• UGI USER
  • Aug 02, 2024
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CBIC RESTORES 10% DUTY ON LAB CHEMICALS

Why in the news?

  • CBIC has reinstated a 10% import duty on chemicals for laboratory use, reversing a previous hike announced in the Union budget for FY25.
  • The new duty applies to genuine lab users, effective from August 1, 2024.Importers must declare the end use to qualify for this rate.

Key Exclusions and Compliance by CBIC:

  • Ethyl Alcohol: Undenatured ethyl alcohol is excluded from the 10% duty and is subject to a 150% duty due to misuse concerns.
  • Compliance Requirement: Non-compliance with end-use declarations will result in ineligibility for the concessional rate.

Tariff Classification:

  • Current Tariffs: Chemicals generally attract import duties ranging from 2.5% to 10% under the Customs Tariff Act.
  • Special Classification: Chemicals imported in packages not exceeding 500ml or 500g for laboratory use are specifically classified with a 10% duty.
source:researchgate
About Central Board of Indirect Taxes and Customs (CBIC):

  • Role: Administers indirect taxes, including Customs, Central Excise, GST, and IGST; handles policy, prevention of smuggling, and narcotics.
  • Administration: Oversees Custom Houses, Central Excise and GST Commissionerates, and Central Revenues Control Laboratory.
  • Customs Duty Collection: Manages collection at airports, seaports, Custom Houses, cargo stations, ICDs, Land Customs Stations, SEZs, and CFSs.
  • Organisation: Headed by a Chairman; divided into divisions/zones led by Chief Commissioners or Directors General; includes GST intelligence wing for tax evasion.