD
7.5%/10%
12.5%
4%
NIL
NIL
NIL
4 Parts and components, subparts for
manufacture of Routers, broadband Modems,
Set-top boxes for gaining access to internet, set
top boxes for TV, digital video recorder (DVR) /
network video recorder (NVR), CCTV camera / IP
camera, lithium ion battery [other than those
for mobile handsets :
i) BCD
ii) CVD
iii) SAD
7.5%/10%
12.5%
4%
NIL
NIL
NIL
5 Specified capital goods and inputs for use in
manufacture of Micro fuses, Sub-miniature
fuses, Resettable fuses, and Thermal fuses : BCD
7.5%/10% NIL
6 Capital goods and spare thereof, raw materials,
parts, material handling equipment and
consumable for repairs of ocean-going vessels
by a ship repair unit : CVD
12.5% NIL

Rate
New Rate
7 Disposable sterilized dialyzer and micro barrier
of artificial kidney :
i) BCD,
ii) CVD
iii) SAD
7.5%/10%
12.5%
4%
NIL
NIL
NIL
8 Specified goods required for exploration &
production of hydrocarbon activities undertaken
under Petroleum Exploration Licenses (PEL) or
Mining Leases (ML) issued or renewed before
1st April 1999 :
i) BCD,
ii) CVD
iii) SAD
7.5%/10%
12.5%
4%
NIL
NIL
NIL
9 Foreign Satellite data” on storage media when
imported by National Remote Sensing Centre
(NRSC), Hyderabad :
i) BCD
ii) CVD
iii) SAD
10%
12.5%
4%
NIL
NIL
NIL
10 Specified imported fabrics for manufacture of
textile garments for exports : BCD
10% NIL
11 Braille paper : BCD 10% NIL
12 Magnetron of capacity of 1 KW to 1.5 KW for
use in manufacture of domestic microwave
ovens : BCD
10% NIL
13 Polypropylene granules / resins for the
manufacture of capacitor grade plastic
films :BCD
7.5% NIL
14 Medical Use Fission Molybdenum-99 imported
by Board of Radiation and Isotope Technology
(BRIT) for manufacture of radio
pharmaceuticals : BCD
7.5% NIL
15 Wood in chips or particles for manufacture of
paper, paperboard and news print : BCD
5% NIL
16 Electrolysers, membranes and their parts
required by caustic soda / potash unit using
membrane cell technology : BCD
2.5% NIL

3. Customs Duty (BCD/CVD/SAD): Enhanced:
Rate
New Rate
1 Golf cars : BCD 10% 60%
2 Natural latex rubber made balloons falling under
specified headings : BCD
10% 20%
3 Imitation jewellery : BCD 10% 15%
4 Other aluminium products : BCD 7.50% 10%
5 Industrial solar water heater : BCD 7.5% 10%
6 Capital goods and parts thereof (Increase the
tariff rate of BCD for 96 specified tariff lines in
Chapters 84, 85 and 90)
7.5% 10%
7 Primary aluminium : BCD 5% 7.5%
8 Gold dore bars : CVD 8% 8.75%
9 Silver dore bars : CVD 7% 7.75%
10 Zinc alloys : BCD 5% 7.5%

