Indian Finance Minister Nirmala Sitharaman proposed the Union Budget (Union Budget) for the new fiscal year (2022-23) to Congress on February 1, 2022. The new annual budget rationalizes the tariff structure of many products and cancels import tariff exemptions for up to 350 products. , to promote the Make in India policy (Make in India) and promote the development of India’s domestic manufacturing industry.
Daily items such as umbrellas, earphones, headsets, speakers, smart meters and imitation jewelry will be subject to higher tariffs. Most of these products are imported from China.
The main changes are:
◦ Increase import tariffs on food, minerals and fuels, chemicals, IT electronics and renewable energy, machine tools, solar photovoltaics, etc.;
◦Reduce import tariffs on textiles, gems and jewelry.
The specific adjustments are as follows:
01 Solar energy
◾The import tariffs on photovoltaic cells (85414200), solar cells (85414200), and solar modules (85414300) are adjusted from 20% to 40%, 25%, and 40% respectively.
◾For electricity import projects (including nuclear energy and solar photovoltaic power generation) registered before September 30, 2022, lower tax rates such as 0%, 2.5%, and 5% will continue to apply until September 30, 2023;
◾The applicable tax rate for registrants after September 30, 2022 is 7.5%.
◾After September 30, 2023, the 7.5% tax rate will apply to all registered project imports.
02 Electronic components
◾Continue to provide tariff-free concessions for advanced machines that cannot be manufactured in India;
◾For domestically manufactured wearable devices and audio equipment that India hopes to strengthen, such as single and multiple speakers (851821, 851822, 851829), over-ear headphones (851830), the tax rate will be adjusted from 15% to 20%.
03 Smart meter
◾The Indian government purchases smart meters on a large scale across the country and formulates preferential market entry policies.
◾In the future, the tax rate for imported smart meters (90283010) will be adjusted to 25%, and the printed circuit board PCB (90289010) used to assemble the meters will be adjusted to 20%.
◾The price of communication module (85176990) and battery (85065000) has been reduced from 10% to zero.
04 Amend the customs clearance procedures of the Customs Act 1962
◾Customs valuation requires the importer to provide evidence to prove the import value of the goods;
◾Goods classification and valuation information shall not be disclosed to the public;
◾The applicant can withdraw the application at any time before the tariff pre-review is announced;
◾Promote digitalization and achieve automation and electronic processing through a single platform;
◾Regulating the categories of customs personnel and the definition of appropriate customs personnel under the Customs Act.
Be a friend in the Indian market, check the status of your own products, and get in touch with buyers in a timely manner.
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