PUBLIC NOTICE No.140/2001 Date: 29-12-2001/31-12-2001

Sub: - Amendments to the Indian Customs Tariff as provided in Third Schedule of the Finance Act, 2001- regarding.
Attention of all the Traders and Industries is invited to certain amendments as proposed to be brought into with effect with from 1.1.2002 in the Indian Customs Tariff. These amendments were incorporated in the Third Schedule (Part I and Part II) of the Finance Act, 2001 and it was provided in Clause 119 of the said Act that w.e.f. the date to be notified by the Central Government, the First Schedule to the Customs Tariff Act, 1975, shall be amended as provided in the Third Schedule. Part I of the Third Schedule of the Finance Act contains changes which do not involve creation of new headings or sub-headings. The part II contains amendments resulting in creation of new headings and sub-headings. Duty rates for each new heading/sub-heading have been provided in the said Schedule.

2. All, there are 373 sets of amendments encompassing agricultural, chemical, paper, textile, base-metal, machinery and other sectors. About 8% of the HS 6 digit sub-headings have been affected by these amendments and their scope altered. For Example in respect of sub-heading 8481.30 relating to Valves for the entry ‘Check Valves’ the entry ‘Check (non-return) Valves’ has been substituted, hereby modifying the scope of the entry. Further, a number of chapter notes, sub-heading notes have undergone change leading to addition / deletion of such notes in many cases. Also, while headings have been split in a number of cases, some sub-headings have been merged into single headings. Description in headings, sub-headings, chapter notes, sub-heading notes have been changed / modified in several cases. 65 sub-headings have been deleted due to low volume of trade. Scope of 177 sub-headings of various chapters has been modified, thought their code number has not changed. An important feature of change this time is that amendments have taken into account the environmental and social concerns besides the other factors such as technological advancements changes in patters of international trade, and the needs of the various users, etc. As many as 91 new sub-headings have been created for identification of certain specific categories of wastes, monitoring and control of certain live animals under CITES and narcotic drugs and psychotropic substances. Efforts have also been made to bring about clarity in certain existing texts. For example, in Sub-heading 8415.10, relating to Air Conditioning Machines, for the entry ‘Window or Wall types, self contained’ the entry ‘window or wall types, self contained or split system’ has been substituted, thereby clarifying the coverage of split A.C. system under Sub-heading 8415.10. In some cases the texts of Chapter notes, Section notes and headings have also been amended to make them more consistent with scientific or customary terminology or with trade practice.

3. It may be seen that major changes have been introduced in Chapter 27(mineral fuels, mineral oil and products of their distillation), 29 (organic chemicals ), 38 (miscellaneous chemical products), 41 (raw hides and skins and leather), 44 (wood and articles of wood), 48 (paper and paper board) 60 (knitted and crocheted fabrics), 85 (electrical machinery and equipment) and 90 (optical, cinematographic, photographic, measuring, checking and medical equipment). In Chapter 27.10, dealing with crude petroleum oils has been split into 4 sub-headings and a separate sub-heading has been created for waste oils, In Chapter 38, a separate heading with 9 sub-headings has been created to cover residual products of the chemical or allied industries, municipal waste, sewage sludge and other wastes. In Chapter 40, which deals with rubber products, 6 sub-headings have been created to cover new pneumatic tyres of rubber of a kind used on agricultural or forestry vehicles, construction or industrial heading machines etc. In Chapter 41, 3 new headings with 10 sub-headings have been created to deal with leather which has been further prepared after tanning. In Chapter 60, 4 new headings with 35 sub-headings have been created to cover knitted and crocheted fabrics of wool or fine animal hair/cotton/synthetic fibers/artificial fibres. In Chapter 85, a new definitions of software and smart cards have been provided.

4. The tariff lines deleted from the Tariff include 0711.10(onions),0812.20(strawberries), 1104.11 & 1104.21 (rolled or flaked grains of barley), 1212.92(sugarcane), 1515.60(jojoba oil),2001.20 (onions-preserved food), 25.27(natural residues of vanadium), 4301.40 & 4301.50 (raw furskins of rabbit or hare/beaver, musk-rat), 5308.30 (paper yarn) 5607.30 (twine cordage, ropes, cables of abaca fibres), 68.12 (fabricated asbestos yarn and thread, cords and strings etc), 8430.62 (other machinery, not self –propelled –scrapers) and 85.08 (electro-mechanical tools for working in hand).

5. A booklet containing all amendments to Indian Customs Tariff, provided in the said Third Schedule, which will come into effect from 1.1.2002, in enclosed with this Public Notice.

6. All those concerned may take note of the above changed and any difficulty in implementing the same may be brought to the notice of the Commissioner of Commissioner (Import).

(M.C. THAKUR)
COMMISSIONER OF CUSTOMS
(IMPORT)

Issued vide File No. S/26-485/2001 A(G)

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