4. Customs duty (BCD/CVD/SAD) reduced:
Rate
New Rate
1 Parts of E-readers : BCD 7.5% 5%
2 Neodymium Magnet (before Magnetization)
and Magnet Resin (Strontium Ferrite compound
/ before formed, before magnetization) for
manufacture of BLDC motors, subject to actual
user condition : BCD
7.5%/10% 2.5%
3 Engine for hybrid electric vehicle
I) BCD
II) CVD
Tariff rate
Tariff rate
NIL
6%
4 Cold chain including pre-cooling unit,
packhouses, sorting and grading lines and
ripening chambers : BCD
10% 5%
5 Refrigerated containers : BCD 10% 5%
6 Coal; briquettes, ovoids and similar solid fuels
manufactured from coal : BCD
10% 2.5%
7 Lignite, whether or not agglomerated, excluding
jet : BCD
10% 2.5%
8 Peat (including peat litter), whether or not
agglomerated : BCD
10% 2.5%
9 Coke and semi-coke of coal, of lignite or of peat,
whether or not agglomerated; retort carbon :
BCD
10% 5%
10 Coal gas, water gas, producer gas and similar
gases, other than petroleum gases and other
gaseous hydrocarbons : BCD
10% 5%
11 Tar distilled from coal, from lignite or from peat
and other mineral tars, whether or not
dehydrated or partially distilled, including
reconstituted tars : BCD
10% 5%
12 Oils and other products of the distillation of
high temperature coal tar similar products in
which the weight of the aromatic constituents
exceeds that of the non-aromatic
constituents : BCD
10%/5% 2.5%

Rate
New Rate
13 Pitch and pitch coke, obtained from coal tar or
from other mineral tars : BCD
10% 5%
14 Aluminium Oxide for use in the manufacture of
Wash Coat, which is used in the manufacture of
catalytic converters : BCD
7.5% 5%
15 Super Absorbent Polymer when used for the
manufacture of sanitary pads, napkins &
tampons : BCD
7.5% 5%
16 All acyclic hydrocarbons and all cyclic
hydrocarbons [other than para-xylene which
attracts NIL BCD and styrene which attracts 2%
BCD] : BCD
5% 2.5%
17 Silica sand : BCD 5% 2.5%
18 Brass scrap : BCD 5% 2.5%
19 Denatured ethyl alcohol (Ethanol) : BCD 5% 2.5%
20 Specified fibres and yarns: BCD 5% 2.5%
21 Pulp of wood for manufacture of sanitary pads,
napkins & tampons : BCD
5% 2.5%
22 Orthoxylene for the manufacture of phthalic
anhydride (SAD): BCD
4% 2%

5. Amendment in Export duty (BCD/CVD and SAD):
Rate
New Rate
1 Iron ore fines with Fe content below 58% 10% NIL
2 Iron ore lumps with Fe content below 58% 30% NIL
3 Chromium ores and concentrates, all sorts 30% NIL
4 Bauxite (natural), not calcined or calcined 20% 15%

6. Other amendments:
Sr. No. Particulars
1 Notification no. 12/2012–Cus. dated 17.03.2012 prescribed concessional
imports of phosphoric acid for the manufacture of fertilizers and now actual
user condition is being prescribed
2 Notification no. 12/2012– Customs, dated 17.03.2012 prescribed
concessional imports of anhydrous ammonia for the manufacture of goods
falling under Chapter 31 for use as fertilizers and now actual user condition
is being prescribed
3 The validity period of exemption granted to specified goods for the use in
the manufacture of electrically operated vehicles and hybrid vehicles is
being extended without time limit
4 All dutiable articles, intended for personal use, imported by post or air limit
increased from Rs. 10,000/- to Rs. 20,000/-

Disclaimer
1. The document highlights general understanding of indirect tax amendments through
Union Budget 2016-2017. The same cannot be construed to be the opinion of the
Author.
2. Before using the same for any statutory interpretations, raising demands or taking any
business decisions, prior written consent of the author is mandatory.
3. In any case, the author or GSC Intime Services Pvt. Ltd. are not responsible for the
usage of the document without any written consent of the Author.
4. The views presented in the Document are personal views of the Author and may not be
accepted by the Tax or Judicial Authorities.
5. The document endeavors to explain the situation of the Law as on or before the date of
the document. The Author does not undertake any responsibility to update the same in
the future.
© Author

2/19 Nityanand Nagar, Sahar Road, Andheri (East), Mumbai-400 069.
6-A, Ranjit Studio Compound, DSP Road, Dadar (East), Mumbai-400 014.
+91 22 2683 6519
info@gscintime.com
Areas of Focus…
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