CHAPTER 22

Beverages, spirits and vinegar NOTES :

1. This Chapter does not cover:

(a) products falling thereunder (other than those of heading 2209) prepared for culinary purposes and thereby rendered unsuitable for consumption as beverages (generally heading 2103);

(b) sea water (heading 2501);

(c) distilled or conductivity water or water of similar purity heading 2853 [OLD(heading 2851)];

(In Note 1 clause (c) has been amended vide Finance Bill 2006 w.e.f. from 01/01/2007)

(d) acetic acid of concentration exceeding 10 % by weight of acetic acid (heading 2915);

(e) medicaments of heading 3003 or 3004; or

(f) perfumery or toilet preparations (Chapter 33).

2. For the purposes of this Chapter and of Chapters 20 and 21, the “alcoholic strength by volume” shall be determined at a temperature of 20° C.

3. For the purposes of heading 2202, the term “non-alcoholic beverages” means beverages of an alcoholic strength by volume not exceeding 0.5 % vol. Alcoholic beverages are classified in headings 2203 to 2206 or heading 2208 as appropriate.

SUB-HEADING NOTE :

For the purposes of sub-heading 2204 10, the expression “sparkling wine” means wine which, when kept at a temperature of 20°C in closed containers, has an excess pressure of not less than 3 bars.

EXEMPTION NOTIFICATIONS Rates of additional duty on specified alcoholic liquors:
[Notfn. No. 32/03-Cus. dt. 1.3.2003]

In exercise of the powers conferred by the proviso to sub-section (1) of section 3 of the Customs Tariff Act, 1975(51 of 1975) and in supersession of the notification of the Government of India in the erstwhile Ministry of Finance (Department of Revenue) No.54/2001-Customs, dated the 11th May, 2001, published in the Gazette of India, vide number G.S.R.353 (E), dated the 11th May, 2001, the Central Government having regard to the excise duties for the time being leviable on like alcoholic liquors produced or manufactured in different States, or the excise duties which would be leviable for the time being in different States on the class or description of alcoholic liquor, as the case may be, hereby specifies, on goods of the description specified in column (3) of the Table below, and falling under the headings of the First Schedule to the said Customs Tariff Act as are specified in the corresponding entry in column (2) of the said Table, when imported into India, the rates of additional duty specified in the corresponding entry in column (4) of the said Table.

Table

S.No.	Heading	Description of goods	Rate of additional duty
(1)	(2)	(3)	(4)
1.	2203, 2204, 2205, or 2206	All goods put up in bottles or cans or any other packing, for ultimate sale in retail and having a CIF price,-
		(a) not exceeding USD 25 per case;	75% ad valorem
		(b) exceeding USD 25 but not exceeding USD 40 per case;	50% ad valorem or USD 37 per case, whichever is higher
		(c) exceeding USD 40 per case	20% ad valorem or USD 40 per case, whichever is higher
2.	2208	All goods put up in bottles or cans or any other packing, for ultimate sale in retail and having a CIF price,-
		(a) not exceeding USD 10 per case;	150% ad valorem
		(b) exceeding USD 10 but not exceeding USD 20 per case;	100% ad valorem or USD 40 per case, whichever is higher
		(c) exceeding USD 20 but not exceeding USD 40 per case;	50% ad valorem or USD 53.2 per case, whichever is higher
		(d) exceeding USD 40 per case	25% ad valorem or USD 53.2 per case, whichever is higher

Explanation.- For the purposes of this notification,-

(i) a “case” shall mean a packing containing a total volume of nine litres of liquor;

(ii) the CIF price of any goods put up in packings of a size other than nine litres shall be determined on a pro-rata basis;

(iii) the said additional duty shall be payable in Indian currency;

(iv) “USD” means US Dollar;

(v) rate of exchange applicable for the purpose of calculation of the said additional duty shall be the rate which is specified in the notification of the Government of India in the Ministry of Finance and Company Affairs (Department of Revenue), issued from time to time, in exercise of the powers conferred by sub-clause (i) of clause (a) of sub-section (3) of section 14 of the said Customs Act, and the relevant date for the determination of the rate of exchange shall be the date of presentation of the bill of entry under section 46 of the said Customs Act.

Exemption from Additional duty leviable on Beer of Nepalese origin.
[Notfn. No. 178/03-Cus. dt. 17.12.2003]

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) read with sub-section (6) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government being satisfied that it is necessary in the public interest so to do hereby exempts the beer of Nepalese origin falling under heading 2203 of the First Schedule to the said Customs Tariff Act from the whole of the additional duty leviable on such beer under the notification of the Government of India in the Ministry of Finance, Department of Revenue, No. 32/2003-Customs, dated the 1st March, 2003, published in the Gazette of India vide G.S.R. 167(E), dated the 1st March, 2003.

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