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2023 Budget Changes in Custom Duty Rates

Budget 2023 showed a reduction in basic customs duty to reduce input costs, deepen value addition, to promote export competitiveness, correct invert duty structure so as to boost domestic manufacturing.

Here is the list of items on which there was seen a fall in the basic custom duty.

CommodityRate of Duties
AGRICULTURE PRODUCTSFromTo
Pecan Nuts10030
Fish meal for manufacture of aquatic feed155
Krill meal for manufacture of aquatic feed155
Fish lipid oil for manufacture of aquatic feed3015
Algal Prime (flour) for manufacture of aquatic feed3015
Mineral and Vitamin Premixes for manufacture of aquatic feed155
Crude glycerin for use in the manufacture of Epichlorohydrin7.52.5
Denatured ethyl alcohol for use in the manufacture of industrial chemicals.5NIL
MINERALS  
Acid grade fluorspar (containing by weight more than 97 per cent of calcium fluoride)52.5
GEMS & JEWELLERY SECTOR  
Seeds for use in the manufacturing of rough lab-grown diamonds5NIL
CAPITAL GOODS
Specified capital goods/machinery for manufacture of the lithium-ion cell for use in battery of electrically operated

vehicle (EVs)

As applicableNIL
IT & ELECTRONICS
Specified chemicals/items for manufacture of Pre-calcined Ferrite Powder7.5NIL
Palladium Tetra Amine Sulphate for manufacture of parts of connectors7.5NIL
Camera lens and its inputs/parts for use in manufacture of camera module of cellular mobile phone2.5NIL
Specified parts for manufacture of open cell of TV panel5NIL
ELECTRONIC APPLIANCES
Heat coil for manufacture of electric kitchen chimneys2015
OTHERS
Warm blood horse imported by sports person of outstanding eminence for training purpose30NIL
Vehicles, specified automobile parts/components, sub-systems and tyres when imported by notified testing agencies, for the purpose of testing and/ or certification, subject to conditions.As applicableNIL

2023 Budget also served increase in some of the commodities custom duty which is given below in the tabular form, namely:-

CommodityRate of Duties
CHEMICALSFromTo
Styrene22.5
Vinyl chloride monomer22.5
PETROCHEMICAL  
Naphtha12.5
PRECIOUS METALS  
Silver (including silver plated with gold

or platinum), unwrought or in semi-manufactured

forms, or in powder form

7.510
Silver dore6.110
GEMS AND JEWELLERY SECTOR
Articles of Precious Metals such as gold/silver/platinum2025
Imitation Jewellery20 OR Rs. 400/kg whichever is higher25 or Rs. 600/kg whichever is higher
AUTOMOBILES
Vehicles (including electric vehicles) in

Semi-Knocked Down (SKD) form.

3035
Vehicle in Completely Built Unit (CBU) form, other than with CIF more than USD 40,000 or with engine capacity

more than 3000 cc for petrol-run vehicle and more than 2500 cc for diesel-run vehicles, or with both

6070
Electrically operated Vehicle in Completely Built Unit (CBU) form, other than with CIF value more than USD 40,0006070
OTHERS
Bicycles3035
Toys and parts of toys (other than parts of electronic toys)6070
Compounded Rubber1025 OR 30/kg whichever is lower
Electric Kitchen Chimney7.515

Let us now have a look at the 2023 budget custom duty rate changes in central excise.   

NCCD Duty rate on Cigarettes

Description of GoodsRate of Excise Duty
From

(Rs. per 1000 sticks)

To
(Rs. per 1000 sticks)
Other than filter cigarettes, of length not exceeding 65 mm200230
Other than filter cigarettes, of length exceeding 65 mm but not exceeding 70 mm250290
Filter cigarettes of length not exceeding 65 mm440510
Filter cigarettes of length exceeding 65 mm but

not exceeding 70 mm

440510
Filter cigarettes of length exceeding 70 mm but

not exceeding 75 mm

545630
Other cigarettes735850
Cigarettes of tobacco substitutes600690

Other Custom Duty Rate Budget 2023

For promoting green fuel, in the Budget 2023 central excise duty exemption is being provided to blended Compressed Natural Gas which is equivalent to the GST paid on Bio Gas/ Compressed Bio gas contained in the blended CNG.

Summary on 2023 Budget Custom Duty Rates

All in all, the budget 2023 introduces these rate change in custom duty in order to promote more of exports and boost domestic manufacturing. Also, the Finance Minister proposed these custom duty rate changes in Budget 2023 to enhance domestic value addition and encourage the green energy and mobility. Nirmala Sitharaman emphasized “A simplified tax structure with fewer tax rates helps in reducing compliance burden and improving tax administration”.

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