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How to Use this Customs Tariff Schedule
Introduction
The Customs Tariff Database provides Eleven columns making it most user friendly tariff. It provides direct display of classification along with Basic Customs Duty, Additional Duty of Customs, Special Additional Duty of Customs and Aggregate Duties applicable for any entry in the Customs Tariff.
The 11 columns provides following details:-
HS Code Level Items Description Unit Basic CVD Spl CVD Total  Duty with 2+1% Edu Cess Import  Policy and NTBs Country Preferences Import Volume 2010-11 (Rs. Crs)
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
5402 69 40 --- Acrylic filament yarn Kg 10 12 4 28.852 Free Np Lk SA ASN My Jp 5.06
• Col (1) Harmonized System Code
The entries under First Schedule of Customs Tariff have been amended, aligned and updated in line with HSN 2012. New HS2012 nomenclature has entered into force from 1 January 2012 which is incorporated in the respective Chapters.The eight digit code shows the HSN at 8 digit level under the name "Tariff Item". The first two digit of the code provides chapter number, the next two digits gives the Customs Tariff Head (CTH) grouping. The third set of two digits in the code gives the Customs Tariff Sub-heading. This six digit code is aligned with Harmonized System of Nomenclature adopted by World Customs Organization. The last two digits provide Customs Tariff Sub-sub-head for the entry. They are specific to India. Thus the Code is the same as that in other countries only at six digit.
• Col (2) Level

The level indicates coding of dashes. Single dash (-) at the beginning of description indicates a group denoting primary classification of item covered by the heading. The double dash (--) at the beginning of description implies a sub-group representing sub classification (sub-heading) of the line under primary classification. Triple dash and quadruple dash indicates sub-sub classification under sub-heading for the line. The coding of dashes has utility in deciding the classification of an item under the Customs Tariff. The Rule-6 of GIR lays down that the sub headings (denoted by double dash) can only be compared at the same level.

• Col (3) Item description

This column gives the description of the entry as contained in the First Schedule of Customs Tariff.

• Col (4) Unit

This column gives the unit of import in terms of weight (kg-Kilograms), number (u- unit), length (m-meter) and pair (pa). The import invoice should reflect the unit specifically for statistical purpose. Otherwise, any unit can be mentioned in the invoice depending upon commercial convenience. However, the specified unit must be compulsorily present in the invoice.

• Col (5) Basic Customs Duty
The fifth column of the Easy Reference Customs Tariff shows standard rate of Basic Custom Duty applicable on the tariff entry in custom classification. There are various types of Basic Customs Duty. These are:
i) Ad Valorem – Ad valorem duties are based on value and expressed as a percentage of the Assemble Value (Assessable Value = Cost + Insurance + Freight + 1% landing charges).
ii) Specific rate of duty – Specific rate of duty is based on unit in terms of weight, number etc. In Indian Customs Tariff the specific duty is applicable based on its weight (per kg).
The standard rate of duty can be exempted by notifications for duty concessions.
• Col (6) Additional Duty of Customs (Popularly known as CVD of Excise)

The column 6 provides rate of additional duty of customs (ADC) in terms of Section 3(I) of Customs Tariff Act, 1975. Equivalent to the excise duty applicable on like goods manufactured in India. Education Cess on Excise is exempted for the purpose of calculation of Customs Education Cess in order to simplify calculation in Budget 2012-13 w.e.f. 17.03.2012

The additional duty is leviable on Assessable Value + external tariff (i.e. Basic Customs Duty). It can be understood from the following example:

AV of the goods = Rs. 100
Basic Customs Duty Applicable = 10% = Rs. 10
Value for levy of ADC = Rs. 100+Rs. 10 = Rs. 110
ADC rate = 10%
Quantum of ADC in Rupee terms = 10% of Rs. 110. = Rs 11.
Education Cess of 2%+1% is applicable on aggregate of customs duty other than SAD.

• Col (7) Special Additional Duty of Customs (Popularly known as SAD or Special CVD)
Under Section 3 (5) of Customs Tariff Act 175 the domestic taxes like sales tax, value added tax, local tax or any other charges for the time being leviable on a like article on its sale, purchase or transportation in India; have been made applicable on the imported goods as well for counter balancing these taxes. The mode of calculation will be:
Special Additional Duty of Customs =
(AV+BCD+ADC+Education Cess) X Rate of SAD/100
Education Cess is not applicable SAD.
• Col (8) Total Duty
A glance at this column provides total applicable standard rate of duty on any item including Basic Customs Duty, Additional Duty of Customs and Special Additional Duty along with Education Cess.
Total Duty Calculation

Value Component

Calculation formula

Reference:

