Special Coal for Steel using Corex Technology

· Duty Cut to 30% for CKD Kits with Preassembled Engine, Gear Box and Transmission

· CVD Reduced to 5% from 10% on Parts for the Manufacture of Printers

[Ref: Customs Notification No. 31/2011 dated 24th March 2011]

A definition of Completely Knocked down Unit had been prescribed in the Budget. However, considering the representations by the industry, the custom duty rate on vehicles imported in the form of completely knocked down kits having all the necessary components, parts and sub-assembly including the preassembled engine, gearbox and transmission mechanism of Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02) including motor cycles is being reduced from 60% to 30%. Such imports of vehicles in completely built form or in any other form including in a form where any of the three viz. engine, gear box or transmission assembly are imported fixed to a chassis will attract 60% BCD. The imports in form of CKD kits where all the parts and components including engine, gearbox and transmission assembly are present in completely knocked down condition will attract 10% BCD.

In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 21/2002-Customs, dated the 1st March, 2002, published in the Gazette of India, Extraordinary vide number G.S.R.118 (E), dated the 1st March, 2002, namely:-

In the said notification,

(I) in the TABLE,-

(i) after S. No. 66 and the entries relating thereto, the following S. No. and entries shall be inserted, namely:-

(1)	(2)	(3)	(4)	(5)	(6)
“66A	2701	Coal having Swelling Index or Crucible Swelling Number of 1 and above and mean reflectance of above 0.60, for use in the manufacture of iron or steel using Corex, Finex or PCI technology	Nil	-	5”;

(ii) for S. No. 344, and the entries relating thereto, the following S. No. and entries shall be substituted , namely:-

(1)	(2)	(3)	(4)	(5)	(6)
“344	8703	Motor cars and other motor vehicles principally designed for the transport of persons (other than those of heading 87.02), including station wagons and racing cars, new, which have not been registered anywhere prior to importation, if imported,-
		(1) as a Completely Knocked Down (CKD) kit containing all the necessary components, parts or sub-assemblies, for assembling a complete vehicle, with,-
		(a) engine, gearbox and transmission mechanism not in a pre-assembled condition;	10%	-	-
		(b) engine or gearbox or transmission mechanism in pre-assembled form but not mounted on a chassis or a body assembly.	30%	-	-
		(2) in any other form.	60%	-	-”;

(iii) for S. No. 345, and the entries relating thereto, the following S. No. and entries shall be substituted, namely:-

(1)	(2)	(3)	(4)	(5)	(6)
“345	8711	Motor cycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side cars, and side cars, new, which have not been registered anywhere prior to importation,-
		(1) as a Completely Knocked Down (CKD) kit containing all the necessary components, parts or sub-assemblies, for assembling a complete vehicle, with,-
		(a) engine, gearbox and transmission mechanism not in a pre-assembled condition;	10%	-	-
		(b) engine or gearbox or transmission mechanism in pre-assembled form, not mounted on a body assembly.	30%	-	-
		(2) in any other form.	60%	-	-”;

(iv) after S. No. 613 and the entries relating thereto, the following entry shall be inserted, namely:-

(1)	(2)	(3)	(4)	(5)	(6)
“614	8443 99	Parts for manufacture of printers falling under heading 8443 32	NIL	5%	5”;

(II) In List 3, after item (174), the following shall be inserted, namely:-

“(175) Bevac izumab.”

[F.No.B-1/3/2011-TRU]