What Big Changes in Custom Duty in Budget 2022?

In the last month, the Finance Minister has introduced changes in custom duty in budget 2022 on items of daily use items. These include umbrellas, headphones, earphones, loudspeakers, smart meters, and imitation jewelry. Who does the duty change benefit and what does it mean? With a view to protecting domestic industries that do not necessarily need to invest in capital, technology, or labor. The Finance Minister introduced a lot of higher customs duties on items of everyday use. It includes such as umbrellas, headphones, earphones, loudspeakers, smart meters, and imitation jewelry.

What Do the Duty Changes Mean and Who Do They Help?

Most of these products imported from China are either complete or knocked down. A factory in India then assembles them. Umbrellas have been subject to a 20% customs duty, and exemptions on parts of umbrellas have been removed. Loudspeakers mounted or not, have a 20% customs duty, up from 15%. The upcoming hike in import duty for items such as umbrellas. It is in line with the increase in import duty on toys last year. This hike will affect industries that do not deploy any major technologies.
Manufacturers of umbrellas for instance are located in 10 to 12 districts with Kerala being the major manufacturer. The government seems to be protecting these industries. An expert from Mumbai said that the proposal is also in line. The other announcement in the budget of popularizing one station-one product for local businesses and supply chains. As a concept, 1-station 1-product aims to promote a local product from each station on the Indian Railways. By making the station a promotional and sales hub.

What Will Be the Biggest Change in Import Duties Next Fiscal Year?

Aside from umbrellas, different kinds of headphones and earphones, whether they come with a microphone or not. As well as assets that has both a microphone and loudspeakers. It will also have their customs duties hiked to 20% from 15%. While those on smart meters will rise to 25% from 15%. As part of the Union Budget for 2022-23, the finance minister explained the exemption for implements for the agri-sector. Also, it will be simplified. The government has lowered import duties on diamonds, asafoetida, cocoa beans, methyl alcohol, and acetic acid. While phasing out concessional import rates in capital goods and projects gradually and applying a tariff of 7.5%. The project duty concessions have also deprived local producers of a level playing field. The areas such as coal mining, transmission, power generation, distribution, railway, metro projects, and so on.

What are the Changes in Customs Duty in Budget 2022?

These changes in customs duty in budget 2022 apply from 1st February 2022.

HSN CodeItem NameOld DutyIncreased Duty
54076190Non-Texturized Lining Fabric20%20% or 150 Rs. per KGs whichever is higher
95030090Toys for Manufacturing (Under Import of Goods at Concessional Rate of Duty) Rule 201715%20%

What are the Changes in IGST in Budget 2022?​

1.) There is no changes in IGST in budget 2022.
2.) IGST increase on all types of footwear from January 2022.
         2.1) If sales value not exceeding Rs.1000 per pair, 12% IGST applicable.
         2.2) If sales value exceeding Rs.1000 per pair, 18% IGST applicable.

Our experience suggests reasonable tariffs are conducive to the growth of the domestic industry. As well as ‘Make in India’ without affecting the cost of imports significantly. Imported goods are subject to a single tariff under the Customs Tariff Act, 1975 for faster assessment and clearance. Methyl alcohol (methanol) and acetic acid, among others, now carry duties of just 2.5%-5%, respectively, instead of the previous 10%. The customs duty on certain critical chemicals such as methanol, acetic acid, heavy feedstock for petroleum refining has been reduced. While the duty on sodium cyanide, for which domestic capacity is adequate, has been raised. As a result of these changes, domestic value addition will be enhanced.

In What Ways Have Import Duties Changed Recently?

Customs duties for steel scrap have previously been exempt, and have been extended for another year. These will likely benefit micro, small, and medium secondary steel producers. There have been several increases in import duties related to almonds, apples, and more since 2005. Pieces of cell phone parts and solar panels have also witnessed frequent hikes. The goal is to protect and promote domestic industry growth. Prior to the large-scale hikes, India’s peak customs duty rate. The highest of all normal rates on non-agriculture products had fallen more than 150% from 1991-92 to 1997-98. It then fell to 20% in 2004-05 and to 10% in 2007-08.

For detailed information about changes in custom duty in budget 2022 , feel free to contact us on call: +91-9717360020 | or email us: cargodeal@falconfreight.com

Cargo shipping companies

To Know More

  • Import/Export, cargo mode: Air, sea, and by land.
  • Routine shipment, home consumption (duties paid)
  • Ex-Bond/In-Bond shipment
  • Shipments of DEPB, EPCG, and DFCEC licenses
  • 100% EOU / STPI / SEZ / TP for ship spares / R&D certification / passbook scheme
  • Import clearance for a project
  • Direct deliver perishables and certain cargo
  • Re-import after repairs / exhibition
  • Clearance of third-country exports
  • ATA carnet clearance
  • Second-hand capital goods
  • Free-of-charges shipments
  • Courier clearance
  • Door to door delivery

There are certain certificates that you must obtain from the concerned departments regarding the following items:

  • Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments)
  • Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. )
  • Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof)
  • Drug & Cosmetics Act, 1940, No-objection Certificate (NOC) from Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.)
  • BIS, Bureau of Indian Standards BIS is responsible for the harmonious development of the activities of standardization, marking and quality certification of goods and for matters connected therewith or incidental thereto
  • EPR, Extended Producer’s Responsibility With EPR India authorization, the manufacturer / importer of electronic and electrical products has been given the responsibility to control E-waste by the products after expiry of their lifetime.
  • WPC, Wireless Planning & Coordination Imports of radio equipment into India, without prior permission from WPC, will be confiscated by Customs at point of entry.
  • LMPC, Legal Metrology & Packaged Commodity Registration  For import of any pre-packed commodities commodity to distribute or sell Then he need to apply for packer / manufacturer registration

Import Cargo Customs Clearance Procedures & Documentation

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What is Custom Clearance? 5 Frequently asked questions?

Legal, Standard and Specific Documents Required

  1. Commercial Invoice
  2. Packing list
  3. KYC Documents Required by The CHA for Custom Clearance.
  4. GST (LUT)/ IGST declaration
  5. Export License (If required)
  6. AD Code on (Bank Letter Head)
  7. MSME Certificate (If required)
  8. RCMC/EPC Certificate (If required)
  9. AA (DEEC)/ DFIA/ EPCG/ EOU License For Export Benefits (incentive) (As an option the Exporter may Choose)
  10. Any other Documents required to in this Consignment.

Certificates From The Concerned Departments

In relation to the following items you will need to obtain certain certificates from the concern department, which we have provided you  below :

  1. Registration From Food Safety and Standards Authority of India (FSSAI) (For Food/Edible Import Consignments) (if required)
  2. Plant and Protection Quarantine Certificate/ import permit plus Fumigation treatment Certificate are required for the import of plant material (For seeds, plant and plant thereof) (if required)
  3. Animal Quarantine Certificate (A&Q) Required import in india (For animal, animal parts, animal feed, etc. ) (if required)
  4. CDRUG – ADC Assistant Drug Controller(ADC) (is mandatory for the import of drugs/bulk drugs, etc.) (if required)
  5. SCOMET – Special Chemical organism, material Equipment, Technology.
  6. PSI – Pre Shipments Inspection. (if required)
  7. Certificate of origin.
  8. APEDA – Agriculture and processed food products Export development authority.
  9. FUMIGATION (if required)
  10. WILD LIFE (if required)
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