FM extends duty exemption on steel scrap: reduction on critical chemicals

New Delhi, Feb 1 (UNI) In a bid to provide relief to the MSME secondary steel producers, Finance Minister Nirmala Sitharaman has extended the customs duty exemption given to steel scrap in the last budget, by one year. The minister has, however, revoked certain anti-dumping and countervailing duty (CVD) on stainless steel and coated steel flat products. “Customs duty exemption given to steel scrap last year is being extended for another year to provide relief to MSME secondary steel producers. Certain anti- dumping and CVD on stainless steel and coated steel flat products, bars of alloy steel and high-speed steel are being revoked in larger public interest considering prevailing high prices of metals,” Sitharaman said in her speech. Stating that the government has rationalized several customs exemptions in the last two budgets, the minister said, “We have once again carried out an extensive consultation, including by crowd sourcing and as a result of these consultations, more than 350 exemption entries are proposed to be gradually phased out.” These include exemption on certain agricultural produce, chemicals, fabrics, medical devices and drugs and medicines for which sufficient domestic capacity exists. The government has proposed a reduction in customs duty on certain critical chemicals namely methanol, acetic acid and heavy feed stocks for petroleum refining. However, the duty is being raised on sodium cyanide for which adequate domestic capacity exists. “These changes will help in enhancing domestic value addition,” she noted. Asserting that electronic manufacturing has been growing rapidly, Sitharaman said the customs duty rates are being calibrated to provide a graded rate structure to facilitate domestic manufacturing of wearable devices, hearable devices and 28 electronic smart meters. “Duty concessions are also being given to parts of the transformer of mobile phone chargers and camera lens of mobile camera module and certain other items. This will enable domestic manufacturing of high growth electronic items,” the minister said. To give a boost to the gems and jewelry sector, customs duty on cut and polished diamonds and gemstones is being reduced to 5 per cent, while simply sawn diamond would attract nil customs duty. “To facilitate export of jewelry through e-commerce, a simplified regulatory framework shall be implemented by June this year. To disincentivize import of undervalued imitation jewelry, the customs duty on imitation jewelry is being prescribed in a manner that a duty of at least Rs 400 per kg is paid on its import,” she said. Sitharaman noted that removal of exemption on items which are or can be manufactured in India and providing concessional duties on raw material that go into manufacturing of intermediate products will go many a step forward in achieving our objective of ‘Make in India’ and ‘Atmanirbhar Bharat’. For the MSME, duty on umbrellas is being raised to 20 per cent, while exemption to parts of umbrellas is being withdrawn. “Exemption is also being rationalized on implements and tools for agri-sectors which are manufactured in India,” Sitharaman said. To incentivize exports, exemptions are being provided on items such as embellishment, trimming, fasteners, buttons, zipper, lining material, specified leather, furniture fittings and packaging boxes that may be needed by bonafide exporters of handicrafts, textiles and leather garments, leather footwear and other goods, the minister said in her speech.