|
COMPETITIVENESS & EFFICIENCY IMPROVEMENT
EXERCISE
(BUDGET 2007-08)
Ø
The Competitiveness & Efficiency
Improvement Exercise (Budget 2007-08) kick-started during February 2007, on
designed Terms of References (TORs) through following Committees
constituted of well experienced and renowned persons from the private sector as
their Convenors and the EDB officials well versed with the sectors as
Coordinators. Each Committee was consisting of the industrialists of the
relevant sectors as their Members;
·
17 Sectoral Committees
·
Committee on TBS & Vendor
Industry
·
Committee on Simplification
of SROs.
Ø
Several Budget Proposals,
containing following tariff lines and received through Sectoral Committees, MOIP&SI,
CBR and Industrial concerns were compiled, examined, discussed/consulted and
consolidated/ finalized after having series of meetings Sectoral Committees,
individual stake holders, MOIP&SI and CBR.
|
Proposals Containing Total Lines |
|
CBR |
EDB |
Total |
Consolidated |
|
2,762 |
1,390 |
4,152 |
1,841 |
Ø
The import of raw-materials for
most of the industrial goods were recommended to 0% from 5%, sub-components,
components at 5% & 10%, maintaining finished goods at 15% to 25%. While
providing sufficient tariff incentive through cascading to the local industry
and foreign investors, emphasis remained not to provide undue protection.
Ø
CONSOLIDATED BRAKE-UP OF BUDGET
PROPOSALS;
Figs in Nos.
|
Total Tariff Lines |
1,841 |
|
No Change |
1,157 |
|
No Comments |
186 |
|
Change Proposed |
498 |
|
Duty Reduced
|
From |
10% - 5% |
63 |
|
|
15% - 10% |
24 |
|
|
20% - 10% |
15 |
|
|
20% - 15% |
145 |
|
|
25% - 10% |
2 |
|
|
25% - 15% |
17 |
|
|
25% - 20% |
192 |
|
|
30% - 15% |
2 |
|
|
35% - 25% |
3 |
|
|
35% - 10% |
1 |
|
|
Rs. 7000/M.T |
1 |
|
|
|
|
|
465 |
|
Duty Increased
|
n From |
5% - 10% |
1 |
|
|
10% - 15% |
14 |
|
|
|
|
|
15 |
|
New PCT Heads
|
From |
5% - 15% |
1 |
|
|
10% - 5% |
3 |
|
|
10% - 10% |
1 |
|
|
15% - 15% |
1 |
|
|
20% - 10% |
1 |
|
|
20% - 20% |
1 |
|
|
20% - 5% |
1 |
|
|
20% - 5% |
2 |
|
|
25% - 15% |
1 |
|
|
35% - 5% |
1 |
|
|
|
|
|
13 |
|
Description Changed |
|
|
|
|
|
|
03 |
|
Merger of PCT Heads |
02 |
Ø
DETAILS OF ABOVE
PROPOSALS
Duty Increased:
|
PCT Head |
Description |
Duty
2006-07 |
Proposed
2007-08 |
Nos. |
|
2917.3500 |
Phthalic Anhydride |
10 |
15% |
1 |
|
7217.3010 |
Bead wire |
5 |
10% |
1 |
|
73.05/73.06 |
Welded Pipes |
10 |
15% |
13 |
Ø
New PCT Heads:-
|
S.No. |
HS CODE |
HS CODE |
DESCRIPTION |
CD% |
Proposed |
|
2006 |
2007 |
2006-07 |
Duty |
|
1 |
2905.1220 |
2905.1220 |
Iso Propyl Alcohol Industrial (Preparations) |
5 |
15 |
|
2 |
3214.9000 |
3214.9010 |
Silicon sealant |
20 |
20 |
|
3 |
3701.3090 |
3701.3030 |
Presensitized
printing plates |
25 |
15 |
|
4 |
3823.1990 |
3823.1930 |
Fatty acid distillate |
15 |
15 |
|
5 |
3906.9090 |
3906.9030 |
