Excise & Customs Tariffs set to be overhauled from 1st January, 2012
7th December, 2011
The Indian Central Excise and Customs Tariffs are set to undergo some major changes. Changes are being made to align Indian Customs and Central Excise Tariff Schedules with HSN amendments as approved by the World Customs Organization.
The amendments are being made as per Sections 60(a)(ii) and 73(a)(ii) of Finance Act, 2011. These provisions come into effect from 1st of January, 2012. The changes provide for more comprehensive coverage of several goods spread across various Chapters in both Customs and Central Excise Tariff Schedules.
Some items which were earlier classifiable under the residual category of “others” will be classifiable under specific entries. Changes have also been made in classification for some items within the same heading/sub-heading like cane sugar and motor spirit (petrol).
The changes also provide for major reshuffling in Chapters classifying machinery, electrical/electronic goods and measuring & medical instruments. Products like baby diapers and napkins are being shifted to altogether different Chapter.