A 10% Basic Customs Duty ( BCD ) rate was imposed on laboratory chemicals excluding undenatured ethyl alcohol of any alcoholic strength. The Central Board of Indirect Taxes and Customs ( CBIC ), vide Notification No. 41/2024-Customs dated 31st July 2024.
According to the condition, the importer must submit an undertaking to the Deputy Commissioner or Assistant Commissioner of Customs, stating that the imported goods will be used exclusively for laboratory or research and development purposes and will not be sold or traded post-importation.
If the importer failed to comply with this condition, they will be liable to pay the duty applicable to the quantity of goods not used for the specified purposes, as if the exemption under this notification had not applied.
The board has made the amendment to the notification 50/2017. In the said notification, –
(I) in the Table, after S. No. 606 and the entries relating thereto, the following S. No. and entries shall be inserted, namely: –
| (1) | (2) | (3) | (4) | (5) | (6) |
| “606A | 9802 00 00 | All goods (excluding undenatured ethyl alcohol of any alcoholic strength) for use in:- (i) laboratory; or (ii) Research and Development purposes. | 10% | 123”; |
(II) in the Annexure, after Condition No. 122 and the entries relating thereto, the following condition and entries shall be inserted, namely: –
| “123. | If, the importer submits an undertaking before the Deputy Commissioner of Customs or the Assistant Commissioner of Customs, as the case may be, that the goods so imported shall be for use in laboratory or for use in research and development purposes and shall not be sold or traded after importation and that in case of failure to comply with this condition, he shall be liable to pay, in respect of such quantity of the said goods as is proved to have not been so used for the specified purposes, an amount equal to the duty leviable on such quantity but for the exemption under this notification.”. |
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