Pigment thickener |
20 |
10 |
|
6 |
5911.9000 |
5911.9010 |
Dryer screen for paper making |
10 |
5 |
|
7 |
7612.9010 |
7612.9030 |
Of a capacity upto 400 ml and bearing brand
name and/or logo |
10 |
5 |
|
8 |
8409.9199 |
8409.9980 |
Parts for marine engines |
35 |
5 |
|
9 |
8501.5100 |
8501.5110 |
Submersible motors of stainless steel |
20 |
5 |
|
10 |
8501.5200 |
8501.5210 |
Submersible motors of stainless steel |
20 |
5 |
|
11 |
8525.2040 |
8517.1220 |
Fixed wireless terminal and CDMA |
10 |
15 |
|
12 |
8525.2090 |
8525.6060 |
Vehicle tracking system |
10 |
10 |
|
13 |
8539.9020 |
8539.9030 |
Base cap for tube lights |
10 |
10 |
Description Changed:
|
PCT Head |
Existing Description |
Proposed Description |
|
8711.3020 |
Auto Rickshaws in CBU
condition |
Motorbike Rickshaws in CBU |
|
8504.9040 |
Toroidal cores and strips not exceeding 150 mm |
Toroidal cores and strips |
|
8415.1030 |
Tropical MPS multi system unit exceeding 5 tonnes capacity |
Tropical MPS multi system unit 5 tonnes capacity and above |
Ø
Items proposed in SROs (239
out of total 1,841 Tariff Lines;
|
Proposed in SROs |
239 |
|
SRO 565 |
114 |
|
SRO 567 |
95 |
|
SRO 575 |
25 |
|
SRO 693 (5) |
5 |
Besides above EDB also proposed certain
amendments in following SROs related to Engineering Industry in coordination
with the Committee & consultation with the stake holders, which have been agreed
by CBR and amendments have been made in the relevant SROs.
Ø
SRO 565(I)/2006
(Survey Based) - Amended vide
SRO 499(I)/2007
Ø
SRO 567(I)/2006
(Non-Survey Based) -
Amended vide SRO
507(I)/2007
Ø
SRO 575(I)/2006
(Import of Machinery) - Amended vide
SRO 490(I)/2007
Ø
SRO 655(I)/2006
(Manfg. of Auto Parts) - Amended vide
SRO 497(I)/2007
Ø
SRO 656(I)/2006
(Assembly of Vehicles) - Amended vide
SRO 496(I)/2007
Ø
SRO 693(I)/2006 (Additional C/Duty) - Amended vide
SRO 498(I)/2007
Ø
Customs Rules 2001 (DTRE
Scheme)- Amended vide
SRO 506(I)/2007
The Salient Features of the Budget 2007-08 are given as under;
SALIENT FEATURES OF BUDGET EXERCISE – 2007-08
GENERAL
Ø
Amendments in DTRE Scheme to facilitate Engineering Industry.
Ø
Levy of
1% Special surcharge on imports excluding vegetables/pulses, edible oil/ghee,
crude petroleum, furnace oil, HSD, medicines, fertilizers, imports under chapter
99, temporary imports etc.
Ø
Levy of
regulatory duty on export of specified metals and articles thereof.
Ø
Import
of old/used cars/jeeps (Revision of 5 yrs. capping to 3 yrs. )
Ø
5 Year
Tariff Plan for Auto Sector.
Ø
Merger
of CVT applicable on import of Vehicle in Customs duty except Cars upto 800cc.
|
S.No. |
Vehicle Category |
Pre-Budget
Duty |
Post-Budget
Duty |
|
1. |
Cars of Capacity up to 800 cc |
50% |
50% |
|
2. |
Cars of capacity exceeding 800 cc but not exceeding 1000 cc |
50% |
55% |
|
3. |
Cars of capacity exceeding 1000 cc but not exceeding 1500 cc |
| | 