A. CIF value Value of goods at the time and place of importation (Cost+Insurance+Freight) Section 14 of Customs Act, 1962 and Rule 9 of Valuation Rules1988
B Assessable Value(AV) Cost+insurance+Freight+1% landing charges Rule 9 of Valuation Rules 1988
C Basic Custom Duty BCD x Assessable Value (AV)
100
Charging section 12 of Customs Act 1962
D Additional Duty of Custom also known CVD of Excise Addlx(AV+BCD)
100
Section 3 (1) of CTA,1975
E Customs Education Cess (2+1%) on aggregate of Duties of Customs other than SAD Section 91-94 of Finance Act, 2004 Clause 136, 138 & 139 of Finance Act, 2007
F Special Additional Duty also known as SAD SAD x (AV+BCD+ADC)
100
without Education Cess on Excise
Section 3(5) of CTA 1975
G Total Duty with EC Total Duty = Aggregate of 1+2+3+4
  (1) BCD which consists of following components
  (2) ADC calculated on [(AV+BCD)]
  (3) Education Cess 3% x [BCD+ADC)] on Aggregate of Customs Duty without SAD
  (4) SAD 4% of [(AV+BCD+ADC + 3% of (BCD+ADC)]
 
• Col (9) Import Policy and NTBs
The ninth column give the import policy for the subheading according to Ministry of Commerce publication titled Item wise Exim Policy based on ITC (HS) Classification as amended. The import policy is amplified by Import Policy Note given at the end of the heading, where necessary.

The licensing policy is one of the following: free, prohibited, or restricted. The policy is given with reference to the eight digit common tariff code followed by the customs and the DGFT.
The Main heads are:
Restricted = Not permitted for import except by a Public Notice or Licence.
Prohibited = Not permitted for import.

Free Conditions = Free import with conditions

STE = State Trading Enterprises. Import is allowed only through nominated agencies.

Where it is not possible to give the policy in the subheading, we use the words “Not” in the columns. The relevant import policy note is given at the end of the heading.

The section (KB), (KC), (KD), (KE), (KF), (KG) in the contents of this book gives details of requirements of domestic laws to be fulfilled by the importer of imported goods at the point of entry.
These are known in international trade as non tariff barriers. Some of the codes used for various Non Tariff Barriers are
Agri permit - Agriculture Permit
PSC - Phyto Sanitary Certificate
BIS - Bureau of Indian Standards Quality Certificate.
Customs Prohibitions
Specific prohibitions (under relevant HS headings) on imports and exports operative under Section 11 of the Customs Act, 1962 are given in each heading. The notification reference under the prohibition refers to notifications issued under Section 11. These are given under NTBs at the end of a Chapter.
 
• Col (10) Country Preferences
In column 10, preferential duty rate applicable on imports from notified “preferential areas” have been indicated. The codes used for such preferential treatment are as follows
Preferential Country/ Agreement Code used in the book
Afghanistan Af
Asia-Pacific AP
Association of Southeast Asian Nations ASEAN
Association of Southeast Asian Nations ASN
Chile Cl
Global System of Trade Preferences GP
Japan JP
Korea Kr
Malaysia MY
MERCOSUR MERC
Myanmar My
Nepal Np
Pakistan Pk
Preferential Area PA
Sri Lanka, Nepal, SAPTA, SAFTA SA
SAFTA SF
SAPTA SA
Singapore Sg
Sri Lanka Lk
Thailand Th
Least Developed Countries LDC
In case of imports of specified item from a preferential area, the preferential duty is charged instead of standard rate of Basic Customs Duty. The "Origin" requirements must be satisfied for the exemption.
• Col (11) Import Value
The last column in the entry shows the import value of the particular Custom Tariff Head during the financial year 2010-2011 in Rs. crores. The figures are taken from Director General of Commercial Intelligence Statistics (DGCIS), Kolkata.
Special Notes
Exemption Notifications
The schedule rate of basic duty is exempted by a notification issued under Section 25(1) of the Customs Act, 1962. The main notification (know as the jumbo exemption notification) covering the entire schedule is carried in the beginning of this book. An extract from the notification is featured in the heading itself. For amending notifications issued during the course of the year, please refer to our publication Big's Weekly Index of Changes.
The first notification in series is know as the original notification. Amending notifications, on the other hand, make changes in an original notification. In this book, the original notification number and date is given in the reference column in the left. The text of the amending notifications is incorporated in the original notification itself. The amendment references are at the end of the notification or the beginning of the notification.
The summary at the head of the notification gives the highlights of the notification. It does not have any legal significance and is an introduction drafted by the editor.
MRP Based Countervailing Duty
In Budget 2001, Maximum Retail Price (MRP) based valuation for the purpose of levy of additional duty was introduced. In this the retail value marked on the input package after standard abatement is used to arrive at the whoesale as the base for application of additional duty. Now RSP (Retail Selling Price) is also used as the base for valuation.
Additional Duty on Liquor
The Central Government specifies the standard additional duty having regard to the excise duty for the time being leviable on like alcoholic liquor produced or manufactured in different States. The duty on liquor is levied on imports as an additional duty of customs.
Anti-Dumping and Safeguard Duties
These duties are levied under Section 9A and 9B of CTA 1975. They are levied as specific rates on quantity of imports or in the shape of minimum landed value in which case too the difference between the actual landed value and the stipulated minimum landed value is the quantum of anti dumping duty.
Abbreviations
Agri Permit AgP
BIS BIS
Free Fr
Prohibited Proh
Restricted Restd
San Permit SanP
Labelling Lbl