Union Budget 2023 - Changes in Customs Law
Customs law changes vide Finance Bill 2023
- Power to grant duty rate exemption: Validity of two years shall not apply to exemption notifications issued in relation to
- Multilateral or bilateral trade agreements;
- Obligations under international agreements, treaties, conventions;
- UN agencies, diplomats, international organizations;
- Privileges of constitutional authorities;
- Schemes under FTP or other Central Government schemes having a validity of more than two years;
- Re-imports, temporary imports, goods imported as gifts or personal baggage;
- Any other duty of customs including IGST except BCD
- Disposal of application by Settlement Commission: Application shall be disposed within 9 months from the last date of the month in which application was made
- Rationalisation of customs duty rate structure: Customs duty rate on certain goods (Gold, Silver bars, PCBA used in LCD etc.) has been reduced/newly inserted. Accordingly, there are changes in BCD, AIDC and/or SWS rates. Changes in rate to be applicable w.e.f. 2 Feb 23
- Changes in Customs Tariff: First Schedule has been amended to insert/modify line items in line with HS 2022. The changes will be effective from the date of the enactment of the Finance Act.
- Time limit for standalone notification & exemption extended:
- Time limit for 196 exemption extended wherein 146 exemptions extended till 31 March 2024 (Parts of catalytic convertor, Goods imported for testing in specified test centres, parts & sub parts of PCBA for manufacturing lithium-ion battery etc..).
- Certain conditional/unconditional exemption entries will discontinue from 31 March 2023 (Machine for food processing, specified goods used in textile industry etc..)
- Time limit for 31 standalone notification extended till 31 March 2024.
Power to grant duty rate exemption
Validity of 2 years for exemption notification not to apply in certain cases
Disposal of application by Settlement Commission
Settlement Commission shall dispose application within 9 months
Time limit for exemption extended
Time limit for 31 Standalone notification & 196 exemptions extended
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